Use ROI and NPV to prioritize projects

A company should consider its ability to handle projects loads, depending on the resources availability, before starting them.

If the number of projects you want to start exceeds the number that can be executed in a certain time frame, you should assign a priority to each project.

The most important ranking factors are Return On investment (ROI) and Net Present Value (NPV).

To prioritize projects, it is important to consider the ROI or NPV along with other elements. These elements are: use of resources, impact of potential risks,  business value, duration, costs and so on.

Once you have assigned a priority to each project you can start executing the ones that have higher priority.

Keep in mind: use your organization’s mission and values to help guide your decisions through the choice of projects to start.

Skill level: Intermediate 

Francesco Pecoraro

Francesco has extensive experience as a project, program and portfolio manager, project management officer (PMO), digital transformation and strategic consultant. He is also considered a communication, public speaking and leadership expert.

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