89
Communications Management
Study Hints
For portfolio management to be effective in organizations at any level, com-
munications management is essential so people realize why it is necessary. The
Communications Management questions on the PfMP
®
certication exam consti-
tute 15% of the exam or 25 questions.
These questions are part of the Portfolio Communications Management
Knowledge area as well as in the Dening and Aligning Process Groups in
The Standard for Portfolio Management—Third Edition (2013). There are two pro-
cesses in Portfolio Communications Management:
1. Develop Portfolio Communications Management Plan
2. Manage Portfolio Communications
The rst process is from the Dening Process Group, and Manage Portfolio
Information is in the Aligning Process Group. These processes transcend the
other knowledge areas in portfolio management since communications empha-
size the importance of ensuring stakeholder expectations for information about
portfolio management in the organization are met. Consistent and transparent
communications lead to effective portfolio decisions. Communications also are a
key competency for the portfolio manager as he or she must be able to commu-
nicate effectively with stakeholders at any level, both internal and external. The
importance of communications dictates the requirement to prepare and follow a
communications strategy.
Portfolio communications involve a two- way dialogue between stakeholders
such as executives, functional managers, sponsors, program managers, project
managers, suppliers and other vendors, regulatory agencies and other interest
and consumer groups. As the communications management plan is prepared,
stakeholder identication and analysis are needed for it to be useful. Even
though stakeholders have been identied once a decision is made to embrace
portfolio management, identication is an ongoing process. As stakeholders
are identied, then their information needs are compiled and maintained,
90 ◾ PfMP® Exam Practice Tests and Study Guide
recognizing these information needs are much broader than those at a program
or project level.
In developing the communications management plan, it is helpful to review
the proposed and ongoing portfolio components to consolidate and standard-
ize communications at the portfolio level. The roadmap is helpful since it shows,
among other things, interdependencies between components. The portfolio
management plan may include the communications plan as a subsidiary docu-
ment but also is useful as if it changes, the changes may lead to new stakehold-
ers with new information requirements. Portfolio performance reports show the
total investment on each component to indicate its value, and dashboards often
are used. Portfolio process assets cannot be overlooked.
Tools and techniques focus on stakeholder analysis to best recognize those
stakeholders with the greatest interest in or inuence in the portfolio invest-
ment. Review the types of stakeholders as shown in Table7-1 in The Standard,
and their levels of inuence and interest as displayed in Figure7-5, in which
stakeholders are assigned into groups. It then follows that a stakeholder matrix
to list roles, interests and expectations by the type of stakeholder, as shown in
Table7-2, should be prepared so no one is overlooked.
Since the portfolio manager then spends much of his or her time interacting
with these stakeholders, he or she can determine whether their interests have
changed, and in meeting with them, can get feedback on the communications
plan. These data are useful to then develop a communications matrix, such as
the one in Table7-3, to array the different communications methods to use, their
frequency, the intended recipients, and the communications vehicles.
The communications plan then denes the process to gather the needed infor-
mation and distribute it and to set expectations for effective communications; the
risks of lack of communications cannot be underestimated.
However, once the plan is prepared, the information must be managed, which
involves collecting, analyzing, storing, and distributing it to stakeholders. Often,
web portals are used for ease of access, and information must be up to date and
of high quality for it to have value to the various stakeholders. In managing infor-
mation, the portfolio with the list of components, the portfolio management plan
to ensure communications are aligned with the other processes, and portfolio
reports are reviewed.
Tools and techniques focus on data gathering in component review meetings
and operational status reports and the portfolio management information system
with a document repository and document version control system to best cap-
ture and manage portfolio information. Communications requirements analysis
continues especially in market comparative analysis and to ensure meaningful
forecasts can be prepared. Different communications methods will be used such
as dashboards, as shown in Figure7-8, to provide extensive information in a
short format, resource histograms, and communications calendars. As portfolio
Communications Management ◾ 91
information is managed, updates may be required to the portfolio management
plan, the roadmap, and the portfolio process assets.
Following is a list of the major topics in the Communications Management
domain. Use this list to focus your study efforts on the areas that are most likely
to appear on the exam.
92 ◾ PfMP® Exam Practice Tests and Study Guide
Major Topics
Portfolio communications management purpose
◾ Satisfy important information needs of stakeholders
◾ Promote informed portfolio decision making
◾ Minimize risks of insufcient communications
Dening Process Group
Aligning Process Group
Develop Portfolio Communications Management Plan process
◾ Purpose
◾ Inputs
− Portfolio
• Component information to consolidate and standardize communications
− Roadmap
• Interdependencies may impact communication objectives
− Portfolio management plan
• Initial stakeholder list
• Shows communication requirements in all elements of the plan
• Changes introduce new stakeholders
− Portfolio reports
• Information on total component investments
• Use of dashboards
− Portfolio process assets
• Portfolio manager roles and responsibilities
• Status reports
• Risk proles and assessments
• Forecasts and variances
• Governance, funding, resource decisions
• Portfolio value assessments
• Delegation of responsibilities for communications
◾ Tools and techniques
− Stakeholder analysis
• Interest and inuence in portfolio investments
• Information about each stakeholder and relationships
• Types of stakeholders
• Assignment into groups
• Stakeholder matrix
− Portfolio manager’s relationships and interactions with stakeholders
− Communications requirements analysis
• Reviews for redundant information
• Communications matrix
• Organizational culture
Communications Management ◾ 93
◾ Outputs
− Portfolio management plan updates
• Communications management plan
◾ Objectives
◾ Roles and responsibilities
◾ Stakeholders and expectations
◾ Methods to collect and store information
◾ Methods to access and deliver information
◾ Frequency
◾ Policies and constraints
− Portfolio process assets updates
Manage Portfolio Information
◾ Purpose
◾ Inputs
− Portfolio
• New components and new stakeholders
− Portfolio management plan
• Align communications with other processes
− Portfolio reports
• Assess stakeholder requirements
− Component reports
• Impact on overall portfolio performance
− Portfolio process assets
• Requirements, technology, media, record retention policies, security
• Communications guidelines and procedures, distribution methods,
risks, performance data
◾ Tools and techniques
− Elicitation
• Collect data and information to distribute
− Portfolio management information system
• Document repository, version control, technology based, capture and
manage portfolio communications
− Communications requirements analysis
• Market comparative analysis, data value, prepare forecasts
− Communications methods
• Dashboards, resource histograms, communications calendars
◾ Outputs
− Updates
• Portfolio management plan
• Reports
• Portfolio process assets
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