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New Feedback Metrics for Portfolio Management: Implications for Phase Gate Systems

A new model of project portfolio management (PPM) proposes new metrics for analyzing PPM results (see "Evaluating PPM with Detection Theory," Working Paper, Gary J. Summers, Ph.D., 2008). These metrics, currently being developed and tested by Gary J. Summers, President and CEO, Star Decision Science, are designed to help companies improve project evaluation, prioritization and selection; to evaluate proposal processes; and to provide senior management with vital strategic information. Summers?s work also has implications for phase-gate systems, helping product developers to coordinate project selection throughout the pipeline, while managing the trade-off between pipeline throughput and ROI. By providing feedback metrics and a means of learning from previous history the new model shifts the focus of PPM from decision-making to business process improvement.

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