Portfolio Management Processes Flow


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The processes are separated into colors according to knowledge areas and process groups. Developed under permission from Project Management Institute. ©2011 PMI.
Buy the english version of The Standard for Portfolio Management — Second Edition.

Adapted by:
Eduardo Araújo Mendonça, MBA
Gustavo Luiz Batista dos Santos, PMP
Regina Rocha M. Gonçalves, PMP
Renato Ávila Soares de Souza, MBA, PMP
Ricardo Viana Vargas, MSc, CSM, PMP
Wagner Maxsen
Sueli Barroso

Published in: Business, Economy & Finance

Portfolio Management Processes Flow

  1. 1. PORTFOLIO MANAGEMENT PROCESSES ALIGNING - DEFINITION ALIGNING - EXECUTION GOVERNANCE GOVERNANCE GOVERNANCE GOVERNANCE 4.7 Communicate Portfolio Review and Report 4.1 Identify Components 4.8 Authorize Components 4.9 Adjustments Portfolio Performance Inputs Inputs Inputs Inputs 1. Strategic plan 1. New criteria 1. List of approved portfolio components 1. Component data 2. Component definition 2. Strategic plan update 2. Component funding requirements 2. Resource allocation and capacity data 3. Component key descriptors 3. Portfolio reporting and review outputs 3. Component resource requirements 3. Environmental constraints 4. Inventory of all existing components 4. Organizational process assets 4. List of deactivated and terminated 4. Organizational governance standards, 5. New component proposals 5. Stakeholder expectations and components controls, and constraints Tools and Techniques requirements Tools and Techniques 5. Evaluation and selection criteria 1. Documentation of all inventoried Tools and Techniques 1. Portfolio management roles and 6. Key performance indicators (KPIs) updates components based on key descriptors 1. Communication requirements analysis responsabilities document 7. Strategic goals and strategy 2. Comparison of all inventoried Outputs 2. Portfolio management communication 8. Portfolio management criteria components with component definition 1. Portfolio management roles and plan Tools and Techniques 3. Identification of components responsibilities document 3. Portfolio authorization process 1. Project/portfolio management system 4. Expert judgment 2. Portfolio management communication plan Outputs 2. Financial reporting systems Outputs 3. Portfolio comnunications 1. Additions to the active component 3. Performance measurement techniques 1. List of components inventory 4. Graphical representations 2. Key descriptors for each component 2. Component expectations updates 5. Portfolio management resources 3. List of rejected components 3. Approved component funding and 6. Portfolio management performance exceptions variance / alert techniques 4. Approved component resource Outputs allocations and exceptions 1. Directives regarding components 5. Excluded components 2. Portfolio rebalancing recommendations 6. Portfolio milestones 3. Recommendations to business 4. Refined selection criteria 5. Key performance indicators (KPIs) updates 6. Strategic goal achievement reporting GOVERNANCE GOVERNANCE GOVERNANCE 4.2 Categorize Components 4.3 Evaluate Components 4.4 Select Components Inputs Inputs Inputs 1. List of components 1. Strategic plan 1. Strategic plan 2. Key descriptors for each component 2. List of categorized components 2. List of evaluated components MONITORING AND CONTROLLING 3. Category definitions 3. Key descriptors for each component 3. Value score for each component Tools and Techniques Tools and Techniques 4. Graphical representations 1. Categorization of components 1. Scoring model comprising weighted key 5. Organizational resources 2. Expert judgment criteria 6. Evaluation process recommendations Outputs 2. Graphical representations Tools and Techniques 1. List of categorized components 3. Expert judgment 1. Human resource capacity analyses Outputs 2. Financial capacity analyses 1. List of evaluated components 3. Asset capacity analyses 2. Value score for each component 4. Expert judgment 3. Graphical representations Outputs GOVERNANCE RISK MANAGEMENT 4. Evaluations process recommendations 1. List of categorized, evaluated, selected, Monitor Business Monitor and Control and rejected components 4.10 5.4 Strategy Changes Portfolio Risks 2. Selection process recommendations Inputs Inputs 1. Portfolio reporting and review 1. Portfolio management plan 2. Strategic plan update 2. Portfolio risk register Tools and Techniques 3. Component progress reports 1. Expert judgment 4. Component data 2. Criteria re-weighting Tools and Techniques 3. Graphical representations 1. Portfolio risk audits Outputs 2. Variance and trend analysis 1. New criteria 3. Status meetings 4. Portfolio risk reassessment Outputs 1. Portfolio change requests 2. Portfolio risk register updates 3. Organizational process assets RISK MANAGEMENT RISK MANAGEMENT RISK MANAGEMENT 5.3 Develop Portfolio Risk 5.2 Analyse Portfolio Risks 5.1 Identify Portfolio Risks Responses Inputs Inputs Inputs 1. Portfolio risk register 1. Enterprise environmental factors 1. Portfolio management plan 2. Portfolio management plan 2. Organizational process assets 2. Portfolio risk register ALIGNING - DEVELOPMENT Tools and Techniques 3. List of selected portfolio components 3. List of prioritized components within 1. Risk probability and impact assessment 4. Portfolio management plan each strategic category 2. Risk combining and modeling techniques 5. Escalated component risks Tools and Techniques Outputs Tools and Techniques 1. Response strategy selection 1. Portfolio risk register updates 1. Documentation reviews 2. Scenario analysis 2. Portfolio risk exposure charts 2. Information gathering techniques Outputs GOVERNANCE GOVERNANCE 3. Checklist analysis 1. Portfolio risk register updates 4. Assumptions analysis 2. List of categorized, evaluated, and 4.5 Prioritize Components 4.6 Balance Portfolio 5. Diagramming techniques selected portfolio components Outputs 3. Portfolio management plan updates Inputs Inputs 1. Portfolio risk register 1. List of selected components 1. List of prioritized components within each 2. Selection process recommendations strategic category Tools and Techniques 2. Portfolio management criteria 1. Weighted ranking 3. Portfolio management performance 2. Scoring techniques metrics 3. Expert judgment 4. Capacity constraints Outputs 5. Portfolio rebalancing recommendations 1. List of prioritized components within each from reporting and review strategic category 6. Portfolio risk register 2. Supporting documents to prioritized Tools and Techniques component list 1. Cost benefit analysis 2. Quantitative analysis 3. Scenario analysis 4. Probability analysis PORTFOLIO MANAGEMENT PROCESSES 5. Graphical analytical methods 6. Expert judgment OutputsBased on PMI Global Standard for Portfolio Management Coordination | Ricardo Viana Vargas, MSc, CSM, PMP 1. List of approved portfolio components Graphic Design | Designlândia / Sérgio Jardim 2. Master list of updatesAdapted by | Eduardo Araújo Mendonça, MBA 3. Approved portfolio component allocation Gustavo Luiz Batista dos Santos, PMP Review | Wagner Maxsen, Sueli Barroso updates Regina Rocha M. Gonçalves, PMP Renato Ávila Soares de Souza, MBA, PMP The material from this publication has been reproduced with the permission of PMI. www.ricardo-vargas.com Copyright and all rights reserved.