Components of MoP

Components of MoP

Various Components of MoP

First, come the portfolio management model under which the portfolio management principles helps to understand the definition of portfolio and various portfolio delivery cycles. Organizational energy is the core of Portfolio Management model.

Major Portfolio Management Principles

The mentioned below five principles act as the basis on which the portfolio management stands.

1. Senior Management Commitment

Senior Management enables to understand the value of portfolio management and participating in various processes

2. Governance Alignment

Clear decision-making approach that combines with the present corporate decision-making processes

3. Strategy Alignment

It tells that the portfolio management must contain investments that will help them achieve the strategic objectives of an organization

4. Portfolio office

Portfolio office is responsible for reporting to the Board level. To provide standards, analysis and improved working across the organisation departments, a Portfolio Office Function must be there containing PPM professionals.

5. Energized Change Culture

The organisation must have an environment where people always stay motivated and work hard to complete the tasks in a better way. They work as a team and try to fulfill the goals of an organisation.

Portfolio Management Cycles

Portfolio Management cycle has two subparts:

Portfolio Definition cycle

Portfolio Delivery Cycle

Portfolio Definition cycle

This cycle focus on doing the correct things by collecting major information that will provide knowledge to the senior management as well as the wider audience concerning the collection of change initiatives that will deliver many contributions towards meeting the strategic objectives.

The practices that come under the portfolio definition cycle includes:

• Understand
• Categorize
• Prioritize
• Balance
• Plan

Portfolio Delivery Cycle

Its focuses on doing those things correctly to ensure the better implementation of change initiatives as given in the delivery plan as well as portfolio strategy. It also makes sure that the portfolio adjusts according to the changes in strategic objectives and the delivery of project and programme.

The portfolio delivery cycle includes following practices:

• Management control
• Benefits Management
• Financial Management
• Risk Management
• Stakeholder Management
• Organisational governance
• Resource Management