Master Class

Investment Appraisal and Portfolio Prioritisation

Course Agenda

Day 1

Course Objectives

MODULE 1: Investment Appraisal as a strategic corporate process

  • The role and importance of the Investment Appraisal / Capital Allocation process in the organization.
  • The enterprise as a portfolio of ongoing and planned investment projects.
  • VBM (Value Based Management) and corporate strategies.
  • The role of the prospective projects to the company’s value.
  • High-level process model.
  • Classification and types of projects
  • Common challenges, problems and mitigating actions.

 

MODULE 2: Basic methods and tools for the process

  • Analytical components of an investment proposal.
  • Investment expenditures.
  • Financing structure.
  • Basic economic efficiency indicators and their interpretation, pros and cons (NPV, EAA, IRR, MIRR, PI, dPP).
  • Analysis and interpretation of the results.
  • Common challenges, problems and mitigating actions.

 

MODULE 3: PPM Implementation – Moving up the Maturity Curve

  • PPM Maturity Models
  • Self-Assessment
  • PPM Organisation
  • PPM Process
  • PPM Technology
  • Common challenges, problems and mitigating actions.

 

Day 2

RECAP OF DAY 1

MODULE 4: Advanced methods, process, and digitalisation tools

  • Stress-testing tools (scenarios, sensitivity analysis, Monte-Carlo simulations).
  • Non-financial methods of goal-scoring (qualitative analysis of risk, analysis of strategic importance).
  • Role and specificity of IA in the context of corporate R&D.
  • Use of real options.
  • Common challenges, problems and mitigating actions.

MODULE 5: Building an agile portfolio of investment proposals

  • The importance of accessible and current project data.
  • The relationships between proposals.
  • Assessment of portfolio effectiveness at the portfolio level.
  • Creating the so-called ‘funnel of proposal’.
  • Methods of analysis and optimization of the portfolio.
  • Creating investment programs and analyzing their impact on corporate strategy.
  • Common challenges, problems and mitigating actions

MODULE 6: Value Mining – Securing Returns on Investment

  • Vision and benefits
  • Process Analysis
  • Communications
  • Business Case

MODULE 7: Case study - practical workshops

  • Modelling and evaluating several types of investment projects and discuss and interpret the results together.
  • Creating and optimizing the portfolio of projects.
  • Using digitalization tools (provided by the trainers

COURSE CLOSURE