Portfolio Performance Management ◾ 59
18. Your low acid canned food company has come under scrutiny by regulatory
authorities lately as some of its well- known products have had to be recalled
as they contained botulism. Your executives decided the company needed
to change its name to avoid customer dissatisfaction and pursue other mar-
kets. You have been appointed as the portfolio manager, a new function for
this company. Since this is a new function to dene your role, a best prac-
tice is to review the:
a. Portfolio roadmap
b. Portfolio strategic plan
c. Portfolio charter
d. Portfolio management plan
19. Recently, the CEO in your company retired, and the Board of Directors
appointed a new management team. Because of competition from overseas
companies, also specializing in farm equipment such as tractors and crawl-
ers, the new management’s challenge is to be less risk adverse than in the
past and to focus on new markets and opportunities. You are remaining
as the portfolio manager, and the new management team is the Portfolio
Review Board. As they meet to focus on these new components, you know
they will be interested in:
a. Competitor intelligence
b. Measures to maximize portfolio value
c. The current portfolio categories
d. The method used to rate and score proposals
20. Working to manage the portfolio value, you plan to provide a list in prior-
ity order of those components you feel should be considered. You have
decided to use benet realization analysis as one method to do so as in
your pharmaceutical company some products may never be commercialized.
Fortunately, you have a denition of value that is aligned with strategy. You
may want to estimate potential portfolio outcomes with respect to success
criteria. You will express your results by:
a. Gaps and overlaps to be addressed
b. A cumulative distribution
c. Earned value
d. ROI and NPV