Portfolio Performance Case Study

1476 Words 6 Pages
Portfolio Performance Management
Introduction
An organisation’s vision which includes the various environmental factors that influence the functioning of the organisation, provides definite paths for growth and development, which are critical for achieving the mission of a globalised organisation. Portfolio management is used to determine the ideal sequence of projects to be carried out to achieve the organisation’s mission. Project Management Institute (2013) states that the portfolio performance management is the systematic planning, measurement, and monitoring of the portfolio’s organisational value through achievement of the organisational objectives. It is widely accepted among various organisations, that the portfolio performance
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Based on the type of markets and products developed by the enterprise, the portfolio performance management plan determines the allocation of engineering, research and development, and marketing resources (Cooper, Edgett, and Kleinschmidt, 1999). Such an exercise makes sure that the resources are neither over allocated nor under allocated to a specific task, which is crucial to achieve the completion of the task without any …show more content…
Without a credible measure of the portfolio measure, the portfolio manager will lack sufficient data to take necessary measures in allocating resources, managing the project, and effectively meeting the objectives of the organisation. The performance of a project portfolio management can be examined by estimating the degree to which the portfolio has successfully fulfilled the objectives of strategic alignment and has maximised the value of the portfolio (Müller, Martinsuo, and Blomquist, 2008). A critical aspect of measuring portfolio performance is the definition of the kind of measures to be used for different cases, since all types of measures may not be suitable to all scenarios. In general, four types of measures are employed to estimate the performance of the portfolio – qualitative, quantitative, tangible, and intangible. Whilst examples of quantitative analysis include change in net present value (NPV), return on investment (ROI), and internal rate of return (IRR); examples of qualitative and intangible measure include degree of strategic alignment, recognition of regulatory compliance, and corporate responsibility (Bacon,

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