Portfolio Management Knowledge Areas

Portfolio Management Knowledge Areas


Portfolio Management Process Group and Knowledge Areas Mapping

Knowledge Areas

Defining Process Management

Aligning Process Management

Authorizing and Controlling Process Management

Portfolio Strategic Management

4.1 Develop Portfolio Strategic Plan

4.4 Manage Strategic Change

4.2 Develop Portfolio Charter

4.3 Define Portfolio Roadmap

Portfolio Governance Management

5.1 Develop Portfolio Management Plan

5.3 Optimize Portfolio

5.4 Authorize Portfolio

5.2 Define Portfolio

5.5 Provide Portfolio Oversight

Portfolio Performance Management

6.1 Develop Portfolio Performance Management Plan

6.2 Manage Supply and Demand

6.3 Manage Portfolio Value

Portfolio Communication Management

7.1 Develop Portfolio Communication Management Plan

7.2 Manage Portfolio Information

Portfolio Risk Management Overview

8.1 Develop Portfolio Risk Management Plan

8.2 Manage Portfolio Risks

©2017 Project Management Insitute. A Guide to the Portfolio Management  - Third Edition

Defining Process Group


The Defining Process Group consists of those processes performed to establish how the organizational strategy and objectives Will be implemented in a portfolio; determines the portfolio strategic plan; determines the portfolio structure and roadmap; defines and authorizes a portfolio or subportfolio; and develops the portfolio management plan and subsidiary plans.


The Defining Process Group is most active at the time the organization identifies and updates its strategic goals, near-term budgets, and plans. Traditionally, these activities take place at the annual budgeting time or business review meetings although some organizations have more or less frequent cycles. Such activities could be scheduled quarterly, for example, or may occur because of unscheduled changes in the organization (e.g., mergers, reorganization, changes in enterprise environment factors, etc.).


Aligning Process Group


The Aligning Process Group consists of processes to manage and optimize the portfolio. This group determines how portfolio components Will be categorized, evaluated, selected for inclusion, modification, or elimination, and managed in the portfolio. The Aligning Process Group promotes and supports the portfolio based on the strategic goals of the portfolio through the operational rules for evaluating components and building the portfolio. The processes in this Process Group enable the establishment of a structured method for aligning the mix of portfolio components to the organization's strategy.


The Aligning Process Group is most active after the portfolio organization has defined and developed its strategic goals, near-term budgets, and plans. Traditionally, these activities are used to manage ongoing portfolio activities.


Authorizing and Controlling Process Group


The Authorizing and Controlling Process Group consists of the processes for determining how to authorize the portfolio and provides ongoing portfolio oversight. These two processes are central to all the portfolio management processes and are the process steps and activities necessary to enable the portfolio as a whole to perform to achieve metrics defined by the organization.