Strategic Portfolio Management as Key Centre Between Strategic Development and Realisation

Thursday, 25. July 2019

A guest article by Daniel Trefzer
 

It is very important for any enterprise development to have a structured flow of information in all directions. The Hoshin Kanri approach with the Catch Ball method is an efficient and effective tool to enhance the strategic portfolio management.

Sustainable Added Value Instead of Short-Term Success


Strategic portfolio management contains all relevant areas which ensure long-term company success. Projects, initiatives and measures are always related to the strategies and the economic and capacitive conditions.

One main realisation, in order to maintain competitiveness, should be that especially communication and the way responsibilities are handled. A key target is the holistic approach of the implementation of the cultural change and maintaining it during the whole lifecycle.

Strategic Portfolio Management: Implementing Efficient Controlling Processes Deep Within the Company


Strategic Portfolio Management: Implementing Efficient Controlling Processes Deep Within the Company


Defining and communicating corporate strategies in such a way that the individual contribution and the position can be identified at every level – the Hoshin Kanri approach with the Catch Ball method is the perfect way for further development. The aim of this approach is to align the company as a whole towards the corporate target, respectively considering corporate strategies throughout all hierarchical levels.

The need for this type of approach gets even more important in times of agile organisations, in order to aim the performance of small, independent and capable units which are focused on customer success, towards a common entrepreneurial goal. Which brings us back to communication and establishing a multidirectional exchange of communication. The Hoshin Kanri approach has been proven for a couple of decades, even before agile management as such was known, and shows for example how companies can be viewed as the sum of employees, partners and customers, how to develop a target orientated strategy or how to value and sort projects and investments based on a global strategy.

Pioneers in the area of quality management like Edwards Deming and Joseph Juran started back in the 1950ies with their ideas and developments to generate a first awareness for topics such as leadership concepts and change processes within companies. Hewlett-Packard is responsible for developing total quality management towards Hoshin Kanri. Hoshin translates to compass needle and Kanri equals terms such as management or planning.

Agile Management and the Hoshin Kanri Approach with the Catch Ball Method Complement Each Other Perfectly




strategic alignment and short-term changes


Through the cascading structure of the strategy to reach the corporate goals all participants get the opportunity to understand and contribute to their. Starting with the leadership level down to single teams, departments and employees, all involved parties can influence everything, thereby act constructively and identify themselves with the overall alignment.

In the same time the bi-directional cascading also makes it easier to control and track the target and effect achievement. Productivity, efficiency and quality management develop themselves parallel and sustainably by deepening new structures of thinking and communicating.

Strategic portfolio management with these approaches enables a holistic view on vision and mission of the enterprise and therefore closes the circuit from the overall concept to the strategic, the tactical and the short-term direction, implementation and effect achievement, respectively effect control.


Credits (from top):

© istock.com I Courtney Keating
© Daniel Trefzer (own illustration, based on Kudernatsch)
© Daniel Trefzer (own illustration)
© Daniel Trefzer



About the Author

Daniel TrefzerDaniel Trefzer is change architect and partner at the company adensio GmbH.

With a focus on strategic portfolio management, agile organizations and appropriate software products, he supports companies with adensio's systemic approach to people, methods, processes and technologies.

About adensio

Using potentials and developing an individual, strategic portfolio management – that is the core competence of adensio GmbH.

The change architects know how to accompany the change and also the implementation with an integrated systemic approach and how to set required impulses. The method contains the four success factors: people, methods, processes and technology.