What Does a Portfolio Manager Do in Project Management?

When most people think about project management, they picture someone tracking timelines, managing deliverables, or coordinating teams to complete a project. But in complex organizations, there‘s another, more strategic role: the project portfolio manager.

While a project manager ensures an individual project is delivered successfully, a portfolio manager oversees a collection of projects. Their job is to make sure those projects are aligned with business goals, optimally resourced, and delivering the expected value. Let‘s unpack what this role involves, how it impacts organizational performance, and why it’s becoming essential in modern professional services and enterprise environments.

What is project management?

Project management is all about getting things done right.

A project manager is responsible for delivering a specific initiative with clear goals, deadlines, a defined scope, and budget constraints. They manage people, timelines, risks, deliverables, and communication, all to ensure the project is completed successfully.

Learn more: What Is Project Management? Definition, Process & Tips

Project management in action: a real-world example

Imagine a digital agency hired to develop a website for a healthcare client. The project manager works with designers, developers, and QA testers. They create a timeline, set up milestones, schedule sprints, assign tasks, and track progress to ensure the launch happens on time and within the agreed budget.

Even though the project might be part of a larger strategic program, the project manager is focused on the daily execution of tasks, not whether the project is the highest priority for the business as a whole.

Project managers typically work within individual projects, not across multiple projects. Their success is measured by how well they deliver against the plan.

What is portfolio management?

Portfolio management is about doing the right things, and making sure the right mix of projects is being pursued based on strategic goals, capacity, and potential value.

Where project managers are focused on execution, portfolio managers are focused on selection, prioritization, and alignment.

They look across all current and proposed projects to ensure the company is investing time, money, and resources in the projects that matter most.

Learn more: What is a project portfolio? A simple guide

Portfolio management in action: a strategic example

Let‘s say an IT services company is considering 12 possible projects next quarter: client migrations, internal automation, and a new product launch. The portfolio manager works with executives to evaluate each project‘s impact, urgency, expected return, and resource demand.

They may decide that only five of the twelve projects should move forward, because the others are too risky, redundant, or poorly aligned with the company‘s strategic goals.

Portfolio managers don‘t manage the daily tasks of any one project. Instead, they coordinate at a higher level, ensuring the company is moving in the right direction.

The big picture: how portfolio management differs from project management

Before we dive into responsibilities, it helps to understand the difference.

Imagine your company has 20 active projects. Some are customer-facing, some internal, some high-priority, and others experimental. Managing each project efficiently is important, but even more important is knowing whether you’re working on the right projects.

That‘s where a portfolio manager comes in. Their job is not to deliver each project (that‘s the project manager‘s role), but to ensure the entire portfolio of projects is strategically sound, well-balanced, and delivering business value.

Portfolio manager vs project manager: a direct comparison

To put it simply: project management is tactical, and portfolio management is strategic. Here‘s how they compare side-by-side:

Aspect	Project Manager	Project Portfolio Manager
Main focus	Delivers one project successfully	Oversees many projects and aligns them with business goals
Level of work	Day-to-day tasks and team coordination	Strategic decision-making across multiple projects
Goals	Complete the project on time, on budget, and within scope	Make sure the right projects are being done for the right reasons
Who they work with	Project team, clients, and functional leads	Executives, PMs, resource managers, and department heads
Key responsibilities	Plan, execute, and monitor a single project	Prioritize projects, balance resources, track performance, manage risk
Tools used	Task boards, Gantt charts, time tracking	Portfolio dashboards, forecasting tools, resource planning systems
Success looks like	A well-delivered project that meets its objectives	A balanced, optimized portfolio that supports the company‘s strategy

Where the two roles intersect

In real organizations, project and portfolio management work hand in hand.

Portfolio managers decide what should be done, and when.

Project managers decide how it should be done, and by whom.

They don‘t replace each other, they complement each other. The best-performing firms align strategy (portfolio) with delivery (project).

Managers must be flexible, continuously revisiting the roadmap and reallocating resources as needed.

Key responsibilities of a project portfolio manager

Let‘s look at the core responsibilities of a portfolio manager in detail, using simple language and real-world examples.

1. Select and prioritize the right projects

Not every project idea is worth pursuing. Portfolio managers work with leadership to evaluate incoming proposals, determine their strategic value, and decide which ones should move forward.

Example: Imagine your company receives 10 project proposals this quarter. You only have resources for 4. The portfolio manager, using evaluation criteria (ROI, alignment to strategic goals, risk, effort), ranks and selects the best-fit projects.

Tools like Birdview PSA make this process easier by providing custom project intake forms and scoring models, so you’re not relying on spreadsheets or gut feelings.

2. Align projects with business strategy

A portfolio manager acts as a bridge between strategy and execution. They ensure that all active projects contribute to long-term business goals–whether that‘s improving operational efficiency, increasing revenue, or expanding into new markets.

Tip: Conduct quarterly portfolio reviews to re-evaluate how each project aligns with shifting business priorities. This helps avoid wasting time on outdated projects.

3. Balance resource capacity across projects

Resources (people, budget, tools) are limited. Portfolio managers ensure those resources are allocated effectively across the entire project portfolio. They also watch for resource conflicts–like when two high-priority projects compete for the same designer or developer.

Example: A portfolio manager notices that a UX designer is booked on two overlapping sprints. They shift timelines slightly to avoid burnout and ensure consistent quality across both projects.

In Birdview PSA, this kind of resource balancing is supported by real-time availability views and workload heatmaps.

4. Monitor project performance and health

Portfolio managers don‘t get into the weeds of project tasks, but they do keep an eye on high-level metrics: timelines, budgets, earned value, and strategic outcomes. When a project starts slipping, they escalate concerns, realign priorities, or recommend stopping the project altogether.

Tip: Use portfolio dashboards to track performance at a glance. Red-yellow-green status indicators can help identify which projects need attention.

5. Manage risks across the portfolio

Project risks are typically managed by project managers–but when risks span multiple projects (like dependency delays or cross-team resource gaps), portfolio managers need to step in.

They look for patterns and systemic risks, then adjust the overall roadmap to mitigate them.

Example: Three projects are dependent on the same cloud migration. If that migration is delayed, all three projects are at risk. The portfolio manager flags this early and suggests re-sequencing or resource shifts to reduce impact.

Common challenges faced by portfolio managers

Even with tools and frameworks, portfolio management is not easy. Here are some real-world challenges and how experienced portfolio managers handle them.

Conflicting priorities from executives

Each department wants their project to be #1. A good portfolio manager creates a transparent prioritization framework so decisions are based on data, not politics.

Limited visibility into team capacity

Without accurate resource data, it’s hard to make smart decisions. That‘s why many portfolio managers use software like Birdview PSA to get real-time insights into team workload, skill sets, and availability.

Constant change

Markets shift, client needs evolve, and project scopes can expand. Portfolio managers must be flexible, continuously revisiting the roadmap and reallocating resources as needed.

What skills does a portfolio manager need?

Being a successful portfolio manager isn‘t just about crunching numbers or filling out dashboards. It‘s a dynamic role that blends strategic vision, analytical thinking, collaboration, and change management–all while juggling multiple moving parts across different teams, stakeholders, and business units.

Key skills every portfolio manager needs:

1. Strategic thinking

At the heart of portfolio management is the ability to see the bigger picture. A portfolio manager must constantly ask:

“Does this project help us reach our long-term goals?”
“Are we investing in the right projects, or just the loudest ones?”

This means translating broad company objectives into criteria for selecting, prioritizing, and sequencing projects.

Example: If the company‘s priority is expanding into a new market, the portfolio manager might pause low-impact internal projects to free up resources for market research, customer onboarding systems, or regional marketing campaigns.

2. Analytical and decision-making skills

As a portfolio manager, you need to feel comfortable working with numbers and project data. That means understanding how much money has been spent, whether your teams are being used effectively, if any risks are building up, and whether projects are staying on schedule. This information helps you make smart decisions. Sometimes, you may need to stop a project that‘s already in progress if it no longer fits the company‘s goals, or if something more important comes up. The key is being able to look at the situation clearly and choose the best course of action.

3. Resource planning and capacity management

Even the best strategy fails without the right people to execute it. Portfolio managers must understand not only what needs to be done but also who is available to do it, and when.

Can we start a new project this month, or are our developers at 120% capacity?
Is the lead architect on vacation during the critical path of three key projects?

Example: With a platform like Birdview PSA, portfolio managers can see real-time availability, spot overbooked teams, and plan resource shifts proactively to avoid last-minute fire drills.

4. Communication and stakeholder management

Portfolio managers interact with people across the entire company–from executives and department heads to project managers, analysts, and HR teams. You need to be able to clearly explain what‘s happening in the portfolio, share the big picture, and guide conversations when priorities need to shift. Sometimes, different teams will push for their own projects to come first, and it‘s your job to handle those situations diplomatically, helping everyone stay focused on what‘s best for the business.

5. Adaptability and change management

Priorities shift. A client might pull funding. A global event might disrupt half your supply chain. A team might lose a key specialist. A good portfolio manager stays calm, adapts quickly, and helps everyone else do the same.

Being able to adjust the portfolio roadmap in real time–while keeping stakeholders aligned–is one of the most valuable traits you can bring to the role.

How can Birdview PSA help portfolio managers?

Bringing everything into one place

When you‘re managing a project portfolio, you need to see the big picture without losing track of the details. It‘s not just about delivering one project on time. It‘s about making sure all the right projects are moving forward, using resources wisely, and staying aligned with business goals. That can be overwhelming, especially when project data is scattered, priorities keep shifting, and teams are stretched thin. This is where Birdview PSA can make a real difference.

Smarter project intake and prioritization

Birdview PSA gives portfolio managers a central place to manage everything. From the moment a new project request is submitted, the platform helps collect the right information and evaluate whether it fits your company‘s strategic goals. Instead of relying on spreadsheets or informal conversations, you get a structured project intake process that makes it easier to prioritize the right work.

Real-time visibility into progress

Once projects are underway, Birdview provides real-time visibility into progress. You can see which projects are on track, which are falling behind, and where resources are overutilized. This allows for faster decisions and proactive portfolio adjustments. With live project dashboards, portfolio managers no longer need to wait for updates or status reports.

Visualize progress with portfolio dashboards and Gantt charts

Birdview PSA helps portfolio managers track project progress in real time. Dashboards show the overall health of the portfolio, including budgets, timelines, and risks. Gantt charts make it easy to see how projects are scheduled and where they overlap. With this visual clarity, you can quickly spot delays, adjust plans, and keep everything on track without digging through reports.

Easier and more accurate resource planning

With Birdview PSA, resource management becomes easier and more reliable. If someone is double-booked or unavailable, you‘ll see it immediately and can adjust schedules or shift tasks. This helps prevent burnout, reduce delays, and keep projects on schedule without overloading teams.

Better forecasting and scenario planning

Birdview also supports forecasting and what-if scenario planning. You can model different combinations of projects, assess the impact on resource capacity, and understand how decisions will affect the overall portfolio performance and budget. This allows portfolio managers to plan ahead and present data-driven recommendations to leadership.

Transparent communication for everyone involved

Birdview improves stakeholder communication by giving everyone access to the same, up-to-date information. Whether it‘s a project manager or executive, everyone can see portfolio priorities, progress, and performance in one place. This makes decision-making faster and reduces misalignment.

Clarity, control, and confidence

In the end, Birdview PSA helps portfolio managers manage complexity with more clarity, control, and confidence. It replaces disconnected tools and manual tracking with a single platform built for strategic portfolio management. That means more focus on results, smarter planning, and better outcomes for the business.

Project portfolio managers play a crucial role in turning strategy into results. They don’t just manage projects–they manage which projects happen at all, and ensure the organization is investing its time and resources wisely.

In modern businesses–especially in professional services, engineering, IT, and consulting–the role of a portfolio manager is becoming indispensable. With the right mindset, tools like Birdview PSA, and strong communication skills, they help companies work smarter, not just harder.

Birdview PSA gives you the clarity, structure, and real-time insights to manage multiple projects with confidence.

to see how it can support your portfolio management strategy

Project portfolio manager FAQ: clear answers to common questions

1. What governance frameworks do portfolio managers use?

Portfolio managers often use intake processes, review boards or steering committees, and phase-gate reviews. These structures help decide which projects enter the portfolio, when to invest, pause, or cancel initiatives, and ensure alignment with strategy and compliance standards.

2. How do portfolio managers measure success?

Beyond on-time and on-budget delivery, success is measured by business value: ROI, strategic alignment, benefit realization, risk reduction, resource efficiency, and stakeholder satisfaction.

3. What tools support portfolio management?

Portfolio managers use several types of tools. PSA and project portfolio management software help track and manage the portfolio. BI platforms like Power BI and Tableau are used to create dashboards and monitor KPIs. Collaboration tools such as Slack and Confluence support communication across teams. Risk analysis tools help identify dependencies and run scenario planning. Each tool plays a role in improving visibility, alignment, and decision-making.

4. Can a company manage its portfolio without a dedicated manager?

Smaller orgs might use a PMO or steering group instead. But as project volume grows, having a dedicated portfolio manager or analyst becomes essential to prevent resource overload, misalignment, and reactive decision-making.

5. Is portfolio management only for big companies?

Not at all. Any organization managing multiple projects–whether a growing startup or mid-size enterprise–can benefit from portfolio management to improve decision-making, optimize resources, and drive strategic outcomes.

6. How much experience does a portfolio manager need?

Typically, they have 5–10 years of experience in project or program management, with strong analytical, strategic, stakeholder, and governance skills. Certifications like PfMP or PgMP are pluses.

7. How do you transition from project manager to portfolio manager?

Start by learning strategic planning, governance, and financial management. Volunteer for intake or prioritization committees, build stakeholder relationships (especially with executives), and demonstrate your ability to think beyond individual projects.

8. What are common pitfalls in portfolio management?

Beware of lack of governance (leading to scope creep), poor resource tracking, infrequent reviews, and executive resistance. Regular metrics, transparent frameworks, and stakeholder buy-in are key to avoiding these traps.

What does a portfolio manager do in project management?

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