An Introduction to Evidence-Based Portfolio Management

"portfolio"Traditional portfolio management focuses mostly on activities and outputs, and only somewhat on outcomes. At the front end, there is a massive intake process in which a bunch of definitions of solutions are collected. This process is frequently restricted to an annual budgeting process, so ideas that occur at other points in the year are often lost. The outcomes that the solution will achieve are often only vaguely defined.

This whitepaper explores Evidence-Based Portfolio Management, an approach that applies lean and agile principles to the challenge of deciding where to invest to derive the greatest business benefit by using rapid delivery of small increments of value to gather information and adapt investment decisions based on evidence from the market. It enables organizations to quickly test ideas by actually building and validating the smallest solution that will deliver a single outcome to a single set of customers or users.