Project Portfolio Management

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

  1. Value Maximization: Allocate resources so as to maximize the value of the portfolio.
  2. Balance of projects: say high-risk & low-risk, or long-term & short-term, etc.
  3. Strategic direction: Portfolio should truly reflect business strategy
  4. Right number of projects: Keep in mind resource available.

All four goals have the potential to compete with each other.