Just some important information to keep in mind about porfolio management (source – The PDMA ToolBook for New Product Development)
There are four goals in Portfolio Management
- Value Maximization: Allocate resources so as to maximize the value of the portfolio.
- Balance of projects: say high-risk & low-risk, or long-term & short-term, etc.
- Strategic direction: Portfolio should truly reflect business strategy
- Right number of projects: Keep in mind resource available.
All four goals have the potential to compete with each other.
