ABSTRACT

Once the scoring, balance, and strategic alignment models have been developed, the organization should proceed to the project selection review stage. While financial resources are fairly easy to calculate calculation of human resources is somewhat more challenging. If there were significant negative changes in any of the aforementioned categories, the project would have to be postponed, killed all together, or drastically adjusted to address the issues. The periodic project status reviews usually start at the execution phase of the project. Strategic alignment plays a major role in determining the size of organizational project buckets during the portfolio alignment exercise. Modern business decision making is seriously flawed because of the delusional optimism that forces people to overestimate the benefits and underestimate the costs of future projects. When developing project portfolio scoring models, one should be aware of the halo effect that can have a serious impact on the final ranking results.