4 Step Guide to Simplifing your Portfolio Definition Process
The portfolio definition process is where you define the terms, scope, catergorization and scoring of your portfolio and gain agreement on your basic portfolio model.
Here a 4 steps that will help you simplify this process.
Step 1: When defining the portfolio mix, it’s important to gain early agreement on the scope of organisational coverage:
- Groups, units, divisions, departments
- Functional area and teams
- Product/service types
Step 2: You also need to know the scope of work included within the portfolio:
- Tactical projects
- Administrative projects
- Strategic projects
- Innovation projects
- Future vision projects
Step 3: You should define the project categorization scheme. Is it:
- Business support
- Cross organisational
Step 4: Define the portfolio’s key performance indicators (KPIs)
- Net present value
- Productivity Index
- Earned value analysis value added
- IRR Internal rate of return
- Cost/ benefit analysis
You can learn more about selecting and prioritising projects in this short video.