A quick and convenient way to present a portfolio of project/program opportunities to executive management is to use a portfolio bubble graph. These graphs highlight what is most likely to generate the greatest profit the soonest.
The bubble graph shown above illustrates the size of the expected profit versus the readiness to introduce it to the market. On the Net Present Value page, we learned how to calculate the return on investment of a project over a number of years. Each bubble shown above represents a project, where the size of the bubble indicates the Net Present Value. It’s position illustrates what PDLC phase it is in, and how long before it is ready for market release.
The largest bubbles nearest the end of the PDLC are generally the top priority for the company, all else being equal. In the example above, the large red bubble in the Limited Availability phase should get priority assuming the smaller blue bubble in General Availability has what it needs to finish the market release.
Using tools like the a portfolio bubble graph can quickly bring focus within an organization, increase profits, improve understanding of executive decisions thereby resolving conflicts between business units and resources.