The world of portfolio management is evolving fast. Traditional project portfolios, built on fixed funding and sequential delivery, are increasingly being augmented with agile, product-focused value delivery. Organisations now operate across multiple delivery methods, placing pressure on the PMO to adapt.
Stakeholders still expect a single, clear view of performance, ROI, and risk. Yet agile emphasises autonomy and rapid iteration, while governance requires structure and accountability. The challenge for today’s PMO is to make agility and governance work together without losing sight of the value being delivered.
PMOs have always been accountable for return on investment. In a traditional environment, this is straightforward: projects have clear start and end dates, defined scopes, baselines, and benefits plans.
The challenge arises when work is delivered by agile product teams. The Manifesto for Agile Software Development states that “working software is the primary measure of progress.” While this is useful at the team level, executives need more: they want to know whether the organisation is achieving measurable business value, not just releasing software. In a hybrid delivery environment, uncovering that insight can be complex.
Value streams were created to address this challenge.
Definition: A value stream is the complete set of activities that delivers value to a customer, from initial request through to realisation of value.
Value streams differ from traditional projects in that they:In short, value streams allow agile delivery to be managed at the portfolio level without forcing teams into rigid project structures.
The key is to recognise value streams as a new type of portfolio item. They should be funded, governed, and tracked alongside other work types, but with metrics and controls suited to their purpose.
Governance should adapt to the work type:Both approaches should track cost, benefit, and risk, feeding all data into a single consolidated view for executives. This provides clarity across the portfolio without constraining agile teams.
As the Manifesto for Agile Software Development reminds us, “The best architectures, requirements, and designs emerge from self-organising teams.” Empowered teams may also choose the tools they use to manage their work.
In practice, hybrid portfolios almost always operate across multiple systems. Agile teams might work in Jira or Azure DevOps, while the PMO relies on a PPM platform for governance, investment tracking, and reporting.
In this environment, the PPM platform evolves from a scheduling tool into a strategic visibility hub, enabling the PMO to:Delivery teams can continue working in the tools that suit them, while the PMO gains aggregated insights for decision-making and executive reporting.
Each value stream should be linked to a measurable outcome, defined via OKRs, KPIs, or specific metrics. For example: “Increase self-service transactions from 40% to 60% by Q3.” This outcome should be tied to a financial benefit: “Each 1% increase saves £100k per year in contact centre costs.”
Epics and features should be traceable to these outcomes, ensuring delivery aligns with intended benefits. This creates two parallel views for tracking progress:Value is recognised only when the outcome metric shifts as intended, not merely when work is complete. This approach allows the PMO to calculate portfolio-level measures such as net present value (NPV) and compare initiatives on a like-for-like basis.
Other key KPIs for a hybrid portfolio include:The PMOs that include value streams today will be the architects of measurable business value tomorrow. By navigating the hybrid world with confidence, they ensure the portfolio delivers not only projects or products, but sustained, meaningful impact for the organisation and its customers.
Discover how The Anywhere Platform and LightingPMO helped Inigo improve structure and governance across their change portfolio, without losing their entrepreneurial agility.
