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What's Your Project Portfolio Management
IQ?
Challenge yourself to answer a
five-question quiz and see some concepts
you may want to apply in your decision
making today.
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See what business executives,
practitioners, and academic experts are
saying about PROXI... |
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A Universal Process
- The portfolio analysis and planning
process has a fairly universal
set of requirements across companies and even across
industries:
Management teams must determine
how to allocate the time,
people, and capital resources of their
organizations.
That being said,
there is a difference between a
"universal" and "standard"
decision process. Specific
process implementations and
supporting tools may vary
significantly across
organizations; however, the
portfolio analysis problem
formulation and planning process
are quite consistent.
Furthermore, multi-divisional
enterprises have a "nested"
portfolio management problem.
Portfolios exist at various
levels of the corporate
hierarchy, but the projects of
each level's portfolio have
quite different operational
scopes (see project types
below).
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Key
Objectives of a Rigorous
Portfolio Analysis Methodology:
Value Maximization:
Allocate organizational resources to maximize
aggregate portfolio value, in terms of appropriate business performance
metrics,
subject to resource constraints and strategic criteria
Portfolio Mix and Balance:
Achieve the desired
distribution
of projects on
various market,
operational, and strategic factors
Strategic Direction: Ensure that strategic
intentions are reflected in
resource expenditure decisions
Resource Utilization:
Make the best use of critical
assets, at the
desired levels of overall
headcount capacity and budget utilization
Risk Diversification:
Limit financial and operational exposures to both
the inherent risks of project investments and the uncertainties of pro-
forma forecasts
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