PMO | Portfolio Decision Framework

Let's discuss how we assess portfolio operation process, summarizing decisions needed to be made in the following areas:

1. Registration All projects begin with ideas. Each idea outlines the high-level business benefits, development efforts, and cost estimates. Ideas are selected and prioritized based on the organization's strategic goals.

2. Concept Inception Selected ideas are developed into project proposals. The project proposal confirms high-level requirements and provides a detailed scope of work, solution analysis, and cost estimates. The project manager usually conducts proof of concept implementations to ensure a thorough assessment and analysis.

3. Project Evaluation Portfolio managers evaluate project proposals alongside business leaders at the start of each budget cycle. They make decisions regarding project approval and budget allocation at this stage.

4. Governance Portfolio managers must continuously assess project quality and progress to ensure alignment with the organization's strategy.

5. Assessment Portfolio managers regularly evaluate project execution and business outcomes. This ongoing assessment allows them to make necessary adjustments, such as putting projects on hold, canceling them due to strategic changes, or reallocating budget funds.

It is essential to maintain transparency throughout this evolution process by sharing the rationale behind decisions. The openness of the portfolio manager enables team feedback and suggestions, helping to mitigate decision-making risks.