Question: How is WF calculating Portfolio score in the Portfolio Optimizer?
When calculating the Score the system works in a way that there will always be one project with score 100 and one project with score 0 and other projects get the score adjusted accordingly to fit with that.
Workfront determines what project should be set to 0 and which to 100, based on the sliders that appear when clicking Optimize button.
Overall, the optimizer algorithm is pretty complex to present here but the basics are as follows:
- We calculate a mean for each variable in the optimizer across all projects (Net Value, Alignment, Cost, Risk/Value)
- Then the standard deviation of each variable is found
- We find a raw score for each project using the deviation of each variable times the weight and combine these using (Net Value + Alignment - Cost - Risk)
- We normalize the raw scores and then take a percentage by dividing the normalized score by the max score. This is why one of the scores is always 100%.