5

PORTFOLIO MANAGER COMPETENCES

This section of the PMCD Framework lists the competences for a portfolio manager in various settings and circumstances by identifying performance criteria relative to specific elements of competence. Gaining an understanding through assessment of the individual portfolio manager's current capability is essential for creating a competency baseline.

Details on evidence, expectation, and examples for each element of competence are contained in Appendix X3. Both performance and personal competences are listed. Additional details on performance and personal competences are contained in Section 2.

Measuring the portfolio manager's individual performance against a competency baseline helps identify strengths and development needs. The dimension of personal competence looks at the portfolio manager's behavior relative to overall competency in managing portfolios. The goal is to meet or exceed the baseline competency defined by the PMCD Framework.

Portfolio managers are responsible for the execution of the portfolio management process. Where program and project managers focus on “doing work right,” portfolio managers focus on “doing the right work.” Portfolio managers receive information on portfolio component performance and progress, and they convey to the portfolio management governing body how the portfolio components as a whole are aligned with the strategic goal. They then provide appropriate recommendations or options for action. Portfolio managers also ensure that the timetables for portfolio management processes are maintained and followed and that the managers of portfolio components (projects, programs, and operations) receive and provide the information required under the portfolio management processes. Portfolio managers are the primary conduit between managers of portfolio components and portfolio stakeholders.

The portfolio manager may be an individual, a group, or a governing body, and is responsible for establishing, monitoring, and managing all assigned portfolios. Specific responsibilities may include:

• Establishing and maintaining a framework (a conceptual and communicable structure of ideas) and methodology (a body of policies and procedures) for portfolio management within the organization;

• Establishing and maintaining relevant portfolio management processes (strategic management, governance management, communications management, performance management, and risk management);

• Guiding the selection, prioritization, balancing, and termination of portfolio components to ensure alignment with strategic goals and organizational priorities;

• Establishing and maintaining appropriate infrastructure and systems to support portfolio management processes;

• Continuously reviewing, reallocating, reprioritizing, and optimizing the portfolio to ensure ongoing alignment with evolving organizational goals and market opportunities and threats;

• Providing key stakeholders with timely assessment of portfolio component selection, prioritization, and performance, as well as early identification of (and intervention in) portfolio-level issues and risks that are impacting performance;

• Meeting legal and regulatory requirements;

• Achieving the information needs of current and future stakeholders;

• Supporting senior-level decision making by ensuring timely and consistent communication to stakeholders on progress, changes, and impact on portfolio components;

• Influencing active executive sponsorship engagement for the portfolio and each portfolio component as it is initiated; and

• Participating in program and project reviews to reflect senior-level support, leadership, and involvement in key decisions.

The portfolio manager should be aware of how the portfolio is related to the organizational strategy. The portfolio manager assesses and measures the benefits that the portfolio is adding to the organization's objectives. Throughout the portfolio life cycle, the portfolio manager should be able to manage risks, monitor and prioritize portfolio components, resolve issues that need senior-level attention, develop and improve processes, and apply organizational knowledge and management skills. In addition, the portfolio manager should be able to effectively manage the organization's resources and provide timely information for stakeholder communication requirements.

The portfolio manager's expertise should include, but not be limited to the following areas:

• Portfolio strategic management and alignment,

• Portfolio management and techniques,

• Stakeholder engagement,

• Leadership and management skills, and

• Risk management.

5.1 Portfolio Manager Performance Competences

Table 5-1 defines the respective elements for each unit of performance competence.

Table 5-1. Portfolio Manager—Units of Performance Competence

5.2 Portfolio Manager Personal Competences

Table 5-2 defines the respective elements for each unit of personal competence.

Table 5-2. Portfolio Manager—Units of Personal Competence