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The kHUB Curator Team members have each been assigned a BoK section to own. This includes seeking, editing and sharing content related to that section. The curators are also sharing their perspective of various sub-sections of their chapter and contributing personal examples, experience, or related articles corresponding to the subject matter.
Chapter 2 Insights – Portfolio Management
For successful business, sustainable growth strategy requires focusing and executing on the right stabilizing proportional product portfolio mix. Prioritizing the portfolio projects according to business strategy ensures proper alignment with company goals. With portfolio of offerings ranging from incremental to radical innovation, there are risks and rewards considerations. Selecting projects with assessment criteria including various stages for new product, pipeline, and product life cycle involves triple constraint considerations for time, scope, and costs. Improved quality is the output when business strategy and portfolios are integrated and aligned, supported by roadmaps for sustainability for now and the future.
Strategic project portfolio management done effectively can be an enabler to an organization’s success (Moore, 2010). Issues to consider: 1) Recognizing potential shared resource conflict issues that can occur with multiple projects concurrently supporting business strategy. 2) Planning project resource allocation with thoughtful capacity constraints awareness. Thereby, resource overload and contentions are identified, adjusted to minimize multitasking detrimental impacts causing deliverable delays (Goldratt, 1997). Whether from the top-down, the bottom-up, or combination methods, identify project portfolio priorities coupled with critical constraints. Conducting constraint identification to leverage point assessments upfront, and during ongoing portfolio management, are successful opportunities that create focus areas for improvement.
Portfolio management with ongoing products and projects monitoring creates insights gaining more certainty while reducing the uncertainties, assumptions, and complexities. The critical role of providing transparency with shared performance metrics visibility contributes toward ownership, accountability, and self-assessments with both qualitatively and quantitatively meeting agreed upon goals. The inherent portfolio organizational challenge includes strategic convergence of resources capabilities and competencies. Improvements with open, iterative, and collaborative communication feedback loops can improve project deliverables resulting in improving overall product and service quality offerings.
About the Author
Richard Lefrandt, PMP, CSCP, ICIP is the CEO, founder and senior consultant of DDiDDs (Demand Driven innovative Dominant Design solutions) where his interests lie in effectiveness and greatness of the individual, organization, and enterprise. Current area of research and practice exploring strategies leaders of firms competing in the IoT device market use to enhance profitability through effective NPD, enhancing capabilities through Iot-Inc Certified IoT Professional (ICIP) program. Rich holds accreditation in Project Management Certification (PMP) from PMI, Certified Supply Chain Professional (CSCP) and S&OP Education Certificate from APICS, CMII Certificate, and Jonah Strategic Thinking Process designation from WSU and TOCICO. Past work experience is at Boeing Company in Product Management and Supply Chain Management. His education includes BS/BA from Brigham Young, MSPM Project Management from City University of Seattle, MEM Management of Technical Systems from Washington State University and DBA (ABD) from Walden University.