Aug 1, 2010

Role of portfolio management to manage any project

Estimation of your probabilities of getting success in all of your existing projects seems
to be essential for determining the calculation of anticipated value of project and also
is an integral part of portfolio management. Also it is a fact that most of the project
manager apart from project management offices (PMO) are not as all involved in all these
activities. However they are capable of doing it in more shaped and better way in the same
manner as how the prediction of rain is done by meteorologists. Usually the term portfolio
management is used for existing projects and hence these are particularly termed as
project portfolio management.

If we want our project portfolio management to be very effective, then there are certain
rules and regulations that must be positively fulfilled by any project. Firstly, the project
that is undertaken should be allied with some strict strategies and their firm goals. Also
the project needs to be much consistent and reliable with the values of culture and firm.
Also your undertaken project must contribute to a flow of cash and that also in a positive
manner for the venture; however this contribution can either be in a direct manner or in
an indirect manner. Here must be an effective use of recourses of firm by which the project
has been undertaken. Also not only the present contribution is included for the betterment
of the health of firm but also should offer some assistance to establish that firm in a fixed
manner so as to attain success in the future.

The significant condition in any project portfolio management, there must be a proper
contribution of projects to the health of firm. When we particularly take the term “firm’s
health” into consideration, we directly or indirectly concerns with the fiscal stability of
any company. There is a particular article by Lynn Westergard whose title is “measuring
company health via cash flow ration”, it is simply concerned with the cash flow statements
as these are supposed to be an ideal indicator for health measurement. However, there may
be two most general categories of the ratios of cash flow. The first category comprised of
the ratios of that tests used for liquidity and solvency, cash flow operation, entire coverage
of the flow of fund, coverage of cash debits and cash interests where as the next category is
comprised of those ratios that are usually indicated for the viability of any business. Usually
two types of ratios are used in this category. The first one is CE where as second one is TD.

However it is important for any company or business firm to have its shares operated in a
dematerialized form. These shares of companies are available to be operated under both
the types of depository system of India. The two types of depository systems are CDSL
and NSDL. It depends on our wish that whether we want to manage all of our shareholdings
in an electronic way then there is only a need to sign up to depository participant which is abbreviated as DP. For this, you need to create an account with DP that will have aregistration either with CDSl or NSDL.