Chapter 9Key Principles and Practices for the Matching Function of Portfolio Management
Once the supply/delivery side of your organization is providing accurate measures of its capacity and the demand side is assigning financial and strategic value accurately, it’s time to focus on maturing the third leg of the stool of the portfolio management process, the matching function.
A friend and consulting colleague of many years, Brent Barton used to say the matching function “creates an efficient economy within the company for competing sponsors to obtain needed supplies of scarce resources.” While most portfolio managers don’t think of their job description as being that of an “economy creator,” it is a fantastic description of what portfolio managers must accomplish to support effective allocation of resources. Economic principles and many rules and measures of economics are useful to support and optimize the dynamics of enterprise portfolio management, especially in large, complex organizations (economies!).
Essentially, the matching function oversees the processes by which the organization does the following:
- Allocates finite capacity to infinite demand according to rules and targets
- Facilitates collaboration and communications with sponsors and stakeholders
- Measures, tracks, and governs portfolio ...
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