Task: Analyze Portfolio Trends and Variances
Analyze all detailed and aggregated portfolio components to identify trends and variances and to identify required corrective actions.
Disciplines: Portfolio Management Tasks
Purpose
To provide portfolio stakeholders with warnings about possible negative trends or opportunities so they can steer the portfolios in the optimal direction.
Main Description

Conduct a set of analyses to measure variances and deviations to the portfolio work during execution, and aggregate detailed component level variances to surface key trends and metrics. Identify the selected set of components that require additional analysis to facilitate exception-based reporting to the portfolio executives and review board.

Develop scenarios to understand the impact and interdependencies of those changes to develop corrective actions, as required.

Assess potential outcomes that would affect the portfolio either unfavorably or favorably, based on progress achieved and performance trends measured within the portfolios. The following are typical product portfolio performance analysis and trends to be reviewed:

  • Product evolution map
  • Directional policy matrix (DPM)
  • Portfolio matrices
  • SWOT analysis
  • Perceptional maps
  • Boston matrix
  • Product portfolio scorecards
  • SPAN/FAN analysis
  • Product retirements plans
  • Resource histograms and utilization
  • 2-axis model (attractiveness, strategic objectives, risk, quality, value, market share, customer loyalty, and so on)
  • Earned value analysis (EVA)
  • Critical path analysis, schedule and cost variances based on established thresholds
  • Cash flow projections and break-even analysis 
  • Burndown charts and velocity trends
  • Features completion rate and backlogs 

With the analysis of portfolio trends and variances, portfolio executives can make decisions based on current and prescriptive data, thereby supporting a clear and complete understanding of portfolio internal drivers and influences.

Key Considerations

The inputs to consider are the results of consolidation and monitoring conditions tasks.