WHAT IS MOP?
Management of Portfolios (MoP) is a guideline for best practices in the field of portfolio management.
Organisations have to continue their development, in order to be successful. This means improving the ways they carry out their business as usual and adapt to the changing expectations and requirements of the markets and customers. Portfolio management helps an organisation in implementing the right changes in their business as usual. These changes are realised through programmes and projects. Portfolio management doesn't deal with the detailed management of these programmes and projects, but rather examines the management of the changes achieved through them from a strategic perspective and focuses on key aspects using a holistic approach. These key aspects include, for example
- providing an overview of all programmes and projects in a portfolio (in planning and implementing)
- their costs
- their risks
- their current status
- their contribution to the strategic objectives of the organisation
Portfolio management is defined as "a coordinated collection of strategic processes and decisions that together enable the most effective balance of organizational change and business as usual."
As a link between the strategy of an organisation and the implementation through programmes and projects, portfolio management answers the following fundamental questions:
- Have we chosen the programmes and projects that ideally support our strategic objectives and are our programmes and projects achievable with the available, limited resources?
- Do these programmes and projects deliver the forecast and expected performance in terms of time required, quality and budget?
DAre we realising all of the benefit potential? In addition to the tracking of realised benefits compared to the forecast, this also includes identifying unplanned benefit potentials and eliciting and implementing so called lessons learned.
MoP delivers best practices in to cycles, the portfolio definition during which the right programmes and projects are chosen, and the portfolio delivery during which the correct implementation from a strategic viewpoint is chosen. Furthermore, MoP provides instructions and recommendations for organisational embedding and offers alternative approaches for the implementation in different organisations and circumstances.
MoP enables you to make better-informed decisions on cost reduction through clearly defined priorities and truly understood short and long-term impacts of the reductions. It helps in achieving increases in efficiency and actually realising the savings. MoP provides the means to implementing changes more efficiently through improving the resource planning and dependency management, and streamlining your procedures. It also delivers you the basis for continually improving you resource allocation, implementation and benefit realisation.