Task: Optimize the Portfolio |
Optimize the portfolio by selecting the set of components that generate the most value and minimize overall portfolio risk.
Disciplines: Portfolio Management Tasks
Purpose
To regulate the transition of new work to the operational teams in a manner that promotes the balance of the overall portfolio against the set of strategic objectives, measurements, and targets To apply review and analysis techniques and models that can provide the required insight and effectively drive support systems and controls for executive decisions
Main Description
Develop and evaluate a set of potential portfolio scenarios, and select the set of components that generates the most value yet minimizes the overall portfolio risk. Validate and update the strategic targets and constraints against which the portfolio is balanced. Each target and constraint, in turn, represents a key dimension of the executive decision framework, such as these dimensions: Strategic objectives, such as time to market and cost leadership; Financial targets and metrics, such as return on investment (ROI), internal rate of return (IRR), net present value (NPV), and payback Capacity, in terms of personnel "headcount" (authorized staffing level) and facilities Technical and architectural constraints and objectives Risk tolerance thresholds Take the inputs to this task plus the strategic targets and constraints listed above to make recommendations to approve new work, reprioritize existing work, keep work as-is, or postpone or cancel components currently being worked on.
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