Portfolio Management : Strategic Management

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

* Management of the portfolio by means of a set of selection criteria for proposed projects, as well as reallocating, reprioritizing, and/or rescheduling current projects at various phases of the pipeline, (thus the portfolio and project management processes become interconnected, and the portfolio is constantly reevaluated).

PM within organizations is gaining momentum and an indispensable component of the work flow procedure. Improving organization project management can effectively improve an organization use of resources. Nevertheless, if an an organization does not possess a clean target and does not follow project phases no one willing enters into the transformational journey. The issue is the bottom line in PM, whether it is to better the organization financially, ethically, or for standardization of procedures. Constitutions must be cognizant of the elements and competencies required to receive a successful PM outcome. In the closing, business should have an active strategy to revise and adapt to the shifting marketplace.

Yield to maturity (YTM) reflects the return required and set by the market on the assumption that the bond is held to maturity. In equilibrium, it is also the return that investors can expect to earn over the life of the bond. Holding Period Return (HPR) is the expected return over a future period, and is not based on the assumption that the bond is held to maturity. SIMILARITIES    Both expressed as annualised returns (not effective rates) Use the settlement price as cost base Total returns accounting for both the coupon interest component and the capital gain/loss component

First, develop project selection criteria and a high level process for applying the criteria and managing the portfolio. The criteria should be consistent with the business environment for the industry, consistent with your company's overall mission/strategies, and consistent with the mission and strategies of your strategic business unit. You are proposing a process, not individual projects.

In Part 1 of the project, the new Vice President (your instructor) of your Strategic Business Unit had asked you to create a portfolio management process and project selection criteria for use by the SBU. It is now time to apply this process in selecting this year’s projects for your portfolio.

A company the size of the Global Infrastructure Group has many options when considering a project selection process. Any project taken on by the company must align with its goal and corporate strategy. Morris and Jamieson (2004) and Dey (2006) argue that project portfolio management is a “bridge between strategy and operation” and enables organizations to transform the organization's vision into realities or successfully implement their corporate strategies (Khalili-Damghani & Tavana, 2014). In project selection, the company’s senior managers must establish strategic intent. Strategic intent will contain the company’s objectives and should result in a strategy map. Goals should be clear, realistic and measurable. Goals should also have an end state e.g. President Kennedy established a goal of landing a man on the moon within a decade. The Global Infrastructure Group’s senior managers should be leading by establishing a clear strategy and obtainable goals to get all projects focused on meeting these goals by aligning to the organization’s strategy. Once strategy and goals are defined, those involved in the project selection process should consider how the proposed project will align with the goals and strategy. Factors they should consider

Information Technology (IT) projects are an important part of a company's growth and advancement. Playing a key role in the development of most businesses, IT projects impact all departments and many work processes that take place throughout an organization. Certain factors must be taken into consideration when moving forward with an IT project, such as budget and importance. Effectively prioritizing IT projects helps to ensure that important projects are completed first. Using Project Portfolio Management (PPM) helps companies to identify projects that offer the most potential

Definition: In an active portfolio strategy, a manager uses financial and economic indicators along with various other tools to forecast the market and achieve higher gains than a buy-and-hold (passive) portfolio.

Portfolio management supports an organization’s mission and goals by ensuring the program is managed properly and the timing is on a set schedule. Portfolio management supports the accomplishments and the preferred outcomes. The tools and techniques involved assist with the efficiency and the effectiveness. The portfolio management supports in the organization utilizes the resources where they can be applied throughout the organization. Portfolio management assists with creating the operational needs throughout the period of the project. The portfolio management achieves with the vision, mission, and goals and even identify the risk. The time cost and all resources that would be required help identifying within the goals.

Project portfolio management can enable an organization to prune redundant or overlapping projects, use resources more effectively and to keep closer watch on projects' progress to ensure projects do not go over-budget or overtime (Solomon 2002:1). However, despite the technique's obvious advantages, it can meet with profound resistance when it is implemented in practice. 'Turf wars' are common at many organizations, in which representatives of various departments jockey for scarce resources. Every department has its 'pet projects' that it may fear losing to overly rigorous scrutiny.

UNIVERSITY OF ILLINOIS AT CHICAGO Liautaud Graduate School of Business Department of Finance Professor Hsiu-lang Chen 1 Practice Problem I

A project portfolio is a group of projects that share and compete for the same resources and are carried out under the sponsorship or management of an organization (Archer & Ghasemzadeh, 1999a, 1999b). Turner and Müller (2003, p. 7) defined a portfolio as “an organization (temporary or permanent) where projects are managed together to coordinate interfaces, prioritize resources between projects, and thereby

The portfolio management process has several steps or parts to the process. The idea behind portfolio management is to choose

According to the CAPM model:R_i=α+βR_m+ε, α represent the abnormal return gained by the portfolio. If the market is efficiency, the α has to be zero.