Portfolio Optimizer overview
The Portfolio Optimizer is the tool used for project evaluation and comparison. The process of reviewing and comparing Business Case values for projects assigned to a portfolio is how a portfolio manager can prioritize projects and generate the most value for an organization.
The purpose of the portfolio optimizer is to provide an interface through which a portfolio manager, steering committee, or product management office can view summary information about the business case of each project. Projects can then be prioritized according to strategic values and goals, or according to their overall score.
The Portfolio Optimizer can only assist you if you have completed the following prerequisites:
- The Business Cases have been completed on the projects. For information, see the articles in Define a Business Case: article index.
- A portfolio is defined in the Project Overview area of Project Details section for the projects you want to review.
- You have indicated the Project Budget and Planned Benefit for the projects you want to review. Fixed Cost and Fixed Revenue are optional but add additional value. For information, see Project finances fields.
For information about locating the Portfolio Optimizer, see Locate the Portfolio Optimizer.
Finances in the Portfolio Optimizer
You can see the financial state of your portfolio at any time during the life of your projects when using the Portfolio Optimizer.
Consider the following when working with finances in the Portfolio Optimizer:
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Projects are each given a score when their Business Cases are completed according to what criteria they match in the Portfolio Optimizer. For example, low cost or high alignment projects receive a higher score.
For more information about calculating the portfolio optimizer score of a project, see Overview of the Portfolio Optimizer Score.
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The financial calculations for the Portfolio Optimizer use the Budgeted Cost in the Business Case of the project.
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You can manually prioritize your projects in the Portfolio Optimizer, taking into account all the information about them. This includes financial data, alignment to their scorecards, and ROI, for example.
The financial areas in the Portfolio Optimizer the-financial-areas-in-the-portfolio-optimizer
You can view financial information in the following areas of the Portfolio Optimizer:
- Portfolio Header: This area displays financial information gathered from all the projects in the portfolio. It displays on every tab of the Portfolio object.
- Portfolio Finances for Selected Projects: This area displays financial information gathered from the projects that are selected in the Portfolio Optimizer. You can add or remove projects and understand how this will affect the finances of the portfolio by viewing the information in this area.
- Projects Finances: This area displays the financial information of each project listed in the Portfolio Optimizer.
The financial fields in the Portfolio Optimizer the-financial-fields-in-the-portfolio-optimizer
The following financial fields display in the Portfolio Optimizer:
Portfolio header portfolio-header
ÃÛ¶¹ÊÓƵ Workfront calculates the financial fields in the portfolio header using information from projects with statuses that equate only with Approved or Current.
The percentage of projects in the portfolio that are considered to be On Time. This is visible from any tab inside a portfolio.
A project is considered to be On Time when the Project Condition is On Target.
For more information about Project Conditions, see the article Overview of Project Condition and Condition Type.
The On Time percentage is calculated using the following formula:
On Time Portfolio Percentage = Number of On Time Projects/ Total Number of Projects in a Current or Approved status
The percentage of projects in the portfolio that are considered to be On Budget. This is visible from any tab inside a portfolio.
Projects are On Budget when they have not exceeded their pre-defined budget.
For more information about the budget of a project, see the article Manage information in the project Finance area.
The On Budget percentage is calculated using the following formula:
On Budget Portfolio Percentage = Number of On Budget Projects/ Total Number of Projects in a Current or Approved status
The Return on Investment (ROI) for the portfolio is calculated by taking into account the total Benefit of the Portfolio and the total of the Budgeted Costs of the projects. This is visible from any tab inside a portfolio.
The Portfolio ROI value is calculated using the following formula:
Portfolio ROI = (Total Benefit - Total Budgeted Cost)/ Total Cost * 100
For more information about how the ROI is calculated for a project, see the article Calculate Return On Investment (ROI).
An average of all the Project Alignment Score values, which are calculated after completing the Scorecard in the Business Case of the project. The alignment score of each project is listed in the Alignment column of the Portfolio Optimizer. This is visible from any tab inside a portfolio.
For more information about generating an alignment score for a project, see the article Apply a scorecard to a project and generate an Alignment Score.
The sum of all the Net Values of all the projects in the portfolio. This is visible from any tab inside a portfolio.
For more information about how Net Value is calculated for a project, see the article Calculate Net Value.
Portfolio finances for selected projects portfolio-finances-for-selected-projects
The total number of active projects in the portfolio. Projects that are considered active in a portfolio can be in any of the following statuses:
- Current
- Planning
- Approved
The remaining budget after all the Budgeted Costs on all the projects inside the portfolio have been subtracted from the Budget of the portfolio.
The Remaining Portfolio Budget is calculated using the following formula:
Remaining Portfolio Budget = Total Portfolio Budget - Total Budgeted Cost of All Portfolio Projects
The overall Budgeted Cost of all the projects in the portfolio is represented in the indicator bar under the Budget field.
For more information about tracking costs on a project, see Track costs.
The sum of the costs of all the projects displayed in the Portfolio Optimizer. The cost of each project is the same as the Budgeted Cost of the Project as it is displayed in the Business Case Summary.
For more information about the financial fields of projects in the Business Case, see the section "Understanding Financial Fields in the Business Case" in the article Create a Business Case for a project.
The sum of all the Potential Risk Costs of all the projects in the portfolio. The Potential Risk Cost of each project is listed in the Risk column of the Portfolio Optimizer.
For more information about calculating risks for projects, see the article Calculate Potential Risk Cost.
The sum of all the Planned Benefit values of all the projects in the portfolio. The Planned Benefit value of each project is listed in the Benefit column of the Portfolio Optimizer.
For more information about the Planned Benefit of a project, see the article Overview of project Planned Benefit.
Measures the Potential Risk value, taking into account the Net Value provided by all projects in the portfolio. For achieving the most efficiency within the portfolio, you want to see that the Risk indicator is low and the Net Value indicator is high.
For more information about calculating Risk to Net Value, see the article Calculate the Risk to Net Value in a portfolio.
Customize the Portfolio Optimizer
You can customize only the project list area of the Portfolio Optimizer by using settings to change the information in the list.
The following icons and options are available for the Portfolio Optimizer:
Use this icon when you want to save the project order, based on their priority.
You must have Manage permissions to all the projects in the list to be able to use Set project priority
.
Use this icon to optimize the portfolio based on the following financial values of the projects:
- Cost
- Alignment
- Value
- Risk to Benefit
- ROI
For more information about optimizing your portfolio, see the article Optimize projects in the Portfolio Optimizer.
Use this icon to export the data in the Project Prioritization area of the Portfolio Optimizer. You can export it to the following formats:
- Excel
- Tab Delimited
Use this icon to modify the project fields displayed in the columns of the Portfolio Optimizer, or to modify what projects you display in the Optimizer, based on their statuses.
Tip:
- Not all Workfront standard fields are available to add in the columns.
- You can add only the custom fields that have a value other than zero in any of the projects in the portfolio.