ANALYSIS OF THE EXPERIENCE OF IMPLEMENTING THE PORTFOLIO MANAGEMENT METHODOLOGY IN THE DEFENSE SECTOR OF THE LEADING NATO MEMBER COUNTRIES

In the defense sector, leading NATO countries have long used portfolio management methodology, which is a key tool for effectively allocating resources and achieving strategic goals. Synthesis of this experience is an urgent need for the domestic security and defense sector. Introduction. The article describes the basic concepts of portfolio management standards The Standard for Portfolio Management and ISO 21504:2022. A review analysis of the experience of introducing portfolio management methodology in the defense sector of leading NATO member countries was carried out. The features of this process in the USA, England, and the Republic of Lithuania are revealed. It has been determined that portfolio management in the field of security and defense of NATO countries has long been an effective means of assessing the state of their defense capabilities and determining the strategy and ways to achieve the required level of capabilities in an optimal way in the future. The essence of the concepts of “portfolio management” and “strategy for managing a portfolio of projects in the defense sector” is clarified using the example of the interpretation of these terms by the standards of leading NATO member countries. The directions for determining the effectiveness of the functioning of the mechanism for managing defense resources within the framework of portfolio management are assessed. It has been determined that one of the modern methods of managing project portfolios in the defense sector, which is common in the security and defense sector of NATO member countries, is the PM²-PfM methodology, as well as the capability-based defense planning method, and their features are revealed. The results of the study indicate that the formation or revision of portfolios should be carried out on the basis of a certain set of criteria, where the main ones are new technologies and opportunities. Conclusions are drawn for Ukraine on the development of portfolio management for the Ministry of Defense and it is recognized that in modern conditions of a military state, the completeness of implementation is urgently needed and critically important to ensure the defense capability and sustainability of the country. Purpose. The purpose of the study is to analyze the formation of methodologies for introducing portfolio management in the defense sector of the leading NATO member countries with the identification of their basic principles and key aspects of adaptation and implementation into the domestic practice of defense management (defense management). Materials and methods. During the study, scientific methods were used: theoretical generalization (to characterize the management methodology in the defense sector of NATO member countries); analysis and synthesis (to determine the advantages of portfolio management methodology for domestic practice); tabular and graphical (for clarity of the study); generalization of results (to form conclusions).