The Management of Portfolios (MoP) helps organisations answer the important question;
‘Are we sure this investment is right for us and how will it contribute to our strategic objectives?’
The totality of an organisations’ investment (or segment thereof) in the changes required to achieve its strategic objectives.
A coordinated collection of strategic processes and decisions that together enable the most effective balance of organisational change and ‘business as usual’.
The following five portfolio management principles represent the foundations upon which effective portfolio management is created.
1. Senior Management Commitment
Senior Management must publicly champion and positively communicate the value of portfolio management whilst participating actively in the processes.
2. Governance Alignment
A clearly defined escalation and decision making structure must exist that integrates with the existing corporate decision making processes.
3. Strategy Alignment
The portfolio must contain investments that contribute towards the achievement of the organisations strategic objectives.
4. Portfolio Office
Reporting to Board Level, a Portfolio Office function must exist containing PPM professionals that provide standards, analysis and enhanced collaborative working across departments such as finance and operations.
5. Energised Change Culture
The organisation has created a culture where people are motivated and striving to do things better, they believe in the organisation’s goals and feel part of one team.
The Office of Government Commerce (OGC) in London originally prepared the MoP guide to provide senior executives with an overview of portfolio management – the principles upon which it is based, some of the techniques used, and how you can get started and sustain progress.
Since this article was originally written, Axelos has taken over the management of MoP and the official web site for MoP information is here: www.mop-officialsite.com