Portfolio-Based Development of Military Capabilities: a PM²-PFM–Driven Approach for Defence Organisations
Abstract
Purpose. To design and validate a transparent prioritization and governance model that links capabilities, programs, and projects and supports informed investment decisions in the defense sector.
Method. The study has an applied, methodologically-oriented design with built-in demonstration testing on a stylized but representative portfolio of capability development initiatives of a defense organization. The conceptual framework is PM²-PfM (Portfolio Management) in conjunction with PM²-Programme Management and PM² Project Management, which ensures traceability “strategy – capability – programme – project – result/benefit”.
Findings. А portfolio approach to capacity development based on PM²-PfM with the traceability of “strategy – capability – programme – project – result/benefit” has been operationalized.
Theoretical implications. It shows how the portfolio composition changes under different budget and time scenarios; balanced options are proposed, taking into account critical dependencies between initiatives, which complements the existing portfolio management methodology.
Practical implications. Transparent traceability of trade-offs is proposed, the cycle of investment decisions is shortened thanks to standardized artifacts, which will affect the increase in the share of funding directed to critical capabilities within stable budget limits.
Originality/Value. An integrated ranking of initiatives and a “value–complexity” map have been constructed, allowing for the quick identification of “quick wins”, “strategic investments”, and the ability to postpone or reformat.
Research limitations/Future research. The limitation of the study is the use of open-access sources. Future research will be aimed at studying approaches to implementing portfolio management in the system of the Ministry of Defense of Ukraine.
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References
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Copyright (c) 2025 Mykola Tkach, Ludmila Nefiodova, Pavlo Makoshenets, Vitaliy Tkachenko
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