Portfolio Management Knowledge Areas

Portfolio Management Knowledge Areas


6.1 Develop Portfolio Performance Management Plan

The portfolio performance management plan is a subsidiary plan of the portfolio management plan or a component of the portfolio management plan. it explains how portfolio value is defined and details how portfolio components are allocated for financial, human, and material or equipment resources. Performance planning starts with reviewing the Portfolio goals set in the portfolio strategic plan, and the set to reach these goals. Performance management a discipline for measuring and analyzing progress against goals to determine if changes to objectives, metrics, or to the portfolio component mix need to be made. Recommendations for changes are based on performance, in resource capability or capacity (constraints), benefits realization, assumptions, dependencies, or risks.

Portfolio resource management planning determines how resource capacity will be managed against resource utilization and changing demand to ensure a portfolio component mix generates maximum value. The performance management plan also defines the parameters and sets acceptable ranges for optimal resource capacity utilization such as insourcing versus outsourcing levels, funding levels based on financial leverage, and risk exposure policies.

Portfolio value planning covers how the realization of benefits associated with the portfolio components are tracked and optimized for maximum organization value. Organization value is more than just economic value, in that it includes revenue growth and increased operating margins. It also includes Other forms of value, such as employee or customer satisfaction, contribution to the community, enhancement or protection of reputation, and branding, integrity of the organization's products or services, or protection of environmental resources.

Portfolio reporting Will focus on providing stakeholders and the governing body with metrics to determine whether the portfolio is meeting the organizational strategy and objectives. It should enable the portfolio sponsors to quickly the status of the portfolio's progress in achieving the expected benefits.

To a lesser degree, portfolio reporting Will also provide those responsible for executing portfolio components with meaningful information on the status of the respective portfolio components in the context of other components and the overall portfolio. This level of portfolio reporting is important to optimize resource utilization against organizational priorities.

The performance management plan documents how the organization plans to measure, monitor, control and report (1) portfolio performance, (2) resource management, and (3) portfolio value.



.1 Portfolio management plan

.2 Portfolio process assets

.3 Organizational process assets

.4 Enterprise environmental factors


Tools & Techniques


.1 Elicitation techniques

.2 Portfolio management information system

.3 Capability and capacity analysis




.1 Portfolio management plan updates

.2 Portfolio process assets updates