Recommendations on the implementation of portfolio management in the defense management system of the Ministry of Defense of Ukraine, the Armed Forces of Ukraine and other components of the defense forces of Ukraine

Portfolio management is an integral component of project activity and includes a set of interrelated organizational processes and methods that allow to manage projects, project programs and other activities (hereinafter referred to as portfolio components) aimed at realizing the goals of defense programs in the most effective way. Portfolio management provides a consistent approach to the management of portfolio components, which allows: aligning costs with the goals and performance indicators of defense programs; optimize the use of resources; maximize benefits from the resources involved; define and agree on the expectations of interested parties; ensure transparency of implementation of portfolio components and their status. Portfolio management is a continuous decision-making process whereby the list of portfolio components is subject to periodic review to align with defense program objectives. Portfolio components can be changed, accelerated, delayed or discontinued. The need to implement best practices in portfolio management in military management bodies is due to the need to reform the defense management system and bring it closer to Euro-Atlantic principles and standards.

For this purpose, taking into account the specifics of the defense sector, military strategy and public administration, the manuscript substantiates the application of a comprehensive portfolio management approach in the Ministry of Defense of Ukraine, the Armed Forces of Ukraine and other components of the defense forces, which combines strategic, systemic, project and process-oriented approaches , as well as risk management and focus on results) and portfolio management implementation methods and tools (capacity analysis, project priority matrix, value-complexity matrix, scenario analysis, key performance indicators, benefit tracking, portfolio dashboard, balanced scorecard, "bubble chart", portfolio archive). In order to develop effective recommendations for the implementation of portfolio management in military administration, the factors that can complicate this process are outlined (systematic underfunding of the defense sector, shortage of qualified personnel, lack of modern information systems, corruption, post-Soviet corporate culture).

In addition, the PPBE model is proposed (development and use in the daily activities of the Ministry of Defense of Ukraine of project management architecture – PPBE; architecture of defense programs based on existing organizational structures and functional groups of capabilities; architecture of project management, programs through portfolios by their types and functions; architecture planning and development of projects through their creation, development and implementation, utilization; architecture of capabilities of types, branches of troops, commands). Recommendations were given on the implementation of portfolio management taking into account the proposed PPBE model (development of the regulatory framework, organizational and administrative documents on portfolio management; creation and reorganization of project portfolio management functions; improvement of staff qualifications; organization of providing the portfolio of projects, programs and individual projects with the necessary resources; development of leadership qualities of individual project, program and project portfolio managers; creation and modernization of infrastructure for project portfolio management).