Chapter 8Key Principles and Practices for the Demand Side of Portfolio Management
The previous chapter illustrated the many ways organizations make delivery capacity opaque and hard to measure, and provided suggestions for getting delivery into a controlled, measurable state. Leadership of the delivery organization is responsible, and should be held accountable, to know delivery capacity and produce clear and accurate delivery forecasts for portfolio managers and sponsors. Once delivery has matured to the point that portfolio managers can model scenarios efficiently, it’s time to shift our focus to improving portfolio returns through improved demand management, focusing primarily on maturing value assignment and prioritization.
Defining and Shaping Portfolios
Portfolios are organizing constructs we create on the demand side of the portfolio equation. Some confused practitioners speak of supply portfolios or making delivery capacity an integral part of a portfolio. That’s wrong. Though a determination may be made to allocate delivery capacity to a portfolio for a period, there are no supply or delivery portfolios. That would violate our rule of decoupling supply from demand.
Formulating and shaping portfolios is more art than science, but the benefits from having multiple portfolios are reduced contention and conflict between stakeholders, clear accountability for portfolio outcomes, and simplified and improved prioritization within each portfolio.
Top-level portfolios should ...
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