The fundamental principle of portfolio management is that you first choose the goals for your portfolio and then select the investments that will achieve them. For investments in change, these goals are expressed as the results you want to accomplish (with corresponding measures and milestones) and the shape of the enterprise that the investments must deliver.\n\nYou can use these signs to assess whether your enterprise manages its investments in change as a portfolio:\n\nAs your goals change\u2014for example, from efficiency to growth\u2014so does your portfolio.\n\nYou select projects based on their contributions to the portfolio, rather than their standalone merits. This means turning down proposals that have positive ROI individually but don't fit the goals of the portfolio.\n\nYou explore what each proposal would mean for the shape of the enterprise, considering factors other than cost. This can mean investing in projects\u2014such as redesigning a pivotal process\u2014that have a low or negative return but are key to the enterprise's future. It can also mean rejecting projects that would undermine the organization's direction.\n\nBetter Investment Decisions\n\nIt's common for enterprises to treat the cost of a portfolio as the primary constraint when making decisions. But this approach can conceal other, possibly more significant, factors that drive the portfolio's success. These include the overall value that the portfolio is expected to deliver and the enterprise's capacity to make and exploit the changes that the portfolio represents. Exploring other prioritization criteria can result in a more productive and efficient portfolio and a higher project success rate.\n\nChris Potts is corporate IT strategist and CIO futurist with \nDominic Barrow.