The purpose of the ‘understand’ practice is to obtain a clear and transparent view of what is in the current portfolio and the project (initiative) development pipeline, performance to date and, looking forward, the forecast costs, benefits, and risks to delivery and benefits realization.
But you have to be careful with transparency, see e.g. the quote from the Victor Lamme, professor of cognitive neuroscience at the University of Amsterdam (see article). You could also ask yourself if the transparency is one of the reasons why senior management are sometimes hesitating to implement portfolio management. Do they want to show what change initiatives are there in the pipeline to the whole organization? What does it mean or do with the organization if they are aware of an upcoming reorganization or transformation? On the other hand if there is no transparency, if not all initiatives are clear, it will be very difficult, if not impossible, to build a portfolio that is achievable.
- Collection of the needed and consistent information
- Approaches to obtain initiatives
- Keys to successful understanding
To download: MoP (practice 1 Understand, 141006) v0.1
This post will be used in a new book MoP practices in practice, for portfolio managers who want to embed the MoP theory in their organization. In the coming months several blog posts and articles will be published waiting for your feedback. To see all, select the tag MoP_practices_in_practice.