Review: An Introduction to Evidence-Based Portfolio Management

portfolio wrote the whitepaper An Introduction to Evidence-Based Portfolio Management. Evidence-Based Portfolio Management is an approach that applies lean and agile principles to the challenge of deciding where to invest to derive the greatest business benefit.

It enables organizations to quickly test ideas by actually building and validating the smallest solution that will deliver a single outcome to a single set of customers or users.

Evidence-Based Portfolio Management takes a Principles Based Approach:

  1. Separate capacity-for-growth from focus-of-work
  2. Make the best decision you can, based on the best evidence available
  3. Invest in improving business impacts using hypotheses, don’t just fund activity
  4. Continuously (re)evaluate and (re)order opportunities
  5. Minimize avoidable loss
  6. Let teams pull work as they have capacity
  7. Improve status reporting with increased engagement and transparency.

QRC E-B PfMTo download the QRC: QRC E-B PfM

Evidence-Based Portfolio Management focusses on outcomes to produce better results. It states that the organizational mission, vision, outcomes, and strategy must be centralized, and the product vision, strategy, and execution must be decentralized.

The art of portfolio management is deciding what not to work on and the number of teams you have will limit how many ideas you can work on at once.

To download the whitepaper: An Introduction to Evidence-Based Portfolio Management

This framework fits in the Portfolio level block of my bird’s eye view on the agile frameworks forest (see also the complete article).

Grasp session (Scaling Agile, 190603) v1.1



4 responses to “Review: An Introduction to Evidence-Based Portfolio Management

  1. @Henny Portman, I am struggling to figure out how what you are proposing is any different than Markowitz et al Capital Asset Pricing Model (CAPM) that has been taught in B schools and Engineering Economics classes for close to 65 years or more? and

    First of all, “Agile” is nothing more than the same “trial and error” method used a million years ago by our ancestors to tame fire and 6000 years ago to invent the wheel and during the 12th Century was “rechristened” as the “Scientific Method” that has brought us products like the telephone (Bell), the Light Bulb (Edison) or penicillin (Fleming) so the concept of using these methods to “create, acquire, expand upon, maintain, update, repair and eventually dispose of organizational assets is nothing new. One could certainly make the case that the propensity to “initiate, plan, execute, control and close” projects is something that his hard-wired into the human psyche- a trait that differentiates us from the animals.

    Here is a paper written by one of my adult learning students that shows a real-life example of how to use CAPM to identify and rank order options for the oil and gas sector.

    My question: IS this different from your model and if so, how? If not, why make your model so complicated?

    Dr. PDG, Jakarta

  2. Pingback: Review: An Introduction to Evidence-Based Portfolio Management – Project Management World

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