Portfolio Governance—Ensuring Alignment to Strategy (Part 2: Definitions)

From the Voices on Project Management Blog
by , , , , , , , , , , , , , , , , , , , , , ,
Voices on Project Management offers insights, tips, advice and personal stories from project managers in different regions and industries. The goal is to get you thinking, and spark a discussion. So, if you read something that you agree with--or even disagree with--leave a comment.

About this Blog

RSS

View Posts By:

Cameron McGaughy
Marian Haus
Lynda Bourne
Lung-Hung Chou
Bernadine Douglas
Kevin Korterud
Conrado Morlan
Peter Tarhanidis
Mario Trentim
Jen Skrabak
David Wakeman
Roberto Toledo
Vivek Prakash
Cyndee Miller
Shobhna Raghupathy
Wanda Curlee
Rex Holmlin
Christian Bisson
Taralyn Frasqueri-Molina
Jess Tayel
Joanna Newman
Linda Agyapong
Ramiro Rodrigues

Past Contributers:

Jorge Valdés Garciatorres
Hajar Hamid
Dan Goldfischer
Saira Karim
Jim De Piante
sanjay saini
Judy Umlas
Abdiel Ledesma
Michael Hatfield
Deanna Landers
Alfonso Bucero
Kelley Hunsberger
William Krebs
Peter Taylor
Rebecca Braglio
Geoff Mattie
Dmitri Ivanenko PMP ITIL

Recent Posts

4 Tips for Project Closing Parties

Project Planning Using Canvas

What Do the Great Thinkers Say About Change Management?

Combat Pushback—and Protect Your Portfolio

Free Your Team With Liberating Structures



 

 

By Jen Skrabak, PMP, PfMP

In the first part of this series, I introduced PMI’s new governance practice guide and reviewed basic differences between organizational (corporate) governance, portfolio management governance and portfolio governance.

With that foundation, I’ll now discuss the four basic governance functions, which together can ensure alignment to strategy. Since portfolios include programs and projects by definition, those are not called out separately.

  • Oversight. Provide guidance, direction and leadership for portfolios
  • Control. How to monitor, measure and report on portfolio status
  • Integration. Provide strategic alignment and integration for the portfolio
  • Decision-making. Provide decision-making structure, thresholds and membership, including delegation of authority for portfolios

In addition, there are four basic governance domains:

  • Alignment. Creating an integrated governance framework, and defining the governance relationships and hierarchy between portfolio governing bodies and other governing bodies (enterprise, functional, program and project-specific)
  • Risk. Identifying and resolving threats and opportunities proactively to ensure the balance of risk and reward for the portfolio
  • Communications. Disseminating information, engaging stakeholders and ensuring organizational change is carried out effectively
  • Performance. Measuring and evaluating KPIs to ensure portfolio value

For some portfolio managers, there may be confusion over governance activities versus portfolio management activities. Portfolio managers may play a governance role on certain programs and projects and provide oversight and decision-making. However, day-to-day portfolio management is distinct from governance, as shown in the diagram below:

Look for part three of this series—which will be focused on key success factors—in the coming weeks! And comment below to share your reactions.


 

Posted by Jen Skrabak on: May 02, 2016 04:12 PM | Permalink

Comments (3)

Please login or join to subscribe to this item
Great
Looking forward to part 3

Thanks Vincent, I agree there is much to discuss with governance. We will continue to try to enlighten and expand everyone's understanding.

Please Login/Register to leave a comment.

ADVERTISEMENTS

"Two roads diverged in a wood, and I... took the one less traveled by, and that has made all the difference."

- Robert Frost

ADVERTISEMENT

Sponsors