Learn to use a good system for portfolio management!1665129

The positioning of projects is the foundation for portfolio managing. A great system of ranking the projects in the portfolio should not only simplify and improve the process, but also have better results than when it is done by hand or by means of electronic tables. Just about any system of portfolio management possesses its own "flavor" regarding the ranking of projects: some are great, others are simply decent, 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 a valuable part of the portfolio management system. It must be depending on a clear, quantified and modern decision theory and it should be readily available for free training.

Below are a few essential elements that you should consider when thinking about the ranking system projects in the portfolio: - Stay away from systems based entirely on financial metrics like net present value (NPV). The primary constraint of using a purely financial metrics is that you may over estimate the real value of the projects. - Stay away from programs which utilize the method of analysis of hierarchies (MAI) for ranking projects. MAI is one of the popular methods of ranking projects and appealing in its simpleness, yet it's not the most appropriate way of ranking projects. - Try to find a system that can permit you to test the sensitivity and will simplify of how the portfolio may differ in different cases. Sensitivity testing might be important to test the reliability of your rankings. Most systems only permit you to rank on such basis as the "most likely" case. - Choose the system that can manage the concerns in the data and parameters of the ranking system. Systems which use Monte Carlo simulation method in conjunction with a plurality of portfolio options immediately become the best selection for you. - Search for systems that have a definite and simple to comprehend visual presentation of data, but remember that beautiful chart won't replace a decent research into the data. If you need many diagrams to explain your results, then you are more likely to confuse everyone involved. - Opt for the system which has got trustworthy mathematical and theoretical methods. Make sure that you recognize how it works, and that you may explain it to others (because which is exactly what you'll will need in the future).

In general, be sure that the logic of the ranking method is trustworthy and testable. You can search more about EMPA on the internet.

To read more about EPMA you can check our webpage