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 [1].

• 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 [2].

So, above components are very important when tracked properly can maximize the value to organization.

Reference:

1. The Standard for Portfolio Management pages 37-38

2. Lecture Slides Portfolio Management Week-5