Coulleague posting

Assignment Help Management Theories
Reference no: EM13507587

Coulleague posting

According to Huhn (2001) evaluating projects and ranking portfolio "is at the heart of project portfolio management (PPM) and a good project portfolio ranking system not only makes the job much easier and faster, but also yields fruitful results." Organizations should ensure that the underlying ranking methodology chosen is not only sound and testable but also applicable across portfolios. Once the approach is matched with the characteristics of the organization and gets solid support of the organization, evaluation of projects and ranking of portfolios will achieve business goals and strategy.


Morris and Pinto (2010) opined that "since there's no conclusive way of evaluating and ranking projects/portfolio, organizations must create project characteristics that match their business strategy." Most approaches used for evaluating and ranking projects and portfolios lend themselves to universal acceptance and application. They are as follows:


Economic Return: This method calls for estimation of financial investment and income flow through the project's lifecycle. They are based on the experiences of individual organizations in the course of managing related projects. The common such tools include net present value,discounted cash flowreturn on original investment, and return on average investment. The outcome of the resultant calculations forms the basis for ranking and decision-making. Its foremost disadvantage is that it has a tendency to reprimand risky projects because the techniques make no provision for project termination.


Real options theory: The uniqueness of this technique lies in the fact that it provides leverage for managerial discretion, raises the significance of uncertainty and provides dynamism to the organization's investment decision-making process. Its advantages include its ability to bridge corporate strategy and finance; make investment budgeting more realistic; infuse strategic thinking into financial marketing; generally makes room for uncertainty and relies on real-life situations. Its disadvantage is that it doesn't make room for qualitative measurements of the strategic or financial optimization process.


Market research: It is the product of ideas and models prepared to enable clients evaluate new products and services/markets. It relies on the input of consumer panels, focus groups, and preference mappings, which is good for gauging the perceptions of both consumers and competitors.


Comparative Approaches: This technique is about weighing and comparing alternatives to determine the contributions they make to the business objectives. Techniques used include Q-sort, analytic hierarchy process, and data envelopment analysis. The approach combines the attributes of quantitative, qualitative and judgment criteria. However, it requires very large data for comparisons, making application difficult in large portfolio analysis.


Scoring Models: according to Morris and Pinto (2010) scoring models are used for decision criteria such as cost, available workforce, and technical success. They are easy to use. They are used for both quantity and quality scoring. Addition/deletion of projects doesn't require recalculation of the value or weight.


Other tools are Optimization Models, Portfolio decision support systems, and Portfolio Matrices.


SmithKline-Beecham used a three-phased approach which began with generating alternatives after which the alternatives were valued; and then portfolio was created and resources allocated to it. First, it made its stakeholders understand both the project and the alternatives available like: as is, increased funding, reduction in funding, and redirecting the project, with each yielding a different possible benefit to it. Once the stakeholders understood the implications, the team went on to use transparent evaluations criteria which were applicable across all projects with data collected from credible sources for the valuation process. To ensure consistent application between projects and a transparent valuing process, the following conditions and criteria were put in place:


  • Uniformity in the information shared among projects
  • Information must come from credible and reliable sources.


The process enabled simple comparisons and projects were effectively ranked. Benchmarking and peer reviews were used, and active participation of team members in defined roles and responsibilities was ensured. Best-fit projects were selected for the portfolio based on value and business alignment and necessary resources were allocated.


Transparency and active participation of teams/stakeholders contributed to project/portfolio success. According to Sharpe & Keelin (1998) the techniques enabled SmithKline-Beecham review its projects and allocate numerical value to candidate projects to be ranked based on their importance and consistence to overall portfolio. The techniques and phases enabled immediate evaluation but offered less focus on quality or shortcomings. Buy-in was made possible through the ability to gather tangible data for decision-making.



Reference no: EM13507587

Questions Cloud

Explain sample of the compound decomposes in 54 min : What is the half-life of a compound if 60. percent of a given sample of the compound decomposes in 54 min
Find his resultant displacement from camp : A hiker starts at his camp and moves the following distances while exploring his surroundings: 60.0 m north, 2.95 102 m east, Find his resultant displacement from camp
Determine the angular speed of the earth : It takes 23 hours 56 minutes and 4 seconds for the earth to make one revolution (mean sidereal day). What is the angular speed of the earth
Evaluate the ph of 0.100 l of a buffer solution : Calculate the pH of 0.100 L of a buffer solution that is 0.25 M in HF and 0.50 in NaF. What is the change in pH on addition of the following? a) 0.002 mol of HNO3 b) 0.004 mol of KOH
Coulleague posting : Coulleague posting
Compute the equilibrium concentrations of h2 br2 and hbr : A mixture of 1.374g of H2 and 70.31g of Br2 is heated in a 2.00 L vessel at 700 K. These substances react as follows: H2(g) + Br2(g) 2HBr(g) At equilibrium the vessel is found to contain 0.566g of H2.
Every professor must teach some course : Now suppose that certain courses can be taught by a team of professors jointly, but it is possible that no one professor in a team can teach the course. Model this situation, introducing additional entity sets and relationship sets if necessary.
State the catalyzed reaction of carbon monoxide and hydrogen : Methanol, CH3OH, is produced commercially by the catalyzed reaction of carbon monoxide and hydrogen: CO(g) + 2H2(g) CH3OH(g). An equilibrium mixture in a 2.00 L vessel is found to contaim 0.0406 mol CH3OH, 0.170 mol CO, NS 0.302 MOL h2 AT 500 k...
Estimate the resistivity of the wire : A potential difference of 14 V is found to produce a current of 0.39 A in a wire of length 3.1 m with a uniform radius of 0.44 cm. What is the resistivity of the wire


Write a Review


Management Theories Questions & Answers

  If an attorney may properly belong to a barter association

1. If an attorney may properly belong to a barter association, can he pay court costs himself and receive barter units in payment for those costs?

  1 topic 1a meeting the customer requirements oakland 2003

1. topic 1a. meeting the customer requirements oakland 2003 is a reasonable definition of quality.b. customer

  The total average inventory before standardization

The total average inventory before standardization.

  Focus on your analysis of the risk

Focus on your analysis of the risk

  Critically evaluate the potential benefits and limitations

Critically evaluate the potential benefits and limitations that strategic management plays in McDonalds Australia.

  Name some of the personal information collected

Name some of the personal information collected by web sites about their visitors.

  Causes and problems with employee attitudes and behaviou

The concept of the psychological contract tells us much about the causes and problems with employee attitudes and behaviour.

  Give fundamental knowledge of global supply chain

give fundamental knowledge of global supply chain management and established understanding of logistics terminology and

  Walt disney company management

Walt Disney and share your thoughts on the following questions.  Please organize your response by the question number.

  Questionnbsphow can co-operation and trust be fostered

questionnbsphow can co-operation and trust be fostered between partners in the supply chain? please discuss in context

  Develop a five-year strategic plan with cost estimates

Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Your plan should include/address the following points:Develop a five-year strategic plan with cost estimates..

  Zara''s supply chain to service the north american region

How would you set up Zara's supply chain to service the North American region?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd