Portfolio
A coordinated collection of projects, programs, sub-portfolios, and ongoing operations governed together to realize an organization's strategic goals.
Key Points
- Aligns work with strategy to maximize value and balance risk across the organization.
- Components may be unrelated; selection and prioritization are based on strategic fit and benefits, not interdependence.
- Governed at the portfolio level with criteria, funding decisions, and oversight to start, continue, or terminate work.
- Different from a program, which coordinates related projects for specific benefits; a portfolio spans diverse work types.
Example
A bank creates a Digital Transformation portfolio that includes a mobile app upgrade project, a payments modernization program, a cybersecurity sub-portfolio, and 24/7 IT operations, all managed together to improve customer experience and grow market share.
PMP Example Question
An organization groups several projects, a program, a sub-portfolio, and ongoing operations under one governance framework to support its 3-year strategy. What is this collection called?
- Project
- Portfolio
- Program
- PMO
Correct Answer: B — Portfolio
Explanation: A portfolio is the set of projects, programs, sub-portfolios, and operations managed together to meet strategic objectives.