...Bill Shackelford From: Zahir Cassam Date: February 3, 2014 ------------------------------------------------- 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 and balancing. More emphasis is given to the project selection criteria and score model as this is the main area where the gap of knowledge has been identified. Rationale Our recent organizational determination to sustain by controlling costs and expanding our frontiers shall require much effort from all our SBUs and most importantly, it is crucial that we are able to incubate a proper process that shall boost good decision-making and mitigate conflicts when we come to screening multimillion dollar projects and implementing them as part of our operations. The said process shall be about evaluating our project portfolio and devising a methodology of selecting specific projects with the highest probability of helping our company achieve its strategic goals...
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...various securities — consisting of Government and semi Govt. securities, loans, debentures, shares and bonds etc. ❖ Elements of Investment :- a) Reward (Return) b) Risk and Return c) Time ❖ Nature of Investment :- Investment requires a continuous flow of decisions which can not be avoided. The investment decisions are based on many streams of data which taken together, represent to an investor the observable environment and the general and particular of the securities & enterprises in which he may invest. ❖ Investment Environment :- a) Stable Government b) Stable Currency c) Presence of Public financial Institutions d) Development of corporate sector. [pic] ❖ Different types of Port-folios for Investment :- Investment — Concept of Port-folio :- Portfolio is the collection of financial or real assets such as equity shares or debentures, bonds, treasury bills & property etc. Steps in selecting a portfolio a) framing of investment policies. b) Valuation of Financial Instruments c) Investment Analysis d) Construction of Portfolio Port-folio management is the investment of funds in different securities in which total risk of the port-folio is minimized while expecting maximum return form it. ❖ Port-folio construction :- i) Determination of Diversification level. ii) Consideration of Investment timings. iii) Selection of Investment...
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...What is Corporate Portfolio All of the assets included on the firm's balance sheet. For example, a real estate trust holds a portfolio of office rental properties. Also called investment portfolio. See also diversification Corporate Philosophy Markets are efficient The design of the portfolio as a whole should be more important than the selection of any particular security within the portfolio. The general rule is that Investors are risk averse. For a given risk level, an optimal combination of asset classes will maximize returns. Investment Style Passive Vehicle Style of investment Active Vehicle Investment Style Horizon (Long term Investment ) Life-cycle (often used in retirement plans) Asset Allocation Equities Growth Fixed Income Investments Capital Preservation Asset Allocation Asset-allocation is an attempt to provide investors with portfolio structures that address an investor's age, risk appetite and investment objectives with an appropriate apportionment of asset classes. Balance Fund Life-cycle (often used in retirement plans) Active Asset Selection Active asset selection strategies can be classified fairly broadly into four classes – Intrinsic valuation model relative valuation model technical analysis models Portfolio Optimization model How to Rebalance Your Portfolio Businesses are constantly assembling and adjusting their portfolios of assets in an attempt to increase the returns they earn and reduce the risks they face. For example...
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...Best Practice in Risk Management in Banks A Two-day Practical Workshop The Workshop Objective: Bank managers will understand how risks are identified, quantified in terms of their impact on earnings, monitored and managed within banks. Program participants will become better equipped to: • • • Identify and quantify the bank’s vulnerability to credit, market, liquidity, operational, regulatory and reputational risks. Understand and learn best practice procedures to monitor and manage these risks and their impact on revenues. Relate these risks to bank capital. CONTENT I. ANALYTIC OVERVIEW Overview • Why risk management is critical to banks • Value drivers and business model of a bank. • Understanding differing perspectives: shareholders, regulators, and debt providers. Risk management • Major risk groups: credit, market, liquidity, operational. • Management objectives – risk versus return. • Lessons learned from recent risk management failures: sub-prime, CLOs, leveraged loans, trading losses and etc. Capital allocation • Types of capital: shareholder, regulatory and economic capital. • Economic capital: key management assumptions. • Regulatory capital Basel 1 versus Basel 2. • Managing capital structures: comparisons between banks. II. CREDIT RISK Identifying and quantifying the risk • Seven categories of credit risk: lending, contingent, issuer, pre-settlement, settlement, country/transfer, other. • Systems and procedures for quantifying and aggregating exposures. • • Bank...
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...Tesla Motors Portfolio, Program and Project Management Course Project Contents Introduction 3 Organization’s Strategic Plan 3 Organization Strategic Capacity Plan 4 Portfolio Management Process 8 Project Selection Process 15 Program Management Plan 17 Risk Management Plan 20 Change Management 21 Resource Utilization Plan 24 Personnel 24 Production Line 25 Inventory 25 Charts and Graphs 26 Organizational Influence Chart 26 Project Selection Process Flowchart 27 Conclusion 27 Reference: 29 Introduction Tesla Motors designs and manufactures the most advanced electric vehicles and electric power trains in the world. Tesla Motors do not compromise on innovation, performance, or appeal. Nor does Tesla Motors compromise commitment to hiring and developing the best from around the world. Tesla Motors work in small, focused teams, which much like our products are agile, efficient, and focused on excellence. Tesla Motors are driven by work that contributes to a global impact and are passionate about our future in the automotive industry. The pace is fast, the work is stimulating, structure is limited, and innovation is expected. Tesla Motors is headquartered in Palo Alto, California, runs satellite offices in Los Angeles and Maidenhead, UK, and operates retail locations around the world. Whatever location you choose, you'll be surrounded by the best of the best, working together to impact the future of transportation. Tesla Motors is committed...
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...Introduction AT&T is one of the largest telecommunications carriers in the United States it is head quartered in downtown Dallas. As of 2012 it is the 7th largest company by total revenue, and 5th non-oil company behind Apple, Wal-Mart, GE and Bank of America. AT&T started as South Western Bell one of the seven Regional Bell Operating Companies created 1983 before they were ordered to break up due to the United States v. AT&T Anitrust lawsuit. Southwestern Bell changed there to SBC which also almost caused me my job because I was not expecting a call from “SBC” but rather South Western Bell. I remember answering the phone and asking the young lady to please hold while I was trying to figure out who she was with. Fast forward twelve years later and we have gone through several mergers and acquisitions and we currently have over 200,000 employees around the world. For many years AT&T has been ahead of their competitors. The innovation of their products and services assisted them in increasing their market share within the industry. Over the last couple of years, the competition has introduced several products and services that have challenged AT&T’s market share. And as we look towards the future we willingly accept that there is always room for improvement. Problem Statement We are focused on being the number one carrier in the United States and as we expand our 4g network we have discovered an issue in our quality measurements. We do not have an automated...
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...| | |Marital Status: Single | | |Health: Excellent | | |Languages: Afrikaans & English | |tertiary Education | | |June 2007 University of Cape Town | |Completed |B.Com – Honours in Financial Analysis & Portfolio Management | | |Accounting | | |Economics...
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...What is Strategic Portfolio Management? What is a Strategic Portfolio? Who is it aimed at? Successful organisations make strategic choices about which activities should be implemented to deliver their vision. These choices form the strategic portfolio. Decisions at this level can significantly impact the success of the organisation. Strategic Portfolio Management is the responsibility of the senior management team, which needs to ensure that strategy and operations are aligned and integrated. Everything an organisation does is potentially part of the portfolio, including business-as-usual activities and transformation initiatives, such as improving customer services, driving growth or entering a new market. Strategic Portfolio Management It is equally applicable to the private and public sectors, and can be used across the whole organisation or a part. The Catalyze approach provides visibility and control to senior managers, who typically have too little data in some areas and too much in others. We provide a systematic process, which delivers the focused information required to make key strategic trade-offs. Strategic Portfolio Management is about deciding where best to focus the organisation’s finite resources in order to meet strategic objectives, considering the business as a portfolio of activities and making tradeoffs across the portfolio. Vitally this includes making those difficult choices of what not to do, unlocking resources...
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...Wealth Protection • The most important duty of a fund manager is to ensure that the wealth of his investors is protected. In order to do this, a fund manager employs sophisticated risk management techniques like value at risk to ensure that both the fund manager and the investor is aware of the magnitudes of any possible financial loss. The fund manager must also ensure that the portfolio is diversified sufficiently so as to avoid negative outcomes from big falls in the value of any one asset class. Growth • After protecting the wealth of those who invest in the fund, the second most important duty of the fund manager is to ensure that the wealth of the investors, as represented by the value of the fund, increases. The extent to which the value of the fund increases is usually measured against an index of other similar funds. The ultimate aim of the fund manager is to increase the value of the fund at a rate substantially greater than the risk-free rate of interest. Risk Management • Fund managers deploy techniques like value at risk to ensure that the risk in the portfolio of securities and assets in the fund is kept at a certain level. Fund managers also consider risk at the level of a large portfolio of securities and assets, rather than in terms of the risk of an individual security or asset....
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...the value of their shares. Far too often, however, firms find it difficult to sustain growth because they become risk averse and, as a result, opt for incremental product and service improvements instead of major initiatives, according to a study by a Wharton marketing professor. George S. Day, who also serves as co-director of Wharton’s Mack Center for Technological Innovation, says companies can avoid lackluster growth by better understanding the risks inherent in different levels of innovation and achieving a balance between — using two terms he has coined — BIG I innovation and small i innovation. In his study, Day discusses how executives can properly assess risks and then seek creative ways to reduce risk exposure. Day, a consultant to many Fortune 500 companies, says his research is the outgrowth of years of thinking about the problems that companies face in trying to set and achieve growth targets. Growth — particularly “organic” growth that comes from improving a company’s performance from within rather than relying on acquisitions — is so important that it is at the top of the agendas of some 80% of U.S. chief executive officers, according to Day. “These executives know that the expectation of superior organic growth is the most important driver of enterprise value in capital markets,” Day writes in the paper, titled “Closing the Growth Gap: Balancing BIG I and small iInnovation.” It is also a less expensive way to grow because a firm typically pays a premium to...
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...C H A P T E R 3 Project Selection and Portfolio Management Chapter Outline 70 Project Management: Achieving Competitive Advantage, Second Edition, by Jeffrey K. Pinto. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc. 000200010270649984 PROJECT PROFILE Project Selection Procedures: A Cross-Industry Sampler INTRODUCTION 3.1 PROJECT SELECTION 3.2 APPROACHES TO PROJECT SCREENING AND SELECTION Method One: Checklist Model Method Two: Simplified Scoring Models Limitations of Scoring Models Method Three: The Analytical Hierarchy Process Method Four: Profile Models 3.3 FINANCIAL MODELS Payback Period Net Present Value Discounted Payback Internal Rate of Return Options Models Choosing a Project Selection Approach PROJECT PROFILE Project Selection and Screening at GE: The Tollgate Process 3.4 PROJECT PORTFOLIO MANAGEMENT Objectives and Initiatives Developing a Proactive Portfolio Keys to Successful Project Portfolio Management Problems in Implementing Portfolio Management Summary Key Terms Solved Problems Discussion Questions Problems Case Study 3.1 Keflavik Paper Company Project Profile Case Study 3.2 Project Selection at Nova Western, Inc. Internet Exercises Notes Chapter Objectives After completing this chapter you should be able to: 1. Explain six criteria for a useful project-selection/screening model. 2. Understand how to employ checklists and simple scoring models to select projects. 3. Use more sophisticated...
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...irrelevant to its share price. This can be shown with an example that if firm A was to pay a large dividene then its retained earnings fall. However if B paid a larger amount then the retainbed earnings is correspondingly higher. Which ever way you go the if the capitalisation is the same than the market will force the price up on the larger dividend company. Trading Volumes: Orthodox models of financial markets imply that there should be little trading in financial assets. The reason for this is that in a world that is rational why would anyone be selling an asset unless they had some information to suggest that they should – and if so, why would anyone else want to buy? Of course, some trading will always take place – new entrants, portfolio re-balancing, liquidity problems and opportunities etc – but nothing like the volumes of trading we see. We should not, for example, expect fund managers to turnover their stocks every year but this is precisely (on average) what happens. Market volatility: in the rational EMH world, financial assets prices should only change when news arrives. It...
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...Designing Staff Incentive Schemes to Balance Social and Financial Goals September 2006 By: Mattias Grammling and Martin Holtmann Using Staff Incentive Schemes to Balance Social and Financial Goals ii Contents Acknowledgements..................................................................................................................................... iii 1 Introduction: The Role of Staff Incentives to Balance Social And Financial Goals.......................... 1 2 Balancing Social And Financial Goals................................................................................................... 2 2.1 Social and financial goals of MFIs .................................................................................................... 2 2.2 Operational perspectives on balancing social and financial goals ..................................................... 3 3 Designing Staff Incentive Schemes That Balance Social And Financial Goals.................................. 6 3.1 Principles for designing staff incentive schemes ............................................................................... 6 3.1.1 Fairness .........................................................................................................................................................................6 3.1.2 Transparency ........................................................................................................................................................
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...Journal of Marketing Management Vol. 26, Nos. 1–2, February 2010, 74–89 From an aggregate to a brand network: a study of the ´ brand portfolio at L’Oreal Claude Chailan, International University of Monaco, Monaco Abstract Our purpose is to contribute to the understanding of brand-portfolio management by examining the brand-portfolio strategies of a world-leading company. We started to work on a case study with L’Oreal. Our research ´ focused on two questions: (1) what reasons lead L’Oreal to develop a brand´ portfolio strategy?; (2) how can brand-portfolio management create a higher and stronger level of competitive advantage for this company? The results show that an aggregation of brands is not in itself a brand portfolio. The juxtaposition of brands is one of, but not the sole, element necessary for the development of a brand portfolio, which is a combination of a brand ensemble and key competences born out of organisational savoir-faire. By analysing the evolution of the L’Oreal brand portfolio, this work shows how the brand ´ combination within a portfolio is a key factor for company development, growth, and risk management. It is a crucial phase to understand L’Oreal’s competitive ´ advantage. Keywords brand portfolio; brands; strategic marketing; L’Oreal ´ Introduction Many firms are becoming increasingly concerned with the definition of the relationships between brands within the company as parts of a whole, and with the organisation of these connections within...
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...Tektronix Portfolio: Bringing Innovation and Satisfaction Week 7 Course Project Final Draft PROJ 587 Advanced Program Management Contents 1.0 Executive Summary 4 2.0 Organization’s Strategic Plan 5 3.0 Organization’s Strategic Capacity Plan 6 3.1 Defend the Core 6 3.2 Expansion of Sales and Products 6 3.3 Balance the Portfolio 6 4.0 Portfolio Management Process 7 4.1 Portfolio Strategic Plan 7 4.2 Portfolio Charter 7 4.3 Portfolio Management Plan 7 4.4 Portfolio Roadmap 8 4.5 Portfolio 9 5.0 Project Selection Criteria 9 5.1 Project Definition 9 5.1.1 Project Categorization 9 5.1.2 Project Prioritization 9 5.1.3 Weighted Scoring Method 10 5.2 Project Acceptance 11 5.2.1 Business Criteria 11 5.2.2 Logistical Criteria 11 6.0 Program Management Plan 11 6.1 Setup of Program Management Office (PMO) 11 6.1.1 Responsibilities: 11 6.2 Phase Gate Review Team 12 7.0 Plan to Identify/Resolve Triple Constraints Conflicts 12 8.0 Change Management Plan 14 8.1 Controlling Scope Change 14 8.2 Change Control Process 15 9.0 Resource Utilization Plan 16 9.1 Network Diagram 16 9.1.1 Utilization 16 9.1.2 Background Activities 16 9.1.3 Single-Tasking and Mulit-Tasking 16 9.1.4 Cross-Training 17 9.1.5 Identify Time-Critical Activities 17 9.1.6 Schedule Based on Deliverables 17 9.2 Requirements Plan 17 10.0 Works Cited 19 1.0 Executive Summary The primary purpose and goal of this report is to explain in detail the Portfolio Management...
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