PMcrunch

Innovation has a real diseconomy:  What is making the organization work now can become at odds with what might make the organization work well, or better in the future.  What effect does this have on Project Management, and where can Project Portfolio Management make a difference?

Project Portfolio Management in Innovation
Often times, in project portfolio management we look at a portfolio of projects and select the ones that have the highest expected return.  Some consideration for innovation however, would be a benefit to us.  This consideration tends to be cultural, and more soft skill oriented than it is quantitative.

When we look at innovation within an organization, often times we find some big, interesting, high profile, “sexy” projects.  This is as it should be.  You would certainly expect that working on the wave of the future would have a high profile, and hold special interests.  The problem is that, it often comes at odds with what is currently the bedrock in an organization.

There are people in an organization – in any organization – who are responsible for delivering the ongoing output of that organization.  When innovation occurs, whether in a department, a division, or the organization as a whole, people running the current way of doing business may feel threatened, or at least may feel a bit old fashioned, out date dated, or dinosaur like.  This is a real challenge to innovation within organizations.

In a portfolio of projects, there needs to be some level of balance between these innovative projects that effect current operations, and those that might simply improve current operations, or tie into current operations.  What I am trying to say is that there needs to be a holistic view taken to innovation, so as to not only avoid alienating those who are keeping current income, and current business flowing, but also to involve them in the innovation process.  This will build bridges between those involved with the more innovative projects, and those involved with projects supporting current business.

Consider Innovation in your Project Portfolio Management
When selecting your projects, seek a balance of projects across various operational areas.  Sprinkle them – you must find the healthy balance – with innovative projects, whether they are organization wide, high impact, or incremental.  When practicing project portfolio management, think of the effects that these projects will have on individuals throughout the organization.  It is not just return on investment, but also effect on all the people within the organization, and on the current operations.
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John Reiling, PMP
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