Students' zone - Management Recommendations

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Chapter 6

Management Recommendations

• Choose project valuation tools that are appropriate for the types of
  project, using subjective measures such as scoring when uncertainty is
  high, but emphasizing financial measures more as commercialization
  approaches.
  
• Keep valuation tools simple and transparent so that the decision process
  remains open to debate and review, and leaves scope for management
  judgement.
  
• Treat numerical measures of risk with caution; they are always very
  approximate.
  
• Avoid point forecasts; try and understand the range of possibilities open
  to each project.
  
• Ensure that the portfolio delivers results smoothly enough over time.
  
• Check for strategic balance.
  
• Top management must be actively involved in portfolio management.