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

  1. Informality in the project feasibility decision
  2. Empirical and informal investment assessment
  3. Inability to compare investment projects with administrative projects
  4. Competition between projects based on the sponsor power and not on a comparison structured process
  5. Misalignment between organizational strategy and project proposals
  6. Unnecessary spending on misaligned projects
  7. Exclusive financial comparison between projects
  8. 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

Fact sheet

Estimated duration of the consultancy work [?]
6 to 8 months
Work complexity [?]
Medium
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
Project estimated number of visits [?]
6 visits
Maturity Level (minimum required) [?]
Medium to high
Organizational level of coverage [?]
Corporate: ★★★★★
Departmental: ★★★★
Project: ★★★
Language(s) [?]
Portuguese, English, Spanish

More Information

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Standards
Areas
  • 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 Description
    Integration ★★★★★ Includes the processes required to ensure that the various elements of the project are properly coordinated.
    Scope ★★★★ Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.
    Time ★★★★ Includes the processes required to ensure timely completion of the project.
    Cost ★★★★ Includes the processes required to ensure that the project is completed within the approved budget.
    Quality Includes the processes required to ensure that the project will satisfy the needs for which it was undertaken.
    Human Resource ★★★ Includes the processes required to make the most effective use of the people involved with the project.
    Communications ★★★★★ Includes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information.
    Risk ★★★★ Systematic process of identifying, analyzing, and responding to project risks. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives.
    Procurement Includes the processes required to acquire goods and services from outside the performing organization to attain project scope.
    EHS Involves processes related to work safety, health and environment, including specific regulations.
    Strategic Planning ★★★★★ Involves the processes which link projects with corporate strategy through the indicators of the Balanced Scorecard's goals.

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.