Ms. Clarke-Holliman: Risk cuts across all activities
and must be integrated with every aspect of portfolio management. ;e organization’s risk appetite is a
critical input and needs to be considered a selection
criterion for all categories. By having the enterprise
PMO constantly evaluating through reporting tools
and reviews, you can ensure the portfolio composition doesn’t exceed the organization’s risk tolerance
at any point in time. ;e huge di;culty is canceling
overly risky projects within a timely manner.
Mr. Chalouhy: Just like a project manager, the
portfolio manager looks at risks—but in a di;erent
way. ;e portfolio manager will not look at the usual,
normal risks that a project manager or program
manager looks at. Instead, a portfolio manager looks
at higher-level risks—risks that will a;ect the strategy
of the organization, whether that strategy has to do
with ;nance, product, marketing, governance, etc.
Portfolio management clearly helps organiza-
tions manage priorities. Can it also help them
Ms. Clarke-Holliman: At Medtronic, human
resources’ strategic goals are aligned to portfolio
management, which provides direction on which
skill sets are needed to achieve its goals. ;ey’re
tightly integrated to maximize value to achieve the
Ms. Lawler: Portfolio management helps with
talent management by looking at the entire job
family—all the roles across an entire project—and
identifying career path and development opportunities. I’m probably in a better position than anyone
to look at that organizationally and work towards
having consistency and opportunity across the
Any tips for implementing portfolio management?
Mr. Mishra: Engage with senior executives to
How does portfolio management help organiza-
talk about the bene;ts of implementing portfolio
management practices within the organization, and
then—with senior management buy-in—implement
it using your organization’s change management
within this screening model. So for us, portfolio man-
agement maximizes innovation ROI.
tions manage risk?
Ms. Lawler: Risk management at the portfolio
level is something that our organization hasn’t
quite tackled, although it’s absolutely a journey
we want to take. It’s kind of weird that we’re better at thinking about our retirement pension and
how we want that mixed than we are about our
For instance, you don’t want a high ratio of your
projects unable to deliver value for at least ;ve years.
You want to make sure that you’ve got a staggered
value coming back by managing that ;ow of return.
You’ve got to make sure you don’t have too many
long-term IT projects because that’s such a vulnerable, disruptive industry. You want to avoid having
too many complex projects at once—especially if
they sit under the same executive. Reducing risk by
balancing organizational capacity and demand is
really challenging in the nonpro;t and social service
sectors, and it’s something we’re working on.
“A lot of
focuses on the
—Chris Lawler, PfMP, Mater
Health Services, Brisbane,