What Is Portfolio Management and Why Is It Important?
Your portfolio is the lifeblood of your business. If you don’t manage it properly it can cost you money in lost revenue. It can also cost you your reputation by way of lost clients.
The scary thing is that most business owners can’t even answer the question “what is portfolio management”. Don’t let that be you.
Active portfolio management can put you ahead of your competition. It helps you to maximize every dollar you spend on company assets.
We’re going to give you a quick “crash course” on portfolio management.
We’ll cover implementing strategic portfolio management in your own business. This includes the proper portfolio management process.
We’re going to cover a lot of information so let’s get going.
Why Is Portfolio Management Important?
Your portfolio allows you to keep your finger on the pulse of your business with a quick glance.
If you take the time to manage your portfolio properly, knowing which projects should happen when becomes a snap.
Traditional project management focuses on finishing one project at a time. With portfolio management, project managers become responsible for prioritizing projects and deciding when to cancel ongoing projects.
In portfolio project management, project managers wear many hats. They become key players within your business.
What Is the Portfolio Management Process?
To manage your portfolio properly takes planning and foresight. There is a basic framework good property managers use to make sure portfolio property management is being done right. Here are the steps below.
1. Determine Business Objectives
Everyone needs to be working toward the same objectives for the team to decide which projects to take on and which ones to leave alone. This planning process also helps the team determine their priorities.
2. Gather Information
This is the point in the process when you do your research on potential projects. Once you gather your ideas put together a high-level presentation for each project that outlines the resources necessary.
3. Narrow the List
The next step is to decide which projects stay and which ones go. This is a huge part of what is project management. You’ll want to circle back to your objectives to make sure you select projects that align with the roadmap for your team.
4. Assess Feasibility and Start Projects
You need to see if your projects are even possible and if your company has the resources to complete them. Dive deeper into your initial presentation and get a concrete, real-world picture of the amount and type of resources necessary. Also, brainstorm any possible obstacles.
5. Manage and Monitor
The next step is to manage and monitor ongoing initiatives. Projects always hit little bumps in the road so you may need to recalibrate or re-allocate resources at this stage in the game.
If you’re new to the management and monitoring process, it may help to bring professionals on board. The team at Bellwether AM can help you with all of your portfolio project management needs.
Solving the Portfolio Management Puzzle
If you were wondering “what is portfolio management” we hope you now have an in-depth answer. The portfolio management process is essential to keeping your team going toward their goals.
What are your experiences with portfolio project management? Let us know in the comments. We always love to hear feedback from our readers.