ABSTRACT
Identifying, selecting and prioritizing the portfolio components are the first steps in the project portfolio management process. If an opportunity is relevant, it must become part of the organizational portfolio. In addition some comprehensive portfolio risk might exist that is more than the sum of the components' single risk contributions. For example, in a portfolio of customer projects, suppose that one material supplier is needed to provide parts for a bunch of projects. Portfolio transformation from cycle to cycle might exceed the limits of an organization's capacity and capability for handling the many new and different components. A typical portfolio selection and prioritization process will go more than once through all steps and perspectives. The process is rather iterative in its nature owing to complexity and interdependencies. Assigning priorities to portfolio components should result in the best-balanced outcome to maximize the overall portfolio benefit.
