How do you correct portfolio performance deviations?

We have developed a business case or project ranking methodology. It is based on the Vic Govt Investment Management Standard. This weights 8 benefit areas against 5 cost areas. It enables various governance bodies to understand how investments/project rank against each other. This enables us to take a methodical approach to portfolio management with our clients. It feeds into dashboard, benefits realisation etc. From a portfolio perspective - to see what benefits are being delivered, resources, costs etc. This guides decision making. Benefits realisation and learnings can be used to feed back into the methodology to manage deviations, risks etc.

?? In my experience, beyond regular monitoring, there are deeper facets to address deviations. ?? Root Cause Analysis Identify underlying reasons for discrepancies. Is it due to unrealistic expectations or genuine issues in execution? ?? Agile Adjustment Quickly adapt to deviations by employing agile methodologies. This involves iterative evaluation and modifications. ?? Cross-Functional Collaboration Engage teams from different departments. Diverse perspectives can provide novel solutions and insights. ?? In conclusion, addressing deviations requires a mix of in-depth analysis and flexible methodologies.

??Correcting portfolio performance deviations is crucial for maintaining strategic alignment. Here’s how to realign effectively: ??Root cause analysis - Identify and understand the underlying reasons for deviations. ??Adjust project priorities - Reassess and reprioritize projects based on current strategic goals and resource availability. ??Resource reallocation - Redirect resources to high-priority projects to get them back on track. ??Risk reassessment - Update risk management strategies to address new or overlooked risks. ??Stakeholder communication - Keep stakeholders informed about adjustments and their impacts on portfolio performance.

Quoting Peter Drucker: "You can't manage what you can't measure." This holds true for Lean Portfolio Management. Performance assessment involves internal (flow metrics for efficiency) and external (outcome measures) considerations. Flow predictability compares planned vs. actual value delivery, aiding value predictability and target realism. Outcome measures include qualitative (OKRs) and quantitative metrics, aligning portfolios with value and strategy. For example, improving end-user experience and loyalty (OKR) could be measured by increased Net promoter Scores (KPI). These measures gauge progress toward strategic pillars and optimize portfolio size.

Few steps to consider - Utilize a governance framework to capture data on portfolio poor performance or non-compliance (NC). - Clean up and validate the data to eliminate vanity metrics and confirmation bias. - Leverage the Pareto principle to pick the vital few from the trivial many. - Use a measles chart to capture the predominance of issues. - Perform Root Cause Analysis (RCA) on the prioritized items using fishbone diagrams and the 5-why technique. - Use a scatter plot or regression analysis to find the relationship, direction, and strength of the relation between data. Useful? Click Like!

We can analyze portfolio performance deviation by using key indicators and reviewing the performance of the component mix by comparing actual with anticipated value, risk level, spending and strategic alignment. Portfolio reports that provide information on performance, risk, resources, etc are basis of our analysis. We should use portfolio management information systems (PMIS) to gather, integrate, visualize and communicate the portfolio performance data. The PMIS can facilitate effective analysis of the performance and in case of deviation it can facilitate effective decision making.

Correcting portfolio performance deviations starts with a detailed plan. In my experience, using issue logs and contingency plans helps specify corrective actions across scope, schedule, budget, and quality. It's crucial to ensure these actions align with the overarching portfolio strategy. Effective governance includes not just identifying deviations but actively planning and implementing solutions that keep portfolio goals on track. This proactive approach minimizes risk and maximizes stakeholder value.

To correct portfolio performance deviations, you can follow: ? Evaluate the portfolio to identify projects that are deviating from strategic objectives and those that are generating insufficient results. ? Identify the causes of portfolio and individual project performance deviations. ? Develop an action plan to correct portfolio performance deviations, with specific corrective measures and timelines for implementation. ? Implement an action plan to ensure that objectives are being met and that there are no negative impacts on other projects. ? Portfolio review and adjustment to ensure projects are aligned with strategic objectives and appropriate resources are being allocated.

"In my experience, all the great points covered, along with a few other critical things to consider: 1. Accountability and Ownership for the metrics to bring more transparency to all key stakeholders. 2. Data should help the portfolio leaders make quick decisions to unblock or pivot, avoiding any delays in launching key products."