Project Portfolio Optimization: Utility company case study

June 2012
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Project Portfolio Optimization: Utility company case study

At a glance

This is a case study of the application of Project Portfolio Optimization by PwC at a utility company.

The issue

A public utility company was faced with a difficult budget decision every year:

  • About 500 capital projects, totaling a $600 million first-year investment
  • Competing for a fiscal year budget half that size ($300 million)

In its previous capital deployment approach, funding cases were made and examined on an individual project basis, but without a good method to:

  • Capture as many of a project’s benefits as possible, and
  • Assess overall, the quality of the utility’s investments decisions

Our approach

Our approach with this client consisted of 3 steps:

  • Framing the situation to help the company structure, identify, quantify, and measure project impacts
  • Piloting the approach with a few projects at first, making adjustments, and established priorities for rollout
  • Rolling out the valuation and prioritization system which included training planners, assisting portfolio managers, and training the trainers to enable the client to take full ownership of the system

The impact

The client was empowered to apply the system across their organization which enabled them to

  • More easily prioritize projects
  • Increase visibility in the portfolio
  • Generate multiple custom reports
  • Establish standardized portfolio management procedures

Download the case study for more details.