Components represents the planned or achieved investments of a company goals. These are aligned with the company strategic objectives and are quantifiable. PPM has four basic components .
- Selection of right Project
Selection of right project is very important because the component should be aligned to the company business strategy which will result a high gain in ‘Value’.
- Optimization of Portfolio
Steps to construct the portfolio should be defined. This also enlists the limitation and constraints in achieving the optimization.
- Protection of Portfolio’s value
Projects benefits should be protected by monitoring different metrics like portfolio health, and managing its risks.
- Maturity of Portfolio Processes
Greater portfolio maturity transforms into a higher realization of PPM Benefit’s .
So, above components are very important when tracked properly can maximize the value to organization.
1. The Standard for Portfolio Management pages 37-38
2. Lecture Slides Portfolio Management Week-5