Project Portfolio Rationalization - Revision history

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User: Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy.

2019-01-06T23:54:31Z

Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy.

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 == What is Project Portfolio Rationalization? ==
-Project  portfolio rationalization is a portfolio-based approach to the governance or management of an organization's projects. The objective is to maximize returns by optimizing the Project Portfolio - keeping only those projects that are delivering superior value while eliminating those that are not.
+Project portfolio rationalization is a portfolio-based approach to the governance or management of an organization's projects. The objective is to maximize returns by optimizing the Project Portfolio - keeping only those projects delivering superior value while eliminating those not.
 *A portfolio-based investment approach measures success on the returns generated by the entire portfolio, not on individual investments
-*A portfolio-based approach is believed to generate higher returns because it recognizes that together one set or configuration or portfolio of projects might produce more value than another. Therefore, to maximize value, one has to focus on the portfolio not individual investments
+*A portfolio-based approach is believed to generate higher returns because it recognizes that together one set or configuration or portfolio of projects might produce more value than another. Therefore, to maximize value, one has to focus on the portfolio, not individual investments
-*A portfolio-based approach takes a relative not absolute view to the value or desirability of a project. In other words, a project's value to the organization is measured in the context of the returns generated by the entire portfolio. So, a project that is producing returns might be less desirable than one that is not because the latter might be enabling other projects to produce higher value thereby making the project portfolio as a whole create more value for the enterprise.
+*A portfolio-based approach takes a relative, not absolute, view of the value or desirability of a project. In other words, a project's value to the organization is measured in the context of the returns generated by the entire portfolio. So, a project producing returns might be less desirable than one not because the latter might be enabling other projects to produce higher value, thereby making the project portfolio as a whole create more value for the enterprise.
 **Pre-requisites and co-requisite
 **Loss Leaders
-**Offsetting investments - given a change in an environmental variable, one investment might produce better results while another lower so keeping both in the portfolio is a hedge against changes in the environment.
+**Offsetting investments - given a change in an environmental variable, one investment might produce better results while another lower so keeping both in the portfolio is a hedge against environmental changes.
-Project portfolio rationalization follows an investment management or governance strategy i.e. it treats each project as an investment and evaluates the value of the project based on the business value generated by or through it. Even though the requirement is to quantify both the investment and the returns, it does not necessarily follow that this quantification must be in dollars and cents - there are other more meaningful measures of business value.
+Project portfolio rationalization follows an investment management or governance strategy, i.e., it treats each project as an investment. It evaluates the value of the project based on the business value generated by or through it. Even though the requirement is to quantify both the investment and the returns, it does not necessarily follow that this quantification must be in dollars and cents. There are other more meaningful measures of business value.
-Project portfolio rationalization is a portfolio-based approach i.e. it takes a holistic view of the organization's projects aka project portfolio. However, it categorizes the project portfolio into groups, each with a common and consistent investment governance strategy.
+Project portfolio rationalization is a portfolio-based approach, i.e., it takes a holistic view of the organization's projects, aka project portfolio. However, it categorizes the project portfolio into groups, each with a common and consistent investment governance strategy.
-*[[Project Portfolio Management (PPM)|PPM]] focuses on major projects
+*PPM focuses on major projects
-*PPM governs a project's lifecycle so it is used throughout - from inception to sunset
+*PPM governs a project's lifecycle, so it is used throughout - from inception to sunset
-*PPM calls for a consistent approach to a group or category or projects
+*PPM calls for a consistent approach to a group or category, or projects
-Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. Engaging in project rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently, and focus on supporting deal objectives, legal and regulatory issues, systems and process integration, and business continuity.
+Rationalization is a reorganization of a company to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. Engaging in project rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently, and focus on supporting deal objectives, legal and regulatory issues, systems and process integration, and business continuity.
-Most businesses accumulate a vast information technology application portfolio over time, especially when companies grow and do not fully integrate operations and assets with each transaction. Many applications do not support the company’s objectives after each merger or acquisition and need revision to support the new business. Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to best serve the business.<ref>Definition: Rationalization - [http://www.investopedia.com/terms/r/rationalization.asp Investopedia]</ref>
+Most businesses accumulate a vast information technology application portfolio over time, especially when companies grow and do not fully integrate operations and assets with each transaction. Many applications do not support the company’s objectives after each merger or acquisition and need revision to support the new business. Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to serve the business best.<ref> [http://www.investopedia.com/terms/r/rationalization.asp Definition: What Does Rationalization Mean?]</ref>
-Portfolio Rationalization is the management of a collection of Projects or Applications to optimize business spending and the value returned.
+Portfolio Rationalization is managing a collection of Projects or Applications to optimize business spending, and the value returned.
-Project Rationalization: If a company is not canceling the bottom 20% of projects yearly, then it is not managing its project portfolio effectively. We have techniques to help assess and score these projects so that they are ranked in order of their “true” ROI, clearly identifying the bottom 20%.<ref>What is Portfolio Rationalization and Project Rationalization [https://www.scorpioncomputerservices.com/iss-project-manage.html Scorpion Computer Services]</ref>
+Project Rationalization: If a company is not canceling the bottom 20% of projects yearly, it is not managing its project portfolio effectively. We have techniques to help assess and score these projects, so they are ranked in order of their “true” ROI, clearly identifying the bottom 20%.<ref>[https://www.scorpioncomputerservices.com/iss-project-manage.html What are Portfolio Rationalization and Project Rationalization]</ref>

@@ Line 1: / Line 1: @@
 == What is Project Portfolio Rationalization? ==
-Project  portfolio rationalization is a portfolio based approach to the governance or management of an organizations projects. The objective is to maximize returns optimizing the Project Portfolio - keeping only those projects that are delivering superior value while eliminating those that are not.
+Project  portfolio rationalization is a portfolio-based approach to the governance or management of an organization's projects. The objective is to maximize returns by optimizing the Project Portfolio - keeping only those projects that are delivering superior value while eliminating those that are not.
-*A portfolio based [[Investment Analysis|investment approach]] measures success on the returns generated by the entire portfolio not on individual investments
+*A portfolio-based investment approach measures success on the returns generated by the entire portfolio, not on individual investments
-*A portfolio based approach is believed to generate higher returns because it recognizes that together one set or configuration or portfolio of projects might produce more value than another. Therefore, to maximize value, one has to focus on the portfolio not individual investments
+*A portfolio-based approach is believed to generate higher returns because it recognizes that together one set or configuration or portfolio of projects might produce more value than another. Therefore, to maximize value, one has to focus on the portfolio not individual investments
-*A portfolio based approach takes a relative not absolute view to the value or desirability of a project. In other words, a project's value to the organization is measured in context of the returns generated by the entire portfolio. So, a project that is producing returns might be less desirable than one that is not because the latter might be enabling other projects to produce higher value thereby making the project portfolio as a whole create more value for the enterprise.
+*A portfolio-based approach takes a relative not absolute view to the value or desirability of a project. In other words, a project's value to the organization is measured in the context of the returns generated by the entire portfolio. So, a project that is producing returns might be less desirable than one that is not because the latter might be enabling other projects to produce higher value thereby making the project portfolio as a whole create more value for the enterprise.
 **Pre-requisites and co-requisite
 **Loss Leaders

@@ Line 23: / Line 23: @@
 ===See Also===
 *[[Project Life Cycle]]
 *[[Project Management]]
 *[[IT Governance|Governance of information technology]]
 *[[Stage-Gate]]

@@ Line 1: / Line 1: @@
 == What is Project Portfolio Rationalization? ==
-[[Project]]  [[portfolio]] rationalization is a portfolio based approach to the [[governance]] or [[management]] of an organizations projects. The [[objective]] is to maximize returns optimizing the [[project portfolio]] - keeping only those projects that are delivering superior [[value]] while eliminating those that are not.
+Project  portfolio rationalization is a portfolio based approach to the governance or management of an organizations projects. The objective is to maximize returns optimizing the Project Portfolio - keeping only those projects that are delivering superior value while eliminating those that are not.
 *A portfolio based [[Investment Analysis|investment approach]] measures success on the returns generated by the entire portfolio not on individual investments
 *A portfolio based approach is believed to generate higher returns because it recognizes that together one set or configuration or portfolio of projects might produce more value than another. Therefore, to maximize value, one has to focus on the portfolio not individual investments
-*A portfolio based approach takes a relative not absolute view to the value or desirability of a project. In other words, a project's value to the [[organization]] is measured in context of the returns generated by the entire portfolio. So, a project that is producing returns might be less desirable than one that is not because the latter might be enabling other projects to produce higher value thereby making the project portfolio as a whole create more value for the enterprise.
+*A portfolio based approach takes a relative not absolute view to the value or desirability of a project. In other words, a project's value to the organization is measured in context of the returns generated by the entire portfolio. So, a project that is producing returns might be less desirable than one that is not because the latter might be enabling other projects to produce higher value thereby making the project portfolio as a whole create more value for the enterprise.
 **Pre-requisites and co-requisite
 **Loss Leaders
-**Offsetting investments - given a change in an environmental variable, one investment might produce better results while another lower so keeping both in the portfolio is a [[hedge]] against changes in the environment.
+**Offsetting investments - given a change in an environmental variable, one investment might produce better results while another lower so keeping both in the portfolio is a hedge against changes in the environment.
-'''See Also [[Project Portfolio Management (PPM)]]'''
+Project portfolio rationalization follows an investment management or governance strategy i.e. it treats each project as an investment and evaluates the value of the project based on the business value generated by or through it. Even though the requirement is to quantify both the investment and the returns, it does not necessarily follow that this quantification must be in dollars and cents - there are other more meaningful measures of business value.
-Project portfolio rationalization follows an [[investment management]] or governance [[strategy]] i.e. it treats each project as an investment and evaluates the value of the project based upon the [[business]] value generated by or through it. Even though the [[requirement]] is to quantify both the investment and the returns, it does not necessarily follow that this quantification must be in dollars and cents - there are other more meaningful measures of business value.
+Project portfolio rationalization is a portfolio-based approach i.e. it takes a holistic view of the organization's projects aka project portfolio. However, it categorizes the project portfolio into groups, each with a common and consistent investment governance strategy.
 *[[Project Portfolio Management (PPM)|PPM]] focuses on major projects
 *PPM governs a project's lifecycle so it is used throughout - from inception to sunset
 *PPM calls for a consistent approach to a group or category or projects
-Rationalization is a reorganization of a company in order to increase its [[efficiency]]. This reorganization may lead to an expansion or reduction in company size, a change of [[policy]], or an alteration of strategy. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. Engaging in project rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently and focus on supporting deal objectives, legal and regulatory issues, systems and [[process]] integration and business continuity.
+Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. Engaging in project rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently, and focus on supporting deal objectives, legal and regulatory issues, systems and process integration, and business continuity.
-Most businesses accumulate a vast information technology [[application]] portfolio over time, especially when companies grow and do not fully integrate operations and assets with each transaction. Many applications do not support the company’s objectives after each [[merger]] or [[acquisition]] and need revision to support the new business. Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to best serve the business.<ref>Definition: Rationalization - [http://www.investopedia.com/terms/r/rationalization.asp Investopedia]</ref>
+Most businesses accumulate a vast information technology application portfolio over time, especially when companies grow and do not fully integrate operations and assets with each transaction. Many applications do not support the company’s objectives after each merger or acquisition and need revision to support the new business. Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to best serve the business.<ref>Definition: Rationalization - [http://www.investopedia.com/terms/r/rationalization.asp Investopedia]</ref>
-Portfolio Rationalization is management of a collection of Projects or Applications to optimize business spend and value returned.
+Portfolio Rationalization is the management of a collection of Projects or Applications to optimize business spending and the value returned.
 Project Rationalization: If a company is not canceling the bottom 20% of projects yearly, then it is not managing its project portfolio effectively. We have techniques to help assess and score these projects so that they are ranked in order of their “true” ROI, clearly identifying the bottom 20%.<ref>What is Portfolio Rationalization and Project Rationalization [https://www.scorpioncomputerservices.com/iss-project-manage.html Scorpion Computer Services]</ref>
 ===See Also===
-[[Project Management|Project Management]]<br />
+*[[Project Management|Project Management]]
-[[Project Portfolio Management (PPM)]]<br />
+*[[Project Charter]]
-[[Project Charter]]<br />
+*[[Project Dependencies]]
-[[Project Dependencies]]<br />
+*[[Project Life Cycle]]
-[[Project Life Cycle]]<br />
+*[[Project Management]]
-[[Project Management]]<br />
+*[[Project Management Body of Knowledge (PMBOK®)]]
-[[Project Management Body of Knowledge (PMBOK®)]]<br />
+*[[Project Management Maturity Model (PMMM)]]
-[[Project Management Maturity Model (PMMM)]]<br />
+*[[Project Management Office (PMO)]]
-[[Project Management Office (PMO)]]<br />
+*[[Project Planning Matrix]]
-[[Project Planning Matrix]]<br />
+*[[Project Scope]]
-[[Project Scope]]<br />
+*[[IT Governance|Governance of information technology]]
-[[IT Governance|Governance of information technology]]<br />
+*[[Stage-Gate]]
 ===References===
 <references />

@@ Line 37: / Line 37: @@
 [[Project Scope]]<br />
 [[IT Governance|Governance of information technology]]<br />
 [[Stage-Gate]]<br />

← Older revision		Revision as of 23:54, 6 January 2019
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−	~~'''Content Coming Soon'''~~	+	Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy. Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. Engaging in project rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently and focus on supporting deal objectives, legal and regulatory issues, systems and process integration and business continuity.
		+	Most businesses accumulate a vast information technology application portfolio over time, especially when companies grow and do not fully integrate operations and assets with each transaction. Many applications do not support the company’s objectives after each merger or acquisition and need revision to support the new business. Examining a company’s application portfolio is important to attain more efficient operations and cost integrations, reducing stranded costs left by a seller and streamlining the portfolio to best serve the business.<ref>Definition: Rationalization - [http://www.investopedia.com/terms/r/rationalization.asp Investopedia]</ref>
		+
		+	Portfolio Rationalization is management of a collection of Projects or Applications to optimize business spend and value returned.
		+	Project Rationalization: If a company is not canceling the bottom 20% of projects yearly, then it is not managing its project portfolio effectively. We have techniques to help assess and score these projects so that they are ranked in order of their “true” ROI, clearly identifying the bottom 20%.<ref>What is Portfolio Rationalization and Project Rationalization [https://www.scorpioncomputerservices.com/iss-project-manage.html Scorpion Computer Services]</ref>
		+
		+
		+	===See Also===
		+	[[Project_Management\|Project Management]]<br />
		+	[[Project_Portfolio_Management\|Project Portfolio Management]]
		+
		+
		+	===References===
		+	<references />