Accelerating profitable growth with portfolio management
Portfolio management viewed as an administrative review process
Good Tools: Second, use of appropriate tools, like Portfolio Navigator are essential to success. These tools need to be focused on gathering credible and comparable data to support decisions. The third most important Key Driver (see above chart) is Standardized Metrics and Criteria, at 62%. Just having standard metrics is not enough, these need to be deployed effectively. The use of Formal Prioritization Tools distinguishes between the highly effective and minimally effective users of Portfolio Management (see below).
Use of Formal Prioritization Tools
In my own experience, adhoc tools, usually driven through Excel can produce a wealth of information but are too unwieldy to manage across a portfolio. On the other hand, simplistic databases can show great dashboards of all the right metrics, but create eye candy without much depth or substance. The key is to use tools that work in the middle range, with the analytical depth provided by spreadsheet models coupled with the cross-project reporting capabilities of databases.
The study concludes that portfolio management executed effectively delivers solid business benefits. Portfolio management drives increased ROI and reduced risks and gives organization a distinct advantage over competition. So to accelerate profitable growth, up your game in strategic portfolio management!
*Source: Pulse of the profession Portfolio Management: https://bit.ly/3psqPxp