PM²-PfM presents a practical and effective approach to portfolio management as part of the PM² Methodologies Suite. The PM²-PfM Methodology builds on globally recognised best practices, the operational experience of EU Institutions such as the European Commission, its Agencies and Bodies, and the European Parliament, as well as contributions from portfolio and programme management experts and practitioners.
Discover how PM²-PfM can help your organisation's portfolio performance, improve decision-making, and realise value through its effective governance model, processes, and supporting artefact templates. Download the full guide and complementary resources to access the complete methodology.
PM²-PfM Overview
The purpose of PM²-PfM is to support organisations in establishing portfolio management by providing a concise yet complete framework within which effective portfolio management can be practised.
PM²-PfM promotes portfolio management as an enabler rather than an additional layer of control or bureaucracy.
PM²-PfM is part of the PM² Methodologies Suite and therefore aligned with the suite’s philosophy of presenting open, effective, and lean methodologies that organisations can further tailor to their specific needs.
The PM²-PfM Methodology provides:
- a governance structure.
- a process model.
- guidelines for portfolio management activities.
- portfolio artefact definitions.
- a set of effective portfolio management mindsets.
PM²-PfM Governance Model
Portfolio governance is the framework within which portfolio management decisions are made. It defines all portfolio management roles and their associated responsibilities.
The portfolio management Roles are essentially defined by the management responsibilities assigned to them, while responsibilities describe what each role needs to be concerned with, its domain of management activity, and its level of authority.
PM²-PfM Process Model
PM²-PfM portfolios are constructs that group together programme and project investments. They capture effort and financial investments which although not necessarily interrelated or interdependent, contribute together to the achieving of a specific set of strategic value-creation objectives.
The PM²-PfM Process Model groups related portfolio management activities and help the portfolio management teams execute all necessary activities and achieve their management objectives.
The PM²-PfM Portfolio Management Model defines a range of portfolio management activities and groups them into five core processes:
- Portfolio Framework Definition,
- Portfolio Composition,
- Portfolio Realisation,
- Portfolio Monitoring & Controlling, and
- Portfolio Stakeholder Engagement & Communication.
PM²-PfM Activities
The PM²-PfM Methodology defines a number of management activities which are to be executed throughout the life of the portfolio. Through the execution of these activities, Portfolio Managers (PfMs) and portfolio teams can apply the portfolio management best practices that help them achieve their management objectives.
PM²-PfM presents a wide range of such activities along with guidelines on their application. These guidelines describe the activities (what) and their purpose (why), they present the distribution of the responsibilities for their execution (who), indicate the timing or frequency of their execution and their frequency for recurring activities (when), and provide guidelines for their execution (how).
PM²-PfM Artefacts
PM²-PfM portfolio management is supported by documentation throughout its lifecycle. Documentation in portfolio management is an essential enabler for effective set-up, composition, realisation and overall management of portfolios.
Portfolio documentation should be standardised within an organisation (e.g. through the PM²-PfM Artefacts), but above all, it should serve the information and communication needs of the portfolio and its stakeholders.
PM²-PfM Mindsets
While processes and artefacts support what can be considered the administrative side of portfolio management, the right mindsets help organisations and teams navigate the complex realities of portfolio management.
Portfolio mindsets are an essential part of any portfolio methodology. Just as we define processes to help us manage portfolios more effectively, we also define mindsets to foster the attitudes and behaviours that enable success. They establish a shared set of beliefs and values that align management practices across all portfolio teams within the organisation.
To remain aligned with the PM²-PfM Mindsets, portfolio managers and teams should also reflect on the essential Infrequently Asked Questions (IAQs).
PM²-PfM Resources
The PM² methodology provides a wealth of openly accessible resources, including guides, templates, and tools that support every aspect of portfolio management. Published under an open licence, these materials are free for anyone to download, use, and share.
2025 Edition
- PM²-PfM Highlights - coming soon
- PM² PfM Overview (2025 Edition) - coming soon
- PM² PfM Guide (2025 Edition) - coming soon
- PM²-PfM Artefact Templates - coming soon
- Related Articles and posts - coming soon
Version 1.5