Portfolio Management Knowledge Areas

Portfolio Management Knowledge Areas


6.3 Manage Portfolio Value

Portfolio value for an organization can be expressed in multiple ways, including by revenue growth, increased operating margins, employee or customer satisfaction, contribution to the community, enhancement or protection of reputation and branding, and protection of environmental resources. Portfolio value is defined as the aggregate value delivered by the portfolio components, and the goal is to deliver the maximum value possible aligned with strategic objectives and with an acceptable level of risk based on the risk tolerance of the organization.

The method of defining value can differ among organizations. A value measurement framework is often helpful in organizing the value that is to be created, how value Will be measured, and recognizing the possible types of value, including both tangible and intangible benefits. The measurement framework facilitates comparison of expected value across the various components and supports informed portfolio decision making for authorizing those components with the maximum expected net value to the organization. The net value considers the expected gross benefits or value minus the required investment of time and resources.

During the optimization process, component proposals provide initial assessments of expected business value and the (often intangible) contributions to organizational objectives. The expected value to be returned by the portfolio component is a significant attribute of the weighting and scoring leading to authorization. Once authorized, accountability for delivering the consequent value is assigned. Also, expected value Will continue to be measured throughout the component's life cycle.

The expected value of components can change as portfolio components are planned, developed, and executed. Changes in actual scope, schedule, cost, or performance can affect the expected value. External factors such as market conditions, competitor actions, laws and regulations, risks realized, and Other factors can also affect whether the expected value at delivery of the products, services, or assets created or enhanced has changed.

As components are completed and the organization begins to realize the consequential benefits and value, measures are again taken to ensure that the intended benefits are gained, and value is realized. The process to formally measure achieved portfolio value against expected portfolio value ensures that the portfolio continues to drive the correct work into the portfolio, organizational objectives are being achieved, and estimates for value are being established correctly in the component proposals. The value measurement framework is continuously improved by lessons learned through execution.

Outputs from this process include recommendations for changes to the portfolio and information to enable more effective and efficient decision making in the organization.


.1 Portfolio roadmap

.2 Portfolio management plan

.3 Portfolio reports


Tools & Techniques


.1 Elicitation techniques

.2 Value scoring and measurement analysis

.3 Benefits realization analysis




.1 Portfolio management plan updates

.2 Portfolio reports

.3 Portfolio process assets updates