How you should handle your portfolio6446255

The rating of projects is the foundation for portfolio managing. A good method of ranking the projects in the portfolio shouldn't only simplify and improve the process, but also have better benefits than when it's done manually or by means of electronic tables. Practically every system of portfolio management has its own "flavor" regarding the ranking of projects: some are great, others are simply good, and there exist those who're completely wrong. Microsoft project system is a great tool for portfolio management. An easy to understand system of ranking projects is an essential part of the portfolio management system. It should be based on a clear, quantified and modern decision theory and it should be available for free training.

Here are a few crucial factors that you must take into account when thinking about the ranking system projects in the portfolio: - Stay away from systems based exclusively on financial metrics like net present value (NPV). The principle restriction of using a purely financial metrics is that you might over estimate the actual value of the projects. - Avoid programs which utilize the technique of analysis of hierarchies (MAI) for ranking projects. MAI is one of the frequent methods of ranking projects and appealing in its simpleness, yet it isn't the most appropriate way of ranking projects. - Try to find a system that will permit you to test the sensitivity and will simplify of how the portfolio may vary in different cases. Sensitivity testing may be important to test the reliability of your rankings. Most systems only permit you to rank on such basis as the "most likely" case. - Decide on the system which may handle the concerns in the data and parameters of the ranking system. Systems which use Monte Carlo simulation method together with a plurality of portfolio options automatically become the ideal selection for you. - Look for systems which have a definite and easy to understand visual presentation of data, but keep in mind that beautiful chart won't replace a decent research into the data. If you need many diagrams to explain your results, then you're more likely to confuse everyone involved. - Opt for the system which has got trustworthy mathematical and theoretical methods. Be sure that you understand how it works, and that you can explain it to others (since which is exactly what you will will need in the future).

In general, be sure that the logic of the ranking method is reliable and testable. You might search more about EMPA on the net.

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