Proposing a Project Portfolio Evaluation & Selection Process Essay

Words: 2440
Pages: 10

To: VP 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
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The analysis stage shall help in rating and valuing the proposals using diverse criteria as follows: * Investment Size: This criterion takes into consideration the size of the invested amount into the project and the range is set into 5 equal categories with the lowest investment being scored maximum. * Risk Level: The estimated risk level shall be calculated and defined and based on investment size, expected returns and added/reduced costs to operations; anticipated difficulties in project implementation, rollouts and adaptation, and political and economic factors. * Payback Period: This criterion defines how fast a project can achieve its return on investment and projects that show added costs to current operations will have the ‘no payback’ option. The data shall be classified in estimated number of years. * Impact on Operations: A thorough look on project implementation and its effects of current operations. The value shall be determined based operation shutdown and reassignment of responsibilities to existing staff. * Alignment to meeting growth and expansion goals: Projects shall be valued based on their objectives in meeting specified strategic goals such as expanding into new markets in Alaska and Europe and services provided to current customers, increasing revenues by 10% and customer satisfaction by 15% * Alignment to meeting cost control goals: