A portfolio manager needs to continuously balance the need and requirements with the available resources...

To study the capability of resources, match them against the portfolio’s objectives and goals, and translate the capability into what capacity is possible to meet the portfolio demands

Performed to understand the human, financial, and asset capacity and capability of the organization in order to select, fund, and execute portfolio components

To understand how much work is able to be performed based on the resources available (capacity), as well as the ability of the organization to source and execute the selected portfolio

It enables the organization to achieve maximum portfolio benefits given current resource constraints