Professional Documents
Culture Documents
Introduction
This guide is aimed at those responsible for arranging and managing investment in projects and programmes across the whole of an organisation or for a specific department This guide sets out the initial steps to:
Help you understand what portfolio management is and its benefits Help you define the purpose for creating a portfolio in your organisation Provide examples of the challenges and resistance you will experience when trying to establish a portfolio approach Give you some ideas for:
Identifying all existing initiatives Categorising the initiatives so that you can see their impact by function, by contribution to strategic objectives or by resource usage Creating criteria for initiatives to form part of your portfolio
To access the white paper Building Capability for Effective Portfolio Management go to http://www.maventraining.co.uk/whitepapers/
2 Maven Training 2011
Challenges
Those running the projects and programmes will see your initial information gathering about existing work as: A threat to their autonomy to run them A threat to the continuation of these initiatives as comparing them against each other in a portfolio will show up the weaknesses (limited benefits, cost overruns, delays, resource conflicts etc) Building a portfolio requires information gathering and planning which can be seen as an additional bureaucratic step that does not add any additional value to the organisation Project and programme managers believe that they are already reporting the information that you want and that portfolio management is an additional administrative burden for them
6 Maven Training 2011
Portfolio stakeholders
Internal stakeholders Customer facing staff Business line 1 Business line 2 Business line 3 Support staff
External stakeholders
Managers
Customers
Suppliers
Reviewers
Function 1
Board
High value
Essential
Regulators
Function 2
Executives
All others
All others
Auditors
Function 3
Senior Managers
Identify the importance of each strategic objective and give each importance a weighting Assess each initiative for its contribution to the strategic objectives and give it a score Multiply the score by the weighting and rank each initiative with highest scores first see next slide for an example of this approach
10 Maven Training 2011
Prioritisation example - 1
Weighting:
Critical to the survival/success of the organisation has a weighting of 3 i.e. 3 times more important than the least important objective Important to the survival/success of the organisation has a weighting of 2 Useful for the achievement of the strategy has a weighting of 1
For each initiative, identify its contribution to the strategic objectives of the organisation:
No contribution = 0 Some contribution = 5 Significant contribution = 10
Prioritisation example - 2
Name of initiative Marketing programme Upgrade of office software Leasing of new office Hiring new sales team Sale of subsidiary company Launch of new product Name of initiative Hiring new sales team Launch of new product Marketing programme Leasing of new office Sale of subsidiary company Upgrade of office software Weighting 2 1 2 3 2 3 Weighting 3 3 2 2 2 1 Contribution 5 0 5 10 5 10 Contribution 10 10 5 5 5 0 Total value 10 0 10 30 10 30 Total value 30 30 10 10 10 0
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