The term portfolio management refers to a strategic approach used by organizations to optimize their investments in projects, programs or business units. It involves identifying and prioritizing initiatives based on their potential impact, alignment with organizational goals, and available resources. The goal of portfolio management is to maximize the value delivered by an organization's investment in change efforts while minimizing risk and ensuring that resources are used efficiently.
The role of a Portfolio Manager involves managing multiple projects or initiatives simultaneously, making strategic decisions about which projects should be pursued, and allocating resources accordingly. This requires strong leadership skills, the ability to prioritize competing demands, and an understanding of how individual projects contribute to overall organizational goals.
In summary, portfolio management is a critical role that involves managing multiple investments in order to maximize value delivery while minimizing risk and ensuring efficient use of resources.