COMPETENCE 6: PORTFOLIO SHAPING
The ability to set up portfolios to ensure efficient delivery of strategic objectives.
Introduction
Portfolio shaping is the grouping of change initiatives at an organisational or functional level to select, prioritise and control deployment in line with strategic objectives and the capacity to deliver, balancing change initiatives and business-as-usual, while optimising return on investment.
❶
KNOWLEDGE
Knowledge of the ways required changes are determined.
APPLICATION
Determine changes required by the organisation’s strategic objectives.
Consider:
- The strategic objectives and the relationship between individual change initiative outcomes.
- Visibility of any changes to the strategic direction or pace of strategic implementation.
❷
KNOWLEDGE
Knowledge of the ways that change initiatives can be categorised.
APPLICATION
Categorise related change initiatives in relation to an organisation’s strategic objectives; map the intended outputs, outcomes and benefits of related change initiatives to an organisation’s strategic objectives.
Consider:
- The way the portfolios contribute to the strategic direction.
- The different categories that could be used.
- Ways to map outputs to achieve the outcomes.
- Ways to achieve optimal balance within a portfolio.
❸
KNOWLEDGE
Knowledge of ways to determine gaps which may exist in the alignment of related change initiatives.
APPLICATION
Determine gaps which may exist in the alignment of related change initiatives, either current or proposed, to strategic objectives.
Consider:
- The ways in which to review and report on progress across portfolios to confirm alignment to strategic objectives.
- Any changes in internal and/or external factors that may impact strategic objectives.
❹
KNOWLEDGE
Knowledge of measures that could be used to compare the likely value of, both current and proposed, related change initiatives to an organisation’s strategic objectives.
APPLICATION
Establish appropriate measures to compare the likely value of, both current and proposed, related change initiatives to an organisation’s strategic objectives.
Consider:
- Ways in which measures can be established.
- Ways to gain agreement on the measures to be tracked against.
- Any governance controls that inform key processes to ensure standardisation at portfolio management level.
- How each change initiative contributes in terms of value, and ways to communicate that contribution at strategic level.
❺
KNOWLEDGE
Knowledge of ways to prioritise related current and proposed change initiatives.
APPLICATION
Use appropriate measures to prioritise related current and proposed change initiatives and consider the availability of finance and other resources when applying prioritisation measures.
Consider:
- The balance of short-term gains and long-term gains in relation to prioritisation activity.
- The level of risk that the portfolio is carrying.
- An understanding of the capability, capacity and funding available.
- Ways in which to allocate resource based on priorities.
❻
KNOWLEDGE
Knowledge of ways to assess ongoing progress and viability.
APPLICATION
Recommend whether change initiatives should be initiated, maintained, or closed to maintain a balanced portfolio.
Consider:
- The sources of data/evidence to inform decisions.
- Any changes in the strategic direction that will impact a change initiative within the portfolio.
- Ways to refine the portfolio for optimal performance.
❼
KNOWLEDGE
Knowledge of the importance of communication in relation to portfolio management.
APPLICATION
Communicate appropriately and effectively to stakeholders any recommendations to inform decisions about the maintenance of a balanced portfolio.
Consider:
- The wider context and evidence for any recommendations.
- The communication/information needs of stakeholders and ways to keep them engaged.
- The governance/corporate structure in place to control portfolio change.