Portfolio management turns investments into capabilities

Organizational capability is directly linked with value and benefits. So, the purpose is to turn investments into value. Once an investment is used to build an organizational capability to deliver a certain service, this ability can be a sustained benefit for all future projects.

 

According to PMI literature [1], Portfolio management practices around portfolio selection and execution, decision making, change management, risk management, value management, and benefit management have a direct impact on resource capacities and capabilities.

The inverse can be true as well. Suppose I am very good in hacking and exploiting the weakness in IT platforms. This is a capability that I possess. If I make a company for the purpose of ethical hacking and informing others about potential flaws of their platform, all my projects selection, stakeholder engagement, risk and value management will be centered around my capability. My aim will be to seek investment from other companies, use my capability to find bugs in their systems and make a living out of it.

 

By finding bugs in newer systems, I will be enhancing my hacking capabilities too. This will allow me to seek more projects and thus more rewards. Thus I will be using the investment to enhance my present capabilities and based on my improved capabilities finding newer investments :)

 Reference:

1. Project Management Institute. 2018. The standard for portfolio Management – Fourth Edition.
2. https://www.inverse.com/article/56350-the-complete-ethical-hacking-certification-course