Maximize Value Creation
About 187 wordsLess than 1 minute
Shape adaptive (agile) projects and prioritize portfolios. This financial optimization increases value creation significantly and quickly.
At project level, strategies like “fail fast”, “fail cheap”, “parallelization” (higher risk & return vs lower risk & return), and “defer big investments until uncertainty has resolved” enable the most value creating project design.
At portfolio level, disposing of a truly financial prioritization metrics allows the most value creating allocation of limited resources (capital, engineers, …). This alone creates significant and discernable value. Thus, the ROI from implementing real options pays back the related investments immediately.
Financial portfolio prioritization with real options integrates operational and strategic realities, ensuring alignment of financial, operational, and strategic priorities. This approach enables organizations to:
- Optimize project design for maximum value creation
- Prioritize portfolios for the most value creating resource allocation
- Align resource allocation with financial, operational, and strategic goals
- Achieve immediate payback from real options implementation
Note
Key Takeaway: Real options finance empowers organizations to maximize value creation at project and portfolio level, while aligning financial, strategic and operational priorities.