Determines the objectives for portfolio management and assesses the main points to establish the most practical areas to address. It encourages users of portfolio management to avoid analysis paralysis and begin to make decisions.


A strategic planning of the portfolio are created and solidified.


Goals for portfolio management should be identified:

    • Outline how broad and deep the portfolio should be (objectives aligned with capabilities and maturity).
    • Examine what measurable expectations and needs exist.
    • Look at planned asset life cycles.
    • List migration decisions.
    • Identify risk/reward boundaries.

A common mistake is wanting to set the world on fire without any matches. Goals and objectives must be achievable. If goals are not attainable because of lack of resources, schedule or cost constraints, or cultural issues, change the goals. Changing goals is not an uncommon practice.






Task Instructions:

Readiness Assessment As-Is State

    1. Using the Readiness Assessment, [the PMO Director] is responsible for conducting a Readiness Assessment.
    2. Using the Portfolio Management Stakeholder Assessment, [the PMO Director] is responsible to conducting a Portfolio Management Stakeholder Assessment.
    3. Define information and analysis needs
    4. Collect information and data
      • Interviews
      • Baseline research
      • Benchmarking
      • Surveys
      • Focus groups
    5. Develop an understanding of some of the problems and issues
      • Identify potential low hanging problems that can be solved
    6. Level set on the definition, upper and lower limits, and parameters regarding value, cost, and risk

Validate and Refine Readiness Assessment

    1. Present initial findings to executive management
    2. Obtain concurrence on priorities and direction
    3. Seek additional data and information

Assess Portfolio Management Maturity Model

    1. Evaluate readiness assessment against the portfolio management maturity model
    2. Determine optimal end state in the maturity model (e.g., level 3, level 4)

Gap Analysis and Assess Capabilities

    1. Identify specific gaps that exist between the results of the readiness assessment and the desired end state as determined by the maturity model
    2. Assess capabilities as-is state and compare against gap analysis to determine if adequate resources currently exist to close gaps
    3. For those gaps that do not close with current resources, determine options (and potential resistance) for closing gaps (buy, build, hire, lease, alliance, outsource, etc.)

Define Objectives

    1. Based on the results of the gap and capability assessment, develop a list of priorities and focus areas on allocating resources
    2. Evaluate the importance and urgency of each element above:
      • Perform customer segmentation
      • Identify areas of low hanging opportunities to solve real issues and problems
    3. Assure that defined objectives are traceable to the business strategy
  • Define Process Metrics
    1. Define metrics that measure and monitor the processes and improvements that are in-work as well as completed
    2. Metrics should include both tangible and intangible assets
    3. Process metrics should include incentives and rewards for employees in attaining goals and milestones as provided in the objectives

Document the Game Plan

    1. The plan captures and synthesizes the data and information obtained in the prior tasks.
    2. The plan contains the charter for portfolio management and includes:
      • Purpose

      • Goals

      • Scope

      • Expectations

      • Governance

      • Policies

      • Guidelines

      • Processes

      • Metrics

      • Work effort and action plans with milestones and timetables

    3. Communicate with key stakeholders; seek consensus and approval to proceed to the next stage