In Project Portfolio Management, a balanced portfolio refers to the strategic allocation of resources across a diverse mix of projects to optimize value while managing risk for the organization.

A balanced portfolio ensures that investments are distributed across different types of projects with varying levels of risk, return, timeframes, and strategic objectives. The goal is to avoid putting "all eggs in one basket" while aligning with organizational goals and constraints.

Key aspects of a balanced portfolio include:

1. Risk-Return Balance: Maintaining an appropriate mix of high-risk/high-return projects and low-risk/stable-return projects

2. Strategic Alignment: Ensuring projects support different strategic objectives across the organization

3. Resource Distribution: Allocating people, budget, and other resources appropriately across project types

4. Time Horizons: Balancing short-term projects that deliver quick wins with long-term initiatives that build future capabilities

5. Project Types: Including a mix of:

   • Mandatory/compliance projects
   • Maintenance/operational projects
   • Strategic growth initiatives
   • Innovative/transformational projects

Organizations typically use portfolio management tools like scoring models, bubble charts, and portfolio matrices to visualize and maintain this balance across multiple dimensions.

I'll analyze your current PPM process and provide a revised version that incorporates portfolio balancing concepts. Your current process follows a logical flow from prioritization to selection, but lacks explicit balancing mechanisms.

Here's my recommended revised process that integrates portfolio balancing:

Revised Project Portfolio Management Process

Step 1: Prioritization

Remains largely unchanged, with strategic alignment assessment

• Define Alignment Values: Users assign alignment values across the four Strategic Alignment fields
• Order Importance: Users can rearrange the order of alignment values
• Calculate P Score: System calculates Strategic Priority score (0-100)
• Prioritize New and In-flight Projects

Step 2: Scoring & Classification

Enhanced with portfolio classification

• Data Input: Users input project data (health indicators, costs, hours, etc.)
• Portfolio Classification: New - Categorize each project into portfolio dimensions:
  • Risk Level (High/Medium/Low)
  • Time Horizon (Short/Medium/Long-term)
  • Project Type (Mandatory/Maintenance/Growth/Innovation)
  • Strategic Objective (mapped to specific organizational goals)
  • Resource Intensity (High/Medium/Low for critical resource types)
• Costbars Scoring Algorithm: Score projects based on inputted data
• Scoring In-flight and New Projects: Continue as before
• Feedback on Business Case Fields

Step 3: Portfolio Balance Analysis

New step for explicit balance assessment

• Access Balance Dashboard: View portfolio distribution across key dimensions
• Risk-Return Analysis: Visualize projects on risk vs. return matrix
• Strategic Alignment Distribution: View project distribution across strategic objectives
• Time Horizon Mix: Analyze short/medium/long-term project distribution
• Project Type Distribution: Assess balance between mandatory, maintenance, growth, and innovation projects
• Resource Type Allocation: Analyze allocation across different resource types
• Balance Metrics: Calculate and display balance metrics with target ranges
• Imbalance Alerts: System highlights dimensions where portfolio is unbalanced

Step 4: Leveling

Remains largely unchanged, with resource management focus

• Analyze Project Dependencies
• Access Leveling View
• Visualize Resource Demand
• Interactive Scheduling
• Real-time Resource Analysis
• Identify Resource Conflicts
• Resource Smoothing
• Impact Analysis

Step 5: Selection with Balance Optimization

Enhanced selection with balance considerations

• Utilize Bubble Chart: Add color coding or symbols to represent portfolio dimensions
• Consider P Score, C Score, and Balance Impact: Selection now considers how each project affects overall portfolio balance
• Priority-Based Selection: Favors high-priority projects while maintaining balance
• Resource Availability Validation
• Balance Impact Simulation: New - System simulates how potential selections affect overall portfolio balance
• Automated Recommendations: Include balance optimization in recommendations
• Documentation of Decisions
• View Selection Status
• Review Rationale

Step 6: Review and Adjust for Balance

New focus on balance in final review

• Analyze Final Portfolio Composition: Review the balanced attributes of selected projects
• Make Balance Adjustments: Make final adjustments to improve balance if needed
• Analyze Resource Requirements
• Make Scheduling Adjustments

Step 7: Finalize Selection

• Make Final Decisions
• Document Balance Achievement: Record how final selections achieve balanced portfolio goals
• Ensure Resource Balance
• Set Balance Targets for Next Cycle: Establish target distributions for next planning cycle

Reporting and Monitoring (Ongoing)

• Enhanced Balance Reports: New - Add reports showing portfolio distribution across key dimensions
• Balance Trend Analysis: New - Track how portfolio balance evolves over time
• Advanced Built-in Reports
• Optional Cloud Dashboard
• Track Progress
• Periodic Balance Reviews: New - Schedule regular reviews of portfolio balance metrics

This process explicitly incorporates balance considerations throughout the PPM lifecycle, particularly with the new dedicated "Portfolio Balance Analysis" step and enhanced selection criteria that consider balance impact. The visualization capabilities are also expanded to show distribution across multiple portfolio dimensions.