In a 60-ball, "pick 6 balls to win" lottery, you can find over 50 million possible outcomes In the 40 project stock portfolio, there are over 1 trillion achievable subsets of projects to decide from In addition to the number of possible subsets grows significantly as the task portfolio grows So if you add just 5 more projects to the 40 project portfolio, you now include over 35 trillion possible portfolio subsets available So how do you find the pair of jobs that delivers the particular most value for your firm while also not exceeding the capital, resource, timing, and risk restrictions If you're making use of a spreadsheet plus trying to perform it manually, the particular odds of obtaining an optimal profile are far, far lower than winning the particular lottery This is the reason why true project portfolio marketing is so crucial to project portfolio management for getting the maximum value through your project portfolio There is a lot of misconception about what job portfolio optimization in fact is It isn't regarding so-called balancing a portfolio or just selecting the most valuable projects or just reaching an agreement about a certain set of assignments to execute Whenever I speak about real optimization, I'm communicating to extracting the ideal value from your own project portfolio in the limits regarding multiple simultaneous difficulties such as restricted capital, limited sources, limited time, and tolerance for chance So real optimization includes simultaneously Capitalizing on value from limited capital Maximizing value from constrained assets Maximizing value from time constraints Managing risk Including non-financial and strategic task value Managing doubt Including for non-discretionary spending Accounting regarding complex project dependencies This is the particular real problem of which portfolio optimization handles And it fundamentally involves 2 actions 1 Prioritizing work by a value score, and a couple of Having an optimizer to be able to maximize the general benefit of the selected portfolio while not really exceeding your limit limitations Now, inside of regards to putting first projects, I include written about that will in other Newsletter articles, but I actually want to point out here that a new solid, defensible, and robust prioritization methodology is essential for project portfolio optimization Why Because when you're trying to maximize project collection value however the worth scores for individual tasks aren't defensible and robust, then your optimisation is going in order to be approximately useless because it is definitely based on essentially invalid value scores As a result let's assume that you've got the good set involving values scores intended for your projects and you're ready to be able to optimize your portfolio How do you do this The first thing you should do is to know what your difficulties are We certainly have talked about some associated with the obvious kinds already-things like money costs, resources, and risk, but there are others such as project dependencies, timing, and non-discretionary tasks All of these constraints must be regarded as simultaneously when you are customizing your portfolio In the event that you try in order to try this with some sort of spreadsheet you'll quickly see the trouble If you simply pick the highest value projects by heading down the list right up until you run out there of capital, you may find you do not have enough solutions to do all those projects So and then you might come across a pair of projects that will meets your price and resource restrictions only to find out that will the set is definitely too risky Thus then https//nezaratcom/ function hard trying stability your cost, sources, and risk constraints only to get out that this doesn't meet your project dependencies constraint And so an individual keep looking to carry out this manually as well as on and upon, and also if you finally find a remedy that meets all of the constraint requirements, you still won't know whether it is a good optimal or close optimal solution plus based on the sheer numbers involving possibilities the possibilities are that it isn't Which in turn is why this is critical to how to use optimizer to help you find optimal and close to optimal portfolio subsets in order in order to extract probably the most price from your project portfolios A excellent portfolio optimizer will find optimal or perhaps near optimal solutions, where a near optimal solution will be one which is within a new few percentage points of the absolute optimal solution In case you want to be able to find out about getting the particular most value by your project portfolios using real optimization, including an exhibition, click here to see the video "Winning the Lottery of Project Portfolio Supervision by Using True Optimization "