How can you identify underperforming programs in your portfolio?

Until you define success criteria you will not have metrics to understand the impact of your programs, and which ones are under performing and which ones are over performing. Do discovery to understand how to track success, what metrics to use and how the stakeholders accept the results of the programs. Only after you do this you will understand which programs are under/over performing.

A wise portfolio management is to assess where your programs have been, where they are today, and driving where your programs are going. Measure the effectiveness of programs after delivery. This will help stakeholders carefully consider projects/programs before proposing them. Ask the following questions: - Why are we doing this at all? - Why are we doing it this way? - Why are we doing it now?

this is the keyword in the question. Establish clear and measurable KPIs for each program in your portfolio. These KPIs should align with the overall strategic goals of your organization and provide a basis for assessing performance. it might be the main issue: kPIs are set unrealistically

this is part of any system technical or social cybernetics. Conducting regular reviews of each program's performance. This includes financial performance, project timelines, and the achievement of milestones. Compare the actual results with the planned targets.

including risk assessment and its deviation over time. Evaluate the risk profile of each program. Programs with escalating risks or those that consistently face challenges may be underperforming. Identify areas where risk management strategies need improvement.

While it's natural to focus on longstanding programs generating consistent work, identifying underperforming programs often means looking beyond the obvious. Programs with untapped potential often hide in plain sight – they possess unrealized value. It's about recognizing the gap between the current value delivered to customers and stakeholders and the potential value that could be harnessed. These programs may not scream for attention, but digging into the gap between existing and potential value can uncover areas needing more focus and support within your portfolio.

Scenario Analysis and Trade-offs involve assessing multiple potential future states of a program, considering variables like market conditions and resource availability. This analysis ranges from optimistic to pessimistic scenarios, incorporating quantitative and qualitative factors. Trade-offs require comparing different options' costs, benefits, risks, and opportunities, balancing short-term needs against long-term strategic goals. Decisions should consider resource allocation, align with the organization's risk appetite, and account for stakeholder impact. Integrating scenario analysis with trade-offs enables informed decision-making, ensuring alignment with strategic objectives and optimal use of resources.

In my experience, it is key to facilitate decisions of leaders at this stage to enable them select alternatives and trade-offs. My take is to identify 3 or 4 options, do the minimum, do the the maximum and intermediate options, highlighting the description of the option, costs, risks, benefits,… In the worst or best case scenario, it can be to put on hold the effort.

Implementing and monitoring corrective actions involves identifying issues, conducting root cause analysis, and developing a corrective action plan. This plan is communicated to stakeholders and implemented, with responsibilities and timelines clearly defined. Monitoring the effectiveness of these actions is crucial, requiring regular tracking of key performance indicators. Adjustments are made based on ongoing feedback and monitoring results. I would like you to know that documentation of the process is essential for future reference and integration into the project's risk management strategy. Effective leadership and team involvement ensure successful implementation and quality and compliance standards adherence.

Incorporating a robust portfolio management strategy requires the establishment of well-defined KPIs to continuously monitor program performance and expected benefits. Each program within the portfolio should possess clearly defined charters outlining critical elements such as scope, benefits, and timeline, which will serve as the baseline for evaluation and should be routinely updated and reported to the portfolio team. During portfolio review sessions, a unified dashboard or reporting tool should be employed. Such a centralized approach enables stakeholders to readily identify programs requiring closer scrutiny. Attempting to cover all program details in a single portfolio review meeting can lead to oversight.

few more: look up and we have portfolio- analysis here is crucial when looking up-bottom. an eye should be kept on resource utilization, stakeholder feedback (+ consumer satisfaction) and definitely the exit strategy (Develop clear exit strategies for underperforming programs. This might involve restructuring, reallocation of resources, or, in extreme cases, discontinuation of the program.)

"Underperforming" isn't only assessed against a baseline/ KPIs. It should be measured against the potential of additional performance, to what extent is there room to perform better. One scenario : The effort is flagged as underperforming because it is over budget or there are slippages, but the teams work flat out and are very committed and skilled, thus the underperformance doesn't come from teams, but the baseline isn't realistic and reliable, it should be rebaselined. Therefore, there isn't room for improvements, there is no potential. Other scenario: On the paper, there is no performance issue, the effort is on budget. Whereas teams are laid back, because there is slack, teams are in a comfort zone, there is room to perform better.