Each bubble is a project 1

• Bubble size often represents an additional variable such as cost or net present value

• Bubble color might refer to a specific qualitative criteria required to measure balance.

"O

Project 4:

2,000,000

r v

Project 1: |

1,000,000

Project 7:

500,000

P

4

Project 8:

2.000.0 00

Project 5:

1,500,000

4

1 *

^ Project 3:

200,000

r

s

1

Project 2:

750,000

t

Project 6:

100,000

0.3 04 0.5 o.e Indicator "X" or Criteria

0.3 04 0.5 o.e Indicator "X" or Criteria

Figure 11. Portfolio Balancing Using Indicators or Criteria

Investment in Category 1

Investment in Category 2

Investment in Category 3

Investment in Category 4

Investment in Category 5

Business Unit 1

O

Business Unit 2

QQO

C)

Business Unit 3

( )

j y

Business Unit 4

^_y

Business Unit 5

O

o O

o

Business Unit Ö

Oo

O

Project Category 1

Project Category 2

Project Category 3

Project Category 4

Project Category 5

Investment for Business Jnit 1

Investment for Business Jnit 2

Investment for Business Jnit 3

Investment for Business Jnit 4

Investment for Business Jnit 5

Investment for Business Jnit 6

Figure 12. Portfolio Balancing Using Strategic Categories and Targeted Business Units

.6 Expert Judgment

Expert judgment is often used to assess the inputs needed to determine how to balance the portfolio. Such judgment and expertise are applied to any technical and management details during this process.

3.2.1.7 Authorization

Figure 13. Tools and Techniques for Component Authorization

Figure 13. Tools and Techniques for Component Authorization

Tools and techniques for component authorization are mainly concerned with helping the organization to effectively communicate the decisions with respect to components included in the balanced portfolio and to assign roles, responsibilities, and performance milestones for their implementation and monitoring.

At this stage of the portfolio management process, available tools and techniques include, among others:

.1 Portfolio Management Roles & Responsibilities Document

The portfolio management roles & responsibilities document identifies stakeholders, defines roles, and specifies responsibilities for all participants in the portfolio management process.

.2 Portfolio Management Communication Plan

The portfolio management communication plan defines all communication needs, establishes communication requirements, specifies frequency, and identifies recipients for information associated with the portfolio management process.

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