Here we have a bounded curve of possible portfolios (in this case we can apply the cumulative frontier, which is the cumulative portfolio value based on the rank order of projects in the portfolio, not to be confused with the efficient frontier which is based on portfolio optimization). At the upper far right is the problem area in question. If organizations are approving most projects it means there is little to no discrimination among projects which is a symptom of not having enough project candidates to review and stems from poor ideation and work intake. When organizations have more project candidates than they can reasonably take on, the governance council is pushed to do a better job of selecting projects.
My personal approach is to right-size portfolio management processes to fit an organization's culture and maturity to be effective without creating a bureaucracy. Please contact me if you would like to know more about how project portfolio management (PPM) can help your organization achieve its strategic goals.
Latest posts by Tim Washington (see all)
- Beware of Project Dependencies - July 9, 2017
- Portfolio Optimization—Data and Constraints - September 27, 2016
- Improve Portfolio Health By Avoiding Two Portfolio Management Extremes - March 30, 2016