The portfolio life cycle is the ongoing processes and functions that occur to a set of portfolios, programs, projects, and operations within a continuous time frame. In today’s global market, the portfolio life cycle needs to be adaptive and flexible to constantly change needs from all influences, internal and external, so organizations can remain competitive and financially stable. One or more portfolios can exist within the life cycle. If several portfolios exist, they can be centralized or decentralized in terms of management within the governance structure in place. For example, a research and development portfolio could be decentralized while another portfolio may be managed centrally. The controls required to manage a portfolio should be flexible to adapt to the complexities of multiple portfolio scenarios. Selection and authorization of portfolio components can be part of the periodic (e.g., annual) planning or strategic review, with quarterly and/or monthly updates. Once established, portfolio management is an ongoing practice. Performance monitoring of the portfolio(s) is ongoing. Adjustments to the portfolio components may be required when changes to the organization occur. Portfolio management starts with the initiation of each portfolio and may continue indefinitely or until the portfolio is closed.
To learn the Portfolio Life Cycle you need:
- Read the chapter ‘Portfolio Life Cycle’ in the Standard for Portfolio Management, 4th Edition (Chapter 2).
- Watch the videos:
3. Additional video for the portfolio nerds:
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