MoP; The strategic and organizational context at a glance

Dia1MoP can be divided into four integrated elements: The strategic and organizational context, Principles, Portfolio Definition Cycle, and Portfolio Delivery Cycle.

Before you go into the details of the portfolio definition and portfolio delivery cycles you must understand how portfolio management links to the following six key functionalities or activities: strategic/business planning, business as usual, budgeting and resource allocation, project and program management, performance management and corporate governance.

The official MoP book addresses the relationship between portfolio management and each key functionality or activity individually.

To help my students in MoP training classes to understand these relationships, I brought these six together. As a result it’s easier to understand why these relationships exists.

Dia1If you look at the figure, you start at the top. Strategic/business planning drives on one hand business as usual (Run the business) and sets the basis for the scope of the portfolio (change the business). To make sure everybody will do what is needed to achieve the objectives you need to have performance management in place. KPI’s to support business as usual as well as KPI’s to support the change initiatives. Missing KPI’s will definitely result in failure or problems. Programme and project management are mechanisms to deliver the changes. Portfolio management will deliver the standards, processes, and staff development (Centre of Excellence) and the management of dependencies and overall risk management for the programme and project management function. Budgeting and resource allocation (money, people, equipment, facilities, etc.) will help you to control and to build a portfolio that is manageable and realistic to deliver and to keep the shop open. The results from programme and project management will lead to an adjusted business as usual organization and running the adjusted business organization will result in the realization of forecasted benefits. Behind all these functions you will find corporate governance. The ongoing activity of internal control and portfolio management supports this control by linking the strategy with the portfolio, providing a framework to deliver the portfolio, and creating clarity on roles and responsibilities and progress against plan.

Besides these six key functionalities or activities portfolio management can/will/need to collaborate with other functionalities e.g. communications, IT, finance, procurement, HR, etc.

To download the figure: MoP (Org context, 140711) v1.0

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