Portfolio Management in Custojo

Portfolio management in Custojo allows you to oversee multiple projects as a unified portfolio, ensuring strategic alignment, optimal resource allocation, and maximized organizational value. This guide will help you implement effective portfolio management practices using Custojo's powerful tools.

Understanding Portfolio Management

Portfolio management involves:

• Aligning projects with strategic objectives
• Balancing resources across multiple projects
• Prioritizing projects based on value and constraints
• Managing risks at the portfolio level
• Optimizing the overall project mix

Effective portfolio management helps organizations:

• Make better investment decisions
• Allocate resources more efficiently
• Reduce redundant efforts
• Improve project success rates
• Maximize return on investment

Setting Up Portfolio Management

Creating a Portfolio Structure

Organize your projects into a coherent portfolio structure:

1. Navigate to Portfolio Management

   • Access the Portfolio module from the main menu
   • Select "Create New Portfolio" to begin

2. Define Portfolio Hierarchy

   • Create top-level portfolios aligned with strategic objectives
   • Establish sub-portfolios for different business units or domains
   • Configure portfolio attributes and metadata

3. Add Projects to Portfolios

   • Select existing projects to include in each portfolio
   • Set project relationships and dependencies
   • Define project contribution to portfolio objectives

Configuring Portfolio Settings

Customize portfolio settings to match your organization's needs:

1. Set Portfolio Parameters

   • Define fiscal periods and planning horizons
   • Configure portfolio-level custom fields
   • Set up approval workflows and governance processes

2. Establish Evaluation Criteria

   • Create scoring models for project assessment
   • Define key performance indicators (KPIs)
   • Set up strategic alignment measures

3. Configure Reporting

   • Set up portfolio dashboards
   • Define standard reports
   • Establish reporting schedules and distribution lists

Strategic Alignment

Defining Strategic Objectives

Link your portfolio to organizational strategy:

1. Document Strategic Objectives

   • Create a strategic objectives registry
   • Define measurable outcomes for each objective
   • Establish timeframes for achievement

2. Map Projects to Objectives

   • Link each project to relevant strategic objectives
   • Specify the contribution level (high, medium, low)
   • Document how each project supports strategic goals

3. Measure Strategic Alignment

   • Calculate alignment scores for projects
   • Visualize strategic coverage
   • Identify gaps in strategic implementation

Strategic Roadmapping

Create visual roadmaps to communicate portfolio plans:

1. Build Portfolio Roadmaps

   • Create timeline-based visualizations
   • Group projects by strategic themes
   • Highlight key milestones and dependencies

2. Maintain Rolling Roadmaps

   • Update roadmaps regularly
   • Adjust timelines based on changing priorities
   • Communicate changes to stakeholders

3. Present Roadmaps to Stakeholders

   • Generate roadmap reports
   • Create executive presentations
   • Facilitate roadmap review sessions

Portfolio Prioritization

Project Evaluation

Assess projects using consistent criteria:

1. Define Evaluation Framework

   • Create standardized evaluation criteria
   • Establish scoring scales
   • Set up weighted scoring models

2. Evaluate Projects

   • Score projects against defined criteria
   • Calculate composite scores
   • Rank projects based on scores

3. Conduct Comparative Analysis

   • Compare projects across multiple dimensions
   • Identify high-value, low-effort opportunities
   • Flag projects for further review

Prioritization Techniques

Apply systematic prioritization methods:

1. Value-Based Prioritization

   • Calculate expected value for each project
   • Consider both financial and non-financial benefits
   • Rank projects by value-to-cost ratio

2. Constraint-Based Prioritization

   • Identify key constraints (budget, resources, time)
   • Optimize project mix within constraints
   • Apply linear programming techniques

3. Strategic Bucket Allocation

   • Allocate resources to strategic buckets
   • Prioritize projects within each bucket
   • Balance investment across strategic areas

Portfolio Balancing

Ensure a balanced mix of projects:

1. Risk-Reward Analysis

   • Plot projects on risk-reward matrices
   • Ensure appropriate distribution
   • Adjust portfolio to achieve desired risk profile

2. Project Type Balance

   • Categorize projects (innovation, growth, maintenance)
   • Analyze distribution across categories
   • Adjust mix to align with strategic intent

3. Timeline Balance

   • Distribute projects across time horizons
   • Ensure steady flow of project completions
   • Avoid resource bottlenecks

Resource Management at Portfolio Level

Capacity Planning

Manage resources across the portfolio:

1. Aggregate Resource Demand

   • Collect resource requirements from all projects
   • Identify total demand by role and time period
   • Compare demand against available capacity

2. Resolve Resource Conflicts

   • Identify overallocated resources
   • Adjust project timelines to smooth demand
   • Prioritize resource allocation based on project priority

3. Optimize Resource Utilization

   • Balance workload across teams
   • Identify opportunities for resource sharing
   • Plan for capacity adjustments

Resource Scenario Planning

Evaluate different resource allocation scenarios:

1. Create Resource Scenarios

   • Develop alternative resource allocation models
   • Simulate different project prioritization approaches
   • Model impact of adding or reducing resources

2. Compare Scenario Outcomes

   • Evaluate portfolio value under each scenario
   • Assess timeline implications
   • Consider risk profiles

3. Select Optimal Scenario

   • Choose the scenario that best balances objectives
   • Document decision rationale
   • Communicate resource allocation decisions

Portfolio Risk Management

Portfolio Risk Assessment

Identify and assess risks at the portfolio level:

1. Identify Portfolio Risks

   • Conduct portfolio risk workshops
   • Identify cross-project dependencies
   • Document external risk factors

2. Assess Risk Impact and Probability

   • Evaluate each risk's potential impact
   • Estimate probability of occurrence
   • Calculate risk exposure

3. Prioritize Portfolio Risks

   • Rank risks by exposure level
   • Identify critical risk clusters
   • Focus attention on high-priority risks

Risk Mitigation Strategies

Develop strategies to address portfolio risks:

1. Create Risk Response Plans

   • Develop mitigation strategies for key risks
   • Assign risk ownership
   • Establish risk triggers and contingency plans

2. Implement Risk Controls

   • Set up risk monitoring processes
   • Establish early warning indicators
   • Create risk reporting dashboards

3. Conduct Regular Risk Reviews

   • Schedule portfolio risk review meetings
   • Update risk assessments
   • Adjust mitigation strategies as needed

Portfolio Performance Tracking

Portfolio Dashboards

Create visual dashboards to monitor portfolio performance:

1. Set Up Portfolio Dashboards

   • Configure key performance widgets
   • Create strategic alignment visualizations
   • Set up resource utilization displays

2. Customize Dashboard Views

   • Create role-specific dashboards
   • Set up drill-down capabilities
   • Configure alert thresholds

3. Share Dashboards with Stakeholders

   • Provide dashboard access to key stakeholders
   • Schedule automated dashboard distribution
   • Create dashboard review sessions

Portfolio Metrics

Track key portfolio performance indicators:

1. Financial Metrics

   • Return on investment (ROI)
   • Net present value (NPV)
   • Budget variance
   • Benefit realization

2. Strategic Metrics

   • Strategic alignment score
   • Objective achievement rate
   • Innovation index
   • Market impact

3. Operational Metrics

   • Resource utilization
   • Project completion rate
   • Schedule performance
   • Quality indicators

Portfolio Reviews

Conduct regular portfolio review meetings:

1. Prepare for Portfolio Reviews

   • Generate portfolio performance reports
   • Identify key discussion points
   • Prepare decision recommendations

2. Conduct Review Meetings

   • Present portfolio status
   • Discuss performance issues
   • Make portfolio adjustment decisions

3. Document and Communicate Outcomes

   • Record decisions and action items
   • Update portfolio plans
   • Communicate changes to stakeholders

Portfolio Optimization

Continuous Improvement

Regularly optimize your portfolio:

1. Identify Optimization Opportunities

   • Analyze portfolio performance data
   • Gather stakeholder feedback
   • Benchmark against industry standards

2. Implement Improvements

   • Adjust portfolio composition
   • Refine prioritization criteria
   • Enhance resource allocation processes

3. Measure Improvement Impact

   • Track key performance indicators
   • Compare before and after metrics
   • Document lessons learned

Portfolio Rebalancing

Adjust your portfolio in response to changes:

1. Trigger Points for Rebalancing

   • Significant strategy changes
   • Major resource shifts
   • External market disruptions
   • Performance deviations

2. Rebalancing Process

   • Re-evaluate project priorities
   • Adjust resource allocations
   • Update portfolio roadmaps
   • Communicate changes

3. Monitor Rebalancing Impact

   • Track performance after rebalancing
   • Assess stakeholder satisfaction
   • Document rebalancing effectiveness

Advanced Portfolio Management Techniques

What-If Analysis

Explore potential future scenarios:

1. Define Scenarios

   • Create alternative future scenarios
   • Vary key assumptions
   • Model different strategic approaches

2. Simulate Outcomes

   • Calculate portfolio performance under each scenario
   • Assess resource implications
   • Evaluate risk profiles

3. Develop Contingency Plans

   • Prepare response strategies for likely scenarios
   • Identify early indicators for each scenario
   • Document decision triggers

Portfolio Optimization Models

Apply mathematical optimization techniques:

1. Define Optimization Objectives

   • Clarify what to maximize (value, strategic alignment)
   • Identify constraints (budget, resources, risk)
   • Set minimum requirements

2. Build Optimization Models

   • Create mathematical models
   • Input project data and constraints
   • Run optimization algorithms

3. Interpret and Apply Results

   • Review optimized portfolio recommendations
   • Apply business judgment
   • Implement optimal project mix

Case Study: Portfolio Management Transformation

Scenario

A growing technology company was struggling to manage its expanding project portfolio. Projects were selected ad hoc, resources were overallocated, and strategic alignment was unclear.

Solution

The company implemented Custojo's portfolio management capabilities:

1. Portfolio Structure Setup

   • Created portfolios aligned with strategic pillars
   • Categorized existing projects
   • Established governance processes

2. Project Evaluation and Prioritization

   • Developed a weighted scoring model
   • Evaluated all projects using consistent criteria
   • Prioritized projects based on strategic value

3. Resource Optimization

   • Implemented portfolio-level resource management
   • Resolved resource conflicts
   • Balanced workload across teams

4. Performance Tracking

   • Set up portfolio dashboards
   • Established regular review cadence
   • Implemented continuous improvement processes

Results

• 25% reduction in active projects
• 35% improvement in strategic alignment
• 40% decrease in resource conflicts
• 30% increase in project success rate

Next Steps

Now that you understand portfolio management in Custojo, consider exploring these related topics:

• Advanced Project Management
• Resource Allocation
• Performance Reporting