At this stage of defining and prioritizing components, compare each component within each work
pipeline against one another to derive a sequential order of desirability, as defined by the portfolio metrics and
targets.
A key concept is the notion of a sequential order. As the term implies, it is critical that the
prioritization process results in a list or queue of approved and ranked components (Forced Ranking). Because the organization does not possess unlimited resources
and capacity, it is highly unlikely that all "desirable" components can be funded. Some components might show potential
contributions when evaluated on their own but would not be funded or authorized when considering constraints in
financial and human resource capacity.
This prioritization process is also iterative, with loops cycling back to the selection of components task (when
establishing the initial priority for components), as well as loops cycling back from the portfolio optimization
task (as part of balancing and authorizing the portfolio).
The analysis techniques used for this task are often common to those used for the selection of components, with the
difference that they now embed a representation of the maximum measure (portfolio target and metric) that reflects the
constraint under which the portfolio needs to be optimized.
A corporate strategy definition is used to cover the situation when strategic changes in the company's
environment may impose sudden strategic changes in the portfolio, such as when the company has to prioritize a certain
platform project to quickly meet strategic moves by a competitor. Changes like these might overrule some of the
portfolio procedures in place that are designed for portfolio management in a normal business situation.
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