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Portfolio Management: Optimizing for Success

Published by: American Productivity & Quality Center

Published: Jan. 24, 2007 - 125 Pages


Table of Contents


Executive Summary
Chapter 1: The Portfolio Management Journey
Chapter 2: Aligning Portfolio Management to the Organizational Strategy
Chapter 3: Defining Portfolio Governance Roles and Communication Vehicles
Chapter 4: Using Portfolio Management for Project Selection and Resource Allocation
Chapter 5: Understanding Portfolio Management Tools and Enablers
Chapter 6: Using Metrics and Measures to Guide the Portfolio Process
Chapter 7: Critical Success Factors and Lessons Learned
Case Studies
  • AXA-Equitable
  • Boston Scientific Corporation, iCardio Division
  • Hewlett-Packard Imaging and Printing Group
  • Kennametal Inc.
  • NCR

Abstract

Learn how leading organizations make effective portfolio selection decisions to maximize product innovation and discover how to view portfolio management from a tactical perspective to maximize innovation in Portfolio Management: Optimizing for Success.

KEY FINDINGS

The Portfolio Management Journey

  • This chapter reviews each of the study's best-practice partners and their portfolio management journeys. This journey includes enablers, barriers, critical success factors, lessons learned, and future plans.
Aligning Portfolio Management to the Organizational Strategy
  • Effective portfolio management requires strong linkage to the corporate and/or business unit strategy.
  • Sufficient time is needed to embed portfolio management into an organization and allow the process to mature.
  • Increasing investments in a portfolio management process demonstrates a belief in future benefits to the organization.
  • Continuous improvement of the portfolio management process is achieved, in part, by formal analytical frameworks.
Defining Portfolio Governance Roles and Communication Vehicles
  • Successful portfolio management is characterized by clear ownership of the process by senior leadership.
  • Leading organizations clarify portfolio management roles and responsibilities to promote an understanding of the process in the organization.
  • Linking portfolio management to other areas within the organization optimizes the portfolio management process.
  • Consistent communication and a high degree of visibility of the portfolio management process will help achieve organizational buy-in.
  • Investing in portfolio management training and coaching contributes to the longevity of effective portfolio management.
Using Portfolio Management for Project Selection and Resource Allocation
  • Clear project prioritization criteria aid in the selection and ranking of investments (projects).
  • Clear prioritization criteria facilitate resource allocation within the portfolio.
Understanding Portfolio Management Tools and Enablers
  • Early understanding of the data/information required for the portfolio management process is critical to proper selection and adaptation of software tools.
  • It is important to work around software limitations and roadblocks when using portfolio management tools.
  • Portfolio management tools do not operate in a vacuum; they must be linked to other processes.
Using Metrics and Measures to Guide the Portfolio Process
  • Take steps to preserve data integrity throughout the portfolio management process.
  • Metrics and measurements are applied consistently to make portfolio management decisions.


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