Portfolios are run through six performance domains and a recurring cycle that selects and balances components: categorise → evaluate → select → prioritise → balance → authorise → review. The defining skill is balancing the mix against value, risk and capacity — then rebalancing as strategy moves.
Visual Map — The Component Selection & Balancing Pipeline
Identify▸Categorise group by type/strategy▸Evaluate score vs criteria▸Select▸Prioritise▸Balance optimise mix vs capacity & risk▸Authorise▸Review↺
Categorisation enables apples-to-apples comparison; evaluation uses weighted scoring against strategic criteria; balancing optimises the whole mix — not each component in isolation. The loop never closes.
Balancing Tool — Risk vs Reward Bubble Chart
The Six Performance Domains
1 Strategic Management — align to strategy; portfolio roadmap & value proposition.
Capacity management = demand vs supply of resources/funding.
Value & risk are managed at the aggregate level.
Executive View
Rebalance as strategy shifts — the mix is never "done".
Governance kills the zombies that drain capacity.
One dashboard for the entire investment.
Industry Example
Defence
The prime scores bids & programs against strategic criteria, balances naval vs land vs air, checks engineering capacity, and the board authorises the optimal mix — re-reviewed each quarter.