(Technique): Who should be responsible for the governance of portfolio management?
Synthesized by ChatGPT then edited and enhanced by Te Wu.
Specific contributors include:
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- Cristina Niculescu
- Kris Sprague
- Anonymous
Effective portfolio governance is both a strategic imperative and an operational necessity. At its core, it ensures that an organization’s collective investments—projects, programs, and initiatives—align with and advance overarching business objectives. Yet, the governance structure must strike a delicate balance between centralized guidance and localized flexibility.
A mature Project Management Office (PMO) or Portfolio Management Office (PfMO) can play a critical role in this structure by establishing portfolio governance frameworks that offer clarity, consistency, and best practices across the enterprise. However, these frameworks should not be rigid. Portfolio teams must retain the autonomy to tailor governance practices in response to evolving strategic priorities and contextual business needs. This dynamic model supports adaptability while maintaining organizational cohesion.
Leadership responsibility is shared. The Portfolio Manager/Director—or an equivalent executive role—should own the governance function, ensuring not only procedural compliance but also strategic alignment. Meanwhile, the Portfolio Governance Board, typically composed of senior business leaders, should serve as the top decision-making body. It is here that the most critical prioritization, funding, and risk tolerance decisions are made. Delegated authority to mid-level managers is appropriate for operational agility but must occur within clear boundaries.
Ultimately, while project and program management professionals within the PMO/PfMO execute the day-to-day mechanics of governance, true portfolio governance is a business-driven endeavor. It demands active participation from executive leadership, who must provide strategic direction, make consequential decisions, and champion accountability across the enterprise.
Contribution by: Cristina Niculescu
A PMO should provide portfolio governance guidelines while allowing individual portfolio teams to tailor these frameworks based on strategic priorities and business needs. Also we should not forget about the executive leadership and governance boards
Contribution by: Kris Sprague
A Portfolio Director should be responsible for portfolio management governance. This role ensures that the portfolio aligns with the organization’s strategic objectives and that programs, projects, and related work collectively meet the portfolio’s goals.
Contribution by: Anonymous
I think of portfolio governance as process/practices, oversight and decision making by executive leaders. It should be performed by the business side of the organization. The day to day work can be done by project management experts within a PMO or equivalent. Key decisions are made by a Portfolio Governance Board. It can be directors where some decision-making authorities are delegated to mid-level managers.