Proposing a Project Portfolio Evaluation & Selection Process

2462 Words Apr 5th, 2014 10 Pages
MEMO
To: VP Bill Shackelford
From: Zahir Cassam
Date: February 3, 2014
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Re: Proposing a Project Portfolio Evaluation and Selection Process

Executive Summary
Taking into account the poor performance of our current projects due to a weak portfolio management process in place, the Operations SBU has come to the determination that if we are to move forward in accommodating new projects along with our existing ones, the current system must be reviewed and redesigned for better decision-making. This proposal defines a framework for project portfolio evaluation and a project selection for adoption and it elaborates on the two phases that involve project screening, selection, prioritizing
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Phase 1 shall include prescreening, analysis and evaluation stages whereas Phase 2 shall consist of portfolio selection, prioritization and balancing stages. The in-depth description of each stage is provided in Figure 1.
Figure 1 - Proposed Framework for Project Portfolio Selection
Proposals
Proposals
Corporate Strategic Planning
Corporate Strategic Planning

Methodology
Methodology
Guidelines
Guidelines
Resource Allocation
Resource Allocation

Phase 1: Proposed projects

Phase 1: Proposed projects

Phase 2: Proposed Integration

Phase 2: Proposed Integration

Phase 1
Prescreening Proposals
The prescreening phase of projects proposals will occur as project proposals are submitted for initial review and at this stage, it is important to complete proper project scoping to identify components serving in the best interests of our company growth and expansion as well as controlling the operation costs for sustenance. Every prescreened proposal must meet the following criteria; else must be eliminated early: * Must be aligned with our company vision. * Must be targeted at expanding our markets, controlling operation costs or both. * Must contain investment cost and cost savings data if targeted at optimizing existing operations. * Must contain investment cost and Net Present Value if targeted at new ventures and