A portfolio is a collection of programs, projects or operations managed as a group to achieve strategic objectives. The portfolio components may not necessarily be interdependent or have related objectives. The portfolio components are quantifiable, ie they can be measured, ranked and prioritised. A portfolio exists to achieve one or more organizational strategies and objectives.

The relationship among portfolios, programs and projects is that a portfolio refers to a collection of projects, sub-portfolios and operations group together in order to facilitate the effective management of that work to meet strategic objectives.

The increasing acceptance of portfolio management indicates that the application of appropriate knowledge, processes, skills, tools and techniques to select the right work may have a significant impact on program, project and organizational success.