Corporate Portfolio Management: Appraising Four Decades of Academic Research. Strategy, Corporate Development & Finance Corporate Portfolio Management: Appraising Four Decades of Academic Research Decrease font size Increase font size Tools inShare Related Articles In This Article Multibusiness companies remain the most prevalent form of organization around the world—in both mature and emerging markets.In academia, however, there are only a few, often outdated, studies that focus predominantly on corporate portfolio management (CPM).What can be done to advance current CPM concepts to address gaps in strategic management theory and management practice?
Multibusiness companies remain the most prevalent form of organization around the world. Corporate portfolio management (CPM) is an essential part of corporate strategy. Why the disinterest? This paper originally appeared in the November 2011 edition of The Academy of Management Perspectives, which is published by the Academy of Management. To Contact the BCG Authors Back to top CEO Agenda Industries Business Topics Viewpoints. What is Strategic Portfolio Management. Strategic Portfolio Management incorporates portfolio analysis and much more.
Portfolio analysis is the technical side of a portfolio approach, and portfolio management is everything it takes to make a portfolio approach valuable for decision makers. Portfolio Analysis is a method of evaluating investments based on their contribution to the aggregate performance of the entire corporation rather than on the isolated characteristics of the investments themselves. When performing portfolio analysis, we gather information about the individual investments available and then choose the projects that help us to meet all of our goals in all of the years that are of concern. We use the power of portfolio modeling to investigate scenarios, see the trade-off among goals, and understand the probability of meeting our goals.
For a more detailed description of our methods, please see Our Unique Methodology. Corporate Portfolio Management blog begins... Corporate Portfolio Management (CPM) - An increasingly important discipline.
I hope to share some of my experiences, insights, ideas and questions about CPM through this blog, and more importantly, hope to encourage discussion amongst current and prospective practitioners of the CPM discipline. Of course, the many valuable (and sometimes not so valuable) insights of other practitioners and thought leaders will also be highlighted. For those unfamiliar with the term CPM, let's start with a bit of a definition. CPM encapsulates several other more commonly known terms such as enterprise portfolio management or project portfolio management (PPM). By encapsulate, I mean that enterprise portfolio management and PPM are most-often associated with information technology (IT) while CPM is more expansive.
As you can probably tell, Anand also enjoys writing descriptions about himself in the third person. Portfolio Management Definition. Portfolio management: An introduction. A good way to begin understanding what portfolio management is (and is not) may be to define the term portfolio.
In a business context, we can look to the mutual fund industry to explain the term's origins. Morgan Stanley's Dictionary of Financial Terms offers the following explanation: If you own more than one security, you have an investment portfolio. You build the portfolio by buying additional stocks, bonds, mutual funds, or other investments. Your goal is to increase the portfolio's value by selecting investments that you believe will go up in price.
Note that this explanation contains a number of important ideas: A portfolio contains many investment vehicles.Owning a portfolio involves making choices -- that is, deciding what additional stocks, bonds, or other financial instruments to buy; when to buy; what and when to sell; and so forth. Over time, other industry sectors have adapted and applied these ideas to other types of "investments," including the following: Back to top.