#100: '=' versus '=='

If only strategy execution could be reduced to a series of equations! Alas, no. There is a staggering amount of qualitative decision making that has to happen in order to get things done. It is a natural of being in an imperfect world, with humans involved!

However, its important to understand the qualitative meaning behind '=' and '==' in portfolio management. Briefly, it is this:

• Work = Resources
• Work == Resources

The first equation assigns 'resources' to 'work'. If resources are greater than work, it reduces gross margins by raising expenses. It also fosters a culture of wastefulness and entitlement. If work is greater than resources, you run the risk of things not getting done and employee burnout and attrition.

The second equation checks for 'equality'. It is another way of asking, "Do we have a balance between the work and resources?" This requires a focus on the people competencies needed and bridging the skill gap via training or hiring. It also requires understanding of current versus needed capabilities.

Computer programmers will recognize this concept right away as being two fundamentally different actions. Program and project portfolio managers have to work both equations constantly to ensure their execution is set up for success.