Extreme prioritisation kills complexity
With about 70 people involved in product development, Ambu runs only:
- 4 development projects with 10-20 people
- 4 tech tracks that mature technology for future projects with 1-3 people in each
We call this “short and fat” projects, because they are intensive and resource-heavy but shorter in duration. Måns Barsne, EVP, Head of Global Innovation explains that: "The portfolio decision-making process is fast and 100% transparent so that everybody understands why project a is more important than project b."
The governance to make it work
Top management continually discuss strategy and align discussions with a long-term product road map each quarter. The updated road map is used by the project sponsor forum (all potential project sponsors) to make project portfolio decisions for the coming quarter. This means making an overall prioritisation of projects and tech tracks, handling resource conflicts and initiating new projects. The project managers are also present in order to understand the “why” behind portfolio prioritisation, reduce the need for written communication and for answering questions. The whole quarterly portfolio management process takes about an hour.
The project decisions needed between these quarterly events are taken by the sponsor teams in the projects. Sponsor teams consist of up to three people who represent the four major business areas. Gate decisions are also made by the sponsor team plus a representative from one of the major business areas if not represented in the sponsor team. Minor resource adjustments between projects are handled biweekly in a 15-minute session in front of a whiteboard in accordance with the project priorities.