AIPM Professional Competency Standards for Project Management - Part F

AIPM PROFESSIONAL COMPETENCY STANDARDS

FOR PROJECT MANAGEMENT

PART F – CERTIFIED PRACTICING PORTFOLIO

EXECUTIVE (CPPE)

JUNE 2014 Version 2.1

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DOCUMENT CONTROL

Document Information

Document Title AIPM Professional Competency Standards for Project

Management
Release Authority Professional Development Council

Version Control

Version Number Date Nature of Change

0.01 5 August 2008 Initial draft
0.02 25 August 2009 2nd draft
0.1 29 January 2010 First draft for AIPM comment incorporating technical
reviews
0.2 21 June 2010 Finalisation of all units
1.0 July 2010 Final version circulated to project review committee
1.1 August 2010 Draft for public comment
1.2 November 2010 Final draft for consultation
2.0 April 2011 Inclusion of review comments. Ready for release
2.1 June 2014 Minor editorial changes

Proposals for Amendment

Proposals for amendments or additions to this document should be sent to:

The Chair of the Professional Development Council

Australian Institute of Project Management
Level 9, 139 Macquarie St
SYDNEY NSW 2000

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AIPM Professional Competency Standards for Project Management - Part F

Table of Contents

Introduction ............................................................................................................................................ 4
Work Performed by the Certified Practicing Portfolio Executive ........................................................... 4
Candidate Profile .................................................................................................................................... 5
Assessment Requirements for Certified Practicing Portfolio Executive ................................................. 6
Unit 1 - Identify, Categorise and Prioritise Projects and Programs ........................................................ 7
Unit 2 - Assess and Select Opportunities and Balancing the Portfolio ................................................. 10
Unit 3 - Manage and Review Portfolio Performance ............................................................................ 14
Unit 4 – Govern the Portfolio................................................................................................................ 17
Unit 5 – Manage Portfolio Resources ................................................................................................... 20
Unit 6 – Manage Portfolio Communications and Change .................................................................... 22
Unit 7 – Manage Portfolio Risk ............................................................................................................. 25
Unit 8 – Lead the Portfolio .................................................................................................................... 28

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Introduction

These Competency Standards provide the basis for the development and assessment of the Certified
Practicing Portfolio Executive.

Applicants and assessors are to be familiar with the Introduction to these Standards contained in
Part A.

These Standards have been developed as generic standards with the objective of applicability across
a wide range of industries and enterprises. They may be used by industries/enterprises as they stand
or they may be used as a basis from which each industry or enterprise may contextualise the project
management standards.

These Standards are described in terms of the units of project portfolio management. Within each
unit, the Standards detail the elements of competency and associated performance criteria, range
indicators, knowledge and skills, and evidence guides.

The Units are:

 Unit 1 – Identify, Categorise and Prioritise Projects and Programs;
 Unit 2 – Assess and Select Opportunities and Balancing the Portfolio;
 Unit 3 – Manage and Review Portfolio Performance;
 Unit 4 – Govern the Portfolio;
 Unit 5 – Manage Portfolio Resource;
 Unit 6 – Manage Portfolio Communication and Change;
 Unit 7 – Manage Portfolio Risk; and
 Unit 8 – Lead the Portfolio.

Work Performed by the Certified Practicing Portfolio Executive

The Project Management Institute Portfolio Management Standard (2nd edition) defines Project
Portfolio Management (PPM) as:

“the centralised management of one or more portfolios of projects, which includes identifying,
prioritising, authorising, managing and controlling projects, programs and other related work, to
achieve specific strategic business objectives.”

Project Portfolio Management operates at the strategic level within the organisation. Unlike
projects or programs, a portfolio does not have a finite life, instead it is a continuous process and
requires regular tending to ensure the portfolio remains in balance and remains consistent with the
organisation’s strategic objectives.

Project Portfolio Management helps organisations to:

 Identify what projects they are working on;

 Identify what projects they should be working;
 Identify the priorities for limited and critical resources predominantly funding and
personnel;
 Confirm how projects link to an organisation’s strategic priority; and

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 Manage strategic outcomes and benefits.

Project Portfolio Management is applied to a group of projects and programs that may not be
related in a business sense, but draw upon a common set of constrained organisational resources.
Project Portfolio Management is focussed on creating and continually reviewing and updating the
selection of projects and programs under management within the organisation at any one time, as a
continuous process, akin to line management of an operational area of the business.

The individual tasks performed in the Project Portfolio Management function may be performed by
members of the organisations project/program management office (PMO), however, the focus is
that of an executive, rather than a project/program manager. PMO’s are typically focussed on
tactical or administrative elements of projects and programs, such as methodology development
and maintenance, reporting or resource management without authority over and accountability of
the Portfolio. IT is acknowledged that with the introduction of standards for Project Offices ‘ PMOs’
may take on a more strategic role.

Project Portfolio Management can be undertaken at various levels within the organisation and may
consist of Projects and Programs across the entire organisation or as part of a specific business unit,
such as IT or research and development. In addition, there may be more than one portfolio
operating in an organisation.

In large organisations, a Project Portfolio Manager may only have responsibility for a subset of the
organisation’s Projects and Programs and their alignment to organisational strategic objectives. A
Portfolio Manager may interact with senior managers, executives, and major stakeholders to
establish strategic plans and objectives for an organisation.

Project Portfolio Management promotes executive managers to make decisions over resource
priorities, to decide which Projects and Programs should start and when, and which Projects and
Programs should be put on hold or cancelled all together.

Candidate Profile

The following guidance is offered for both candidates and assessors to determine whether they are
operating at the level required to achieve certification. The criteria below are NOT entry criteria, nor
should they be treated as a checklist. They are merely guidance. It is expected that a candidate for
CPPE would have the following profile:

 business, management or extensive project management experience;

 Detailed knowledge of project and program management principles, concepts and
techniques, or certified at CPPM or above;
 Experience managing cross organisational or cross industry Projects and Programs that have
a significant impact on an organisation, industry sector or the public;
 Senior management experience or work as a senior consultant working to senior managers
in organisations;
 experience is evaluating and reviewing project or program performance
 Demonstrated experience in organisational reviews, assessments, audits or analysis; and

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 Demonstrated experience in contributing to and formulating the creation of project

management capability, organisational strategies and priorities.

Whilst these are not mandatory criteria, they provide a general guidance for candidates and
assessors to determine the applicability of this competency standard.

Assessment Requirements for Certified Practicing Portfolio Executive

The Certified Practicing Portfolio Executive level will be assessed using the following methods:

 Development and preparation of a Portfolio of Evidence under guidance from an AIPM

assessor;
 A series of interviews with the assessor to demonstrate the individual’s role in managing the
project portfolio; and
 Preparation of a document outlining their specific portfolio knowledge and experience and
the application in at least one organisation.

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Certified Practicing Portfolio Executive

Unit 1 - Identify, Categorise and Prioritise Projects and Programs

Definition: Project and Program Identification, Strategic Alignment and Prioritisation is centred on
capturing all extant Projects and Programs regardless of the stage of the portfolio lifecycle and
determining the alignment of each project and program to the organisations strategy. Projects and
programs are categorised according to the organisation’s schema and applied with a priority. It does
not deal with the actual selection of the projects and programs to be included in the portfolio.

Element Performance Criteria

1. Identification 1.1 A regular census is undertaken to identify and capture all ideas,
proposed, planned, active or inactive projects and programs in the
organisation, the project sponsor and project approval status, to
ensure the project portfolio is complete and correct on an ongoing
basis.

1.2 Macro-level project and program information is captured for

every project and program within the project portfolio.

1.3 Formalised tools and processes are agreed with Executive

management and are implemented to support the ongoing
identification and capture of project and program information.

2. Strategic Alignment 2.1 Alignment of projects and programs to organisational strategic

objectives is identified and objectively scored.

2.2 An assessment of internal and external environmental factors is

undertaken to identify key drivers and sources of impact for
projects and programs within the Portfolio.

2.3 Projects and programs are assessed to determine the degree of

alignment with, and contribution to one or more strategic
objective.

2.4 Projects and programs that do not align to one or more

strategic objective are clearly highlighted and flagged for further
analysis.

2.5 Projects and programs are categorised according to each

strategic objective.

3. Prioritisation 3.1 Organisational prioritisation methods are identified,

documented and reviewed to reflect changing organisational
priorities.

3.2 Prioritisation criteria for project portfolio assessment are

agreed with Executive stakeholders.

3.3 Projects and programs are prioritised based on their alignment

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Element Performance Criteria

and contribution to organisational strategic objectives.

Range Indicators

Regular Census may include an audit, review or health check of individual projects or programs

Organisation may be the entire company or business, or a single business unit.

Macro-level project information includes:

 high-level milestones;
 key deliverables;
 business benefit analysis;
 estimated resource requirements;
 risk profile; and
 cross-project dependencies.

Strategic Objectives may consist of a key strategic theme, objective or goal, the Mission and Vision
or a strategic intent, as outlined in the organisations Strategic Plan or strategic statement. Strategies
may include:

 Increased profitability and/or frequency of return;

 Market share increase;
 Reduce organisational risk exposure;
 Legal, regulatory or compliance obligations;
 Efficiency or process improvements; and
 Enabling initiatives.

Categorised may include identifying projects and programs against key business categories, for
example:

 Supply vs demand driven;

 Development vs research based;
 Short term vs long term focus;
 Infrastructure vs applications;
 Resource constraints;
 Risk level; or
 Level of use of strategic assets.

Organisational Prioritisation Methods may include the development of a scoring system, schema or
model. It may also include graphical and numerical representations to aid in decision making.

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Underpinning Knowledge and Skills

General knowledge and understanding of:

 Organisational strategy and strategic planning;

 Internal and external environmental analysis;
 Financial, non-financial, tangible and intangible benefits identification and quantification;
 Project, Program and portfolio management artefacts;
 Audit and review techniques; and
 Multi-criteria analysis.

Skills:

 Organisational and project reviews and auditing;

 Interpretation of the organisational strategy;
 Strategic analysis of portfolio options, investments or project/program proposals; and
 Executive and/or Board level influencing.

Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Project and program register demonstrating linkage to organisational objectives or

categorised based on the organisations schema;
 Strategic plans listing aligned projects and programs;
 Auditing methodologies and outputs for establishing project and program status;
 Minutes of meetings demonstrating agreement to portfolio evaluation criteria;
 Portfolio Charter;
 Organisational prioritisation model for projects and programs; and
 Dependency mapping between projects and programs.

Assessment of this unit by the assessor should focus specifically on:

 How information on projects and programs are captured and collated and how each
respective project and program is assigned a priority and category;
 The level of detail captured on each project and program and how it is recorded and
managed;
 The organisational prioritisation method;
 How the Projects and Programs are reviewed and the decision making process to determine
their alignment to various strategic themes; and
 How internal and external environmental factors are taken into account.

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Certified Practicing Portfolio Executive

Unit 2 - Assess and Select Opportunities and Balancing the Portfolio

Definition: Project opportunity assessment, selection and portfolio balancing is focussed on the
decision-making associated with ensuring the right Projects and Programs are continually selected
and marked as a priority to use organisational resources, taking into account changing
organisational strategies. Projects and Programs in progress are also considered in the mix and may
be put on hold, cancelled or given a lower priority as part of the portfolio balancing process. Upon
approval, Projects and Programs are initiated using the organisation’s approved project initiation
process, which may be administered or managed through an enterprise project management office.

Element Performance Criteria

1. Screening 1.1 Business cases for each project/program are reviewed to
capture interfaces, emergent risks, resource requirements and
business benefits and their timings.

1.2 Dependencies between projects and programs are mapped to

determine the resultant business benefits to be achieved.

1.3 Mandatory projects and programs are identified and added to

the project portfolio, where appropriate.

2. Investment appraisal 2.1 The desirability of project and programs are identified based on
their risk and projected benefits and business impacts assessment.

2.2 Projects and programs that deliver similar business benefits and
outcomes are examined and adjusted to remove duplication and
take advantage of synergies.

2.3 Feasibility studies are commissioned in instances where

additional analysis is required to determine investment merit.

2.4 A comparative analysis is undertaken to determine the most

appropriate projects and programs to receive organisational
investment.

2.5 The budget or financial profile is determined for each project or

program

2.6 Related projects are grouped for management as a program to

ensure relevant efficiencies are captured.

3. Selection 3.1 A project selection model is used to select projects and

programs that comprise the portfolio.

3.2 The organisations ideal project and program mix is regularly

reviewed to calibrate the project selection model.

3.3 Projects and programs are selected for inclusion in the portfolio

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based on the organisations project selection model.

3.4 Information is prepared and presented to Executive

Management to solicit support and project selection decision-
making.

4. Approval 4.1 The project and program approval process is reviewed and
updated on a regular basis.

4.2 Recommendations are made to Executive Management as to

the projects to be included in the portfolio.

4.3 Approval of projects/programs to be included in the portfolio by

Executive Management is facilitated.

4.4 Projects and programs are allocated a selection status.

4.5 Approved projects and programs are provided with identified

funding and resources.

4.6 Rejected, cancelled or on-hold projects and programs are

identified with reasons for rejection.

4.7 Projects and programs currently underway that have been

rejected from the portfolio are formally cancelled or put on-hold.

4.8 A list of approved and rejected projects and programs are

communicated to stakeholders.

Range Indicators

Mandatory Projects are projects that are being implemented to address changing legislative or
regulatory requirements, or meet a mandated business requirement.

Desirability is used to describe the relative importance of the project/program to the organisation,
expressed in a qualitative (eg a numerical score) or quantitative manner (eg a rating).

Project selection model includes a strategic decision by Executive management as to the target
portfolio mix to be funded. This might include the allocation of priority or percentage of funding
across each Strategic Objective or be focussed on threshold values based on an investment appraisal
(eg if ROI is used as a calculation method). The model should consist of decision-making criteria, the
project selection process and the standardised outcomes from the decision.

Executive Management include ‘C-level’ executives, general managers or senior managers in the
organisation who are responsible for portfolio decision making.

Selection status is the nominated status of the project in terms of the follow-on action required.
The project status may be, for example:

 Underway – delivery underway;

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 Approved – proceed with detailed planning immediately;

 On hold – project selected, but on hold pending start date;
 Pending – project on hold pending additional information and further review ; or
 Cancelled – Project not selected and cancelled.

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Criterion prioritisation models;

 Supply and demand concepts;
 Analysis methods and techniques, including:
o Cost-benefit analysis;
o Quantitative analysis;
o Scenario planning;
o Probability analysis; and
o Graphical analysis methods.
 Representing multi-dimensional and complex information in creative ways:
o Bubble charts;
o Three-dimensional graphs;
o Balanced score-card matrix; and
o Pair-wise comparison. and,
 Business cases and feasibility studies.

Skills:

 Dependency mapping;
 Capacity analysis for:
o Human resources;
o Financials; and
o Assets.
 Risk and opportunity analysis techniques, for example:
o SWOT;
o PESTLE;
o Core Capabilities Analysis; and
o Scenario Planning. and,
 Decision making models and strategies.

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Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Dependency mapping;
 Project selection processes and methods;
 A document that shows the projects that comprise the organisations portfolio; and
 Project or program approvals.

Assessment of this unit by the assessor should focus specifically on:

 How the preferred portfolio mix is determined;

 The decision making process to be used to select projects for inclusion in the portfolio; and
 Scenarios that explore ‘what-if’ analysis to determine the extent and depth of knowledge of
the individual’s ability to make ‘trade-offs’ and decision making based on management
information.

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Certified Practicing Portfolio Executive

Unit 3 - Manage and Review Portfolio Performance

Definition: Portfolio performance management and review is focussed on evaluation of the

performance of the portfolio of projects, individually and collectively, and the benefits the portfolio of
projects delivers to the organisation. It allows for evaluation of individual projects performance and
achievement of the business value achieved by each and provides a feedback and input into portfolio
balancing.

Element Performance Criteria

1. Program and project 1.1 Appropriate project/program review points are identified and
delivery oversight aligned to the portfolio review cycle.

1.2 Qualitative and quantitative data is continuously captured and

reviewed to determine project and program performance against
respective plans.

1.3 The portfolio is monitored to ensure that projects/programs are

meeting their identified key objectives and benefits.

1.4 Projects and programs not achieving planned performance are

flagged for review and further investigation.

1.5 Recommendations are made to change projects /programs

included in the portfolio.

2. Portfolio continuous 2.1 Project identification and approval processes are continuously
improvement reviewed and improved.

2.2 Portfolio value and contribution to strategic priorities is

regularly assessed through the monitoring and review of Key
Performance Indicator measures.

2.3 Lessons learned are fed into the project selection, prioritisation
and portfolio balancing processes.

3. Benefits management and 3.1 Portfolio Delivery Map is prepared and updated showing the
realisation key timings and inter-dependencies between projects and
programs and the associated benefits to be produced.

3.2 The portfolio is actively managed to maximise achievement of

organisational benefits.

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Range Indicators

Plans may include project, program, business or strategic plans

Review points may be gates reviews or milestones or be a more systematic approach, such as the
OGC Gateway process

Change refers to either the addition or removal of projects or programs in the program, or putting
such projects/programs on hold

Key Performance Indicators may include:

 Performance measures and metrics;

 Qualitative and quantitative factors; and
 Balanced scorecard.

Portfolio Delivery Map is the high-level plan or documenting outlining the relationship between any
project/program in the portfolio and the timings for delivery of those projects/programs

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Financial information analysis and trend analysis;
 Quality and continuous improvement;
 Process improvement;
 Metrics and key performance indicators as management tools; and
 Benefits management and realisation.

Skills:

 Creating, using and applying appropriate Key Performance Indicators;

 Identifying and documenting project and program benefits; and
 Determining project performance based on high-level information.

Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Portfolio review matrix;

 Cross project/program dependency map;
 Portfolio review document;
 Project/Program performance report or audit;
 Portfolio delivery map;
 Evidence of continuous improvement;

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 Evidence of a change in the portfolio and how such changed have been managed; and
 Benefits tracking or realisation report.

Assessment of this unit by the assessor should focus specifically on:

 How the portfolio can be continuously improved;

 The types of qualitative and quantitative data and other metrics that can be used to
determine project performance;
 Determining and mapping cross project/program dependencies;
 Signs and symptoms of project/program failure and underperformance; and
 Lessons that the individual candidate has learned and recommendations made for
improvement.

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Certified Practicing Portfolio Executive

Unit 4 – Govern the Portfolio

Definition: Portfolio governance is focussed on the roles and responsibilities for portfolio
management and the ensuring appropriate decision making process and organisational controls are
in place and functioning effectively and efficiently. It includes establishment and maintenance of
structures, procedures and methods in order to ensure appropriate governance of projects and
programs within the portfolio.

Element Performance Criteria

1. Standards, models and 1.1 Legislative, regulatory or business requirements and changes
approach are incorporated into portfolio management decisions and controls

1.2 Disciplined governance arrangements, supported by

appropriate methods and controls, are applied to projects and
programs within the portfolio

1.3 A coherent and supportive relationship is demonstrated

between the overall business strategy and the project portfolio

1.4 All projects/programs within the portfolio have an approved

plan containing authorisation points at which the business case is
reviewed and approved on an ongoing basis to determine the
continued validity of investment, organisational exposure and
return

1.5 Decisions made at authorisation points are recorded and

communicated

1.6 Members of delegated authorisation bodies have sufficient

representation, competence, authority and resources to enable
them to make appropriate decisions

1.7 Executive Management are supported to ensure appropriate

independent assurance of projects/programs occurs

1.8 Criteria for reporting project status and for the escalation of
risks and issues to the levels required by the organisation are
clearly defined

1.9 Portfolio stakeholders are engaged at a level that is

commensurate with their importance to the organisation and in a
manner that fosters trust

2. Portfolio charter 2.1 A portfolio charter is prepared and regularly reviewed, which
clearly establishes portfolio governance and management roles,
authorities, approval limits, responsibilities and the scope of
portfolio control

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Range Indicators

Disciplined governance arrangements may include terms of reference for all boards and steering
committees

Authorisation points may be:

 Formal review points
 Stage / Phase Gates
 Critical design reviews

Delegated authorisation bodies may include:

 Project/program boards or steering committees
 Project/program offices

Executive Management are those senior managers in the organisation that are involved with
decision making in the portfolio context. Support in this context may include:
 Preparation of portfolio reports
 Preparation of minutes and agendas for portfolio board meetings

Portfolio charter is the overarching mandate and guidance document that details the operating
instructions for the portfolio.

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Corporate governance; and
 Project and program control and governance.

Skills:

 Strategic thinking and decision making;

 Advanced written and oral communications;
 Negotiation; and
 Preparation of reports for executive management and executive decision-making.

Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Portfolio charter;
 Decision making matrix;
 Documented decision model;
 Delegation profiles; and
 Reporting guidelines.

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Assessment of this unit by the assessor should focus specifically on:

 Governance mechanisms established in the portfolio;

 The link between portfolio governance mechanisms and those used in projects/programs;
 Methods used to communicate the governance requirements to subordinates; and
 How portfolio decisions are made and supported.

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Certified Practicing Portfolio Executive

Unit 5 – Manage Portfolio Resources

Definition: Portfolio resource management is concerned with the assessment of the existing
resource pool and skill sets available within the organisation and balancing the number and type of
projects planned or currently being undertaken with the available resource supply. It also examines
the resource forecast and the allocation of resources to ensure the business needs are met and
organisational strategies are achieved.

Element Performance Criteria

1. Portfolio resource 1.1 Project and program resources are identified based on resource
assessment forecasts

1.2 A baseline of existing and proposed resources is captured

1.3 The resource capacity of the organisation is regularly reviewed

and trends identified and assessed

1.4 A portfolio resource strategy is developed, reviewed and

updated based on the status of projects and programs in the
portfolio, taking into account the organisations resource constraints

2. Skills and experience 2.1 Details of human resources skill sets and experience are
assessment captured and maintained

2.2 Human resource availability and utilisation information is

captured and maintained

2.3 Human resource deficiencies and strengths are highlighted and

factored into the organisational workforce and development plans

2.4 Strategies are implemented to resolve human resource

deficiencies and imbalances.

2.5 Readiness for change is assessed and its impacts determined.

3. Project and program 3.1 Resources are optimally allocated based on organisational
resource assignment strategic priority of projects and programs within the portfolio

3.2 Project/program resource allocation and utilisation against

plans is reviewed to forecast the impact on the organisation

3.3 Resource gaps and conflicts are identified and investigated, and
appropriate action is taken to resolve the identified resource
constraints, in alignment with organisational strategic priorities.

4. Coordination and 4.1 Cross-organisational resource assignment is coordinated to

prioritisation of resources support prioritised projects and programs, based on risk, quality
and other requirements.

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4.2 Resources are reallocated from projects/programs cancelled or

put on hold

Range Indicators

Resources may be personnel, assets or financial resources, accommodation, test equipment,

facilities

Human Resource Deficiencies might consist of resource and skills gaps

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Resource allocation;
 Resource utilisation calculations and collection techniques;
 Strategic Human Resource Management;
 Supply and demand concepts;
 Workforce planning; and
 Strategic resource management and planning.

Skills:

 Resource planning, allocation and management; and

 Skills assessment.

Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Resource plans and forecasts;

 Resource allocation models;
 Skills matrix showing current resources and their skills; and
 Documents outlining skills gaps and staff development requirements.

Assessment of this unit by the assessor should focus specifically on:

 The decision making associated with resource allocation to projects/programs within the
portfolio; and
 Hypothetical discussions in respect to how the organisation deals with skills deficiencies and
resource constraints.

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Certified Practicing Portfolio Executive

Unit 6 – Manage Portfolio Communications and Change

Definition: Communication management at the portfolio level is focussed on ensuring the rationale
for project portfolio management is understood at all levels in the project organisation. This is
particularly important given the dynamic and ongoing nature of the project selection and balancing
functions being undertaken by the project portfolio manager.

Element Performance Criteria

1. Portfolio metrics, 1.1 A portfolio communications strategy is developed, used by
measurement and reporting portfolio staff, and regularly reviewed.

1.2 A portfolio management information system is used to

dynamically capture and manage information on projects and
programs that comprise the portfolio and their status

1.3 Reports are provided to Executive Management showing

progress towards and achievement or non-achievement of strategic
objectives

1.4 Project selection criteria and project selection model is

communicated throughout the organisation

1.5 Portfolio data collection processes and systems are integrated

into organisational processes and systems

2. Stakeholder engagement 2.1 Interaction with Executive Management and organisational

and management strategic planning team occurs

2.2 Internal and external stakeholders needs are considered in the

ideal portfolio mix

2.3 The organisation fosters a culture of continuous improvement

and of open internal disclosure of appropriate portfolio information

3. Communication of portfolio 3.1 Criteria to evaluate portfolio management success are

review outcomes identified and communicated

3.2 Key project stakeholders receive regular portfolio management

reports containing strategic information of portfolio status and
progress

3.3 Projects selected for inclusion in and rejection from the

portfolio are communicated along with the rationale for the
decision

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Range Indicators

A portfolio management information system may be paper-based, kept electronically or by an

integrated computerised system

Strategic Objectives may consist of a key strategic theme, objective or goal, the Mission and Vision
or a strategic intent, as outlined in the organisations Strategic Plan or strategic statement. Strategies
may include:

 Increased profitability and/or frequency of return;

 Market share increase;
 Risk reduction to the organisation;
 Legal, regulatory or compliance obligations;
 Efficiency or process improvements; and
 Enabling initiatives.

Project selection model includes a strategic decision by Executive management as to the target
portfolio mix to be funded. This might include the allocation of priority or percentage of funding
across each Strategic Objective or be focussed on threshold values based on an investment appraisal
(eg if ROI is used as a calculation method). The model should consist of decision making criteria, the
project selection process and the standardised outcomes from the decision.

Organisational processes and systems may include the organisations:

 human resource management system;

 financial system; and
 project information management system.

The ideal portfolio mix is the optimised list of projects/programs to be delivered in order to best
achieve the organisations strategic objectives.

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Project, program and business level reporting;
 Organisational politics;
 Influencing and negotiation; and
 Transformational management.

Skills:

 Communicates using modes and techniques appropriate to the context; and

 Management of and chairing executive and high-level meetings.

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Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Executive briefings and presentations on the portfolio management approach;

 Executive briefings on the portfolio status;
 Portfolio reports showing component project/program performance;
 Minutes of portfolio review meetings; and
 Advice explaining why projects have been included/excluded from the portfolio.

Assessment of this unit by the assessor should focus specifically on:

 Formal information communications techniques;

 Examples where influencing skills have been demonstrated;
 Reporting on project/program status and performance and their contribution to strategic
objectives; and
 How changes to the portfolio are communicated.

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Certified Practicing Portfolio Executive

Unit 7 – Manage Portfolio Risk

Definition: Portfolio risk management is designed to focus on strategic business risk and is inherent
in the overall project balancing process. The organisations risk appetite is assessed and appropriate
ownership of risk management is embedded across the portfolio, ensuring the application of risk
management techniques across portfolio/organisational boundaries.

Element Performance Criteria

1. Identification of portfolio 1.1 Standards and procedures for portfolio risk management are
risks established and continuously reviewed

1.2 The portfolio risk management approach is integrated with

organisational risk management systems and strategies

1.3 Analysis is undertaken to determine the organisations risk

appetite

1.4 Input on risks from stakeholders, Executive Management and

other specialists is sought;

1.5 External and internal threats and opportunities are identified

and their impact on the portfolio are assessed

2. Analysis of portfolio risks 2.1 Results from project and program risks analysis are captured to
determine overall portfolio risk profile and organisational exposure

2.2 Executive Management determine the level of acceptable

portfolio risk

2.3 Individual project/program risks are captured and reviewed on

a regular basis to determine the potential impact on the
organisation

2.4 Project and program risks are regularly audited and assessed to
monitor risk management performance and assess the portfolio risk
profile

3. Monitor and control 3.1 Organisational risk reserves are implemented and managed
portfolio risks
3.2 Opportunities identified through risk analysis are explored

3.3 Portfolio risks are actively managed to minimise organisational

impact

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Range Indicators

Other specialists might include representatives with expertise in:

 Security;
 Information Technology;
 Communications; or
 occupational health and safety.

Risk reserves are contingency funds allocated to the portfolio and are used in risk treatments or
contingency plans in the event that specific risks are realised.

Underpinning Knowledge and Skills

General knowledge and understanding of:

 risk management theory;
 Australian and international risk management standards
 qualitative and quantitative risk techniques, including:
o brain-storming;
o cause and effect modelling;
o risk probability and impact assessment;
o probability and impact matrix;
o risk data quality assessment;
o risk categorization; and
o risk urgency assessment. and,
 enterprise risk management approaches.

Skills:

 Highly developed verbal communication skills;

 Investigative skills;
 literacy skills to write risk management plans;
 communications skills to discuss risks and opportunities with stakeholders;
 problem-solving skills to control risks and issues;
 lateral thinking skills to identify potential business and portfolio risks;
 planning and organisational skills to monitor project/program/portfolio progress; and
 analytical skills to review portfolio outcomes in terms of risk management.

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Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 demonstrate evidence of effectively planning, managing and reviewing risk through the
knowledge and application of risk management methods, processes, strategies, techniques,
and tools.

Assessment of this unit by the assessor should focus specifically on:

 How risks are assessed at project/program level and then examined in the context of the
portfolio;
 the identification and prioritisation of risks;
 application of lessons learned from previous project(s) in planning new project;
 the analysis of risks and opportunities;
 communication of risk events, responses and results to stakeholders;
 lists of potential risk events;
 records of identification and prioritisation of risk events;
 risk management plans;
 reports of variance and recommendations for action;
 details of conduct of risk reappraisal;
 the effectiveness of risk management processes, procedures and tools, recommendations;
and
 for improvements and risk management lessons learned.

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Certified Practicing Portfolio Executive

Unit 8 – Lead the Portfolio

Definition: Project Portfolio leadership is rooted in organisational development and classic

leadership theory and is aimed at ensuring tactical leadership of the portfolio management team and
strategic leadership of the program and project managers operating within the portfolio. It involves
establishment of the vision for ongoing portfolio success as well as ongoing portfolio leadership.

Element Performance Criteria

1. Lead the portfolio team 1.1 Portfolio management is championed within the organisation

1.2 Portfolio management resourcing is regularly justified and the

associated value provided to the business is quantified and
communicated

1.3 Project/program sponsors are briefed and supported

throughout the project/program lifecycles

1.4 Performance of portfolio management office staff is regularly

assessed and feedback is provided

1.5 Internal and external stakeholders are influenced

2. Make strategic decisions 2.1 A portfolio vision is established and clearly communicated to
stakeholders

Range Indicators

The Portfolio vision is the strategic plan, vision statement, charter, business plan.

Project / Program sponsors may include project board or project steering committee members.

Underpinning Knowledge and Skills

General knowledge and understanding of:

 Understanding of financial principles and data;
 Managing people through recruitment and retention;
 Goal setting;
 Performance management;
 Employee development;
 Organisational politics;
 Influencing and negotiation;
 Transformational management; and
 Motivation and leadership theories.

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Skills:

 Well developed communication, negotiation, conflict resolution facilitation and influencing

skills;
 Ability to create, use and apply key performance indicators; and
 Adapting to divergent decision-making models.

Evidence Guide

The following documentation or components of the documentation produced by, managed by or led
by the individual, can provide supporting evidence:

 Portfolio vision statement

 Staff performance reviews

Assessment of this unit by the assessor should focus specifically on:

 The portfolio strategic vision; and

 How the portfolio is led and the portfolio team is managed.

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