Project Portfolio Management Growth and Operation: Portfolio Management Structure, Operations, Risk, and Growth

Project Portfolio Management Growth and Operation: Portfolio Management Structure, Operations, Risk, and Growth

Frank R. Parth (Project Auditors LLC, USA)
DOI: 10.4018/978-1-5225-2151-8.ch011
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Abstract

Developing a portfolio management system that can effectively and efficiently select and prioritize the projects that best support strategic goals, this is only the start of portfolio management. To ensure that the enterprise portfolio management system (EPMS) can continue to operate and grow as the organizational environment changes and the strategic goals change, the EPMS must be implemented within the organizational structure that ensures it will remain relevant in the future. We discuss two architectures to the administrative housing of the EPMS, within a PMO or as a separate stand-alone organization. Both have their advantages and disadvantages. In either case, once the EPMS is implemented it must be controlled and managed as any other group within the larger organization. This requires a structure, roles and responsibilities, personnel and IT resources, an annual budget, and all the other administrative functions required to manage a department. As the maturity level of the EPMS evolves the growth must be managed to continue to support the organization.
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Organizational Structure

Effectively operating an EPMS requires a strong organizational structure. There are two basic options for developing an EPMS within the context of the overall organization. It could be a stand-alone organization or it could be within the overall structure of a Program or Portfolio Management Office (PMO).

Creating a portfolio organization is no different than creating any other brand new group within an organization, and no simpler, either. It can be extremely challenging from both a structural standpoint and from a political one to create a new group. Especially since this new group can significantly change the decision-making power within the organization and remove the ability of many managers to select their own projects.

Roles and job descriptions will need to be identified within the framework of the organization. Typical roles at this level include the Portfolio Executive, the Portfolio Manager, an administrator, and a higher-level Steering Committee. Responsibilities are generally as follows:

Portfolio Executive

The portfolio executive is a senior level individual responsible for the line of business in which the portfolio has been created and they act as the EPMS sponsor. If the EPMS supports multiple lines of businesses, this role may performed by the Portfolio Steering Committee.

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