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Built with a sensitivity-analysis perspective, the approach shifts attention from project attributes to portfolio-level impact, supporting prioritization for risk mitigation and value-adding efforts. The discussion is grounded in drug development and is transferable to other industries.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & 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analysis important in project portfolio management?",{"text":71,"@type":63},"Sensitivity analysis helps evaluate uncertainties by examining how changes in uncertain inputs affect outcomes, making it valuable for supporting decisions in portfolio prioritization and selection.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},657351,1792977803,{"code":4,"msg":81,"data":82},"success",[83,87,91,95,100,105,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & 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 \nGoteborg, Sweden  \nE-mail: [stig-johan.wiklund@captario.com](stig-johan.wiklund@captario.com)  \nAbstract  \nProject portfolio management is an essential process for organizations aiming to optimize the value of their R&D investments. In this article, we introduce a new tool designed to support the prioritization of projects within project portfolio management. We label this tool the PIT-plot, an acronym for Project Impact Tornado plot, with reference to the similarity to the Tornado plot often used for sensitivity analyses. Many traditional practices in portfolio management focus on the properties of the projects available to the portfolio. We are with the PIT-plot changing the perspective and focus not on the properties of the projects themselves, but on the impact that the projects may have on the portfolio. This enables the strategic portfolio management to identify and focus on the projects of largest impact to the portfolio, either for the purpose of risk mitigation or for the purpose of value-adding efforts.  \nKeywords: Project portfolio management; Portfolio prioritization; Sensitivity analysis; Tornado plot; Pharmaceutical industry; Drug development  \n1. Introduction  \nProject portfolio management (PPM) is an essential process for organizations aiming to optimize the value of their R&D investments. Numerous methods, both qualitative and quantitative, have been proposed and used for the management and selection of projects in the portfolio (Raada et al. 2020, Lerch and Spieth 2013, Mohagheghi et al. 2020, Vieira et al.2024), with some implementations employing formal optimization procedures (Sampath et al. 2022, Farid et al. 2021) . Other authors focus on the organizational and human behaviors in the PPM process (Martinsuo et al. 2024, Schiffels et al. 2018) . One of the key challenges in PPM is understanding and managing the uncertainties inherent in each project within the portfolio (Hu and Szmerekovsky 2017) . Quantitative tools such as sensitivity analysis becomes invaluable in these evaluations (Eschenbach 1992) .  \nAs a contribution to enhancing the decision-making toolkit of portfolio managers, we will in this paper introduce a novel analysis tool: the Project Impact Tornado plot (PIT-plot). The PIT-plot is  \na graphical representation of the quantitative impact of each project on an aggregated portfolio metric of interest. While it shares some visual similarities with the traditional Tornado sensitivity analysis plot (Eschenbach 1992), the PIT-plot serves a different purpose. It is specifically tailored to illustrate the investment efficiency of projects within the portfolio, providing a more focused perspective on project risks and returns in the context of the broader portfolio.  \nTo set the stage for understanding the PIT-plot, we will first provide a brief overview of the core principles of project portfolio management and the role of sensitivity analysis in this context. We will then describe the details of the PIT-plot, illustrating its application and benefits within the pharmaceutical industry. Although our discussion is grounded in the specific demands of drug development, the concepts and insights we present are broadly applicable to other industries where portfolio management and sensitivity analysis play pivotal roles in strategic decisionmaking.  \n1.1 Project Portfolio management  \nProject portfolio management (PPM) is used in organizations to manage and align a collection of projects with their broader business objectives. Unlike traditional project management, which focuses on executing individual projects efficiently, PPM emphasizes the optimization of a portfolio of projects to maximize overall value and achieve strategic goals.  \nIn the pharmaceutical industry, all mid-and large-sized companies maintain a portfolio of several drug development projects, and PPM has been use","cbCaisoo8IFFTh2B","https://ap.wps.com/l/cbCaisoo8IFFTh2B","pdf",389949,11,"English","# Introduction\n## Project Portfolio management\n## Sensitivity analysis and the Tornado plot","[{\"question\":\"What is the PIT-plot and what does it measure?\",\"answer\":\"The PIT-plot (Project Impact Tornado plot) graphically represents the quantitative impact of each project on an aggregated portfolio metric of interest.\"},{\"question\":\"How does the PIT-plot differ from a traditional Tornado sensitivity analysis plot?\",\"answer\":\"Although it is visually similar to a Tornado plot, the PIT-plot is tailored to illustrate investment efficiency by focusing on project impact on the portfolio rather than relative importance of model variables.\"},{\"question\":\"Why is sensitivity analysis important in project portfolio management?\",\"answer\":\"Sensitivity analysis helps evaluate uncertainties by examining how changes in uncertain inputs affect outcomes, making it valuable for supporting decisions in portfolio prioritization and selection.\"}]","Introducing the PIT-plot - a new tool in the portfolio manager’s toolkit - Project Impact Tornado plot | PDF",28]