What is portfolio management?

A portfolio can be understood as a group of projects, programs, sub-portfolios striving to achieve the company's strategic goals. Portfolio elements such as projects or programs do not have to be directly related or interdependent. The increase in the popularity of portfolios is dictated by the search for new development paths by organisations that have reached a certain level of maturity, as well as the need to introduce new changes, not only in terms of the range offered, but also in the field of process and system improvements.
The orientation of the company on portfolios manifests itself in the supervision of all its elements, so that the implemented initiatives bring the expected benefits, so it becomes natural to accept new projects, close the completed projects and eliminate unprofitable ones. In order to ensure success of portfolio management, there are several conditions that must be met:

• Full buy-in and alignment: everyone shall be on the same page in terms of the project
• Close procedure follow up: performing all the process steps in the right order, aligning them to the maturity level of the company
• Risk management: evaluation and prediction of possible risks,
• Selection and prioritisation of portfolio projects.
• Understanding objections in the process and gather feedback continuously.

Sources:
Identification of critical success factors for project portfolio management – results of a multiple case study (Links to an external site.)Links to an external site.
Critical Success Factor For Measuring Project Portfolio Managements (Links to an external site.)Links to an external site.