Project Portfolio Optimization (PPO) uses state-of-the-art tools and methodologies to quantify the potential cost, benefits and risk/return of the projects you are considering or have underway. The result is a systematic way of analyzing and defending capital budgeting and project selection decisions while improving capital efficiency.
PPO begins with creating a template specific to your organization's priorities, idiosyncrasies and data availability that will help quantify a project’s value and ROI. Relevant resource constraints will be taken into account as part of the process. In the end, a sophisticated project valuation and portfolio prioritization system delivers a new level of insights.
Leadership – or your portfolio management office -- will have access to a suite of information to help guide, value and defend capital budgeting decisions. PPO helps improve your organization's project portfolio management and project ranking while increasing capital efficiency.
PPO Dashboard: Click a diagram below to see how PPO can improve your capital allocation and project valuation decisions.
Project Portfolio Optimization can help improve critical decision-making across a broad range of situations. Listed below are some of the advantages that PPO can provide in managing selected types of portfolios:
PwC's Project Portfolio Optimization team (formerly Folio Technologies) has over 12 years of experience helping clients to prioritize their capital projects. We can design a customized approach to help solve your organization's project portfolio management challenges. Our tools and approach help you optimize your project portfolio management (PPM) and communicate its multi-criteria impact on the organization.
PwC uses proven methods and a powerful project portfolio optimization software called Folio Priority System. Our PPM software incorporates your organization's know-how, metrics, and idiosyncrasies to create a customized valuation model. Portfolio dashboards (see sample illustrations above) provide senior management with a bird's-eye view into critical measures to help steer corporate strategy and keep a real-time pulse on value creation. The result is a better way to manage competing priorities while supporting growth and quantifying risk.
*Based on voluntary responses to PwC’s Project Portfolio Optimization Maturity Level survey. Not a scientific survey.
HOW TO PLAY: For each hypothetical project, select one of the three funding levels.
GOAL: Reach optimal value, the combination of funding levels delivering the highest value possible without violating the any of the resource constraints.