Reviewing a Bank's Investment Portfolio
SMS Ref #: CS00033
A major bank required a complete review of their existing project investment portfolio to promote maximum benefit realisation.
The state of a bank’s investment portfolio is one of its most important business considerations. A key performance indicator, the attainment of suitably high levels of return on investment has a direct influence upon the success or failure of the entire organisation. With a new key appointment, and spurred on by a concern around project control, the bank decided to undertake a review of a portfolio suspected to be in varying states of health and potential.
SMS performed a baseline portfolio audit to assess health of individual projects and to identify systemic issues across entire portfolio.
Drawing on 20 years of expertise in portfolio performance, SMS:
- utilised the SMS portfolio review tool to review representative project samples
- identified business critical trends affecting each individual project’s health and potential to realise benefits
- challenged established business cases, explored financial issues and identified areas for improvement
- assessed varying states of health and performance in line with global best practice
SMS produced and delivered a report based on the overall portfolio review and a roadmap for lifting performance.
Based on extensive qualitative and quantitative research, SMS recommended a series of initiatives to improve general performance. Forming part of a detailed roadmap for success, SMS made specific recommendations on:
- tighter cost controls and standardised methodologies
- investment in ongoing education and training
- strategies for fostering beneficial people culture and establishing acceptable behavioural standards
SMS planned and executed a strategy that addressed these main points and SMS consultants worked on-site to assist where necessary in the program’s delivery. In addition, the standardised portfolio management tool used during this exercise was shared with the bank, to enable more effective reviews in the future.
SMS significantly improved overall portfolio performance and enabled the bank to experience a measurable informant in benefit performance.
As well as providing an expert commentary on how the bank’s investment portfolio was tracking, SMS helped implement specific methodologies to ensure each individual project’s performance was significantly enhanced. In applying their portfolio review tool, SMS established a baseline against which all future reviews could be compared.
As a result of its collaborative involvement in this process, the bank gained invaluable experience in portfolio reviews and is now able to apply the same methodologies to all future projects.