In this blog, let’s further discuss on how to integrate and continuously improve portfolio management methods and review key deliverables needed to support portfolio management practices.
Portfolio Management Methods and Key Deliverables:
1) Assess the current state by talking with stakeholders
This is the first step, and normally includes determining which portfolio management processes exist,which processes should be created, and any cultural blocks that may exist in implementing a Portfolio approach. This is like working on the As Is state like we do when we get into solving any process related issue in any professional discipline.
So start by identifying what processes and tooling is currently in place and the level of maturity in the practice.
For example, does a strategic plan exist in the first place, and if yes, does it outline the vision for the portfolio. Is the portfolio high level plan aligned to the organization’s goals and objectives?
Is there adequate funding and budgets in place to deliver on the organization’s objectives?
Does the organization have a backlog of work, and how is that backlog of work prioritized?
What project management framework does the company organization use, such as Agile, Waterfall or hybrid?
Is portfolio management supported by senior management?
And does the portfolio have a charter, roadmap, and effective governance approach?
As I mentioned in the beginning of this article, in addition to processes and tooling, assessing culture is absolutely critical for answering questions around how the organization is structured.
For example, is it functional, matrix or projectized?
All this assessment usually takes time depending on the size and complexity of the company or organization.
Once we are in agreement on the As-Is state with the Key stakeholders in the top management, the next step is to turn our attention to the to-be state.
A key artifact produced from the assessment is the gap analysis.
The gap analysis will be useful to shape the plan for creating and rolling out the necessary portfolio management capabilities that can sustain the organization and its ability to deliver strategy.
The next step should be to:
2) Define the portfolio vision, along with a plan to manage change
The portfolio vision and plan should align with the mission, objectives, and values of the organization.
Vision provides the direction and the plan for rolling out new or updated methods, for example, may be completed in waves depending on the scale of the solution.
What’s important is to create a plan that the organization is willing to adopt and continuously improve over time, hence, take a Kaizen approach.
After the vision for the portfolio is created and a plan is established, newer improved portfolio processes can be put into place.
A cross-functional team will most likely be needed to roll out the new processes.
Critical components of the plan are:
- Clear roles and responsibilities for the portfolio management processes
- Communication plan for sponsors and stakeholders
- Clear definition of the portfolio management process
- Training plan to help orient stakeholders to their new roles.
3) Continuous Improvement
The final step in implementing healthy portfolio management is having a plan to continuously improve the processes. Portfolio management maturity isn’t created overnight.
And the first wave of processes should include opportunities to inspect and adapt the model to better refine its effectiveness.
What this actually means is to plan regular inspection checkpoints,do a review key performance indicators, check improvements after they’ve been made, and adjust as needed.
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