Level of Centralization (Portfolio Management Office)

The corporate portfolio of projects may be managed at the corporate level from a centralized, professional Project Management Office (PMO),[1] or within divisions of Discovery and Development e.g. by therapy area.  The level of portfolio management centralization depends on the amount of risk, the relative value, cost and corporate commitment in a project portfolio.

The portfolio management group can be responsible for

  • Providing relevant input to corporate decision making
  • Supporting periodic portfolio reviews
  • Supporting routine portfolio decision meetings (project initiations, terminatons, milestone advancements)
  • Reporting on
    • The effectiveness of individual projects,
    • The level of investment per project,
    • Information on the overall health of the portfolio
    • The extent to which projects or groups of projects (e.g. per therapy area) contribute to corporate strategic goals
    • The level of project risk and impact of project risk on project and portfolio value
    • Resource allocation by dept. to individual projects or groups of projects, helping ensure the right resource is focused on the right projects at the right time

[1] Section 1.9.1 The Standard for Portfolio Management, 2nd Ed. P. 17, Project Management Institute, 2008