The interaction between projects, programs, and processes within a portfolio can be many and varied; contributing significantly to the challenge of effective portfolio management. Faulted transitioning of resources and/or outputs from one portfolio component to another can greatly delay the progress of these and other components; diminishing the overall portfolio value potential. Therefore, it is critically important to identify interrelated resources and outputs and their relationship constraints to enable upfront coordination planning and effective transitioning.

Member components of a portfolio have interrelated items similar to those associated with larger projects. The difference between portfolio and project management lies with the relatively decentralized nature of a portfolio. Unlike a project manager, portfolio managers don’t often receive highly detailed reports on the portfolio’s progress and the handoffs between individuals or workgroups performing each component’s activities. Instead, a portfolio manager receives high-level status information regarding the progress of each project, program, and process under his or her purview. Therefore, it is essential that the portfolio manager clearly understands and in most cases documents the key interrelationships between portfolio components, thereby; enabling the portfolio manager to better track the specific handoffs which may disrupt overall portfolio progress and diminish benefit realization.

Nathan A. Ives is a Strategy & Operations Manager at Deloitte Consulting LLP, a StrategyDriven contributor, and co-Host of the StrategyDriven Podcast. For over fifteen years, he has served as trusted advisor to executives and managers at numerous Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

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