Portfolio Performance Management
This concept involves monitoring and managing the performance of the project portfolio. It includes developing key performance indicators (KPIs) to measure portfolio performance, tracking these KPIs over time, assessing portfolio health, and making adjustments as required. Performance management also helps demonstrate the value of the portfolio, aids in decision making, and provides insights for continuous improvement.
Guide to Portfolio Performance Management
Portfolio Performance Management is a key element in project portfolio management under the CAPM, or Certified Associate in Project Management, conceptual framework
Importance:
Portfolio Performance Management is crucial in determining the success of an array of projects. It aids in decision making by illustrating the returns, risks, and value of the projects.
Definition:
Portfolio Performance Management involves the systematic review, monitoring, and adjustment of an array of projects towards meeting specified objectives. It emphasizes the performance of the portfolio as a whole rather than individual projects.
Working:
This process involves tracking portfolio results, comparing them with planned or desired outcomes, and taking necessary actions to align actual results with targets. Performance metrics may involve return on investment, risk levels, project value, and stakeholder satisfaction.
Exam Tips - Answering Questions on Portfolio Performance Management:
1. Understand concepts: Key to success is understanding fundamental concepts and not just memorizing definitions.
2. Application-based learning: Focus on applying theory in practical scenarios.
3. Clear explanations: Explain terms with clarity, providing examples where appropriate.
4. Time management: Practice solving questions in a timely manner to manage time during the exam effectively.
5. Exam pattern: Understand the exam format and types of questions asked.
6. Practice: Regular practice and revision can facilitate a firm grasp of the subject.
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