Portfolio Frequently Asked Questions
Where should I run plans and reports once I set up a portfolio?
Once available, your workstation should become the portfolio, as it's the only way to get a comprehensive overview of your business.
Single segments should be used primarily to update data and for users who do not have permission to access the portfolio segment.
How long does it take for a portfolio plan or model to run?
The simulation time for portfolio models and plans varies from less than a minute to multiple hours depending on the complexity. Impacts to simulation times include the following:
Number of Segments included in the Portfolio
Multiple levels of Portfolios
Number of Tactics in all segments
Plans only: Number of finite constraints on individual tactics including timing and budget
Running multiple plans or models at the same time
Running Optimized, Hit Revenue Target Plans (Status Quo and Forecast a Plan run more quickly)
To increase the speed of portfolio plans, reduce the number of locked constraints and use Minimum/Maximum budget constraints instead. In addition, running plans one at a time will result in quicker simulations.
Is the portfolio feature a “roll-up”?
The portfolio feature combines all of the single-segment models together giving you the level of granularity found at the model level.
The portfolio does not condense your single-segment model tactics (e.g. it would not combine the TV of segment 1 and segment 2 into a singular TV tactic, you would see both in the portfolio output.)
Traditionally, what is called a roll-up would be best covered by adding another single segment and mapping all the data to a rolled-up list of factors.
What is the relationship between the single-segment model and the portfolio model?
When a single-segment model is used in a portfolio, it becomes locked, and if the single-segment is edited the portfolio model will become deactivated.
The data snapshot from the single-segment model is utilized in the portfolio model.
Halo and portfolio tactics, along with the data snapshot of the portfolio model, are included.
The relationship is unidirectional; the single segment is utilized by the portfolio model, but the portfolio model does not impact the single segment.
Why are my single segment results different than my portfolio results?
Your single-segment results may differ from your portfolio results for various reasons:
Additional data is often included in portfolio models that the single segment model doesn’t have included such as portfolio tactics and halos.
The Monte Carlo simulation has been rerun in the portfolio model and every Monte Carlo simulation rerun may result in slightly different outcomes.
Double check that your portfolio and single segment models are run on the same MEE version.
What’s the best way to edit a single-segment model used in a portfolio?
Single-segment models linked to the portfolio model are locked. To make any changes to these underlying models, the recommended route is to:
Create a new model at the single-segment level with the desired changes.
Create a new portfolio model at the portfolio level that uses the new model.
This approach ensures that all your old assets remain intact and allows you to navigate around the locked states of the segment-models.
This all feels very complex, should I reduce the number of my business segments instead?
Managing a complex business portfolio can seem daunting at first glance. However, reducing the number of your business segments might not be the best approach for a few reasons.
Capture Cross Effects: Embracing the complexity of your portfolio allows you to fully grasp the intricate web of interactions between different segments, tactics, and investments. This understanding can help you capitalize on positive synergies in a targeted way.
Tailored Strategies: Different business segments may have unique needs, characteristics, and drivers of revenue. A segmented approach enables you to devise and implement plans that are tailored to the unique drivers of each business segment’s revenue. This granularity can help you optimize performance at the individual segment level and thus at the overall portfolio level.
Insights and Learning: By examining your business at a granular level, you can glean deeper insights into what works and what doesn't for each segment. This knowledge can inform your decision-making process and help you optimize your investment strategies more effectively.
In the Keen Platform, we've designed our portfolio management tools with the understanding that business portfolios are complex and multifaceted. The platform is built to help you navigate this complexity, providing comprehensive views of your business and powerful tools to optimize across all your segments.
So rather than simplifying your portfolio by reducing the number of business segments, I would encourage you to leverage the platform's capabilities to manage and optimize this complexity. It's an investment of time and effort, but the return – in terms of increased insights, tailored strategies, and ultimately greater profitability – can be substantial.
Why does a portfolio umbrella affect a single segment’s ROI?
While direct impacts are rolled up to their source segments, adding a portfolio umbrella factor affects the entire model. It operates similarly to adding a new factor in a single-segment model—prompting the model to reassess and recalculate efficiency estimates across all factors, not just the new one.
Introducing more factors with associated spend can shift the perceived marketing efficiency across the mix. These portfolio umbrellas behave as additional variables, often leading to moderate increases in estimated ROI due to interaction effects. Because the factor mix differs at the portfolio level, the model naturally adjusts its efficiency calculations, which can result in ROI shifts at the segment level.
Why do portfolio umbrella impacts vary across segments?
The influence of a portfolio umbrella can depend on the quantity and makeup of existing factors in a segment model.
Segments that begin with fewer baseline factors tend to show a greater proportional effect when umbrella factors are added. For example, if Segment A has half the number of factors compared to Segment B, adding the same umbrella input may have a more pronounced impact on Segment A’s results
Other elements also affect this dynamic, including:
Investment levels
Time series alignment of activity vs. sales response
Margin differences
Overall top-line revenue contribution