Task: Monitor Changes in Conditions
Monitor changes in conditions of the portfolio's environment against portfolio components or portfolio targets and objectives to track what could impact the execution of work.
Disciplines: Product Portfolio Management
Extends: Monitor Changes in Conditions
Purpose
To ensure that portfolio executives are abreast of changes in internal and external influences that can potentially affect the portfolio outcomes and their decisions.
Relationships
RolesPrimary Performer: Additional Performers:
InputsMandatory:
    Optional:
    • None
    Outputs
      Main Description

      Develop and maintain a complete understanding of the portfolio's environment to identify changes in business, technical, and market conditions that could favorably or unfavorably affect the portfolio.

      The following are examples of environmental conditions to monitor:

      • Homogeneous understanding and organizational acceptance of portfolio model and governance
      • Organizational changes in responsibilities and accountabilities
      • Customer needs and expectations
      • Business strategy and organizational objectives
      • Economic changes and trends (for example: labor market movements, political risk, and financial policies)
      • Market and competitive forces (for example: new entrants, supplier risk, and substitution)
      • Technological advances and setbacks (on product and infrastructure)
      • Political, social, and economical drivers
      • Legislative and regulatory policies

      By monitoring changes in conditions, portfolio executives can make decisions based on current and prescriptive data, thereby supporting a clear and complete understanding of portfolio external drivers and influences.

      Steps
      Develop list of environmental factors of interest

      Develop an exhaustive list of environmental factors that affect the portfolio. Assess the range of impacts on the portfolio based on this list of factors. Prioritize and select the set of environmental factors to include as part of ongoing monitoring.

      Develop or update techniques and measurements to track environmental factors

      Define the required data elements, criteria, and early indicators, as well as their sources. Define variance thresholds that will trigger deeper reviews and analysis. Determine the frequency of updates and monitoring.

      Monitor changes in external factors

      Depending on the type and source of the required data, this step involves the following activities:

      • Running data exports, extracts, and reports from various source systems
      • Conducting interviews with specific internal and external stakeholders
      • Attending business and industry briefings and conferences
      Prepare executive presentations and reports on trends of interest

      Compile a list of threats and opportunities that result from the monitoring activities, and then develop recommendations for corrective actions, as needed. Prepare an executive briefing of the environmental threats and opportunities, and communicate the results to all affected portfolio stakeholders for inclusion as part of the portfolio reviews.

      Key Considerations
      Inputs to consider are strategic plans, product roadmaps, industry reports and analysis, market and competitive trends, and analysts' reports.