When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the delivery of Business Value optimized?
Assume you are preparing the first portfolio risk management plan for your outsourcing company, which typically handles call centers around the world. While the company has implemented portfolio management and has a Portfolio Oversight Group, it did not previously assess risks to the portfolio itself. Instead, it assumed risks would be managed at the project level. However, numerous customer complaints have been received. The root cause is once a new call center is established, limited if any planning is done as the manager rushes to have it ready and operational as soon as possible. This has led to a lack of understanding as to what is required for the call centers to be successful. In preparing this plan, you are reviewing the portfolio management plan because it:
Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose?
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Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:
Working to monitor the portfolio especially in terms of its value to the organization, you had each component manager prepare monthly variance reports. Of the components ranked in the top 10, six of them realized they would not require some of their initial funding and still would be completed as planned. This means:
Assume your company recently diversified, and in addition to producing its recognized brand of ice cream products, it now also is producing cereal and nutritional products. Assume you have been using the Efficient Frontier to manage portfolio value. With diversification to these new products:
Which of the following is NOT considered as a criteria for prioritization?
When it comes to managing a portfolio, you have a variety of assets, plans and tools and techniques used. It requires a good experience to handle all of these artifacts. One of your portfolio team members came to you asking about the relation between the portfolio performance management plan, the portfolio management plan and portfolio strategic plan. What should your answer be?
A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize delivery. For this, you are always on the lookout to optimize your portfolio. What can you use to start this process?
While there are a number of recommended contents of the portfolio strategic plan, a guiding principle is to:
