Reprinted from TrustedPeer
Meet the Expert
- More than 30 years in the high tech industry, including 17 years in management and 14 years in science and engineering, working for companies such as Hewlett-Packard, Agilent Technologies, Keithley Instruments, Tektronix and Danaher Corp.
- Experience spans a wide range of industries (semiconductors and other discrete devices, materials research, test and measurement, wireless, medical products and software) and a diverse set of technologies (electronics, optics, acoustics and magnetics).
- Specializes in corporate and product strategy, project portfolio management and fast cycle time product development. Also, highly experienced in NPI processes and R/D metrics, creating an innovation culture, cross-geographic development and manufacturing, project valuation, project platform management, talent acquisition and management, change management, and acquisition targeting, valuation and roadmap integration.
- MBA in management from Case Western Reserve University and MA in physics from University of California, Davis.
Session Packages from $400
Your Expert Package Includes:
- All 10 Best Practices
- Pre-Call Discovery Process
- One-on-One Call with Expert
- Session Summary Report
- Post-Session Engagement
Balancing the Project Portfolio to Reflect Corporate Objectives
- Net present value (NPV) of cash flows
- Money generated as the result of an investment activity such as new product development after the cost of investment has been removed (cash flow) and the "time value of money" is taken into account (net present value).
- NPVe of cash flows (NPV efficiency or NPVe)
- Modification of the standard NPV measure of project value to scale by the level of project investment. NPVe=NPV/investment cost. It is used as a measure of efficiency similar to return on investment (ROI). NPVe is better than the typical ROI calculation in that it uses time value of money (TVM) for the return (through NPV of cash flows).
- A collection of projects and programs to deliver new products and services, chosen with the intent of fulfilling the firm’s mission and vision.
- A collection of projects to deliver new products and services with a common aim, for instance in accomplishing the implementation of a market strategy.
Any effort where the successful result will be a new product offering or service.
- Project portfolio management (PPM)
- The collective activities focused on the selection of a well-balanced portfolio of projects and programs to deliver new products and services, chosen with the intent of fulfilling the firm’s mission and vision but within the bounds and limitations laid out by top leadership. These limitations may include available investment resources, amount of risk allowed and time to investment recovery.
- Tiered portfolios
- The resulting collection of linked portfolios, one flowing to the next, beginning at the highest level with the corporate project portfolio and proceeding to the required technology portfolio, process portfolio, competency portfolio and other linked portfolios as needed.
- Time value of money (TVM)
- The adjustment made to the value of money due to the change in value over time. Typically money received today is thought to be more valuable than money received in the future due to loss of earning capacity in the interim, and other forces such as inflation.
- Uncertainty analysis
- The process of accounting for how uncertainty in the input variables affects the uncertainty of the result. For instance, uncertainty in the reasonable pricing of a new product (and hence the gross margins) or on the project investment cost will cause uncertainty in projecting the total lifetime profit gained from a new product release.
Balancing the Project Portfolio to Reflect Corporate Objectives: Defined Terms