Page 167 - Global Project Management Handbook

PROGRAM MANAGEMENT AND PROJECT PORTFOLIO MANAGEMENT 7-17

Financial ratios
NPV/ROI 2
Amortization period 2
Risks 1
Financing 3
Innovation
New products 2 Investment Customer relationships
New processes 3 score card Customer relations 1
Further development 2 as at 17.09.2003 New customer segments 3
Optimization of the value-added chain 2 Cooperation with customers 2
Processes and resources
Existing process know-how 2
Available internal resources 3
Available external resources 2
Project/program to be implemented 1
Legend
Very poor 5
Poor 4
Average 3
Good 2
Very good 1
FIGURE 7.12 Investment portfolio score card.

post-project phases, a list of relevant project environments, and a list of those projects in
the project portfolio that have relationships with the project.
In order to provide these crucial project informations, it is necessary to develop rough
project plans (e.g., work-breakdown structure, bar chart, cost plan, project environment
analysis, etc.). These project plans form the basis for a detailed project planning during
the project start process.
For developing a project proposal, a project proposal form should be used. The project
proposal form is designed based on the project assignment form (to be used later). An
example of a project proposal form is given in Fig. 7.13. Appendices to the project pro-
posal form should represent the first drafts of the project management documentation.

The basis for assignment of the project by the project owner team to the project man-
ager and project team is the decision taken by the project portfolio group to initialize an
investment in a project form. A formal project assignment is made in writing and is
signed by the project manager and the project owner team.

PROJECT PORTFOLIO COORDINATION

Structures of Project Portfolios
The set of all projects and programs that are managed simultaneously in a project-
oriented company can be perceived as the project portfolio. Either all the projects of an
organization or subsets of the projects can be clustered in project portfolios. Subsets of
projects can lead to project portfolios, such as the portfolio of offer development projects,
of contracting projects, of product-development projects, etc.
The start of new projects and the close-down of projects result in high dynamics of
project portfolios. The structures of project portfolios—that is, the types of projects