Portfolio Management | How to Use a Project Quadrant

 Portfolio managers can use a project quadrant to evaluate projects. The example project quadrant uses two scores: one measures the functionality complexity, and one measures the technical complexity. Each score has a value ranging from 1-10. The four quadrants are defined as follows:

• Quadrant 1 - Low Technical (<5), Low Functional (<5)  This quadrant typically includes the improvements of an existing product. The dev resource can be outsourced to control the cost. The budget guideline is around 15% of the overall budget. 
• Quadrant 2 - Low Technical(<5), High Functional (>5)  This quadrant contains the project using existing technology to address new business initiatives. The engineering resources can be outsourced to control the cost. However, more investment is needed in product management and business analyst. The budget guideline is around 30% of the overall budget. 
• Quadrant 3 - High Technical (>5), High Functional (>5)  This quadrant contains the project using new technology for new business initiatives. The investment should be allocated across the board. The budget guideline is around 30% of the overall budget. 
• Quadrant 4 - High Technical (>5), Low Functional (<5)  This quadrant contains the project using new technology to support existing functionality. The investment should be on engineering resources such as solution architect or application lead. The budget guideline is around 25% of the overall budget. 

The budget allocation can be changed per business stagey. The evaluation of the project requires development team engagement and sign-off. ​