Organization and Management Essay

777 Words Sep 9th, 2015 4 Pages
Critical Thinking Project
ISDS 3711-050

Prepared For
Dr. Michael Cervetti

Prepared By
Michael McCaffrey

9 December 2014

Part 1 – Framing the Project Portfolio Management Problem

Develop a decision framework for project portfolio management at XYZ highlighting objectives, constraints, risks involved, alternatives, and information required for analysis.

Objectives

To organize and prioritize the current and future projects in the pipeline in a way that fits into the PMB budget of $5B, and ensures projects that increase sales, growth, and stockholder value are of top priority, whereas projects that are not beneficial are either put on hold or discarded.

Constraints

XYZ operates on a strict budget, and must make
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NME’s provide a higher return, but rarely make it to market compared to LCM products. The displacement of excess funds can either be invested into further research or be distributed to employees annually. If reinvested, additional capital could be used to further fund NME’s, or to market LCM’s. Evaluating individual projects and devoting special attention to their expected profitability or fit could produce alternatives as well. General Practitioner (GP), Niche, and Specialized products also offer additional lines of alternative products for evaluation and consideration.

Information Required

Collecting information from R&D, Project Teams, Marketing and Strategic Planning will provide the resources, costs, timing, risks, and opportunities associated with products and the market and will indicate their weight on overall operations. Additional information regarding projects probability of success, their ROI, and market life span will help with prioritizing them, deciding which to undertake, and how to introduce them into the market. Project specific information needed would be the phase, launch year, probability of success, projected sales, and pre-launch costs that include R&D, in order to value each project specifically.

Part 2 – Project Valuation

Evaluating the risks, calculating the probability of success, and factoring in the projected profit from sales will provide a clearer NPV to be compared with other projects in the…