Portfolio Toolkit

Portfolio Management

Portfolio Healthcheck

Comprehensive assessment tool to evaluate portfolio health across strategy, governance, delivery, resources, and value realisation.

Portfolio Healthcheck

A systematic assessment of portfolio health to ensure investments are delivering strategic value, resources are optimised, and governance is effective.

Purpose

The Portfolio Healthcheck:

Assesses strategic alignment of investments
Identifies portfolio-level risks and issues
Evaluates PMO effectiveness
Supports investment decisions
Enables portfolio rebalancing
Drives continuous improvement

When to Conduct

Trigger	Purpose
Quarterly review	Regular health assessment
Annual planning	Inform investment cycle
Strategy change	Realignment check
Performance concerns	Investigate issues
New leadership	Baseline understanding

Assessment Framework

Health Dimensions

flowchart TD A[Portfolio
Health] --> B[Strategy] A --> C[Governance] A --> D[Delivery] A --> E[Resources] A --> F[Value] A --> G[PMO Capability] classDef blue fill:#108BB9,stroke:none,color:#fff class A,B,C,D,E,F,G blue

Dimension	Focus Areas
Strategy	Alignment, prioritisation, balance
Governance	Decision-making, oversight, controls
Delivery	Aggregate performance, dependencies
Resources	Capacity, capability, allocation
Value	Benefits realisation, ROI
PMO Capability	Processes, tools, maturity

RAG Rating Scale

Rating	Score	Meaning
Green	4	Fully effective, best practice
Light Green	3	Effective, minor improvements
Amber	2	Partially effective, action needed
Red	1	Ineffective, urgent action

Strategy Assessment

Question	Score (1-4)
Is portfolio aligned to organisational strategy?
Are prioritisation criteria clear and applied?
Is the portfolio appropriately balanced?
Is there a clear investment pipeline?
Are strategic objectives being achieved?
Is there connection to business planning?

Strategy Red Flags

No clear strategic alignment
Too many priorities
Imbalanced portfolio
Strategic drift unchecked
Disconnected from business planning

Governance Assessment

Question	Score (1-4)
Is portfolio governance structure effective?
Are investment decisions timely and evidence-based?
Is there appropriate executive engagement?
Are stage gates consistently applied?
Is portfolio reporting informing decisions?
Are escalations handled appropriately?

Governance Red Flags

Decisions delayed or circumvented
Executive disengagement
Inconsistent gate application
Reports not actionable
Political decision-making

Delivery Assessment

Question	Score (1-4)
Is overall delivery performance acceptable?
Are dependencies managed across portfolio?
Are risks aggregated and visible?
Is change control effective?
Are projects/programmes closing successfully?
Is delivery capability improving?

Delivery Red Flags

Multiple investments in trouble
Unmanaged dependencies
Risks not escalated
Project/programme churn
Repeat failures

Resources Assessment

Question	Score (1-4)
Is resource capacity sufficient for demand?
Are skills gaps identified and addressed?
Is resource allocation priority-based?
Is utilisation at healthy levels?
Are resource conflicts resolved promptly?
Is workforce planning effective?

Resources Red Flags

Chronic over-allocation
Critical skills gaps
Political resource allocation
High attrition
No capacity visibility

Value Assessment

Question	Score (1-4)
Are benefits being tracked and realised?
Is ROI being measured and achieved?
Are benefits owners engaged?
Is value-based decision making happening?
Are post-implementation reviews conducted?
Is benefits performance improving?

Value Red Flags

No benefits tracking
ROI not measured
Benefits owners disengaged
No post-implementation reviews
Declining benefits performance

PMO Capability Assessment

Question	Score (1-4)
Are PMO processes fit for purpose?
Are tools and systems adequate?
Is PM capability sufficient?
Is methodology consistently applied?
Is knowledge management effective?
Is PMO perceived as adding value?

PMO Red Flags

Processes bureaucratic or ignored
Tools not adopted
PM capability gaps
Methodology variably applied
PMO seen as overhead

Scoring and Interpretation

Calculating Scores

Dimension	Questions	Max Score
Strategy	6	24
Governance	6	24
Delivery	6	24
Resources	6	24
Value	6	24
PMO Capability	6	24
Total	36	144

Overall Health Rating

Score Range	Rating	Interpretation
120-144 (>83%)	Green	Healthy, optimise
96-119 (67-83%)	Amber-Green	Generally healthy, address gaps
72-95 (50-67%)	Amber	Concerns, improvement needed
<72 (<50%)	Red	Serious issues, transformation

Portfolio-Level Metrics

Key Performance Indicators

Metric	Target	Current	Status
Strategic alignment	100%	85%	Amber
On-time delivery	>80%	75%	Amber
On-budget delivery	>85%	82%	Amber
Benefits realisation	>90%	88%	Green
Resource utilisation	80-85%	87%	Amber
Portfolio balance	Per target	On target	Green

Portfolio Dashboard

Investment	Status	Schedule	Budget	Benefits	Risk
Programme A	Green	Green	Amber	Green	Green
Programme B	Amber	Amber	Green	Amber	Amber
Project C	Green	Green	Green	Green	Green
Project D	Red	Red	Red	Amber	Red
Portfolio	Amber	Amber	Amber	Green	Amber

Conducting the Assessment

Process

flowchart LR A[Prepare] --> B[Gather
Data] B --> C[Score
Dimensions] C --> D[Analyse
Portfolio] D --> E[Develop
Actions] E --> F[Report &
Decide] classDef blue fill:#108BB9,stroke:none,color:#fff class A,B,C,D,E,F blue

Data Sources

Source	Information
Portfolio reports	Investment status
Strategy documents	Alignment check
Resource data	Capacity, utilisation
Benefits tracker	Value realisation
Risk aggregation	Portfolio risk
Stakeholder feedback	Governance health

Reporting

Healthcheck Report Structure

Section	Content
Executive summary	Overall rating, key findings
Dimension analysis	Score and RAG per dimension
Portfolio performance	Aggregate delivery metrics
Strategic alignment	Investment-strategy mapping
Risk profile	Portfolio-level risks
Recommendations	Priority actions

Example Summary

PORTFOLIO HEALTHCHECK SUMMARY
=============================
Portfolio: Technology Investments
Date: January 2026
Overall Rating: AMBER-GREEN (74%)

Dimension Scores:
- Strategy:      20/24 (83%) GREEN
- Governance:    18/24 (75%) GREEN
- Delivery:      16/24 (67%) AMBER
- Resources:     14/24 (58%) AMBER
- Value:         20/24 (83%) GREEN
- PMO:           18/24 (75%) GREEN

Portfolio Summary:
- 15 active investments
- 3 Red status (20%)
- 5 Amber status (33%)
- 7 Green status (47%)

Key Concerns:
1. Resource capacity stretched
2. Three investments in trouble
3. Delivery performance declining

Priority Actions:
1. Address resource gaps
2. Recovery plans for red investments
3. Strengthen delivery capability

Portfolio Actions

Action Categories

Category	Examples
Rebalance	Shift investment mix
Prioritise	Re-rank investments
Stop	Terminate poor performers
Accelerate	Fast-track high value
Resource	Address capacity gaps
Improve	Enhance PMO capability

Decision Framework

Investment Status	Action Options
Red + Low priority	Stop or descope
Red + High priority	Recovery plan or escalate
Amber + Declining	Intervention, support
Green + High value	Protect, potentially accelerate
All + No resources	Prioritise or defer

Maturity Assessment

PMO Maturity Levels

Level	Description	Characteristics
1 - Initial	Ad-hoc	No standards, reactive
2 - Developing	Basic	Some processes, inconsistent
3 - Defined	Standardised	Consistent processes, tools
4 - Managed	Measured	Metrics-driven, proactive
5 - Optimising	Continuous improvement	Adaptive, best practice

Maturity by Function

Function	Current	Target	Gap
Governance	3	4	1
Reporting	4	4	0
Resource Mgmt	2	3	1
Benefits	2	4	2
Risk Mgmt	3	4	1
Methodology	3	4	1

Common Patterns

Pattern	Causes	Response
Strategy disconnect	No portfolio-strategy link	Alignment review, reprioritise
Too many priorities	Can’t say no	Ruthless prioritisation
Resource gridlock	Over-commitment	Capacity-based planning
Benefits ignored	Focus on delivery	Benefits framework
Governance theatre	Process without impact	Streamline, empower
PMO as overhead	Not adding value	Demonstrate value, adapt