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Connecting Strategy to Execution

(Part two of a series on the forces helping to drive a tactical to strategic transformation of the PMO.)

To be truly successful, every organization must have a well-articulated strategy. And it’s crucial that this strategy be tightly aligned with an execution plan. But for many, there’s still a significant gap between strategy and execution. Organizations struggle to bridge this gap because they lack the clarity required to focus on the capabilities that will help them achieve their strategy.

Capabilities, of course, are the things that a company uses to create its products and serve its markets – things like business processes, people skills and technology. Successful companies understand that there’s a direct relationship between their investment in strategic capabilities and the success that they achieve. This concept is core to truly aligning strategy with execution.

Something else happens when an organization focuses investments and resources on the key business processes it uses to create, produce, sell, and deliver its products or services. Those strategic capabilities are transformed into a competitive advantage – something every organization must have to be successful.

But it’s not always obvious which business processes are strategic. Identifying them requires creativity, insight and, most importantly, a capability model to help clarify the relationships between strategy, demand, supply and execution. Beyond clarifying an organization’s business structures and relationships, a capability model also helps the organization focus its attention on prioritizing investments and managing execution costs.

Now that we understand the connection between capabilities and strategy, we can identify which capabilities are strategic, and how those capabilities relate to the organization’s investment programs. Armed with this new holistic perspective, the next thing to think about is prioritization.

In my next post, I’ll discuss making the right tradeoffs, allocating resources based on strategic impact and having confidence in a roadmap that helps guide the organization into the future.

Mike Gruia, Co-founder

Mike is a visionary leader in Portfolio Management, known for his deep knowledge and unique thinking. He grounds his approach in five fundamental pillars: economics principles, applied mathematics, business architecture concepts, system dynamics, and behavioral aspects. Recognized by industry experts, including Gartner, Mike is considered a pioneer in Portfolio Management. He has co-founded three companies specializing in Portfolio Management solutions, including UMT Consulting, a leader in the field before being sold to EY in 2015, and UMT360, sold to Teleo Capital in 2019. With degrees in Industrial & Systems Engineering and Operations Research from Columbia University and the Technion Israeli Institute of Technology, Mike has played an active role in shaping the evolution of Portfolio Management, challenging current practices, and anticipating future trends.