Project Portfolio Optimization

Deploy capital and value projects more efficiently

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
 

Congratulations! Your funding decisions achieved the highest value possible without violating any of the resource constraints.

Learn more about how PPO can help you achieve the same goal with your portfolio of projects.

"I just won the PwC PPO challenge!"
 

Take the Project Portfolio Optimization (PPO) interactive budgeting challenge

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 any of the resource constraints.

Value ($M)

0 5 10 15 20
 
Optimal Value
Choose funding levels:
NO GO
GO Slow
GO
 
New inventory IT system
 
 
 
 
Production facility upgrades
 
 
 
 
Phase II: Retail store remodel
 
 
 
 
Outdoor advertising rebrand
 
 
 
 
Market research: Project Titan
 
 
 
 
Customer service training
 
 
 
 
Upgrade sales incentive awards
 
 
 
 

Resource constraints

2014 Budget

OK
 
OVER!
 

2015 Budget

OK
 
OVER!
 

Staffing availability

OK
 
OVER!
 

These funding decisions achieve the highest value possible value without violating any of the resource constraints.

Learn more about how PPO can help you achieve the same goal with your portfolio of projects.

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PPO Dashboard: Click a diagram below to see how PPO can improve your capital allocation and project valuation decisions.

Selected PPO applications

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:

How PwC can help

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.

For an overview of our PPO service offering,
contact Hervé Kieffel or download a PDF
describing our approach.

*Based on voluntary responses to PwC’s Project Portfolio Optimization Maturity Level survey. Not a scientific survey.