What is Portfolio Governance Management?
Portfolio governance management is the process of establishing and maintaining the framework for decision-making and accountability within an organization’s project portfolio. It involves defining roles and responsibilities, establishing policies and procedures, and setting up the necessary infrastructure to support portfolio management.
Effective portfolio governance management is essential for ensuring that an organization’s project portfolio is aligned with its strategic goals and objectives, and that resources are being used effectively. It helps to ensure that the right projects are being pursued, and that they are delivered on time and within budget.
Key Components of Portfolio Governance Management
There are several key components of portfolio governance management that are essential to consider when establishing a portfolio governance framework. These include:
- Portfolio governance structure: The structure of the portfolio governance framework should clearly define the roles and responsibilities of key stakeholders, such as the portfolio manager, project managers, and senior executives.
- Portfolio governance policies and procedures: The portfolio governance framework should include a set of policies and procedures to guide decision-making and ensure consistency in the way projects are managed. These may include guidelines for project selection, resource allocation, and project monitoring and control.
- Portfolio governance tools and infrastructure: The portfolio governance framework should include the necessary tools and infrastructure to support effective portfolio management. This may include portfolio management software, reporting tools, and communication channels.
- Portfolio governance metrics: The portfolio governance framework should include a set of metrics to measure the performance of the portfolio and the effectiveness of the governance process. These may include metrics such as portfolio return on investment, project delivery rates, and resource utilization.
Strategies for Effective Portfolio Governance Management
There are several strategies that organizations can use to effectively establish and maintain a portfolio governance framework. These include:
- Use a portfolio governance template: Many organizations use a portfolio governance template to establish a consistent framework for decision-making and accountability. A template can be customized to fit the specific needs of the organization and can provide a starting point for building the portfolio governance framework.
- Involve key stakeholders in the process: It is important to involve key stakeholders in the process of establishing a portfolio governance framework. This includes the project team, as well as any external stakeholders who may be impacted by the portfolio.
- Establish clear policies and procedures: Developing clear policies and procedures can help to ensure that the portfolio governance framework is effective and consistent. These should be reviewed and updated regularly to reflect changes in the organization’s goals and objectives.
- Use portfolio governance metrics: Using portfolio governance metrics can help to measure the performance of the portfolio and the effectiveness of the governance process. These metrics can be used to identify areas for improvement and to track progress over time.
By following these strategies, organizations can effectively establish and maintain a portfolio governance framework that ensures the success of their project portfolio.