No rule of thumb for balance

When we talk about portfolio balance, we mean finding the right proportion between the number of initiatives an organization is running and the available capacity—so that overload doesn’t occur. But portfolio balance is also about striking the right balance between short-term and long-term ambitions.  

We’re often asked: how much of our time and resources should we invest in the short and (medium) long term? Our answer? It depends...  

If you’re looking for a definitive formula, you won’t find one with us. Our own research shows there simply isn’t a universal success formula when it comes to achieving portfolio balance. A crucial factor in determining the right balance is the current (external) context. Market trends or technological breakthroughs can shift your numbers dramatically in a short time. Is a major competitor about to gain market share? Then it might be wise to temporarily allocate extra resources to short-term initiatives to defend your position - but with a clear time horizon, for example until the next quarterly results, so you don’t end up in an endless sprint. If, on the other hand, your numbers are looking great, it’s smart to invest sufficiently in the (medium) long term. That way, you won’t get overtaken by a start-up with promising new technology while you’re resting on your laurels. 

So don’t expect catchy one-liners from us about how to divide your time and resources. What you can expect is a proven approach that enables you to quickly and flexibly adjust your allocation of time and resources - so you’re always prepared to focus on what matters most for achieving business results.