How does change succeed in project portfolio management (PPM)?
In recent years, companies have increasingly implemented their change projects with the help of agile or other dynamic project management methods. Shorter project durations and thus a higher competitiveness on the market are the goal.
Classic long-term IT projects are now often perceived as too risky. What if the innovation is already hopelessly outdated after the project has been completed and its changes implemented?
Gartner recommends that PPM should be operated with an adaptive investment strategy approach. We even see statements as PPM disappearing in its current form in future. As the project landscape becomes more dynamic, it can no longer be managed and planned centrally.
However, I do see it differently: PPM enables an organization - especially in times of VUCA - to dynamically control change projects.
Today, PPM is characterized by volatility, uncertainty, complexity and ambiguity (VUCA). The term origins from the theory of complexity and describes how organizations can be understood as systems that can only be controlled causally to a limited extent. In this world there are no more fixed rules, no more certainties and clearly recognizable connections: Everything is possible - even its opposite. And immediately afterwards reality presents itself completely different!
Are the times of PPM as a means to implement strategy soon over?
On the contrary, PPM - newly understood - brings the various goals of strategy orientation, resource- and financial management in line with the continuous adjustments to the environment (customers, competitors, authorities).
What does the newly understood PPM look like?
PPM in times of VUCA means consciously allowing degrees of freedom in design and implementation. PPM in times of VUCA also means that people and especially communication between people becomes more important again. From this point of view, PPM is understood as a marketplace where supply and demand in the portfolio can be brought into harmony. Approaches from systemic organizational consulting can provide effective tools here.
The «classic» PPM disciplines such as controlling, reporting and governance form the basis, but should be digitalized as far as possible.
A concrete practical example: The security IT portfolio of a large bank must constantly adapt to new regulatory requirements and risk scenarios from cyber-attacks. This is no longer possible with an annual demand planning. The "classic" PPM disciplines such as controlling, reporting and governance continue to form the basis. However, they can and should be automated as far as possible. The management then takes place in regular re-prioritisations with the key stakeholders, ideally continuously, typically once a quarter. The portfolio manager moderates the process and the design, e.g. with the help of techniques such as "world café" or other systemic tools.
PPM makes it possible - especially in times of VUKA - to dynamically control an organization's change projects. The systemic approach offers suitable tools to reduce complexity in the PPM system.