What is Project Portfolio Management? PM in Under 5

Portfolio management involves selecting, prioritizing, and controlling an organization's projects and programs to deliver strategic goals. It balances risk and reward, similar to financial portfolio management. Portfolio managers oversee a diverse range of projects to address various scenarios, integrating strategy development, project management, and change management. They must adapt resources and sometimes terminate projects that no longer serve the organization. A central portfolio management office supports this process, requiring high organizational maturity and effective governance. Ultimately, portfolio management ensures strategic implementation through resource allocation and project prioritization.

What is the primary goal of portfolio management in an organization?

• To focus on a single project

• To balance risk and reward

• To maximize the number of projects

• To minimize costs

Which of the following is NOT a discipline integrated into portfolio management?

• Strategy development

• Project and program management

• Financial auditing

• Change management

What is the role of a portfolio manager in an organization?

• To focus solely on financial investments

• To oversee a collection of projects and programs

• To manage individual projects

• To handle day-to-day operations

What is the purpose of a central portfolio management office (APMO) in an organization?

• To handle human resources

• To support project, program, and portfolio managers

• To oversee marketing strategies

• To manage only financial portfolios

Why is organizational maturity important for effective portfolio management?

• It supports strong decision-making and governance

• It ensures a high number of projects

• It reduces the need for strategy development

• It focuses on short-term gains