A project portfolio’s agility and liquidity are key components of its business value. To maintain flexibility and optimize investments, organizations must first understand what can cause “portfolio rigor mortis” and then adopt approaches to avoid or “cure” it.
Your personal investment portfolio contains a mix of stocks, bonds and other financial instruments that can be bought and sold with a simple call to your broker. This makes balancing your portfolio in response to your changing life objectives and the economic environment a relatively easy thing to do.
Your company’s project portfolio may not have the same flexibility because projects, once started, may be very difficult to stop. This means that your project portfolio can be “out of synch” with the economic climate, business strategy, emerging competitive forces in your industry, or a host of other factors that could influence what you choose to invest in.
The degree to which you are locked into your current portfolio is its degree of portfolio rigor mortis. There are four principal causes of portfolio rigor mortis are:
1.IT governance that permits individual business units and departments to spend budgets “under the radar”,” thus tying up resources that could be better used.