05: Rethink Your PMR Scope?
In my last post, I discussed using a simple three-point lens for PMR. But what if we think bigger? What if we look beyond that narrow innovation pipeline to consider how we manage all business initiatives? I've recently had an experience that's challenged my thinking about what PMR could—and possibly should—be.
PMR isn't just the first step in your monthly IBP cycle—it's meant to be your holistic product/service portfolio review. But let's be honest: many of us have unconsciously narrowed its scope to focus primarily on innovation and renovation. After all, that's where the bright new shiny objects are. A recent engagement with a national logistics company challenged this thinking even further. They're expanding their PMR scope beyond NPD to include every major initiative competing for resources—whether customer-facing or internal. And while my initial reaction was "That sounds overwhelming," their logic is hard to argue with.
At its core, portfolio management is about three fundamental questions:
Are we investing our time and money in the right things?
Can we actually deliver everything we're committing to?
Are we getting the value we expected?
These questions apply whether you're launching new products, implementing IT systems, or transforming your operations. Yet in many organisations, these decisions happen in silos.
The Reality of Resource Competition
Think about the major initiatives announced in your organisation last month: IT system implementations, infrastructure upgrades, digital transformation projects, new product launches, and organisational restructures (probably with a creative name). While each might make sense in isolation with a solid business case, who's looking at their collective impact? Who's asking: "Can we really do all of this at once?"
A Fresh Take on Portfolio Management
This is where the logistics company's approach becomes interesting. They're planning to implement a PMR as a comprehensive whole-of-business initiative review, examining everything that competes for three critical resources: people, money, and time. The benefits they're seeking are compelling:
Early identification of resource conflicts (before they become crises)
Better strategic alignment across all initiatives
Prevention of organisational overload
More informed trade-off decisions
Clearer prioritisation across the entire business
It could simplify their IBP process and indeed their whole business. By having these discussions upfront in PMR, they're feeding better-qualified initiatives into their Demand and Supply Reviews, while keeping their Integrated Reconciliation Review (IRR) focused on financial validation and managing exceptions
Making It Work: The Practical Side
I'm not suggesting everyone should immediately throw open the PMR doors to every project in the business. However, I am advocating for a thoughtful expansion of what we consider "portfolio" in our PMRs.
As you consider expanding your PMR scope, keep coming back to these three fundamental questions:
Are we investing in the right things?
Can we actually deliver everything?
Are we getting the value expected?
The beauty of IBP lies in its adaptability to different business contexts. Your optimal PMR scope might look different from your competitor's—and that's okay. What matters is that it gives you the visibility you need to make better decisions about resource allocation and strategic priorities. In my next post, I'll explore a spectrum of different PMR types and ponder how to find the right fit for your organisation.
I'm curious about your experiences. How do you handle the prioritisation of all resource-competing initiatives in your organisation? Do you include it in the PMR or IRR, or perhaps you don't look at the holistic picture anywhere? Share your stories—they might help others navigate this challenge.
About me: An IBP guy who believes in keeping it simple and then some (and also trying to keep it entertaining).
Want to learn more? Visit me at www.planninglab.co.nz
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