What KPIs have you typically used when reporting on a portfolio to the portfolio sponsoring group? I appreciate every portfolio is different and may have KPIs they wish to focus on, but KPI portfolio metrics are new to our organisation and keen to understand how others have approached this. There will be a number of respective programmes executed under the portfolio, which will focus on their benefits delivery etc., so what is good metrics to bring to the executive level who are overseeing the full portfolio? Saving Changes...
It depends on the purpose of the portfolio. For improvements projects they currently contain metrics like production flow time, first pass quality, rework time, and actual time vs. budgeted. For product development they would include different metrics like flow time to delivery, financial metrics like ROI, and budget variance.
The standard formula is:
a) Define the purpose of the portfolio
b) Define the qualities that differentiate between good and bad (profitability, sustainability, reproduceability, etc. often called the "illities")
c) Define quantifiable direct or proxy-measures of those qualities that you can actually measure Saving Changes...
To add to Keith's great feedback, I'd suggest it also depends on the portfolio's makeup (i.e. the nature of the components). For example, if the portfolio is focused on regulatory compliance initiatives, measures such as overall organizational risk reduction or cost avoidance might be more important than revenue or profit.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
I do agree with my fellow colleagues feedback. Two of the common metrics I've used on multiple portfolios are:
1) Portfolio Return: Measures the overall return generated by the portfolio over a specific period, usually calculated as a percentage.
2) Risk Metrics like Standard Deviation or Sharpe Ratio which provides a way to assess how well an investment performs relative to the level of risk taken. Saving Changes...
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