Though prioritization is just one component of PPM, it is the "low-hanging fruit" for obtaining the bulk of the benefits available from PPM. Organizations adopting best-practice prioritization methods are reporting cost savings and/or value increases of up to 40% (see Competing on Analytics).

A well-designed logic for prioritizing projects will enable you to identify the best projects for your project portfolio, and you can implement the logic in Excel for a fraction of the cost of most PPM vendor tools. Alternatively, you can purchase a full-featured, PPM tool, just be sure it can accommodate a valid prioritization model that works for you.

See Software, PPM Tools, and my PPM Software Selection Aid.