Extensions


The process described earlier is extremely flexible, and it must be in order to "fit" an organization's culture. Improved communications, both among and between every level of the organization, result from the explicit statement and focus on objectives, the application of hard data, expert interpretation of that data, and judgments about the qualitative aspects of the process. Political dictates can shape the portfolio to whatever extent the participants deem desirable, but their implications are clear enough so that only those dictates that "make sense" are applied. Changes to assumptions, such as the portfolio budget limit, can be explored. For example, Figures 23.17 and 23.18 show an efficient frontier of portfolio solutions, wherein a series of optimal portfolios is computed and displayed as a function of the budget limit. Top management can set the budget limit much more effectively with such information. Looking at Figure 23.17, you can see that it would make little sense to increase the budget from $10,000 to $15,000, as the incremental benefit is minimal.

Figure 23.17. Efficient Frontier of Optimal Portfolios


Figure 23.18. Portfolio Components on Efficient Frontier





Design for Trustworthy Software. Tools, Techniques, and Methodology of Developing Robust Software
Design for Trustworthy Software: Tools, Techniques, and Methodology of Developing Robust Software
ISBN: 0131872508
EAN: 2147483647
Year: 2006
Pages: 394

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