IBM Case Study
Compare and contrast the project portfolio management approaches that IBM and Deloitte Consulting used to rank and select the projects for their respective portfolios.
IBM uses the Q-sort approach to manage their project portfolio. This approach enables them to analyze opinions raised by groups based on rankings given by each group member. The company embraced this strategy as a way of measuring the relationship between opinions of different employees. This approach seeks to find out correlations between the views expressed by individuals. The company uses this approach to prioritize their projects. This process involves rounds, which consist of people making assessments through group discussions. Each group member writes down a short description of a project on a card. The card is duplicated and distributed to group members. They hold discussions and improver their understanding of the project (Denney, 2005).
On the other hand, Deloitte uses the real options analysis. This method involves evaluating assets and projects based on concepts used to evaluate financial options. According to Deloitte, this approach has been useful in making capital budget decisions where there are significant uncertainties. Moreover, Deloitte has used this approach because the management has been flexible in adapting decisions concerning new developments. For example, the company has used the approach to acquire and merge, expand their facilities, prioritize R&D and contract valuation (Sanwal, 2007).
Unlike the Q. sort approach; this strategy is...
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