Business System Calculator

Because this is a fairly complex system, many people can better learn its dynamics through a hands-on approach. We have developed a calculator to allow you to experiment with different decisions in order to see how they influence shareholder value under different assumptions. We explain where to get it (at no cost) and how to use it below. We have also developed a simulation that illustrates how a portfolio of projects influences a company's shareholder value over time depending on how they are...

Maximizing the Value of the Portfolio

The methods used to achieve this goal range from financial tools to balanced scorecard models. Each has its strengths and weaknesses. The end result of each is a rank-ordered or prioritized list of go and hold projects, with the projects at the top of the list scoring highest in terms of achieving the desired objectives the portfolio's value in terms of that objective is thus maximized. Rank Projects Using Their Economic Value or Net Present Value. The simplest approach is merely to calculate...

Project Management and Project Portfolio Management

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project portfolio management is similarly the art and science of applying a set of knowledge, skills, tools, and techniques but to a collection (or portfolio) of projects in order to meet or exceed the needs Figure 10.5-1 An Organization's Strategy Is Executed Through Projects. Project Portfolio Management Is the Key to Aligning Projects with the Strategy Figure...

Project Sequencing Big Rocks First

The next step is to determine how the projects can be pipelined through your project delivery system. A given mix of projects may cause a resource to constrain the availability of your system to de liver the projects you have selected, at least adjusting the time you should plan on starting the projects. As illustrated above for multi-project TOC project management, you need to sequence the projects anyway to keep the individual project durations as short as possible. The TOC approach to...

Project Portfolio Management Software

There are a number of software tools that can be used to support the PPM process. Each year software developers improve the functionality of the tools to help the portfolio manager organize projects and programs, formulate the portfolio options, and analyze alternative scenarios. Pivot tables, bubble charts, resource allocation algorithms, and risk-reward diagrams provide the portfolio manager with a plethora of options and analytical capabilities. Recently software tools such as Microsoft...

Defining PPM and the Tools for PPM

Getting a clear, unified definition of PPM and PPM tools is virtually impossible. Consider this statement from a leading consulting firm (one of many on this topic) We define PPM as software that streamlines outward functions and inward processes of project-intensive departments, industries and organizations. Integrating multiple business processes and point solutions into one application suite, PPM features integrated management of pipeline, scope, time, resource, skills, cost, procurement,...