How to rank Projects in a large portfolio

1. Project Prioritization Process
Strategies,
Company Business Objectives,
Strategies Objectives Business
Value, ROI,
Budget,
Resources,
Projects Duration,
Complexity, Prioritization
Risks,
Strategic
Prioritization Questions alignment,
•Which projects are the highest priority? Outcomes
•Which projects help us meet our
strategic initiatives?
•How many projects fit within our
financial and resource capacity?

2. Project Prioritization Process
Rank and Approve
Analyze the Portfolio
Prioritize Portfolio
Inputs: Inputs: Inputs:
•Score Projects •Assess capacity ($, resources) •Executives need to
based on against ranked list of projects formally approve
weighted •Review initial rankings and debate Project Portfolio
prioritization them •Revise as necessary
criteria •Determine the validity of data •Publish and
•Map projects to strategic initiatives communicate
Outputs:
•Rank list of Outputs: Outputs:
projects •Project portfolio recommendation •Approved project
•Overall timeline/ interdependencies portfolio
•Investment type percentages
•Projects mapped to strategic
initiatives

3. Step 1 - Ranking Criteria
Business Value (1-10): Probability of Success (1-10):
•Alignment to strategic •Complexity
initiatives •Effort
•Tangible Benefits •Resource availability
-Increase revenue •Interdependencies
- ROI •Business risk
- Increase market share •External influences
- First to market •Experience level
•Customer satisfaction •Post product support
•Regulatory
•Innovation

4. Scoring Framework
How to increase Must do projects
business value
Why are these so low?
How to increase
probability of success?

5. Step 2 - Scoring Framework

6. Scoring
Other rankings?
First to market?
Keep the lights on project?
Increased productivity?
Is the project related another project?

7. Scoring Framework

8. Step 3 - Project Portfolio
Right mix of projects?
• Right projects based on a review of business
value and probability of success?
• Right mix of projects based on investment types?
• Right mix of project based on the market place?
• Right mix of projects based on alignment to
business objectives?
• Adequate resources to support the project
portfolio?

9. We picked them now what?
Projects
•Need a Project Management Process that is repeatable that uses
the same methodology every time and every time we improve the
process (plug-n-play product development)
•Need metrics to make sure we are tracking the projects
Rebalance the portfolio at defined intervals:
•Mid course corrections? - All projects need Go/No Go milestones
•Are our targets still correct? - If not why?
•Do the budgets still fall within the financial and resource
capacity?
•How can we help ensure success?
- Communication (if it needs to happen document it), clear
priorities, leadership