Before beginning a prioritization process, it is essential to align the organization on how decisions will be made. Specifically, on the criteria used to evaluate and rank projects across the organization. The criteria is often derived from both internal and external drivers.
Internal drives typically include factors such as financial resources, staff availability, pending transformations (e.g. M&As). I also advise looking carefully at the organization's ability to adsorb additional change.
External drivers typical involve customer commitments, market conditions, evolving threats and opportunities, and possibly regulatory requirements.
Step 4: Managing the Portfolio - Managing the Project List
With your criteria in hand, a weighted project list can now be developed. A sample is show below. It lists each project (which is in support of a capability). In this example, …