MoP Foundation flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

MoP seven principles

Senior management commitment, governance alignment, strategy alignment, portfolio office, energized change culture, resource management and capacity management. They are universal, self-validating and empowering, guiding how portfolio management is applied.

MoP five practices

Portfolio management framework, portfolio management office, portfolio strategy, portfolio delivery and portfolio management. Each practice is supported by techniques and together they form the continuous management cycle.

Portfolio definition cycle steps

Understand, categorize, prioritize, balance and plan. The cycle captures the current portfolio and strategy, groups investments, ranks them, adjusts the mix and produces the portfolio delivery plan.

Portfolio versus programme versus project

A project delivers defined outputs within constraints; a programme delivers outcomes through coordinated projects; a portfolio is the totality of investment in change delivering strategic objectives, managed through selection and balance.

Portfolio management definition

A coordinated collection of strategic processes and decisions that together enable the most effective balance of organizational change and business-as-usual, focused on investment selection, prioritization and balance rather than delivery of individual projects.

Understand step purpose

The first portfolio definition step: capture the current portfolio of investments and the strategic context, including objectives, constraints and existing commitments, so that later categorization and prioritization are grounded in fact.

Categorize step purpose

Group portfolio investments into strategic categories, such as grow, sustain, transform and comply, so that prioritization compares like with like and each category maps clearly to strategic objectives.

Prioritize step purpose

Rank investments within categories using agreed weighted criteria such as strategic contribution, financial return, risk and compliance obligation. Criteria weights are set by senior management before scoring begins.

Balance step purpose

Deliberately adjust the portfolio mix across dimensions such as risk versus return, short-term versus long-term, cashable versus non-cashable benefits, and change versus business-as-usual, rather than leaving balance to emerge.

Plan step purpose

Produce the portfolio delivery plan consolidating the schedule of investments, milestones, resource requirements, benefits and dependencies, which is then refreshed as the portfolio changes during delivery.

Portfolio management health check

A structured assessment against the principles, practices and techniques producing a maturity profile, gaps and an improvement roadmap. It is a technique within the framework practice, not a separate practice.

Benefits profile contents

A document recording each benefit's description, named owner, baseline, target, measurement method and timing. The named benefit owner is business-side, not the project manager delivering the change.

Benefits dependency network

A diagram linking enablers and project outputs to intermediate outcomes, final benefits and strategic objectives. It exposes missing links and duplicate investment across the portfolio.

Cashable versus non-cashable benefits

Cashable benefits release money that can be reused; non-cashable benefits such as compliance, reputation or staff satisfaction do not. The distinction affects how benefits are measured and weighted in prioritization.

Resource versus capacity management

Resource management allocates finite resources such as people, money and assets to investments; capacity management matches portfolio demand for resources to the organization's actual supply, driving prioritization and balance decisions.

Portfolio risk management focus

Aggregates risk across the portfolio rather than managing only at project level. It addresses concentration risk, interdependency risk and risk appetite, using categorization, heat maps and a portfolio-level risk register.

Risk appetite versus risk tolerance

Risk appetite is the amount and type of risk the organization accepts across the portfolio, expressed in statements per category; risk tolerance is the acceptable variation around a specific objective.

Net present value

A financial appraisal metric that discounts future cash flows to today's value. A positive NPV supports investment; comparing NPVs across options ranks them on a common financial basis.

Payback period

The time taken to recover the investment from its benefits or returns. A shorter payback period indicates faster recovery but ignores value created after the payback point.

Return on investment

Calculated as benefit minus cost, divided by cost. It expresses return relative to the investment made and allows comparison of investments of different sizes on a common ratio basis.

Cost-benefit ratio

Benefits divided by costs. A ratio above one is financially favourable. It is one of several appraisal metrics and should be read alongside NPV, payback period and strategic fit.

Weighted prioritization scoring

Assign weights to criteria summing to one hundred percent, score each investment per criterion, multiply score by weight and sum. Sensitivity-test the result by varying weights to check whether ranking changes.

Portfolio delivery plan

The consolidated schedule of investments, milestones, resource requirements, benefits and dependencies. It is the output of the plan step and is refreshed as the portfolio changes.

Portfolio office purpose

Supports the portfolio by providing information, tools, standards, assurance and analysis. Its scope ranges from information hub through standards custodian and capability builder to strategic decision supporter, described by a maturity model.

Portfolio strategy contents

Translates organizational strategy into portfolio direction: strategic objectives, investment categories, prioritization criteria, risk appetite and the target portfolio mix, ensuring every investment maps to a strategic objective.

Strategy alignment principle

Every investment in the portfolio must demonstrably map to a strategic objective. Investments that no longer align are candidates for re-scoping or termination at an investment gate.

Governance alignment principle

Portfolio management must fit the organization's existing governance, such as board, investment committee and audit, rather than creating parallel structures. Decision rights and escalation thresholds are explicitly defined.

Senior management commitment principle

Visible, active sponsorship from the top is required. Commitment is demonstrated through participation in decisions, resourcing the portfolio office and enforcing prioritization outcomes, without which portfolio management degrades into reporting.

Energized change culture principle

The organization must be receptive to change, with clear communication, incentives aligned to portfolio objectives and willingness to stop low-value investments. Culture is assessed as part of the health check.

Investment gate decision options

A portfolio board decision point reviewing business case, delivery progress and continued strategic fit. The gate can approve, hold, re-scope or terminate an investment; termination is a legitimate portfolio decision.

Stakeholder power-interest grid

Maps stakeholders by power and interest. High power and high interest means manage closely; high power and low interest means keep satisfied; low power and high interest means keep informed; low on both means monitor.

Capacity gap response options

When demand exceeds supply, respond by reducing scope, delaying investments, acquiring more resource or changing the portfolio mix. The choice is a portfolio-level decision recorded in the delivery plan.