Portfolio ManagementThe three goals of portfolio management are:
PD-Trak™ provides a set of portfolio management tools to help achieve these goals. With multiple business units, product lines or types of development, we recommend a strategic allocation process based on the business plan. The Master Project Schedule provides a summary of all active as well as proposed projects and classifies them by status (active, proposed, on-hold) and by business unit/product line to align projects with the strategic allocation. The Master Project Schedule also provides additional portfolio information to prioritize projects using either a scorecard method or the development productivity index(DPI *). In addition to this prioritization, PD-Trak provides a Risk-Reward Bubble Chart and a Project Type Pie Chart to assure balance. A Product or Technology Roadmap template is provided to help visualize platform and technology relationships to assure critical project relationships are not overlooked with this prioritization. This will allow management to develop a balanced approach to selecting and continuing with the appropriate mix of projects to satisfy the three goals.
Project Scoring WorksheetProject scoring worksheets support gate reviews and portfolio management. They provide a structured method for the management team to rank projects according to a set of predefined, yet customizable, criteria. Weighting factors can be set for each criteria. Unique criteria can be established for each gate, and the specific gate scores specified for roll-up to the Master Project Schedule. The following image shows part of the project scoring table:
The evaluators enter their scores (1 to 10, where 10 is best) into the yellow cells. The worksheet computes the average scores and applies the weighting factors to compute the overall score. The maximum weighted score for a project is 100. Master Project ScheduleInformation related to portfolio management is grouped under the heading Portfolio Information. The results of the project scoring tables are automatically imported into the Master Project Schedule. When first opened, the MPS shows only the summary scores for each project:
The detail scores by category can be shown by clicking on the Show Scoring Detail button:
The sorting functions for the Master Project Schedule allow the projects to be sorted by Score or Development Productivity Index. These sorting methods are an effective way of creating a prioritized project portfolio. Other sorting methods include the Next Review date or As Project List (the order of projects whenever the file if first opened, set by the order of projects on the project list which is controlled by the PD-Trak administrator). Portfolio Bubble ChartThis chart provides a graphical view of the project portfolio risk-reward. It is used to assure balance in the portfolio of projects - neither too risky or conservative and appropriate levels of reward for the risk involved. The horizontal axis is Net Present Value, the vertical axis is Probability of Success. The size of the bubble is proportional to the total revenue generated over the lifetime sales of the product.
* Development Productivity Index = (Net Present Value x Probability of Success) / Development Cost Remaining For further information, please contact us at: info@pd-trak.com or at 925-484-8436. Portfolio Management Software
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