This document provides an overview of portfolio management and the Portfolio Management Professional (PfMP) certification. It begins with definitions of projects, programs and portfolios. There are then sections on portfolio management overview, domains, process groups and practical application. It concludes with details on the PfMP certification requirements and resources for further information.

1. Portfolio Management for Everyone
January 21, 2015
Melissa Highley, PfMP, PMP

2. Agenda
• Project, Program and Portfolio Management Basics
• Portfolio Management Overview
• Practical Application
• Portfolio Management Professional (PfMP)
• Resources
2

3. Project, Program and Portfolio
Management Basics
3

4. Project/Program/Portfolio
Source: The Standard for Portfolio Management (Third Edition)
Project
A temporary endeavor
undertaken to create a
unique product, service or
result.
Program
A group of related
projects, subprograms and
program activities that
are managed in a
coordinated way to obtain
benefits not available
from managing them
individually.
Portfolio
Projects, programs,
subportfolios and
operations managed as a
group to achieve strategic
objectives.
Doing the right things and doing things right.
• “How”
• Tactical
• “What”
• Strategic
4

5. Further Differentiation
Source: PMI – PfMP Credential FAQs
5

6. P3MO Relationship Venn
http://blogs.pmbestpractices.com/2009/11/the-p3mo-part-2/
6

7. Organizational Context
Source: p2vhub.com per The Standard for Portfolio Management (Third Edition)
7
Figure 1-3: The Organizational Context of Portfolio Management of Portfolio Management

8. Portfolio Management Overview
8

9. Portfolio Management
Source: The Standard for Portfolio Management (Third Edition)
• A portfolio is a component collection of programs, projects, or
operations managed as a group to achieve strategic objectives.
The portfolio components may not necessarily be interdependent
or have related objectives. The portfolio components are
quantifiable, that is, they can be measured, ranked, and
prioritized.
• A portfolio exists to achieve one or more organizational strategies
and objectives and may consist of a set of past, current, and
planned or future portfolio components. Portfolios and programs
have the potential to be longer term with new projects rotating
into the portfolios or programs, unlike projects that have a
defined beginning and end.
• An organization may have more than one portfolio, each
addressing unique organizational strategies and objectives.
Proposed initiatives are structured as portfolios and components
are identified, evaluated, selected, and authorized. In addition,
portfolios may contain subportfolios.
9

10. In other words …
portfolio management is like herding cats (and dogs and …).
EDS “Cat Herders” Commercial: http://vimeo.com/59098832
10

11. Domains
Source: The Standard for Portfolio Management (Third Edition)
There are five (5) domains in portfolio management:
• Domain 1: Strategic Alignment
• Domain 2: Governance
• Domain 3: Portfolio Performance
• Domain 4: Risk Management
• Domain 5: Communications Management
Each domain also has a number of associated tasks.
11

12. Strategic Alignment
Source: PMI - Portfolio Management Professional (PfMP) Examination Content Outline
12

13. Governance
Source: PMI - Portfolio Management Professional (PfMP) Examination Content Outline
13

14. Portfolio Performance
Source: PMI - Portfolio Management Professional (PfMP) Examination Content Outline
14

15. Risk Management
Source: PMI - Portfolio Management Professional (PfMP) Examination Content Outline
15

16. Communications Management
Source: PMI - Portfolio Management Professional (PfMP) Examination Content Outline
16

17. Process Groups
Source: sridharpeddisetty.blogspot.com per The Standard for Portfolio Management (Third Edition)
17
Table 3-1: Portfolio Management Process Groups and Knowledge Areas Mapping

18. Practical Application
18

19. Practical Application
Implement a PMO Toolkit
• Standardized PMO Processes
and Templates:
▫ Intake Process/Form
▫ Project Charter
▫ RACI Matrix
▫ Action Items Log
▫ Issues/Risks Register
▫ Dashboard
• Reference Material:
▫ Lessons Learned
▫ Whitepapers
▫ Articles
19
PMO Toolkit:
a central repository of
project, program and
portfolio management
resources; not to be
confused with PMIS.
This is just a sampling
of documentation that
could be included in
a PMO resource library.

20. Practical Application
Leverage Prioritization Tools
20
Project
Financial Benefit
(revenue gain and/or
cost reduction)
Weight
Efficiency Gained
Weight
Impact to
Customer Satisfaction
Weight
Total
Score
Scoring Guidelines
10 = $$$
5 = $$
1 = $0
0 = Negative
define $ thresholds
50%
10 = Significant
5 = Moderate
1 = None
0 = Loss
define per time/motion studies
25%
10 = Significant
5 = Moderate
1 = None
0 = Negative
define per cust sat surveys
25%
Rank
(highest
= best)
Project 1 5 10 2 5.5
Project 2 10 1 7 7
Project 3 5 5 5 5
Project 4 7 6 1 5.25
Project 5 1 8 4 3.5
Impact/Effort Matrix*
Weighted Scoring
* affirmyourlife.blogspot.com
• Applicable to project, program and
portfolio management (PPPM)
• Include initiative costs in comparisons
• Notate subjective considerations
(ex: loss leaders)
• Legal/regulatory compliance trumps all
• Numerous tool options; select best fit

21. Utilize PPPM Reporting
and Management Tools
• Microsoft Project
• Genius Project
• CA Clarity PPM
• Basecamp
• Teamwork
• And many others!
21
Practical Application

22. Enhance Schedule
Communications
• www.officetimeline.com
• PowerPoint plugin
• Robust free version
• “Plus” license $49
• Suitable for project, program
and portfolio schedules
22
Practical Application

23. Practical Application
Keys to Success
• Standardize tools, templates and processes
• One size does not fit all – select the best fit
• Ensure scalability and flexibility
• Leverage free resources
• Target easy adoption
• Consider the culture
• Solidify executive sponsorship
23
“Successful implementations are 80% people, process and
culture, and only 20% software, hardware and technology.”
Project and Program Management
Best Practices – Chartering the PMO
Niwot Ridge Consulting

24. Portfolio Management Professional
(PfMP)
24

25. PfMP Certification
PMI launched the PfMP credential pilot in 4Q13 and
the first certifications were awarded 2Q14.
The PfMP credential recognizes advanced experience,
skills and performance necessary to manage and align
a portfolio of projects and programs to realize
organizational strategy and objectives.*
• Currently ~ 184 PfMPs globally
(82 in the US, 10 in DMV)**
• 121 charter recipients
• PfMP SMEs (NDA)
* PfMP Presentation by Simona Fallavollita, PMI
** PMI PfMP registry as of January 11, 2015
Image credit: noramacnorton.wordpress.com 25

26. Credential Differentiation
Source: PMI – PfMP Credential FAQs
26

27. Eligibility Requirements
Source: PMI - Portfolio Management Professional (PfMP) Handbook
27
Experience requirements are limited to the previous fifteen (15) years.

28. Certification Process
Source: PMI - Portfolio Management Professional (PfMP) Handbook
28
CBT Fees:
$800 Members
$1000 Non-Members
Application:
Education
Portfolio Management
Business Professional
Training Not Required
Panel:
Five Experience Summaries
(<500 words)
Exam:
Four Hours
170 Questions
150 Scored Questions
20 Pre-Test Questions

29. 29
Feedback from
and demographics
of PfMP pilot
participants.
Source: PMI
Pilot: November 2013
through February 2014
First PfMPs awarded May 2014

30. Resources
30

31. PfMP Information
• The Portfolio Management Professional (PfMP) Handbook
http://www.pmi.org/Certification/~/media/PDF/Certifications/pfmphandbook.ashx
• PfMP Examination Content Outline
http://www.pmi.org/Certification/~/media/PDF/Certifications/PfPM_Examination%20Content%20
Outline.ashx
• PfMP Credential FAQs
http://www.pmi.org/Certification/~/media/PDF/Certifications/PfMP_FAQs_v3.ashx
• The Standard for Portfolio Management
http://marketplace.pmi.org/Pages/ProductDetail.aspx?GMProduct=00101388901
• Portfolio Management Publications
See reading list on following page
• LinkedIn Groups, Practice Tests, Study Guides, PMI.org (Books 24x7)
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32. Reading List
Source: PMI - Reference Materials for Portfolio Management Professional (PfMP) Credential Examination
32