Portfolioboard 3.0: The Portfolioboard of the Future

Within the portfolio management process in public organizations, there is always a Portfolio Board somewhere . We also have such a body at the Public Prosecution Service . And believe me, in almost every public organization there is that struggle with this body, where the central question is always: "How can you let the Portfolio Board decide effectively, without it becoming an Übersteering group ?" 🤔           

And then there is always that other important question : “What is the Portfolio Board really about?”  

Usually, project documents are approved because that is where the mandate for budget and capacity lies. But isn't the Portfolio Board much more about prioritizing change initiatives? How effective is that really? 😅 

📊 Prioritizing... It's like a sport!

Top 10 priorities, multi-criteria prioritization schemes , prioritization based on added value, prioritization based on critical capacity ... You name it, it will all be there! 🙄  

And then, after you have set the priorities for the coming period, it often happens: Direct changes due to new insights or the "this really has to happen now" discussions. The dilemma of almost every Portfolio Board is the action perspective: Can we actually still choose from something? What is the value of prioritization if everything changes immediately? 🤷♂️         

⏳ The real problem… Time perspective!

The problem does not lie in methodologies or prioritization models, but in the time perspective.  

A Portfolio Board should not only focus on the next 2 quarters , but look much further ahead. Look further! 🙌 Imagine: in January you already start compiling the portfolio for the following year . And yes, adjustments can be made in the current year due to new developments, but the focus is on the future.

💡 The Answer: Give Mandate to the Portfolio Manager!

What do you do then with approving initiatives and adjusting? Very simple: give a financial mandate and capacity mandate to the portfolio manager . That person is responsible for the successful realization of the current portfolio. ✅       

In public organizations it is crucial to look further ahead . And yes, I know that this is diametrically opposed to the Agile and Safe mindsets (with short-cycle planning), but in my eyes that is not portfolio management , but production management. 📈     

🌟 Portfolioboard 3.0: The Future!

The Portfolio Board of the future , which I call Portfolio Board 3.0 , will only send at least one year ahead and will ensure ongoing portfolio management with the portfolio manager. 🎯     

This requires a different way of managing , as shown below: 🔄 From Micromanagement to Strategic Management!  

__________________________________________________________________________________

💼 Positioning of Portfolio Management

This also means a different positioning of portfolio management . In the central government this is now secured in the CIO system and thus the CIO office .      

However, I am a big proponent of no longer positioning this in the CIO office, but much more strategically within the organization . 🧠   

🔝How high should it sit?

If you really want portfolio management to work, you need to position it as high as possible in the organization . Stop with those partial portfolio managements and layered portfolio organizations! Better one good portfolio office that oversees the whole , than all those decentralized portfolio offices.          

The most hysterical thing  I find is an executive organization with 80(!) portfolio managers . How so?! 🤷♀️ 

🚀 The Future of Portfolio Management

Let's approach portfolio management strategically and have a portfolio board entity strategically (be)steered, with a view to the future. On to Portfolioboard 3.0! 🎉