Value Creation Focus
Last month, we discussed the “Aligned Decision Forum,” the first of the Six Principles of Strategic Portfolio Management. In this issue we will discuss the second principle, “Value Creation Focus”.
- “Business cases strongly favored incremental projects.”
- “Project management methods created more work on projects we would cancel.”
- “Resource allocation efforts abdicated the companies’ most important investment decisions to relatively low-level managers.”
- “Weighted scoring rules simply elevated politics to a new level of sophistication.”
- “When we got clear about value, many project leaders voluntarily cancelled their own projects; they realized they could better direct their efforts to higher-value projects.”
- “We reduced our portfolio from 70 to 20 projects, improving the return by more than 100%.”