Professional Documents
Culture Documents
com
Broad-base
categorizations of the
type of investments
within a portfolio
are to Run, Grow
and Transform the
business.
2
Effective portfolio management Governance
provides a mechanism to make
Effective portfolio sure that the organization is doing Governance for portfolio
management includes giving
management the right things and achieving
appropriate benefits. In many directions when looking for
organizations, there could be benefits being greater than
hundreds of such programs and investments, and how risks and
projects running across different interdependencies come into
functions with a geographically play across services, products,
dispersed setting. This complexity programmes or projects.
causes organizations to struggle Portfolio Management enhances
with doing the right things and executive decision-making based
realizing appropriate benefits. on company specific criteria,
The outcome is that organizations and key decisions are made at
receive a poor return from governance forums.
their investment by failing to
Strategy alignment and risk
unlock the full value of their
tolerance
capital investments.
Successful executives have
The following are the key elements
realised that portfolios represent
for portfolio management
where they are today in their
to be effective through a
current operations (catalogue)
combination of great strategy and
and what they will be in the future
powerful execution.
(pipeline). As the strategy and risk
tolerances change, portfolios will
need to change. Portfolios have
a direct line of sight with strategy
and risk tolerances to be effective
in making strategy a reality.
3
High
D E K
Re-evaluate Accelerate
C F Y
Economic Value
M
Stop Execute
A
N
B
X
Low
Low High
Strategic Alignment
Figure 1: Value map of services, products, programs or projects (a, b and so on) showing the level of strategic
alignment and the executive decisions (stop, re-evaluate, execute, accelerate) for portfolio management
4
Portfolio office
Ineffective sequencing, creating problems in delivery Ineffective conversion of strategy into action
Lack of sufficient experience and capability within Inefficient delivery and execution with inconsistent
portfolio management functions portfolio management
Organizations inability to absorb change due to lack of Delays in the delivery and increased costs
asset capacity
Ineffective monitoring, reporting and aggregation tools Lack of effective actions due to slow identification
of key issues
Inconsistent portfolio data across business units or
functions Differing decisions leading to inconsistent outcomes
of portfolio management
6
Dr. Roma B. Mohanti is the Management Consultant, Process Excellence,
Wipro. He has over 25 years of industry experience in areas of Portfolio
About the Management, Program/Project Management, Operational Excellence,
7
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