Strategic management of multi-business portfolios in the public sector: A case study in defence science and technology

The purpose of this paper is to adapt the traditional corporate portfolio management approach to the strategic management of multi-business portfolios in the public sector.

The approach presented in this paper is based on a research project conducted within the Defence Science and Technology Group, Australian Department of Defence. It was developed iteratively and incrementally over the course of one year with a reference group comprising 15 middle management representatives and several members of the senior management team.

The approach developed comprises a multi-stage process and an assessment framework designed to capture the complexity of the problem space, build a strategic narrative, and facilitate senior leadership decision-making. The process is aimed at eliciting the required information, promoting contestability of the results, ensuring appropriate consultation, and ultimately achieving senior leadership consensus on priorities. The assessment framework is used to assess and visualize the balance of organizational capabilities.

By synthesizing and visualizing information on past performance and future potential, the approach presented in this paper may be used to facilitate strategic decision-making by senior management in the public sector.