Friday, August 20, 2021

Potentiality Portfolio

The objective of building a health portfolio with potentiality themes is to provide visibility of the overall portfolio that is exploring a new path to business growth.

Nowadays, we don't live in a "closed system" but the dynamic business ecosystem which is complex, interrelated, and interconnected, full of chances and risks. Don’t waste the opportunity, seize it. Either individually or collectively; performance keeps us moving; potentiality makes a leapfrog by driving future performance. Oftentimes, potentiality is “raw,” but it’s a worthy investment. 

On its evolutionary path of building differentiated business competencies, the strategic planning of the potentiality portfolio provides an “executive” view of multifaceted organizational system potential including breakthrough innovation, workforce optimization, capability tuning/recombination, etc, describing "what if" situations showing potential scale of business benefit, as well as attaching impact analysis, reporting and alignment to strategy. An effective potentiality portfolio management tool slices and dices business initiatives by its strategic theme, and is flexible to drive transformative change, even create a new paradigm.

Strategic workforce potentiality portfolio: Potentiality is our gift as humans, with a great deal of what defines us as humans actually, full of imagination and creativity. There is no limit to human potential; however, it’s the individual, culture, circumstances, and society that sets a limit on that unlimited potential. The potential is an investment. In many circumstances, individually or organizations with potential haven't performed to the level where there is actual performance in all the areas desirable. “With a tree, all the growth takes place at the growing tips.” In fact, one of the most crucial strategic imperatives for today’s businesses is to identify and develop their high potential. Thus, visionary business executives and talent managers have a unique perspective to spot talent, identify synthetic skill sets, and appreciate differentiated and multicore professional competency, with the goal of potential maximization.

The goal of workforce engagement and optimization is to improve productivity and harness innovation; inspire authenticity and encourage change. Organizations should feel “shameful” for not being able to keep and develop each and every one of the best and brightest high potential employees. Build a strategic portfolio management with people-centric business initiatives including such as workforce planning & analysis, personalization related products/service/ training, etc, the collective human potential transcending into the business competency is the greatest thing and it takes cross-boundary collaboration to grasp opportunities, overcome challenges, and make a leap of business maturity and societal advancement.

Breakthrough innovation/capability portfolio: Due to the increasing pace of changes, innovation can happen anywhere across the organization and its ecosystem. Innovation requires thinking beyond, as opposed to outside the box, altering or changing the frame of reference to create previously unconsidered solutions. To unlock business potential, innovation, especially breakthrough innovation makes a significant impact on business performance, also implying higher risks. Generally, all businesses should have a handful of "bets" in the breakthrough category. Disruptive innovations may be considered as drivers for emerging digital strategies with the goal to build the long-term competency of the organization. What's important when developing the mix is to make sure you're accepting risk for potential reward.

High performing businesses depend on their differentiated sets of dynamic capabilities built through unleashing their potentiality. A high mature digital organization can handle innovation streams for different purposes and with different time frames. The size and mix of the innovation breakthrough portfolio depend on the business situation, strategic objectives and severity of external challenges or changes. You aren't sacrificing the long-term viability of the portfolio for short-term rewards. A healthy potentiality portfolio expands into the hidden dimension of business prosperity by building unique capabilities, exploring the emerging opportunities, designing new business models, and investigating new paths for accelerating growth.

Organic system potentiality portfolio: Contemporary organizations are organic systems which keep evolving. Every business should spend sufficient time on developing their own unique set of strengths and capabilities. Potentiality includes the overall ability to perform in the future by exploring a set of emergent properties, discovering the strength, and building core competency. The organic system potentiality portfolio includes business initiatives that can strengthen the organizational strength and develop unique and dynamic organizational capabilities which can be further integrated into core business competencies, in order to unlock potential - the “future of performance.”

The potential portfolio investment needs to streamline the strategic objective alignment and accelerate future growth of the business. Make sure the # and financial investment of the initiatives of unlocking potentiality that are aligned with at least one strategic objective over the total portfolio. All of the above should be supported by a robust, flexible and comprehensive set of tools to report and provide potentiality/performance metrics, which allow the portfolio to be fine-tuned over time so that it delivers maximum strategic advantage to the organization.

The objective of building a health portfolio with potentiality theme is to provide visibility of the overall portfolio that is exploring a new path to the business growth, supporting the company's strategic objectives and assess opportunities to realign resources and investments as appropriate. It’s a part of strategy management and organizational transformation. The final level of planning at strategy level is the creation of the agreed business transformation roadmap which illustrates the final version of the portfolio that will become the active portfolio. It provides the oversight of P&L of the active portfolio; the TCO of the portfolio; and the strategic ROI of the portfolio, etc. Besides economic gain, such a portfolio can rejuvenate the traditional organization with the culture of growth, it is about incorporating entrepreneurial and startup principles, with a focus on reducing risk adversity to add value to improve organizational agility and maturity.


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