Clarity Glossary for Project and Portfolio Management

Cut-off Line

A Cut-off Line separates approved initiatives from initiatives that cannot currently be funded or executed.

Explanation

The Cut-off Line marks the point in a ranked portfolio where available budget, funding, or resource capacityResource CapacitySynonym for → RessourceAvailable work capacity of employees or teams. has been exhausted.

Initiatives above the line are generally approved or considered feasible, while initiatives below the line remain deferred, pending, or unfunded.

The Cut-off Line provides a transparent mechanism for portfolio decisions and helps organizations manage demand within realistic capacityCapacitySynonym for → AvailabilityGeneral term for available work capacity. constraints.

Synonyms and Abbreviations

  • Approval Threshold: Limit for approved investments
  • Portfolio Boundary: Separation between funded and unfunded work

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