To start with,Let me tell you about how the entire working goes on..
IDEAS:
ideas for new products is the input and is the reason to have a process in the first place. Ideas should come from many different sources including both internal and external stakeholders.
The portfolio management process as shown consists of three primary activities including
1) the portfolio process,
2) a resource allocation process, and
3) generation of a consolidated project plan.
The process is iterative and will be repeated formally maybe 2-4 times per year, but product and senior management should be spending a considerable amount of time outside the formal process to engage key personnel in all business functions.
PORTFOLIO PROCESS
The portfolio process is how the business prioritizes existing and potential new projects and culminates in a portfolio document that can be in the form of an Excel spreadsheet. The rows list all active and potential projects in order of business priority. The columns would typically include the current priority, a “scorecard” ranking number, the project status and phase, and the project type.
RESOURCE ALLOCATION PROCESS
The next step is to take this list of projects and align them with resources.
For existing projects, it is much easier to determine resource requirements compared to future projects where there may not even be a clear definition, but you have to start somewhere and consider resources in making decisions on the portfolio. The important thing to remember for all involved is that the further out you go, and the less defined the future projects are, the higher the uncertainty in the projections. The second comment is that because of resource constraints, some projects that are ranked lower than others may be worked on sooner just because of resource availability.
CONSOLIDATED PROJECT PLAN
The consolidated project plan, or road map attempts to communicate to the organization when specific new products will come to market. Depending on the type of industry and cycle time, it might provide a current snapshot of what the organization believes is possible over the next several years. It will list projects that are active where the new product will be introduced in the short to medium term, and other projects where either minimal or no resources have been committed, may have very limited definition, and are projected to come to market in the medium to long term.
The key areas where senior management can support the process.
1)First, the senior manager must make the process a priority and be engaged and supportive.
2)Another key role of senior management is maintaining a balanced portfolio. Just as with any investment portfolio, you need a good mix of projects from incremental, new-to-the-firm, and radical. No firm can survive in the long run by focusing on only one type. Another key role of senior management is maintaining a balanced portfolio. Just as with any investment portfolio, you need a good mix of projects from incremental, new-to-the-firm, and radical. No firm can survive in the long run by focusing on only one type.
3)They also need to guard against listening exclusively to current customers and pushing the boundaries of existing technology past the point where customers value the next generation product.
4)It is important that the senior manager hear and listen to all the voices and not let decisions be driven to a particular outcome. It is important that the culture support an open and honest discussion about project risk.
The senior manager, therefore, has to walk a fine line to make sure all the voices and opinions are heard, but not let the process bog down to the point where no decisions are made or are made late.
I think after reading the process you would have got a little knowledge of how to carry on your business.
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