Portfolio Management and Architecture: Why Business Capabilities are the cornerstone to your execution strength

Project Portfolio Management May 19, 2023

This eBook describes how Portfolio Management functions can interact with Business Capabilities, and makes use of case studies with specific artefacts to highlight how generating “Line of Sight” provides fundamental business and technology execution insight and guidance.

Establishing the linkages between your business strategy, planning and execution are critical and the use of Architecture constructs such as Business Capabilities is a powerful means of bringing “Line of Sight” between what you want to achieve and how you plan to achieve it. The organisational journey is never a straight line and involves a wide range of business and technology decisions on portfolio timing, impact, trade offs, dependencies, budgets, resources, capacity and appetite.

The impact of not having visibility to “Line of Sight” between these inputs is significant dilution, waste of resources, focusing on the immediate priority, misguidance and more hope and luck than a planned, structured and disciplined approach to spending scarce shareholder funds. Missed customer opportunities, poor service outcomes, duplicated functions, bloated Divisions, poor allocation of resources are also symptoms of this misalignment.

The opportunity to align your strategic goals and measures with a dedicated portfolio of change and investment provides significant clarity and comfort to your Executive group and enables a single organisational story to be articulated and embraced. Bringing your business strategy to life for your people and teams can provide powerful momentum and focus generating better business outcomes of higher revenue, lower costs, effective project delivery, efficient allocation of resources and meeting shareholder objectives.

Business Capabilities are the highest and most static form of Architecture input and an effective Business Capability Model can provide the necessary baseline to glue the business strategy and the delivery of change together. Having a defined and agreed set of business capabilities provides the mapping framework that will drive out insight on the appropriateness of your portfolio and enable the validation and pivot of decisions between your various business units and the business strategy.

In this white paper, Andrew Swindell describes how the Portfolio Management function can interact with Business Capabilities. He also explores a couple of case studies with specific artefacts that highlight how generating “Line of Sight” provides business and technology execution insights, focus and guidance for your Executive teams.