This lesson describes how to:
• Create projects and portfolios ideas 
• Use budget planning и resource planning
• Create different portfolio scenarios and analyze
• Review and approve the plan for the portfolio
• Monitor portfolio performance

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In this video, we will cover how to use portfolios to create, plan, analyze, and monitor projects for your organization. We will begin with how to create projects and add them to the portfolio. Next, we will look at using budget planning to decide which projects to execute, and Resource Planning to determine what resources are needed. Finally, we will review how to create scenarios, approve the plan, and monitor portfolio performance.

1. Create projects.
It all starts with projects. There are a variety of ways to add a project, either through proposals, ideas, imports, or directly by a user. Projects contain attributes, such as start and finish dates, codes, costs, and location. These attributes help identify which projects would be best to execute in the portfolio.

2. Create portfolios.
Next, create a portfolio. A portfolio contains projects with common criteria. For example, a portfolio containing all transportation projects, set a planning horizon to specify how long the portfolio will be planned. For example, the transportation portfolio will be planned for the next 10 years. Each of those years becomes a planning period.

3. Budget planning/Resource planning.
Use budget planning, Resource Planning, or both to decide which projects should proceed for a given planning period. Budget planning provides a time phased view to evaluate cost constraints over the entire planning horizon, creates multiple what if scenarios to help decide which plan would be the best fit.
Each scenario can contain its own target budget. Select Projects and distributed costs, work with Project Managers as needed to adjust the dates and costs for any of the projects. Resource Planning helps you decide which projects should proceed for the planning period based on the availability of required resources. 
During the project creation phase, project managers may enter what roles and hours are required to complete the project. As with budget planning, multiple scenarios can be created for analysis. Each scenario can contain its own allocation of units, allocation dates, and selected projects.

4. Create different scenarios and analyze.
These tools help you decide which scenario is best for the planning period. Use a water line to view which projects meet a defined constraint. For example, show projects with less than $500,000 of the total planned budget. Projects above the water line, fit the criteria. Projects below the water line, do not.
Selection analysis provides charts and graphs in a non-time phased view enabling you to focus on specific project attributes. For example, you select the projects by location and risk. Use scenario comparison to view summary level information for all the scenarios in the plan, side by side.
Use the efficient frontier chart to display best project selections based on total project cost and constraints. For example, choose projects based on a proposed budget of $6 million and projects with the best net present value.
In resource planning, use the Surplus/Deficit Chart to assess resource availability or resource shortage. The Stacked Histogram displays role values grouped by an attribute. For example, Role Cost by project. Use Scenario Comparison to view Resource information side by side. And use Optimization to select Projects that maximize your portfolio’s value without over-allocating Roles or specify a percentage of acceptable over-allocation 

5. Review and approve the plan.
Next, use the built-in approval process to approve a plan for the portfolio. Several processes can be used. Use the review process to get feedback from stakeholders, when there are two or more scenarios that you believe will be a good fit. Use the proposed process, if the plan contains cost and date adjustments that require input from project managers.
Send for approval after all the project managers have accepted your changes. Stakeholders receive a notification to review and give Feedback. Choose Approve plan, if all stakeholders agree on the plan. After the plan is approved, it is locked with the selected projects. The planned budget of each project becomes its approved budget to track against.

6. Monitor portfolio performance.
As the projects in the plan progress, check on the health of the portfolio. Use the scorecard to quickly view how the portfolio is performing with calculated measure tiles and visual indicators or configure a bubble chart on the investor map to monitor and analyze performance.
Finally, view the spending page to compare actual costs to approved costs over time. If the plan is performing poorly, use the revised budget plan feature. This allows you to make adjustments to the plan. Then submitted for approval.
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