ISO INTERNATIONAL STANDARD 21504 Second edition 2022-02 Project, programme and portfolio management Guidance on portfolio management Managementdeprojets,programmesetportefeuilles Recommandations sur le managementde portefeuilles Referencenumber ISO21504:2022(E) ISO @ ISO 2022 IS0 21504:2022(E) COPYRIGHTPROTECTEDDOCUMENT @ISO2022 All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may be reproduced or utilized otherwise in anyform or by any means, electronic or mechanical, including photocopying,or posting on the internet or an intranet, without prior written permission. Permission can be requested from either IO at the address below or Iso's member body in the country of the requester. ISO copyright office CP 401 : Ch.de Blandonnet 8 CH-1214 Vernier, Geneva Phone: +41 22 749 01 11 Email: [email protected] Website: www.iso.org Published in Switzerland ii IS02022-Allrightsreserved IS021504:2022(E) Contents Page Foreword ..V Introduction. .. vi 1 Scope. 2 Normative references 3 Terms and definitions 4 Principles of portfolio management .3 4.1 Contextandneedforportfoliomanagement .3 4.2 Overview of portfoliomanagement. ..4 4.2.1 Portfolio management. 4 4.2.2 Portfolio structure. ..5 4.2.3 Capabilities and constraints 5 4.2.4 Opportunities and threats. .6 4.3 Roles and responsibilities. 6 4.3.1 Generalprinciples .6 4.3.2 Defining decision rights for portfolio content 6 4.4 Stakeholder engagement and management. .6 5 Prerequisites for portfolio management .6 5.1 Overview. .6 5.2 Justification forportfolio management .7 5.3 .1 Portfoliomanagementframework 5.4 Typesofportfoliocomponents 7 5.5 1 Criteriafor selectingandprioritizingportfolio components 5.6 Alignmentwithorganizational processesand systems .7 5.7 Visibility of the portfolio. 5.8 Portfolioperformancereportingstructure .8 5.9 Improvingportfoliomanagement. .8 5.10 Governance of portfolios.. .9 Managing portfolios .9 6 6.1 .9 Overview. 6.2 Definingtheportfolio objectives .9 6.3 Identifying potential portfolio components 9 6.4 Definingtheportfolioplan .9 6.5 Assessingand selectingportfoliocomponents .10 6.5.1 ..10 Overview.. 6.5.2 Assessing current state. .10 6.5.3 Selectingportfolio components. ..10 6.6 Validatingportfolioalignmenttostrategicobjectives .10 6.6.1 Overview .10 6.6.2 Alignment with the strategic objectives ofthe organization. .11 6.6.3 Maintaining alignment with risk tolerance and resource capacity and capability. 11 6.6.4 Documenting and evaluating results ofalignment actions. .11 6.7 Evaluating and reporting the performance of the portfolio .11 6.7.1 Overview .11 6.7.2 Establishingtheperformancemeasurementbaselineoftheportfolio 6.7.3 Managing portfolio performance ..12 6.7.4 Reportingtheperformanceoftheportfolio ..12 6.7.5 Managingthe integration of benefits. .12 6.8 Balancing and optimizing the portfolio ..13 6.8.1 Overview ..13 6.8.2 Optimizing portfolio components ..13 6.8.3 Maintaining the portfolio .13 iii IS0 2022-Allrightsreserved