Introduction
In this video, Jennifer Reed explains the process of portfolio management and its segments. She illustrates the difference between project management, program management, and portfolio management. Reed defines a portfolio as a set of projects or programs and other units that are combined to sustain effective management to meet strategic business objectives. Prioritizing the company’s goals over short-term aims is crucial because it helps the employees not to become overly concerned about small tasks, activities, and deliverables. It is important to note that the attributes of a portfolio are not necessarily connected or interdependent. Reed introduces the example of two groups of people to show how collections of programs may be organized. The first group is artists. They usually compose portfolios to express their mission or ideas and support a particular message they want to deliver to the audience. Reed also references financial portfolio managers. There may be different types of investments within their portfolios, and managers’ task is to define and maintain them. These examples can be used as a basis to understand the concept of portfolios.
Main body
As mentioned above, a portfolio can include projects or programs that are aimed to meet strategic business objectives. Programs consist of multiple projects that are divided into phases or time segments. Some projects are designed to produce specific results for portfolio programs. Portfolio management, in this case, represents the centralized management of these units. Managers should identify what projects have to be done, prioritize and authorize those projects, and control their implementation. Reed explains that projects, programs, and portfolios are organized similarly. The video is intended to help the viewers manage their portfolios and understand how to simplify this process.
This video has given me an insight into portfolio management. In my opinion, managing can be hard if one does not fully understand the concepts addressed by Reed. I have learned that a portfolio does not have to be homogeneous and can include different types of segments. The example of art portfolios helped me understand that a portfolio creates a multifaceted perspective on its components, projects, and programs, or other work done by an organization or an individual. Proper portfolio management is crucial for the company’s productivity and stable performance.
The second thing I have learned from the video is that project management and program management are two separate functions and require a different approach. Additional research on the topic helped me understand their features. Projects have deadlines, are detailed and tactical, and need to be delivered within budget. On the other hand, programs represent a long-term strategy; they involve complicated financial management processes and are designed to show a broader perspective on the company’s goal. Portfolio management is an integration of these units and a centralized work on achieving the company’s ultimate goal.
The video also helped me understand a curator’s job regarding portfolio management. A manager should know all the details about the organization’s current projects and develop a system for their implementation. In my opinion, it is crucial that one should be able to analyze the data accurately since portfolio management includes working with finances and security. It is also essential for a manager to know how to set priorities and develop short-term goals for the company to obtain good results in the programs and projects. A portfolio curator works with several teams at once, so proper communication and organizational skills are necessary too.
Another significant insight for me was the idea that even though portfolio management consists of complex concepts and segments, it is crucial to simplify this process. For this, curators have to divide the program into sections and work on each of them individually. It is essential to understand the whole concept and its goals from the start to ensure productive work on program implementation. Moreover, one has to approach each process within the program with sufficient knowledge and experience. That is why it is essential for a manager to delegate authority to skilled teams or professionals. This way a high-level performance can be ensured.
Finally, I have learned that strategic business objectives are the essential basis for the company’s portfolio. They represent the organization’s long-term goals and can be set in different fields, including sales, product, resources, and target audience. It is impossible to develop a sustainability plan for the company without strategic business objectives elaboration. Thus, a portfolio, as well as programs and projects developed within the firm should correspond to its business plan. This way, with every decision made by the managing team, the company will take a step towards its ultimate goal.
Conclusion
The video helped me comprehend the idea of portfolio management better. Reed introduced all the components of a portfolio with the help of a scheme, which provided a deeper understanding of the system. In my opinion, managing a portfolio can be a complicated but rewarding task that demands commitment, proper analysis, and the ability to set priorities following the company’s ultimate goals.