- A survey conducted of the practices of leading Danish companies shows that there is money to be made
Companies that engage in portfolio management get more out of their project investments. That is the conclusion of a survey conducted by Devoteam amongst 24 leading Danish companies, which have a combined development portfolio of more than DKK 7 billion.
Portfolio management helps companies get an overview of their development projects, enables their projects to be given the right priority and ensures that projects deliver usable results. The survey shows that portfolio management enables companies to bring their strategic objectives and development investment into a coherent balance. The survey also shows that Danish companies are in a position to make a lot of money. Many companies still spend huge sums on projects without identifying which projects will be the most expedient for their business and without establishing what benefits the company seeks to derive from them.
The aim of the survey was to evaluate how good Danish companies are at portfolio management and, in particular, whether they can get even better at doing it in the future. Download the free brochure and get an insight into the results of the survey. We hope that the brochure will inspire companies to create cohesion between strategy and projects and encourage them to give portfolio management a try. In addition, the brochure also provides advice about how to get on the first rung of the portfolio management ladder and, for companies who have stalled, don't know how to progress or are not achieving a sufficient return on their investment, tips for revitalising the process.
- What is portfolio management?
There is a distinction between:
- Establishing the portfolio, which is about defining which projects the company shall prioritise the implementation of. This should be viewed in context with the company's strategy process
- Delivering the portfolio, which is about making sure the necessary framework is in place to allow portfolio projects to be delivered as planned
Portfolio management is an operational task, and differs from:
- Project management, which is about delivering a project's deliverables
- Programme management, which is about delivering a business benefit on the basis of a collection of projects
- Portfolio management works
The survey shows that companies achieve many of the results they are looking for by implementing portfolio management. But it also highlights that there is still considerable work to do before companies are fully equipped to meet the ever more stringent demands for optimised resource use and profit realisation.
What were the goals?
The desire to create an overview and establish cohesion between strategy and projects is, according to the findings of the survey, the most common reason for companies engaging in portfolio management. In short, companies want to know that they are investing time in the right types of project.
Another important reason companies give for engaging in portfolio management is that they feel they have too many projects on the go at any one time. Some companies talk about "project constipation", the consequences of which are that projects are either not delivered on time, go over budget or the required deliverables do not see the light of day. Projects compete for resources, and extending timetables and schedules ties up resources for an unnecessarily long period of time. It quickly becomes a downward spiral in which, without the help of an overview or criteria for what must be prioritised, players act erratically and blind.