All capital project budgets are invariably constrained by available financial capital, human resources, and risk tolerance. To optimize your project portfolio within these constraints you should:
- Consistently evaluate candidate projects to determine an overall ranking score.
- For each responsibility area, generate expected portfolio utility outcomes at various funding levels and generate an efficient frontier chart utilizing computer assisted technology.
- Identify optimal funding levels for each class of project, for example: sustenance, growth, and compliance.
- Submit Portfolio requests by area for centralized reconciliation and budget distribution.
- Perform a top-down budget distribution by responsibility area and investment reason in line with overall organization funding capacity.
- Allow area managers to refine their project portfolio selection within budget and resource constraints employing automatic project portfolio selection strategies as appropriate.