In today's dynamic world, flexibility and adaptability are crucial. The book "Agile Portfolio Management" by Portman and Van Solingen describes how organizations can increase their strategic agility if desired. The first of ten dimensions is about the time horizon of portfolio management. There are good reasons to get started with this:

The added value of Short-Cycle Portfolio Management

1. Faster Adaptation to Changes:
   • Shorter planning cycles enable rapid adaptation to market dynamics and internal changes, increasing the organization's agility and competitiveness.
2. Increased Transparency and Feedback:
   • Regular feedback loops ensure rapid identification and resolution of problems, promote continuous improvement, and prevent small problems from becoming big ones.
3. Team Engagement:
   • Active involvement of teams in the planning process increases motivation and sense of responsibility, leading to better performance and results.

How do you do this?

1. Plan and Experiment in Short Cycles:
   • Start with a quarterly portfolio steering cadence and gradually move to monthly cycles to refine the process and adapt to the needs of the organization.
2. Consistent Cadence of Reviews and Schedules:
   • Hold regular reviews and planning sessions to keep everyone aligned and continually adapt the strategy to new information and circumstances.
3. Full Commitment of All Team Members:
   • Actively involve all team members in the planning process and give them a voice in decision-making to increase engagement and motivation.

Short-cycle portfolio management offers benefits such as greater flexibility, increased transparency and team engagement. By focusing on short cycles, consistent reviews and planning, and active involvement of all team members, organizations can increase their strategic agility and better respond to change.

To achieve this change, several improvement steps are often needed that interact with each other. A change team that sets a clear transformation goal can work towards it iteratively, so that the speed and success of the organization will continue to increase.

Want to know more?

Join the Portfolio Management Network and visit our lunch sessions en workouts.