I was conducting a portfolio management workshop at one of my favorite clients , VWR, a couple of weeks ago when the topic of classifying portfolios came up. The usual investment class options came up, namely the MIT model and the Run Grow Transform model.
The MIT model (Strategic, Informational, Transactional, and Infrastructure) was first developed [...]
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OK – so the whole idea of project portfolio management stemmed from the concept of treating projects like an investment portfolio. Since companies invest a lot of money in these projects, we should monitor them as such. In most PPM practices I’ve come across, this metaphor is applied to project selection (which projects will give [...] This week, I encountered an age old debate: which is better, planning from the top down or the bottom up? It happened to emerge during a discussion about resource planning, but it also applies to cost and budget estimates. While project portfolio management owes its genesis to financial portfolio management, there are some key differences. The first is the outcome of the portfolio. With a portfolio of financial assets, such as stocks, the return is measured in the same common denominator: dollars. This allows us to create some common key measures of performance, such as return on assets, price/earnings ratios, ROI, etc. Projects, however, are not all directly tied to dollars. Some projects improve employee moral, some increase market share, and some simply make current operations more efficient. Another way to look at this is to think of each project as a business outcome. Companies invest in a project to achieve a certain goal. Recent examples from EIG clients include: |
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