Application
This unit describes the skills and knowledge required to provide governance over a portfolio. It covers applying standards, governance models and the portfolio charter.
A portfolio is 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.
The unit applies to individuals who operate 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 is consistent with the strategic objectives of the organisation.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Prepare to govern | 1.1 Develop disciplined governance arrangements for projects and programs within the portfolio 1.2 Develop business strategy according to project portfolio 1.3 Verify that all projects and programs within the portfolio have an approved plan prepared to organisational and legislative requirements 1.4 Verify decision-making competence of members of delegated authorisation bodies 1.5 Define criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation |
2. Undertake governance activities | 2.1 Prepare a portfolio charter, which clearly establishes portfolio governance and management roles, authorities, approval limits, responsibilities and the scope of portfolio control 2.2 Apply disciplined governance arrangements, supported by appropriate methods and controls, to projects and programs within the portfolio 2.3 Implement business strategy 2.4 Record and communicate decisions made at authorisation points 2.5 Support executive management to ensure appropriate independent assurance of projects/programs occurs |
3. Monitor governance processes | 3.1 Communicate required portfolio updates with portfolio stakeholders according to task and organisational requirements 3.2 Review the portfolio charter 3.3 Evaluate project performance against criteria for reporting project status 3.4 Identify areas for improvement |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
establish governance over a portfolio on at least one occasion.
In the course of the above, the candidate must:
prepare a portfolio charter
apply a decision-making matrix with suitable criteria
determine a suitable governance model to a portfolio context
define suitable decision-making authorities and delegations
prepare governance documentation and reports.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
governance mechanisms established in the portfolio
project, program and corporate governance models
appropriate methods and controls, for supporting disciplined governance arrangements
methods to incorporate legislative, regulatory or business requirements and changes into portfolio management decisions and controls
content and requirements of approved plans
features of efficient delegated authorisation body decision-making including:
sufficient representation
competence
authority
resources to enable bodies to make appropriate decisions
link between portfolio governance mechanisms and those used in projects/programs
suitable methods to communicate the governance requirements to subordinates
how portfolio decisions are made and supported.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
workplace documentation and resources relevant to performance evidence
feedback from stakeholders, which reflects how governance was managed within a portfolio.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Reading | Applies appropriate strategies to construct meaning from complex texts |
Writing | Develops governance documentation using organisational formats and vocabulary suitable for the audience Records results of decisions using format and vocabulary suitable for the audience |
Self-management | Identifies and adheres to organisational, legal and regulatory requirements |
Teamwork | Selects and uses appropriate communication methods and practices to provide recommendations |
Planning and organising | Develops flexible plans to manage complex, high impact activities with strategic implications Regularly reviews outcomes against requirements to determine the need for change |
Sectors
Business Competence – Project Management