To answer this first, the word “portfolio” would have to be defined in regards to project management.

“Portfolio: A portfolio is a collection of Project, programs, subportfolios, and operations managed as a group to achieve strategic objectives.”

What does this actually mean and how does it relate to this weeks lecture?

I think it’ll be easier for me to explain this form my viewpoint through an example.

So we have Portfolio 1 (P1) which consists of two programs: leg and arm. Portfolio 2 (P2) which consists of three programs as well: Disposable Wipes, Liquid Cleaners & S&S Units. Portfolio 3 (P3) which consists of four programs: Wound Closures, Neurology, Biosurgicals, Hips The main objective of managing these portfolios is to generate as much revenue as possible for the company by prioritizing the 3 portfolios.

Let’s say P2 is your core portfolio. When people look at P2 your company is on top of the industry and you generate the majority of your revenue through these programs. P2’s programs tend to feed each other (i.e. Liquid Cleaners are used in the S&S Unit & the wipes can be used to clean the S&S Unit).

P3 is your broad portfolio. You don’t generate as much revenue from this portfolio, however, it also costs less to maintain the programs in it. It is considered “Grand” because the programs aren’t related to each other (on purpose). Each program has their own peaks and troughs that help balance out the overall revenue of the portfolio.

P1 is your priority portfolio. This portfolio is full of the new technology that the company is working on. It has the greatest potential for growth because it sits on the cutting edge of the industry. Also, the tech created in this portfolio can be applied to P2 & P3 to drop costs and make better products as well.

To properly manage these portfolios, one would have to decide which programs take priority & how much to allocate to each in order to ensure revenue growth.