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Case Study Who Owns the Portfolio?
Case Studies in Project, Program, and Organizational Project Management p.385
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ICC Background Makes custom - made interconnecting cables for the health, computer, and other industries Annual sales of $ 140 million Three kinds of services: big projects—develop platform cables medium projects—color, major changes of materials, and length small projects—color and small changes of material Profit pattern: Platform cables — costly to develop Buyers share the cost with ICC — ICC prefer small and medium projects(“ bread and butter ” projects)
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Situation For six-month report, completed none of the big projects
A frequent issue in companies Change: four - hour workshop (engineering and marketing department) Discussion on the responsibility for managing ICC ’ s project portfolio
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Issues Unbalanced project mix or project portfolio
Engineers would not be up for the challenges of the big projects in the future Unclear responsibility for managing ICC ’ s project portfolio (Marketing department, Ian Plachy, portfolio interdepartmental committee……)
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Discussion items 1. Who should manage project portfolio? Marketing? Engineering? Both? Some other groups? 2. How does project portfolio management influence engineers ’ skill sets, a company ’ s competencies, and market position? 3. Does the use of only NPV as a project selection method carry certain risks? What are they? 4. Why is it risky if ICC ’ s portfolio consists of 80 percent of the bread and butter projects?
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