The Portfolio Management Processes are often seen as a Cycle because there are always new project entering and leaving the portfolio. The end of a portfolio is when it is basically not needed anymore because the strategic goal was achieved. The classical portfolio management processes are just end-to-end processes for managing projects.
But only the fact that always new projects are managed through the portfolio is not creating a cycle and very much like recycling raw materials the portfolio management can increase the value when taking care of the precious assets and not throw away anything.
The assets created by the projects need to be kept within the portfolio to increase the value in the portfolio management cycle!
So what are these assets then?
The assets can be divided into two main categories; tangible and intangible assets.
- Firstly and most obvious there are the deliverables out of the projects which will go into their product lifecycle. For the value management it is a key success factor to measure and track the benefits that were promised in the project requests to get a better understanding of the business cases and to justify the portfolio. In addition the project product are initiating their product lifecycle where at the end new maintenance or transformation projects are triggered.
- The tangible assets are reflected in the Know-How increase within the PMO. This includes all the lessons learned, builded networks within the organization and continious improvements of the project management methodology. These assets are very much linked to human resources.
Only if the portfolio manager can manage the assets (especially the tangible ones) in a way they don't get lost the overall portfolio value can be conserved and even increased.
The value management establishes the link between the end of project execution and the intake of new project requests.
So like the German football (soccer) manager Sepp Herberger said "after the game is before the game" we can also say
"After the Project is Before the Project"
Sepp Herberger (1897 - 1977)
This means the assets that have been created in the project delivery and the knowledge generated will be will be reused as input for new projects (product lifecycle).