^ [[2.2 About Project Management]]
# 2.2.5 Project Portfolio Management
A project portfolio is a **collection of projects, programmes and other activities**, which are grouped together to allow better control over their financial and other resources and to facilitate their effective management in terms of ==meeting strategic objectives==.
The projects or programmes in a portfolio are not necessarily inter-dependent on inter-related. From a strategic point of view, portfolios are higher-level components than programmes and projects. It is **at the portfolio level that investment decisions are made, resources allocated, and priorities identified**.
It is very **important** for people involved in project definition and management to **understand the differences** between—and **specific management requirements** of—projects, programmes and portfolios. They should also **be able to define or position their work at the right level** (i.e. know if their work would be better managed as a programme or a network of projects), while always being aware of the management and organisational context of their work (see [[Appendix D - PM2 Extensions|Appendix D]]).
![[Fig 2.4 Relationships between strategy, project, programme, portfolio and operations.png]]
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Spanish Guide: [[2.2.5 Gestión de Carteras de Proyectos]]
<-- [[2.2.4 Programme Management]]
--> [[2.2.6 Projects vs Operations]]
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