When it comes to aligning investments with company strategy, organizations need to take a hard look at their existing system for managing investments. The current business operating system includes products and services, and capabilities such as processes and assets. What’s needed is an additional investment system capable of addressing both rapid change and challenges created by competition. The second investment system, comprised of an investment portfolio, will continually assess the business, industry and the organization and will react with greater agility, speed and creativity than the existing PPM process.
There are three main principles of this dual investment system:
- Two systems, one organization
The business operating and enterprise investment systems must be inseparable with a constant flow of information and collaboration.
- Greater financial management
Financial management must go beyond project management and accountability to a completion plan.
- Many moving parts, not just the project and its tasks
To move more quickly and link the business operating and investment systems, you must have more people than ever before collaborating and involved in the strategic game change.
To learn more about the differences between a project and product-focus and the benefits of adopting a product-based approach, read UMT360 CEO Mike Gruia’s complimentary whitepaper Should You Shift from a Project to Product-Based Investment Approach now available here.