Applying agile to portfolio management

Portfolio management is a practice of managing organization’s projects in a structured manner. The goal is to produce maximum value by selecting executed projects, realizing the maximum amount of business value. Portfolio management is also one of the most important tools to execute company strategy by focusing on development efforts and as such an important tool for management. Agile project management and development practices have become very common in the last decade, so portfolio management should also be compatible with modern agile development methods when applied. In this thesis, a literature review is made to understand the current research of portfolio management, agile development methods, and combining those two subjects. A goal is to understand how portfolio management process should be defined to be compatible with projects using agile development methods, and if agile methods can be applied in the process as well. A new customized portfolio management framework is designed and implemented based on the literature review for Elo Mutual Pension Insurance Company’s investment organization to be used to manage in house development projects. Thesis will follow up if the framework is able to improve organization’s portfolio management practices. The designed framework was considered as an improvement and was designed to support use of agile development methods