ABSTRACT
The essence of portfolio management is decision-making defined as “the act or process of deciding something especially with a group of people”. The organization needs to decide what projects, programs, and other initiatives to invest in, delay, defer, terminate, change, or modify to meet its strategic objectives. And, it needs to make these decisions in accordance with a structured and systematic, yet not overly rigid, set of rules and criteria.
To get “out of the gate” quickly, an organization needs to establish a Governance Model, the “control room” of the portfolio management process. This chapter identifies the six key questions organizations need to answer to establish the Governance Model:
What is our purpose and what portfolios will we manage?
Who will manage the portfolio?
How will projects be selected for the portfolio?
How will we make decisions and resolve conflicts as a Portfolio Committee?
How often will we meet and what rules will govern our meetings?
What will be the role of the PMO in portfolio management?
