About the Book
STRATEGIC BUSINESS PORTFOLIO MANAGEMENT is suitable for neophytes and experienced practitioners. It will demystify portfolio management and is the best option for your path to practical portfolio solutions.
Harry Markowitz developed the concepts of securities portfolio analysis in the 50s. But managing business assets differs in important ways from security analysis. This book is a practical guide to understanding the best ways to manage your business portfolio and achieve high performance. With good portfolio management, a firm can improve its results by 30% or more compared to standalone analysis.
The book explains key concepts, multiple use cases, and "war stories" in which results differed from expectations and why. It culminates with a description of the pitfalls of implementing and operating a portfolio analysis and management practice.
The book's focus is on strategic and tactical management of real assets, making it unique in the literature. Most other portfolio management books focus on operational and project portfolio management, which optimize only in the very short term. The author had no such guide when embarking on his portfolio journey in 2001.
THIS BOOK COVERS:
Framing your portfolio problem,
The three technical and two organizational critical success factors for portfolio management,
Selecting the tools and methods you need to analyze your problem or questions: Is standalone economic analysis sufficient? Are rank-and-cut and slice-and-dice enough? How about categorical grids with stars and dogs? Do we need to optimize our portfolio? How does Monte Carlo analysis fit in?
The importance of Change Management and Leadership Support, and
Implementing portfolio management solutions.
Along the way, you will learn what "good decision" means, details about financial metrics, how to avoid blind alleys and pitfalls that will lead to failure, and how to organize your data for input, analysis, and output. Using the techniques and concepts in this book, you will be the portfolio expert in the room.
In these VUCA times (Volatility, Uncertainty, Complexity, and Ambiguity), forecasting is fruitless. Make portfolio management, uncertainty analysis, and scenario planning your friends.
This book belongs in every strategic planner's or analyst's library.
About the Author :
Tony Kenck formed Practical Portfolio Management LLC in 2020 after a long career with Chevron. Although he started his career as an earth scientist (Colorado School of Mines, BSc. Geophysical Engineering '79), he found himself repeatedly drawn to decision and risk analysis. He knew in his gut that those analyses could be improved and were important. He was on Texaco's Exploration Risk Committee and developed economic analyst skills to screen new opportunities more effectively. While serving as the "spreadsheet dude" for Texaco Brazil's New Country Entry Team, he earned an MBA from the University of St. Thomas, thereby completing his journey to the dark side. He first learned about efficient frontiers in his MBA Finance class. It seemed like destiny. When Chevron and Texaco merged in 2001, he joined the international upstream planning and strategy group. In that role, he led the development of tools and standards used at Chevron for over 20 years. Subsequently, he became the Manager of Planning and Portfolio in Chevron's Corporate Business Development Department, providing portfolio perspectives on a wide range of multi-billion-dollar investment opportunities. He developed teaching materials and eventually trained hundreds of people in portfolio analysis and basic financial and economic decision metrics. Since leaving Chevron, he has focused on writing Strategic Business Portfolio Management and engaged in various consulting roles. His portfolio analysis and management experience includes corporate center, exploration, research and development, environmental remediation, acquisitions and divestitures, and carbon reduction. His passion is teaching the next generation of portfolio analysts and helping firms implement their own portfolio management practices and tools. Tony is a Fellow of the Society of Decision Professionals (SDP) and the President of the Denver Chapter of the SDP. He and his wife, Kathleen, live in Golden, Colorado. Tony loves to help firms discover opportunities to do portfolio work. He is available for free initial consultations and longer-term engagements and is happy to talk with anyone about portfolio management. He believes that good portfolio analysis and management is the next frontier for engineering, finance, and economics and is eager to help companies improve in that direction.
Review :
"Written in clear language that takes the "daunting" away from portfolio concepts." "... robust and applicable to portfolio analysis for any endeavor under the sun." "... these concepts and practices WORK! They enable the development of sustainable competitive advantage." - Nicolas Cooper
Valuable to everybody in the portfolio process, including decision-makers. A significant contribution to the art of portfolios and analysis. - Peter Val Kranak
"The principles apply to ANY organization making strategic choices between assets, projects, and initiatives." - Corla Davis
"This book is an encyclopedia of Portfolio Analysis theory and practice. It has everything, everywhere, all in one place." "An amazing and thorough encapsulation of all things related to Portfolio Analysis." - Patrick McIntosh
"The ideas are applicable to other industries such as mining, pharmaceuticals, finance, and automobile manufacturing. The common theme in these industries is that the payoffs from an investment are far into the future, and there is a lot of uncertainty.""This book makes the jump from financial portfolio concepts developed in the 50s to practical real investments. It provides examples and real situations in which the tools and methods have been used successfully." - Linus Schrage
"I love this book! Tony masterfully demystifies portfolio management, transforming complex concepts into practical tools and strategies. This is a foundational read for serious practitioners that I wish I had access to when I started out with Portfolio Management. Blending rigorous analysis with captivating war stories, Tony's book is a beacon for anyone seeking clarity and success in the complex world of portfolio management. From forecasts to plans, tools to tactics, Tony equips readers with a comprehensive toolbox for portfolio management excellence. Essential reading for both newcomers and seasoned professionals! Tony's approach to portfolio management is both revolutionary and grounded, offering a clear path through the maze of strategic and operational challenges. This book is a game-changer that I wish I had had access to when I started in Portfolio Management!. Tony's book is a masterclass in portfolio management, offering a rare blend of theoretical depth and practical application. An indispensable resource for the industry" - Magnus Ytterstad
"It's rare to find so much hard-earned practical wisdom distilled into a single book. This is a must-read for anyone who wants to help their business make more informed portfolio decisions, whether they're just starting out or well along the portfolio management journey." - Andrew Thrift
"This is marvelous. A masterclass in Portfolio Management!" - Tom Grossman
"Empowering guidance on portfolio analysis, optimization, and management, fueling the journey toward better-informed decisions. A must-read for those seeking strategic and decision clarity. This is a one-of-a-kind and exceptionally significant compilation that guides readers towards making better business decisions. I can't emphasize enough how valuable this resource is. It not only provides the "what and how-to" of portfolio management but also offers a wealth of background information and invaluable nuggets of wisdom." -Ursula Schweighofer
"Tony applies the wisdom of decades of experience and war stories explaining the various context considerations and tradeoffs that make for an optimal portfolio." - Rob Brown
