If you're like most people, the word "portfolio" brings images of stocks and bonds. But in product development, a portfolio is a collection of projects that helps guide decision-making surrounding resource allocation. A balanced portfolio is one where the proportion of projects in specific categories focuses on strategic priorities. For example, this might mean that 60% of projects are focused on new product development while 40% are devoted to sustaining existing products. Or it could be that 80% of projects are focused on short-term goals, while 20% focus on longer-term objectives. The key is to make sure that the portfolio is evenly balanced across all categories to maximize chances for success.