What is a portfolio?

A portfolio is a group of unrelated projects or programs. Organizations that run portfolios are typically large organizations with multiple products or services, or a rapidly-growing organization needing large updates or process-integration in their departments. You could have one department creating the latest, greatest software, while another could be improving the sales process, and still another installing a data center at every global location. Some are temporary and unique projects, while others may be part of a program. It isn't outside the realm of possibility to assume that organizations that run portfolios are typically multi billion-dollar global corporations.

Another way to look at portfolios is to imagine a stock portfolio. It could be a variety of different items, such as a 401k, annuity stocks, and tiered bond structures. You would have a portfolio manager who understands everything in the portfolio, even though everything is different for each client. Some can be managed as a one-off, such as a 401k (project), some are managed in a coordinated fashion, such as a group of related tech stocks (program), but either way you need the portfolio manager to keep an eye on the entire thing to manage your money correctly.

Another way to identify a portfolio is in an organization that would like to achieve a strategic objective such as reducing its carbon footprint, or improving its brand recognition.

The portfolio manager would have a dashboard across multiple unrelated projects or programs that contribute to meeting the strategic objective.