Portfolio Optimization
Overview
The Portfolio Optimization skill applies mathematical optimization techniques to project portfolio selection and balancing. It maximizes portfolio value while respecting budget, resource, and strategic constraints, enabling data-driven investment decisions.
Capabilities
Optimization Methods
- Apply constraint-based optimization (budget, resources)
- Calculate efficient frontier for risk-return tradeoff
- Support integer programming for project selection
- Model dependency constraints between projects
- Handle mutually exclusive project alternatives
Multi-Criteria Analysis
- Support multi-criteria project scoring
- Apply weighted scoring models
- Perform pairwise comparison (AHP)
- Normalize heterogeneous criteria
- Calculate composite portfolio scores
Scenario Analysis
- Perform scenario analysis on portfolio
- Calculate portfolio-level NPV and risk
- Identify project interdependencies
- Generate what-if analysis for portfolio changes
- Model constraint relaxation impacts
Portfolio Balancing
- Support dynamic portfolio rebalancing
- Optimize resource allocation across projects
- Balance strategic alignment dimensions
- Model risk diversification
- Track portfolio composition metrics
Usage
Input Requirements
- Project candidates with attributes
- Scoring criteria and weights
- Constraint definitions (budget, resources)
- Strategic alignment factors
- Project dependencies and exclusions
Output Deliverables
- Optimized portfolio selection
- Efficient frontier visualization
- Constraint analysis report
- Scenario comparison results
- Portfolio balance scorecard
Example Use Cases
- Annual Planning: Optimize project selection for budget
- Portfolio Review: Rebalance in-flight portfolio
- Strategic Alignment: Maximize strategic value
- Resource Planning: Optimize under resource constraints
Process Integration
This skill integrates with the following processes:
- portfolio-prioritization.js
- Resource Planning and Allocation
- benefits-realization.js
- Business Case Development
Dependencies
- Optimization algorithms (linear, integer programming)
- Constraint solvers
- Financial models
- Visualization libraries
Related Skills
- SK-009: NPV/IRR Calculator
- SK-011: Benefits Tracking Dashboard
- SK-019: Dependency Mapper