Portfolio — Domains, Selection & Balancing

POSTER 19

Section 7 · Portfolio Management — How It Runs

Performance Domains, Selection & Balancing

Portfolios are run through six performance domains and a recurring cycle that selects and balances components: categorise → evaluate → select → prioritise → balance → authorise → review. The defining skill is balancing the mix against value, risk and capacity — then rebalancing as strategy moves.

Visual Map — The Component Selection & Balancing Pipeline

Identify▸ Categorise
group by type/strategy▸ Evaluate
score vs criteria▸ Select▸ Prioritise▸ Balance
optimise mix vs capacity & risk▸ Authorise▸ Review↺

Categorisation enables apples-to-apples comparison; evaluation uses weighted scoring against strategic criteria; balancing optimises the whole mix — not each component in isolation. The loop never closes.

Balancing Tool — Risk vs Reward Bubble Chart

The Six Performance Domains

1 Strategic Management — align to strategy; portfolio roadmap & value proposition.
2 Governance — decision framework; authorise / terminate components; oversight & optimisation.
3 Capacity & Capability — balance resource & funding demand vs supply.
4 Stakeholder Engagement — engage decision-makers & sponsors.
5 Value Management — define, maximise, deliver & measure value.
6 Risk Management — manage aggregate risk & the risk/return balance.

Balancing & Optimisation Tools

Weighted scoring models against strategic criteria.
Prioritisation matrices & ranking.
Bubble / quadrant charts (risk vs reward, above).
Efficient frontier — best value for a given risk.
Portfolio roadmap & dashboards for transparency.

Exam Concepts

Portfolio management continuously balances & reprioritises.
Governance authorises & terminates components.
Capacity management = demand vs supply of resources/funding.
Value & risk are managed at the aggregate level.

Executive View

Rebalance as strategy shifts — the mix is never "done".
Governance kills the zombies that drain capacity.
One dashboard for the entire investment.

Industry Example

Defence

The prime scores bids & programs against strategic criteria, balances naval vs land vs air, checks engineering capacity, and the board authorises the optimal mix — re-reviewed each quarter.

Memory Hooks

Pipeline — C·E·S·P·B·A: Categorise, Evaluate, Select, Prioritise, Balance, Authorise.
"Pick · balance · fund · review — forever."
Bubble chart = risk vs reward; size = cost.

60-sec Review Name the 6 domains Recite the C-E-S-P-B-A pipeline Sketch a risk/reward chart Capacity = demand vs ? What governance authorises

PMI Visual Wall · Poster 19 · Portfolio — Domains, Selection & Balancing · original instructional design · A3 landscape