Over 10 years working with portfolio management, Macrosolutions has pioneered the development of a single model for comparison between projects, allowing the mathematical comparison between the direct investment (CAPEX) and the administrative project and support.
Using statistical and mathematical pre configured models, your organization can compare, for example, the benefits and return on investment of a new industrial unit construction with the training center construction.
Only the one who have endured more than 30 national and multinational companies in the investment decisions making, involving more than US$ 10 billions is able to support and guide your company in the proper portfolio management.
Key issues addressed
- Informality in the project feasibility decision
- Empirical and informal investment assessment
- Inability to compare investment projects with administrative projects
- Competition between projects based on the sponsor power and not on a comparison structured process
- Misalignment between organizational strategy and project proposals
- Unnecessary spending on misaligned projects
- Exclusive financial comparison between projects
- Late and ineffective decision making
Scope of work
- Portfolio management maturity assessment, gaps analysis and project selection
- Design of the Portfolio Management Process Models
- Mathematical modeling of Intangible benefits of the administrative or not directly measurable Projects (Bayseana Estimate)
- Comparison criteria definition
- Projects Prioritization Table development and adjustment
- Project essential informations model structuring involving the required documentation for a potential project assessment
- Mathematical modeling of the portfolio financial reserves
- Establishment of the global portfolio projects performance indicators
- Team profile definition and team development for the companys’ portfolio management office
- Scenario Planning
- Proof of concept and pilot project
- Assisted Operation
- Estimated duration of the consultancy work [?]
- 6 to 8 months
- Work complexity [?]
- Client's team (minimum required) [?]
- 1 Project Manager and 1 Planning Analyst
- Client's team allocation x Macrosolutions team allocation [?]
- 40% Client's Team
60% Macrosolutions' Team
- Maturity Level (minimum required) [?]
- Medium to high
- Organizational level of coverage [?]
- Corporate: ★★★★★
- Language(s) [?]
- Portuguese, English, Spanish
Supported standards and methodologies
Project Management Institute (PMI) PMBOK® Guide Yes PMI Practice Standard for Estimating — PMI Practice Standard for Earned Value Management — PMI Practice Standard for Configuration Management — PMI Practice Standard for Risk Management — PMI Practice Standard for Work Breakdown Structure — PMI Practice Standard for Scheduling — PMI Standard for Portfolio Management Yes PMI Standard for Program Management Yes PMI Project Manager Development Competency Framework Yes Organizational Project Management Maturity Model (OPM3)® — UK Office of Government Commerce (OGC) PRINCE2 (Projects in Controlled Environments) Yes MSP (Managing Successful Programmes) Yes M_O_R (Management of Risks) — P3M3 (Portfolio, Programme, and Project Management Maturity Model) Yes P3O (Portfolio, Programme and Project Offices) Yes MoP (Management of Portfolios) Yes MoV (Management of Value) — Scrum Alliance Scrum Methodology — International Project Management Association (IPMA) ICB® IPMA Competence Baseline Yes
Areas: approach comprehensiveness
Area Comprehensiveness Integration ★★★★★ Scope ★★★★ Time ★★★★ Cost ★★★★ Quality Human Resource ★★★ Communications ★★★★★ Risk ★★★★ Procurement EHS Strategic Planning ★★★★★
Additional Information Top ↑
One of the main challenges of an organization lies in its ability to make the right and consistent choices, so aligned with its strategic direction.
As the environment has been changing in such a dynamic way never seen before, to make the right choices based on the appropriate criteria is a critical success factor or even the organizational way to survive.
In a simplified way, the projects prioritization in a portfolio is nothing more than a project sorting based on the relationship between costs and benefits of each project. It will be prioritized the projects in which the benefits increase in relation to costs.
But it is important to note that this reference to cost / benefit not only refers to a financial criteria, such as Rate Financial Cost / Benefit, but to the broad concept of the required gains and efforts to complete each project within the complex, variable and often chaotic context in which the organization is located.
"The comparison criteria definition to be used is always related to the decision maker’s values and preferences." - Ricardo Vargas
Therefore, a single criterion is not a feasible way to decide which projects should be executed or not. It takes a multi-criteria analysis, allowing decisions to be made through the assessment of the different dimensions set and the organizational needs.
The PMI in its Standard for Portfolio Management (PMI, 2008), states that the project portfolio scope is aligned with the organization’s strategic goals scope. These goals, in turn, are aligned to different business scenarios for each organization. Thus, there is no perfect model that covers proper criteria to be used by any type of organization in its prioritizing and selecting projects process.