From Deep Dive to Low Point: Why Administrative Apparent Control Paralyzes Chain Management

Within the public sector, we work a lot in chains. Logical, right? A core department, executive organizations, ZBOs – all links that have to work together. This happens in projects, programs and in chain portfolio management. But this is where the challenge begins, because chain portfolio management often leads to uncomfortable situations. 🤔

What does chain portfolio management actually do? Well, that seems to depend on who you ask. There is coordinating chain portfolio management, directing chain portfolio management, steering portfolio management, eclectic chain portfolio management – ​​and the list of exotic names goes on. But as soon as you ask: What does that actually mean? either a voluminous management document follows (often professionally drawn up by one of the Fantastic Four from the Dutch consultancy world, but completely unworkable in practice), or people have been looking for a form for years. And what is the ultimate solution within the Dutch government? Exactly:    

• 📌 The retreat day

• 🔧 The workshop

• 🤿 De deep-dive

• 📋 An external advice

In the meantime, projects and programs simply continue. Sometimes smoothly, but more often they run out of time and budget in a chain context. And within the chain committees, people desperately try to steer, which leads to the well-known Playmobil office syndrome 🎭: a game for adults with no real impact.  

What's going wrong? 🚧

Supply chain portfolio management is not the same as strategic or operational portfolio management. The fundamental problem? It is simply too far removed from the actual implementation. Due to the many administrative layers in between, the connection with projects and programs is missing.  

Do you really want to make a difference with chain portfolio management? Then the focus needs to change. But that appears to be difficult in the Dutch government due to personal and political interests of directors. 😕

The essence of chain portfolio management is actually very simple – sorry Fantastic Four , no complex management terms needed: 💡 Creating feasibility through delivery reliability.  

The value of portfolio management is determined by the distance between decision-making and execution. The greater the distance, the smaller the added value. Decisions at chain level? They often have little to no effect on change initiatives. It is literally playing Playmobil office . 🎠  

And what happens in Dutch public organizations? We try to steer even harder! This leads to even more consultations with impressive but meaningless titles such as "driver" and "steering group". 🎩🎭

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So is chain portfolio management useless? ❌ No!

If you set it up right, it can work.  Here are four simple principles to make supply chain portfolio management effective:

1️⃣ Capaciteitsafstemming

• Ensure coordination of the capacity and availability of chain partners with a horizon of 1 to 2 years.

• Set up a process for this so that no surprises arise. 📊

2️⃣ Prepare for innovation 

• Ensure that chain objectives are achieved by preparing innovative change initiatives in a timely manner.

• This way, they can be successfully tackled in the coming years. 🚀

3️⃣ Don't focus on projects, but on value 

• Do not focus on individual change initiatives, but on the value they add to the chain.

• No reports on project statuses, but on the achievement of objectives. 🎯

4️⃣ Look ahead, not today 

• Supply chain portfolio management should be about the future, not about today's operational concerns. 🔮

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Finally 🎬

If public organisations apply these four principles, chain portfolio management can finally be used for its intended purpose. Then it will not remain an administrative invention that is miles away from reality, but a valuable instrument to make a real impact.

Or do we keep playing Playmobil office ? 😉