Organizations (Staff-Related) vs. Portfolios (Work-Related)

Organizations (Staff-Related) vs. Portfolios (Work-Related)

Portfolio management can be utilized at many levels of the company, and the higher the level the better. Different companies have different terminology to refer to their organizational structure. In some companies, this might be Company -> Division -> Department -> Group -> Team, etc.

However, in other companies a department might be at a higher level than a division.

Organizations are a way to organize and structure people. Finance people, for instance, typically work within the Finance organization. Likewise, Sales people work in the Sales organization and IT people work in the IT organization. Portfolios, on the other hand, are a way to organize work.

A portfolio, for instance, might be defined for the top 50 projects of your company or the top projects of a particular organization. Likewise, you may have a portfolio that contains all of the support work that the organization provides.

In fact, you may decide to create portfolios that overlap with your physical organizations. For instance, you may have an IT portfolio that covers all IT people. In that case, the IT Organization would be the same thing as the IT portfolio, which includes all of the IT work.

You might also create internal portfolios within the IT organization. Again, these internal portfolios could align with the internal IT departments, but they do not need to. Portfolios are logical entities and organizations are physical entities.

It is probably more efficient to have the portfolios align with the organizational structure. They are easier to manage if they are. However, they do not need to be.

Overhead


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