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Knight Advisory & Planning Portfolio Management

Knight Advisory & Planning Portfolios

The concept of Portfolio Management begins with understanding the components that comprise a Portfolio. At Franchise Technologies Florida we utilize the international standards of PMI (Project Management Institute) according to the Project Management Body of Knowledge (PMBOK) to define our quality assurance & control practices. We view each portfolio as a component of programs, sub-programs, and projects. Each client we take on is unique and needs its own custom tailored solutions. When a firm selects an external Portfolio Manager they are effectively stating "We require a special purpose team to meet specific short / medium / long term objectives."


In essence they are engaging us on a temporary endeavor to define a project scope. That's what we do here at Knight Advisory & Planning. We have over thirty years of proven track records to facilitate this area of expertise.

What is the most basic component of a Portfolio?


The most basic component of a portfolio is a Project. A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates that a project has a definite beginning and end. The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists. A project may also be terminated if the client (customer, sponsor, or champion) wishes to terminate the project. Temporary does not necessarily mean the duration of the project is short. It refers to the project’s engagement and its longevity. Temporary does not typically apply to the product, service, or result created by the project; most projects are undertaken to create a lasting outcome. For example, a project to build a national monument will create a result expected to last for centuries. Projects can also have social, economic, and environmental impacts that far outlive the projects themselves.


Every project creates a unique product, service, or result. The outcome of the project may be tangible or intangible. Although repetitive elements may be present in some project deliverables and activities, this repetition does not change the fundamental, unique characteristics of the project work.


For example, office buildings can be constructed with the same or similar materials and by the same or different teams. However, each building project remains unique with a different location, different design, different circumstances and situations, different stakeholders, and so on. An ongoing work effort is generally a repetitive process that follows an organization’s existing procedures. In contrast, because of the unique nature of projects, there may be uncertainties or differences in the products, services, or results that the project creates.


Project activities can be new to members of a project team, which may necessitate more dedicated planning than other routine work. In addition, projects are undertaken at all organizational levels. A project can involve a single individual or multiple individuals, a single organizational unit, or multiple organizational units from multiple organizations.


A project can create:

* A product that can be either a component of another item, an enhancement of an item, or an end item in itself;

* A service or a capability to perform a service (e.g., a business function that supports production or distribution);

* An improvement in the existing product or service lines (e.g., A Six Sigma project undertaken to reduce defects); or

* A result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society).


Examples of projects include, but are not limited to:

* Developing a new product, service, or result;

* Effecting a change in the structure, processes, staffing, or style of an organization;

* Developing or acquiring a new or modified information system (hardware or software);

* Conducting a research effort whose outcome will be aptly recorded;

* Constructing a building, industrial plant, or infrastructure; or 

* Implementing, improving, or enhancing existing business processes and procedures.


The Relationships Among Portfolios, Programs, and Projects


The relationship among portfolios, programs, and projects is such that a portfolio refers to a collection of projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. Programs are grouped within a portfolio and are comprised of subprograms, projects, or other work that are managed in a coordinated fashion in support of the portfolio. Individual projects that are either within or outside of a program are still considered part of a portfolio. Although the projects or programs within the portfolio may not necessarily be interdependent or directly related, they are linked to the organization’s strategic plan by means of the organization’s portfolio. As Figure 1-1 illustrates, organizational strategies and priorities are linked and have relationships between portfolios and programs, and between programs and individual projects. Organizational planning impacts the projects by means of project prioritization based on risk, funding, and other considerations relevant to the organization’s strategic plan. Organizational planning can direct the management of resources, and support for the component projects on the basis of risk categories, specific lines of business, or general types of projects, such as infrastructure and process improvement.


Figure 1-1 shows the relationship between the portfolio and all the components broken down by Knight Advisory & Planning in Portfolio Management. This is a methodology adopted for all project frameworks that is custom tailored to each client solution depending on project scope.

What is Project Management to Knight Advisory & Planning


Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the 47 logically grouped project management processes, which are categorized into Five Process Groups. These five Process Groups are: 1) Initiating, 2) Planning, 3) Executing, 4) Monitoring and Controlling, and 5) Closing.


Managing a project typically includes, but is not limited to:

* Identifying requirements;

* Addressing the various needs, concerns, and expectations of the stakeholders in planning and executing the project;

* Setting up, maintaining, and carrying out communications among stakeholders that are active, effective, and collaborative in nature;

* Managing stakeholders towards meeting project requirements and creating project deliverables;

* Balancing the competing project constraints, which include, but are not limited to:


  o Scope,

  o Quality,

  o Schedule,

  o Budget,

  o Resources, and

  o Risks.


The specific project characteristics and circumstances can influence the constraints on which the project management team needs to focus.The relationship among these factors is such that if any one factor changes, at least one other factor is likely to be affected. For example, if the schedule is shortened, often the budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or targeted quality may be reduced to deliver the project’s end result in less time within the same budget amount. Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. Changing the project requirements or objectives may create additional risks. The project team needs to be able to assess the situation, balance the demands, and maintain proactive communication with stakeholders in order to deliver a successful project. Due to the potential for change, the development of the project management plan is an iterative activity and is progressively elaborated throughout the project’s life cycle. Progressive elaboration involves continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available. Progressive elaboration allows a project management team to define work and manage it to a greater level of detail as the project evolves.

What is Relationship  with Projects, Programs, & Programs to KAP


In order to understand portfolio, program, and project management, it is important to recognize the similarities and differences among these disciplines. It is also helpful to understand how they relate to organizational project management (OPM). OPM is a strategy execution framework utilizing project, program, and portfolio management as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing better performance, better results, and a sustainable competitive advantage. Portfolio, program, and project management are aligned with or driven by organizational strategies. Conversely, portfolio, program, and project management differ in the way each contributes to the achievement of strategic goals. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources, whereas program management harmonizes its projects and program components and controls inter-dependencies in order to realize specified benefits. Project management develops and implements plans to achieve a specific scope that is driven by the objectives of the program or portfolio it is subjected to and, ultimately, to organizational strategies. OPM advances organizational capability by linking project, program, and portfolio management principles and practices with organizational enablers (e.g. structural, cultural, technological, and human resource practices) to support strategic goals. An organization measures its capabilities, then plans and implements improvements towards the systematic achievement of best practices.

Program Management in a Box with KAP


A program is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. A project may or may not be part of a program but a program will always have projects.Program management is the application of knowledge, skills, tools, and techniques to a program in order to meet the program requirements and to obtain benefits and control not available by managing projects individually.Projects within a program are related through the common outcome or collective capability. If the relationship between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program.Program management focuses on the project inter-dependencies and helps to determine the optimal approach for managing them. Actions related to these inter-dependencies may include:§ Resolving resource constraints and/or conflicts that affect multiple projects within the program,§ Aligning organizational/strategic direction that affects project and program goals and objectives, and§ Resolving issues and change management within a shared governance structure.An example of a program is a new communications satellite system with projects for design of the satellite and the ground stations, the construction of each, the integration of the system, and the launch of the satellite.

Portfolio Managment in a Box with KAP


A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program. Thus, the power program and the water program become integral components of the enterprise portfolio of the infrastructure firm. Portfolio management refers to the centralized management of one or more portfolios to achieve strategic objectives. Portfolio management focuses on ensuring that projects and programs are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies. There is also a heavy emphasis on the Monitoring & Controlling Process Groups within Portfolio Management. Figure 1-2 to the right illustrates this methodology adopted by Knight Advisory & Planning (KAP).

Knight Advisory & Planning Key Points:

    (1) Quality Networking Opportunities That Yield Profitable Partnerships.

    (2) Knight Advisory; an Authorized Florida Business Agent.

    (3) Florida: Helping Women Design Business Blueprints.

    (4) Knight Advisory holds a seminar on opportunities in the Florida-National relationship.

    (5) Team Proposal.

    (6) Emerging Markets.

    (7) Independent Entity not affiliated with any other entity discussed.

Additional Information

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