In this chapter, the book explores how organizations can apply Evidence-Based Management (EBM) at the portfolio level to ensure that investments align with customer value and business impact. Instead of spreading resources across multiple projects without clear justification, businesses should use empirical data to prioritize and fund initiatives that create the most value.

Managing Investments with Real Data

Many organizations manage their portfolios (multiple projects and initiatives) based on:

  • ❌ Internal priorities rather than customer needs.
  • ❌ Politics and stakeholder influence rather than data.
  • ❌ Fixed budgets that don’t adapt to changing market conditions.

This can lead to funding low-value initiatives while ignoring opportunities that create real impact.

A better approach is to use EBM principles to evaluate and prioritize investments based on real customer value, market trends, and performance data.

How to Apply EBM to Portfolio Management

✅ Invest in Value, Not Just Projects – Instead of funding projects because they were planned, evaluate whether they still create business impact.

✅ Measure and Adapt Investments – Regularly assess portfolio performance using real data, adjusting budgets and priorities as needed.

✅ Use Key Value Areas (KVAs) to Guide Decisions – Focus on:

  • Current Value (CV): Are existing projects delivering results?
  • Unrealized Value (UV): Are there better opportunities to explore?
  • Time to Market (T2M): Are we funding projects that deliver value quickly?
  • Ability to Innovate (A2I): Are we investing in future adaptability?

✅ Eliminate Waste – If a project is not producing results, organizations should have the flexibility to stop or redirect funding, rather than continuing just because it was planned.

Final Thoughts: Smarter Investments for Greater Impact

Organizations that apply EBM at the portfolio level will:

  • Fund the most valuable initiatives.
  • Adapt investments based on real-time data.
  • Ensure every dollar spent contributes to measurable outcomes.

By managing portfolios based on customer value rather than internal assumptions, businesses can maximize impact and stay competitive.