Tuesday, December 7, 2021


Strengthen links to business strategy alignment, scenario planning, program cycles, requirements management, risk management, talent management, to improve the overall strategy management effectiveness and organizational maturity.

Contemporary organizations are organic systems which keep evolving. Every business should spend sufficient time on developing their own unique set of strengths and capabilities. The objective of building a health portfolio with potentiality theme is to provide visibility of the overall portfolio that is to explore a new path for the business growth, support the company's strategic objectives and assess opportunities to realign resources and investments as appropriate. 

Portfolio management is a part of strategy management and organizational transformation. Organizational management needs to gain contextualized understanding of corporate strength and weakness, optimize processes, and improve the overall corporate portfolio management effectiveness and maturity.

It’s important to define portfolio strategies to make a smart investment: Business capabilities underpin strategy management. The goal of portfolio management is to make strategic alignment and value leverage; build a balanced set of business capabilities including both capability necessities and capability differentiators; strategic capability and operational capability, a mix of short, mid, and long-term business initiatives that need to make up a business initiative pipeline. Organizational development is limited by its resource, capital, capacity, or talent pool. If the business portfolio overly focuses on short-term value too much, this might not support long-term vision and strategy in the end. If it puts too much focus on long-term value, there may be a loss of momentum and engagement.

For the “transforming the business” category of portfolio, it’s important to make wise investment and use of new technology, craft business processes, cultivate innovative business partners, reinvent business models, harness joint product development, supplier integration, and use real-time, accurate, predictive information. It’s also important to show the clear business goals of the investment with critical elements such as financial returns, return timeline, and risk assessment. The goal is to achieve portfolio agility by anticipating and responding to changing market conditions.

It’s crucial to move ideas through their life cycle to achieve first to market:
In order to enhance a business growth cycle, it is important to build scalable idea management which means for sharing and managing ideas throughout the enterprise, across silos and geographies. The original germ of a creative idea is often, if not always arrived through the interaction of ideas from different domains of thought and experience, or information without boundary. Idea flow can be streamlined via fostering cross-functional communication, using common business language for harnessing understanding, taking incentives to encourage sharing and setting prioritization.

In business reality, the main barriers to innovation are silos, rigidity, inflexibility, static mindset, or bureaucracy, etc. The stewards of idea management are ‘corporate intrapreneurs’ who can recognize innovative ideas, fight for resources and political cover, and connect ideas and teams together, transform problems and opportunities into value-creating ideas to build solid business values. The implementation of the idea has to follow a logical path to the solution of most types of problems since contemporary society tends to follow logically rather than lateral kinds of structures. Companies should improve idea management and orchestrate a balanced innovation portfolio with the right mix of incremental innovation and breakthrough innovation.

It’s imperative to establish intended objectives, financials, and risk profiles in the portfolio: The blurring line of business borders and the uncharted frontier of an organization provide both abundant opportunities and emergent risks. There are strategic risks and systemic risks, there are financial risks, operational risks, or regulation risks, etc, in portfolio management. The primary focus of the risk management process would be to identify and manage those risks that can be addressed; also try to understand uncertainty, take scientific scenario planning to deal with “VUCA” reality smoothly.

Team and leadership "buy-in" is extremely important for any risk strategy to get off the ground and to maintain effectiveness and efficiency. The risk management needs to do the pre-work before risk assessment in the correct manner, such as financing, market understanding, competitor analysis, identifying the space of opportunity, defining the scalability of the products/services, what timescale to allow before making a go/no-go decision. The effective risk culture in the organization is the primary key to resolving and preventing many of the challenges, leading to effective implementation and embedding of risk initiatives at lowest levels.

It’s trendy to leverage new or variations of existing processes and methods, such as agile:
Portfolio management is both a management discipline and a governance discipline. Overly rigid processes are seen as a block to progress rather than a facilitator of it. Agile is not only a methodology, but also a philosophy with a set of principles. Many organizations are doing Agile - applying Agile methodologies and practices to development, but very few organizations are being agile - following Agile principles and philosophy to run an agile organization.

Agile is a means to improve organizational business value output /cost performance; it’s both philosophy and methodology; mindset and framework, etc. The organizations and teams need to experiment and learn; run and adjust; interact and improve; with the end business goals in mind, to achieve premium results with customer satisfaction and value creation. Agility is a means to an end; To what end in your case? Work out what you want agility for – improvement, innovativeness, sustainability and competitive advantage, etc.

It’s strategic to attract talent with entrepreneurial talent, technical skills, and business savvy
: Without talented people, businesses simply cannot function smoothly. Trustworthy relationships are important to shape a strong team and hold managers or staff to their accountability. Digital businesses harness autonomy and improve people-centricity. Intrapreneurs can think out of the box, bend some rules in order to discover the new path of growth. They have the ability to engage in meaningful digital dialogues, embrace the emerging business properties, advocate self-management, take strategic planning and execution as a continuous cycle to accelerate business performance.

Building a solid portfolio management to enable strategy execution is difficult, there are many roadblocks on the way. However, it can be managed well. From effective leadership to execution culture; from proactive planning to rigorous processes; from measures to balanced scorecards, a self-organizing and high-performance team is usually a cohesive group of people with the cognitive differences, complementary skills, having the full authority on business practices, processes, tools, or engineering methods they would like to use to make the continuous delivery.

From an overall portfolio perspective, there are nested relationships and close linkage between strategy and tactics: There are nested relationships under organizational hierarchy and it’s important to close the linkage between strategy and tactics. Strengthen links to business strategy alignment, scenario planning, program cycles, requirements management, risk management, talent management, to improve the overall strategy management effectiveness and organizational maturity.


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