The portfolio management concept is critical to supporting an organization’s mission and goals. Portfolio management will determine which projects will be pursued when the budget or resources are limited. Organizations sometimes find that they have many projects they would like to complete but there will be times that it is not possible. Portfolio management will review the projects that not only are being worked on but also review any possible pending projects and determine if there is money and resources to continue. They will then prioritize projects and eliminate any that are determined wrong for the organization.
According to Kerzner, H. (2013), portfolio management focuses attention at a more aggregate level. Its primary objective is to identify, select, finance, monitor and maintain the appropriate mix of projects and initiatives necessary to achieve organizational goals and objectives. Project management focuses on a particular project that has already been recognized by portfolio management as a project that will support the mission and goals of the organization.
Portfolio management will also be looking at what financing will be available for each project and also be looking out for the right mixture of projects. It wouldn’t be in the organizations best interest to only support projects that would be geared towards one goal of the organization. They need to make sure that they are looking at every goal or mission and balancing out the projects.
There can be issues with portfolio management. In project management we have discussed using the experts in the organization to help with the planning and in many cases the implementation of a project. With portfolio management the ones making the decisions may not have the expertise, knowledge and information and therefore could decide a project isn’t a good choice when in fact it should be considered. There could be conflicts, unwillingness to share, differences in thought as well as certain department loyalties that may cause incorrect decisions.
Strategic management refers to management who are goals-oriented in which the mission and planned achievements of an organization are clearly set out and all management processes are designed and monitored toward reaching the organization’ overall goals, (“What Is Strategic Management”, 2011). A mission statement within the organization will set the goals of the organization.
Kerzner, H. (2013). Project management: A systems approach to planning, scheduling, and controlling (11th ed.). Hoboken, NJ: John Wiley & Sons. What is strategic management. (2011). Retrieved from http://www.managementskillsadvisor.com/what-is-strategic-management.html