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Balanced Scorecard Analysis
Balanced Scorecard Analysis is a fascinating tool for prioritizing projects in an organization's project portfolio. However, I would caution Business Analysts and Project Managers from seeing it as a sole or primary approach to prioritizing projects. In my opinion, Balanced Scorecard Analysis should only be one of several tools in a Business Analyst's or Project Manager's toolbox for identifying the projects that are most important to an organization's stakeholders. Project Portfolio Stakeholders should expect that some manual re-prioritization is necessary even after the Balanced Scorecard has been tuned to an organization.

Balanced Scorecard Analysis is a quantitative process that takes place in approximately 5 steps.
  1. Projects are divided into the categories of an I.T. Landscape, i.e. Network, Data Center, ERP, Software As A Service, Custom Built Software, Business Intelligence, System Administration, etc.
  2. Each of the projects are weighted (i.e. .5 to 1.5) by the Project Portfolio Stakeholders according to criteria that is specifically chosen by an organization, i.e. Revenue, Cost Control, Operations, Marketing, Strategic, etc.
  3. A number between, for example, 1 and 10 is assigned to each of the criteria by the project portfolio stakeholders.
  4. The number is multiplied by the weight and divided by the total number of possible points.
  5. This percentage is used to rank the priority of the projects.

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