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Introducing the PIT-plot -- a new tool in the portfolio manager's toolkit

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  • Stig-Johan Wiklund
  • Magnus Ytterstad

Abstract

Project 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.

Suggested Citation

  • Stig-Johan Wiklund & Magnus Ytterstad, 2025. "Introducing the PIT-plot -- a new tool in the portfolio manager's toolkit," Papers 2506.12068, arXiv.org.
    • Handle: RePEc:arx:papers:2506.12068
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    References listed on IDEAS

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    1. Stig Johan Wiklund, 2019. "A modelling framework for improved design and decision-making in drug development," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-22, August.
    2. Ted G. Eschenbach, 1992. "Spiderplots versus Tornado Diagrams for Sensitivity Analysis," Interfaces, INFORMS, vol. 22(6), pages 40-46, December.
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