The Most Useful Metric for Project Portfolio Review

B.

When reviewing a project portfolio, management must consider several metrics to evaluate the portfolio's performance, progress, and effectiveness. The answer to this question depends on the management's objectives and goals. However, out of the given options, the most useful metric for management to consider when reviewing a project portfolio would be option B, i.e., expected return divided by total project cost.

Option A, i.e., total cost of each project, is a useful metric to determine how much each project costs. However, it does not consider the expected benefits or return on investment (ROI) of each project.

Option C, i.e., net present value (NPV) of the portfolio, is an excellent metric to assess the portfolio's value and whether it is worth investing in. However, it does not consider individual project performance or expected ROI.

Option D, i.e., cost of projects divided by total IT cost, is useful to determine the percentage of IT cost allocated to each project. However, it does not consider the expected ROI of each project.

Option B, i.e., expected return divided by total project cost, is the most useful metric because it considers both the project's cost and expected ROI. This metric helps management evaluate the value and profitability of each project and make informed decisions about which projects to invest in or continue. Additionally, it enables management to compare projects with different costs and expected returns, providing a more comprehensive view of the portfolio's overall performance and potential profitability.

In summary, while all the given options have their merits, option B, i.e., expected return divided by total project cost, is the most useful metric for management to consider when reviewing a project portfolio.