and reshuffle priorities, start and stop projects, and recognize increments in value. Your portfolio return increases through:
- Increased diversification with more and smaller projects.
- Ability to monitor and manage performance within the budget cycle.
- Redirecting funds from losers to winners every few weeks.
- Optimizing the portfolio within the budget cycle.
Agile practices are not new and are no longer a grassroots movement. They are being adopted widely because they deliver practical business benefits. The Gartner report, "Current State of Agile Methods Adoption" indicates:
- Wider adoption of Agile practices among Fortune 1000 companies.
- 75-80% of IT organizations use some Agile practices.
- 15-25% of organizations have established a repeatable Agile process.
The current world economic situation hit most businesses hard and fast with little warning. For many companies, their pre-crisis portfolio of projects became obsolete overnight with projects that became too expensive, off target, or a lower priority. A portfolio process that leads to fewer, bigger, and less flexible projects, does not allow for an effective way to quickly adjust and address these changes.
An Agile approach can provide many options that can quickly be applied to a company's portfolio. In addition to allowing more effective management of your project portfolio, this approach will free up capital, reduce unnecessary cost, and allow you to recognize return earlier, while adapting your project plan through customer and market feedback.
About the Author
John Rudd, President and CFO of SolutionsIQ, an industry-leading Agile organization. Rudd was formerly a partner in a boutique financial consulting and investment banking firm where he led the firm's financial practice specializing in advisory services, mergers and acquisitions, and interim management. He has filled multiple interim executive roles including CEO, president, CFO, and chief restructuring officer. Earlier in his career, Rudd was CFO of a West Coast oil company and a commodity lender for ING. John received his B.S. in Economics from the University of Minnesota and his MBA from the University of Southern California.