Introducing the PIT-plot -- a new tool in the portfolio manager's toolkit

TL;DR

The paper introduces the PIT-plot, a new visualization tool that helps portfolio managers prioritize projects based on their potential impact on the overall portfolio, shifting focus from project properties to impact.

Contribution

It presents the PIT-plot as a novel tool for project impact analysis, enhancing strategic decision-making in portfolio management.

Findings

Enables identification of high-impact projects for risk mitigation.

Supports strategic focus on projects with the greatest portfolio impact.

Provides a new perspective in project prioritization.

Abstract

Project portfolio management is an essential process for organizations aiming to optimize the value of their R&D investments. In this article, we introduce a new tool designed to support the prioritization of projects within project portfolio management. We label this tool the PIT-plot, an acronym for Project Impact Tornado plot, with reference to the similarity to the Tornado plot often used for sensitivity analyses. Many traditional practices in portfolio management focus on the properties of the projects available to the portfolio. We are with the PIT-plot changing the perspective and focus not on the properties of the projects themselves, but on the impact that the projects may have on the portfolio. This enables the strategic portfolio management to identify and focus on the projects of largest impact to the portfolio, either for the purpose of risk mitigation or for the purpose of value-adding efforts.