Improving capital deployment: Looking beyond balanced scorecards and benefit-to-cost analysis

June 2012
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Improving capital deployment: Looking beyond balanced scorecards and benefit-to-cost analysis

At a glance

Organizations can use many approaches to rank projects and decide how to deploy capital. Balanced scorecards and benefit-to-cost analysis have limitations. Project Portfolio Optimization (PPO) considers key variables like multiple resource constraints and project dependencies.

A range of approaches can be used by organizations to rank projects and decide how to deploy capital most efficiently. Balanced scorecards and benefit-to-cost analysis offer a potential "first-cut window" into efficient capital deployment. But they fall short in helping to optimize a portfolio of projects.

This discussion paper explores how Project Portfolio Optimization (PPO) helps overcome the limitations of alternative approaches by considering key variables such as multiple resource constraints and project dependencies.