Portfolio management consists mainly of making decisions about which initiatives to undertake, which initiatives not to pursue, and which resources are to be allocated to which portfolio component. At least, that-s how it is most commonly presented in textbooks and courses. Indeed, it is all of that, but it is also so much more.
Portfolio management is, of course, about making these decisions, but, more accurately, it is about making them with the goal of creating value for an organization-s wide population of stakeholders, both internal and external. This value is not only expressed in financial terms but also in social terms. The portfolio should create value for all stakeholders, who thereby support the portfolio organization and enable it to sustain itself.
Portfolio management is about the realization of strategic vision, achieving a purpose, and developing an intelligent way of using resources to benefit stakeholders. This requires the ability to fi
