Getting Started with Portfolio Management › How to Create a Portfolio of Investments

How to Create a Portfolio of Investments

Creating a portfolio of investments includes the following tasks:

• Managing and planning for the investments using high-level targets for cost, benefits, and resources.
• Distributing financial and resource targets by time periods so that you can understand how investments use up money and resources over the portfolio planning horizon.
• Setting the role targets either by distributing the high-level set target or by populating existing resource capacity from roles in the system.

Example: Creating IT Portfolios for Annual Planning

Vicki is the IT Operations Manager responsible for creating and maintaining the IT investments for the CIO at Forward Inc. Vicki is preparing for annual planning and has to create an IT investments portfolio to reflect existing work and proposed work. Vicki creates the portfolio as follows:

• Defines some basic portfolio properties such as the start date, end date, and cost.
• Builds content by selecting active projects in the Investment OBS for the IT department for the coming fiscal year.
• Includes the ideas that are being considered for the coming fiscal year.

The following diagram describes how the portfolio manager creates a portfolio of investments:

To create a portfolio of investments, perform these steps:

1. Verify the prerequisites.
2. Define the portfolio properties.
3. Define the portfolio sync properties.
4. Build the portfolio content.
5. Define detailed planning targets.
6. Define role targets.
7. Review the waterline view for investments.