What is Business Portfolio Management?


Portfolio refers to the total set of programs, stand-alone projects and other change initiatives undertaken by an organisation.

Portfolio Management

The reason for creating a portfolio is to provide an overall business view and control over all these programs and projects at a high level in the organisation.

Portfolio management is aligned to the organisation’s budgetary and decision-making processes and is the link between the corporate and business strategy and the programs and projects that will deliver it. Portfolios have strategic corporate deliverables and are ongoing.

  • The overall corporate strategy is implemented through the business strategy, the portfolio is aligned with the business strategy.
  • The business strategy is then implemented through the programs and projects that make up the portfolio.

Portfolio management ensures that all projects and programs stay aligned with the business strategy and deliver business benefits.

By treating the totality of the organisation’s programs and projects as a single portfolio, they can be ranked on their alignment with corporate strategy and their potential business benefits.

The goal is to ensure that the portfolio delivers in line with the business strategy of the enterprise.

Portfolio Management key objectives:

  1. To maximise the value of the portfolio by achieving the best possible return on investment
  1. To align the portfolio with the organisational strategy
  1. To balance the portfolio by making the best possible use of the organization’s human and financial resources

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