The Standard for Portfolio Management

Article excerpt

PROJECT MANAGEMENT INSTITUTE The Standard for Portfolio Management Project Management Institute, 2006, ISBN: 1930699905, paperback, approx. 65 pp., $38.95 Member, $46.95 Nonmember. Available May 2006.

PARALLELING THE GROWTH of project management, portfolio management is quickly gaining momentum. Yet, project management practitioners have operated without a documented set of processes recognized as best practices in portfolio management. Available in May, the Project Management Institute's new The Standard for Portfolio Management serves as that resource.

A portfolio represents a collection of active programs, projects and other work that reflects the company's priorities, investments and resource allocations. Portfolio management is the centralized management of one or more of those portfolios to achieve specific strategic business objectives. Management then can identify, categorize, evaluate, select, prioritize, authorize, terminate and review various components to ensure they align with the organization's current and future strategy. This process, in turn, helps organizations optimize limited resources.

Portfolios address all aspects of an organization, reaching into organizational functions such as finance, marketing, corporate communications and human resources. For that reason, portfolio management has become a key method to create and execute effective corporate governance frameworks.

The Standard for Portfolio Management focuses on how portfolio management relates to the disciplines of program and project management. It expands on A Guide to the Project Management Body of Knowledge (PMBOK® Guide)-Third Edition and the Organizational Project Management Maturity Model (OMP3®). …