Managing the mute-project/programme environment - Essay Example

In some cases, portfolio management is dependent on the governance structure of an organisation. Müller (2009) states that governance structure can be termed as an outline of how an organisation executes its tasks and the social norms. The purpose of this paper is to discuss the advantages and disadvantages of adopting portfolio management in organisational structure and an assessment of the governance structure of the Apple Inc. Company. There are numerous benefits that can be accrued from the effective use of portfolio management in an organization.

Formulation of an effective portfolio management plan is one thing, the implementation of the plan is another different thing altogether (Hill & Jones, 2012). The subsequent paragraphs elaborate on the advantages of including portfolio management with an organizational structure. An effective portfolio management enhances the proper combination of projects to achieve maximum returns (Portny, 2013). In essence, portfolio management ensures that projects are ranked according to benefits and that the project combination showing the highest level of benefits is chosen.

Both the long term and short term benefits of a project are considered in order to establish the most effective course of action to take. In addition, portfolio management assesses the investment options to identify the projects that are consistency with the organization’s goals and objectives. Actually, portfolio management aids in the optimization of resources owned by an organization. Portfolio management enhances balancing and reduction of risks that might face a project or a program. Every business undertaking is usually accompanied by a series of risk exposures that might terminate it before the determined period.

The practice of portfolio management aids in developing strategies that can aid in avoiding or mitigating risks (Shaw, 2004). In order to prevent