Build a Product-Oriented Portfolio, Iteratively
Apply product thinking to the portfolio change itself: iterative rollout, validated learning, and outcome-oriented milestones instead of a waterfall plan.
Three members of a PMO are asked what they are doing:
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The first says, “I’m updating processes to align projects with product teams.”
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The second says, “I’m shifting our portfolio approach from projects to products to enhance delivery and value focus.”
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The third says, with conviction, “I’m transforming how we invest, plan, and deliver value by focusing on products rather than projects, enabling our teams to be more adaptive, customer-centric, and capable of delivering lasting impact for our business and customers. I’m helping build a product-oriented mega-lab.”(inspired by the story of 3 bricklayers…)
Since we’re talking about a Product-oriented Portfolio, it makes sense to treat developing it as a Product Initiative.
Making sure we’re focused on outcomes, rather than checkboxes.
We might use patterns and frameworks (such as a Kanban Board, OKRs, and Portfolio Reviews), but we should start with why. This will help steer us in the right direction and ensure our intervention evolves in a way that improves its fit for purpose.
It’s also leadership by example. This is the way we expect other portfolio initiatives to be managed.
Like product initiatives focused on outcomes rather than projects focused on a predetermined scope.
Find what’s actually broken
So, the first thing to do will be to establish what’s broken. What are the pains in how the job of managing the portfolio of technology investments is currently being done?
Using Evidence-based Management, we could look at areas like:
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Are we happy with the value we’re creating across all our products? One interesting question at the portfolio level is whether our customers feel they’re working with a disjointed set of products/capabilities or are they getting a seamless experience?
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Are we happy with the outcomes generated from what we deliver? Do we even know whether our customers are happy? Do we even plan outcomes? Measure them?
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How satisfied are we (and our stakeholders) with our ability to innovate?
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How good/bad is our time to value?
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Are we aligned to our business strategy? Are we working on what will move the needle from a strategic perspective? Do we know? Can we actually double down on these things?
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How hard is it for people to actually deliver business outcomes? How many hoops do they need to jump through to get meaningful things out the door?
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How happy are we with our ability to adapt to shifting business needs and realities?
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Are the things we’re currently measuring helping drive the right behaviors? Or incentivizing undesired ones?
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Are people motivated and energized by their work? Do they understand and connect to the bigger picture?
Write your outcome hypothesis
Then, describe an outcome hypothesis. What are we hoping to see? What’s going to look different for all the various stakeholders? And what is going to be the impact of this changed environment on our business?
Describe some leading indicators - How will we know we are heading in the right direction? How will we know we’re not?
Try to weave the problems/opportunities you’re seeing, the dream state, and the approach you have in mind into one coherent story.
So, are you a cathedral builder by now?
Tools worth trying
PS Here are some tools you can use to help you in this exploration of the problem/opportunity -
A free email course on building an agile portfolio operating model — from recognizing your portfolio to achieving true strategic flow.
Yuval Yeret helps product and tech leaders move from agile theater to evidence-informed delivery. Work with Yuval →
