Developing Portfolio Strategy
Many prominent organizations today are so interdependent and complex that they require a portfolio strategy to balance and coordinate the strategies of diverse enterprises. The right portfolio strategy can provide diversification from both global and local risks, financial security and reduced volatility of key value measures, balance of investment timing, and sharing of information and resources.
A commitment of resources across a portfolio of opportunities should be made only after a well reasoned analysis that:
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frames decisions appropriately to understand
portfolio interactions and consequences |
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develops portfolio alternatives that balance risks
and coordinate competing demands for resources |
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assesses information gaps about uncertainties that
contribute significantly to portfolio value |
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elicits values that recognize the need to make trade-offs and compromises
in the portfolio |
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evaluates portfolio relationships and analyzes efficient frontiers of
solutions, and |
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builds buy-in and commitment to implementation through a coordinated management of change. |
