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Portfolios
Portfolios are collections of programs and projects that meet a specific business goal or objective. Let's say our company is in the construction business. There are several business units within our organization: retail, single family residential, and multifamily residential. All projects and programs associated with the retail business unit belong to the retail portfolio. The program we talked about in the preceding section (the collection of projects associated with building the new shopping mall) is one of the programs that belongs to the retail portfolio. There could be other programs and projects within this portfolio as well. The objective of any program or project in this portfolio is to meet the strategic objectives of the portfolio, which in turn should meet the objectives of the department and ultimately the corporation. Portfolio inaruigment encompasses managing the collections of programs and projects in the portfolio. This includes weighing the value of each project, or potential project, against the portfolio's strategic objectives. It also concerns monitoring active projects for adherence to objectives, balancing the portfolio among the other investments of the organization, and assuring the efficient use of resources. Portfolio management is generally performed by a senior manager in the organization.
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