Consider this: Have you ever witnessed a mad rush at the start of the financial planning season to allocate budget for next year's projects? And despite this, you still end up seeing leftover CAPEX simply because of a lack of approved business initiatives to spend it on? Such shortsighted pipeline inefficiencies substantially limit the value our organizations can offer.
Instead, multi-year Portfolio Management should be implemented, not just to maximise return on investment but to also realise the strategic intent of the business. To do this, We propose that Portfolio Management should be implemented according to a three-stage life-cycle view. When we look at conception, delivery, and retirement of an idea, the activities that realise the value of that idea are fundamentally different at each stage.
We need to adjust our decision-making approach based on the level of available information, inherent risk and the outcome we want to achieve at that stage. As a result, the portfolio of activities will be better optimised to realise our future digital vision.
Lifecycle View of Portfolio Management