Managing Classification Hierarchies

Classification hierarchies are used as additional hierarchies to standard portfolio structures. You can create classification hierarchies to map additional views to your standard portfolio.

The standard portfolio hierarchy corresponds to the organizational structure of a company. Portfolio items and initiatives are assigned to buckets of a standard portfolio hierarchy. You can analyze your portfolio with respect to a standard portfolio hierarchy. You may think about additional hierarchies like a market-specific hierarchy or a product-specific hierarchy. To build such hierarchies, you can use classification hierarchies.

The graphic demonstrates a portfolio item that is assigned to a single bucket of a standard portfolio, and split into multiple buckets of a classification hierarchy. You may even create more than one alternative classification hierarchy. Financial planning values and capacity planning of a portfolio item are distributed into multiple buckets of the classification hierarchy in the same way as the item is split into the multiple buckets.

You can assign existing portfolio items to multiple classification hierarchies. This procedure is usually performed by a portfolio item manager. To do so, open an item and navigate to Classification. This is a subordinate tab to the Overview tab. In this tab, you can select a single classification hierarchy and split the item into multiple buckets. You may specify a factor for distributing financial and capacity planning data of the item to multiple buckets.

You can also assign the initiatives of a standard portfolio to the buckets of a classification hierarchy.

Financial and capacity planning for the buckets of a classification hierarchy works the same way as financial and capacity planning for the buckets of a standard portfolio. For example, you can plan financial values manually and roll-up data of assigned portfolio items and assigned initiatives.

You can implement a business add-in to modify the rollup factor for portfolio elements. In the standard delivery, the same rollup factor is used to roll up every financial view and capacity view.