Human beings are social creatures having both emotional and physical needs. Businesses able to satisfy these needs will be better positioned to attract and retain talented personnel; giving these businesses a much needed advantage in the increasingly knowledge driven marketplace where human resources are increasingly limited. Such organizations will further benefit from increased worker engagement because employees feel more connected and valued.
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StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.
One Foot Out the Door: How to Combat the Psychological Recession That’s Alienating Employees and Hurting American Business by Dr. Judith M. Bardwick examines the changing employment relationship between American businesses and their workforces and the impact these changes have had on employee engagement and retention. Dr. Bardwick illustrates with hard numbers how employees, once accustomed to high job security, have entered into “a psychological recession” because of the employment uncertainty associated with today’s frequent layoffs, downsizing, rightsizing, and outsourcing. She concludes her work with practical strategies for enhancing employee engagement; thereby increasing job performance and retention.
Benefits of Using this Reference
Success in today’s rapidly evolving business environment requires the full engagement of employees’ knowledge, skills, and experiences focused on the achievement of mission goals. As highlighted by Dr. Bardwick, the continuous reengineering of today’s businesses places a strain on this engagement; one that must be overcome by executives and managers.
StrategyDriven contributors believe accountable, diverse, and inclusive organizations can overcome the “psychological recession” illustrated in One Foot Out the Door and that executives and managers implementing Dr. Bardwick’s recommendations will be better able to fully engage their employees by making them feel that they and their work are valued and significantly contribute to the organization’s success.
Many of the best practice recommendations found on the StrategyDriven website compliment the actions prescribed by Dr. Bardwick in One Foot Out the Door, making this book a StrategyDriven recommended read.
Additional Resources
Interviews with Dr. Bardwick regarding One Foot Out the Door can be enjoyed from the following two websites:
https://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.png00StrategyDrivenhttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngStrategyDriven2008-01-27 10:29:142015-09-17 23:18:39Recommended Resource – One Foot Out The Door
Executives and managers of organizations both large and small manage portfolios of assets and activities representing what the business is and what it does. Managed well, these portfolios directly support the effective and efficient achievement of mission goals. Managed poorly, these portfolios target achievement of differing and sometimes competing objectives or inappropriately expend resources on low value activities; ultimately diminishing the organization’s ability to maximize value creation. Thus, the focus of portfolio management is the optimization of resource deployment across the collection of activities most directly supporting achievement of mission goals.
Types of Portfolios
Portfolios are the collections of either assets sharing similar characteristics or activities supporting achievement of common objectives. Individual items with the collection may or may not be interdependent or directly related. These logical groupings, however, facilitate measurement, comparison, and prioritization which in-turn provides portfolio managers with the information necessary to make and implement decisions that maximize value creation for the resources expended.
Management of asset and activity portfolios requires a different focus and skill set. While both asset and activity portfolio management involve the management of resources, asset portfolio management focuses on value creation through the acquisition, deployment, and release of resources whereas activity portfolio management focuses on the prioritization, selection, and execution of value creating work using resources. To better illustrate this concept, the following asset and activity portfolio definitions are offered:
Asset Portfolios: collections of items the use of which generate value
Financial: collections of convertible instruments that create value and/or can be exchanged for other resources. Examples include: cash reserves, options, stocks, and bonds
Material: collections of physical property used in the creation of value adding products and services. Examples include: structures, equipment and tools, and raw materials, components, and supplies
Intellectual: collections of knowledge resources used in the creation of value adding products and services. Examples include: data, patents, copyrights, trademarks, and retained human knowledge and experience
Labor: collections of employees, typically grouped by skill set, who perform value adding work. Examples include: managers, engineers, graphic designers, and mechanics
Activity Portfolios: collections of business activities through which value is created or enhanced.
Operational Portfolios: collections of the major, ongoing and repetitive activities that either directly or indirectly support organizational value generation. Examples include: marketing, sales, production (of goods and/or services), maintenance, human resources, and finance
Project Portfolios: collections of projects typically used to enhance or expand existing operational portfolio activities. Examples include: business process reengineering, enterprise resource planning software implementation, and new product/service development
Note: While effective management of both asset and activity portfolios is critical to the success of any organization, postings within the Portfolio Management category will focus on activity portfolios. Insights regarding the management of asset portfolios will be provided within the Resource Management category.
Activity Alignment with Mission Goals
Aligning activity portfolios with the organization’s mission goals necessarily begins with the strategic planning process. Because no one project or recurring activity is likely to satisfy all of an organization’s goals, executives and managers work together to identify, prioritize, and select collections of activities possessing the greatest value potential for a given cost, bounded by the organization’s limited resource availability. Quantifiable measures of value and cost assigned to aid in activity prioritization and selection are then translated into performance measures against which the portfolio manager judges the collection’s ongoing mission alignment. (See Figure 1)
Effective, Efficient Deployment of Resources
Today’s rapidly changing business environment and the dynamic nature of operational activity and project execution demands continuous reevaluation, reprioritization, and, as necessary, redistribution of the organization’s limited resources away from low and no value adding work to those more directly supporting goal achievement. Making resource allocation adjustments to maximize an activity portfolio’s value is, subsequently, a primary responsibility of the portfolio manager.
In order to maximize a portfolio’s ongoing value creation, portfolio managers must act to ensure performance of their portfolio’s activities remains in alignment with and drives achievement of stated mission goals. Therefore, these managers need to clearly understand the organization’s overall objective goals and the value proposition of each activity within their portfolios. It is with this knowledge that they divert resources from low and no value adding work to those more directly supporting goal achievement.
Focus of the Portfolio Management Forum
Materials in the Portfolio Management Forum will focus on the underlying principles, best practices, and warning flags associated with maintaining effective activity portfolio alignment with mission goals while, at the same time, efficiently deploying the organization’s limited resources. The following articles, podcasts, documents, and resources cover those topics critical to a robust portfolio management program.
StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.
Nathan Ives is a StrategyDriven Principal, and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
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Human beings are social creatures having both emotional and physical needs. Businesses able to satisfy these needs will be better positioned to attract and retain talented personnel; giving these businesses a much needed advantage in the increasingly knowledge driven marketplace where human resources are increasingly limited. Such organizations will further benefit from increased worker engagement because employees feel more connected and valued.
Executives and managers of organizations both large and small manage portfolios of assets and activities representing what the business is and what it does. Managed well, these portfolios directly support the effective and efficient achievement of mission goals. Managed poorly, these portfolios target achievement of differing and sometimes competing objectives or inappropriately expend resources on low value activities; ultimately diminishing the organization’s ability to maximize value creation. Thus, the focus of portfolio management is the optimization of resource deployment across the collection of activities most directly supporting achievement of mission goals.
Activity Alignment with Mission Goals
Business Programs