Remember, a good (project) manager is home on time and so is his team!

Erik Hamburger

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Home / Framework
Framework Introduction - Planning the Portfolio PDF Print E-mail
Article Index
Framework Introduction
Context of Strategt Realization
Strategy Translation
Strategy Planning
Planning the Portfolio
Strategy Implementation
Strategy Delivery
Strategy Monitoring
The complete Framework
All Pages

Portfolio set-up

 

 

Not only does the strategy need to be translated into performance indicators but the strategy also needs to be translated to a portfolio in order to be able to achieve those indicators. Figure 7 shows the process of establishing an optimized portfolio.
All current programs and projects including any new initiatives are assessed for their contribution to the strategy and performance indicators. The required resources for the programs and project need to be specified.
At the same time, the organization can determine what resources it can and will make available for the portfolio.

 

Based on the required and available resources and the contribution the programs and project will make to the strategy the optimized portfolio can be devised. Within the portfolio, there must be a balance between and attention for several aspects such as:


The distribution of results:

    • Between short and long term
    • Between procurement, sales and internal processes
    • Between growth and costs
    • Between market and product orientation
  • The relationship of the portfolio with the characteristics of the organization. Does the portfolio address:
    • The value chain the organization is a part of?
    • The organization as seen and experienced by external stakeholders such as customers and suppliers? (Outside in)
    • The possibilities to increase flexibility in the organization?
    • Internal improvements?
  • The Change potential of the organization; is the extent and timing of the portfolio in accordance with the capabilities and willingness of the organization?
  • Trying to make use of reusable components as much as possible.
  • The improvement of risk control by dividing the portfolio in small and independent parts.
  • The possibility to perform and act upon "What-if"scenarios.

To be able to effectively manage the portfolio it is important that the strategic performance indicators are translated to each and every program and project in the portfolio. Since all the indicators are focused on the desired strategic outcome, the process of monitoring and adjusting the strategy implementation will inevitably reveal any project and/or program that does not contribute to the strategy (anymore).

Strategy Planning is primarily concerned with finding the right balance between all available measures that contribute to realizing the strategy – the right goal. Strategy planning turns the strategy  - saying what you do - into a portfolio that makes you do as you say.

Recent studies have shown that organizations, by utilizing a mature portfolio management process, can handle more changes with fewer projects.
In other words:

"Doing more with less by doing the right things right"



 
 
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