Task: Select Components |
Triage the requests and components being considered for inclusion within the portfolio.
Disciplines: Product Portfolio Management Tasks Extends: Select Components
Purpose
To identify which components are worth pursuing and which are not.
Relationships
Roles | Primary Performer: Portfolio Analyst | Additional Performers: Financial Controller Marketing Manager Product Manager Product Portfolio Manager
Inputs | Mandatory: Business Justification Component Description Components List Portfolio Constraints and Metrics Document | Optional: None
Outputs | Business Case Components List
Main Description
Component selection is the most effective mechanism within the portfolio cycle to narrow the funnel and eliminate the ideas that cannot be self-sustained or demonstrate enough value. Conclude the initial triage of all components being considered for inclusion within the portfolio. Compare all components within a given work pipeline against the predefined portfolio metrics, measurements, and thresholds to identify which components meet all of the required parameters and add value to the portfolio. These are examples of portfolio metrics, measurements, and targets: Business alignment Strategic fit Multiple-criteria scoring models Capacity constraints Financial return on investment (ROI), internal rate of return (IRR), payback net present value (NPV) Cost versus benefit analysis Technical Architectural objectives Risk Sensitivity analysis Monte Carlo simulations
Steps
Compare all components within a work pipeline
Compare each component to the selection criteria and either include or exclude the component, depending on different threshold values for the selection criteria. Also consider capacity constraints as part of the the selection process to ensure that not too many components are included.
Select a list of components for prioritization
Generate a list of the selected components. Put the unselected components on a "waiting list" to be included in the next planning cycle for the portfolio.
Key Considerations
Depending on the size and importance of the component, it might be necessary at this stage to expand the business justification into a complete business case.
More Information
Concepts | Work Pipeline
Tool Mentors | Managing Ideas with IBM Rational Focal Point
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