Mediocrity in Strategic Portfolio Management(SPM) is a ticking time bomb that is threatening the success of organizations everywhere. The cost of failure is staggering, with recent studies showing that up to 70 to 90% of business transformation projects fail[i] due to poor portfolio management. This equates to billions of dollars wasted on subpar results, drained resources, and lost opportunities. The time for complacency is over, and organizations must take a stand against settling for mediocrity in SPM.
It’s time to challenge the status quo and ask if relying solely on experts in project management and software deployment is enough. The truth is, the current software and consulting offerings are not tailored to the unique challenges of SPM, focusing more on project execution and adaptive program management, while neglecting the critical components of SPM that drive business outcomes.
SPM is not just a matter of executing projects, it requires a holistic approach that encompasses capabilities, processes, and technology to align finite resources with business strategy. According to Gartner[ii], organizations that effectively connect SPM processes to their enterprise strategies are 3.2 times more likely to achieve successful outcomes. But despite this, many organizations are still failing to get it right.
The problem lies in the skillset needed for SPM and the methodology used. Project management skills aren’t enough. SPM requires a unique set of skills, including:
- Strategic Planning and Analysis
- Enterprise Architecture
- Financial Management
- Risk Management
- Stakeholder Management
- Change Management
Moreover, the current methodologies used for SPM lack the guidance and optimization capabilities needed to align resources with strategy, surface strategic dependencies, and track portfolio performance against strategic goals.
The cost of failure in SPM is too high. Don’t settle for mediocrity, invest in the right strategic portfolio management solution, supported by the right people and approach, and start seeing results. A comprehensive SPM methodology must include the following key elements:
- Alignment of resources with strategy and objectives
- Surfacing of strategic dependencies
- Tracking of portfolio performance against strategic goals
- Product planning capabilities
- Resource capacity planning
- Portfolio and resource reprioritization and allocation.
Don’t be a statistic, take control of your portfolio management efforts and elevate your organization to the next level. The benefits of success are too great to ignore, and the cost of failure is too high to bear. Make the necessary changes and embrace a more comprehensive and effective approach to SPM. Don’t settle for mediocrity, strive for excellence.
[i] Companies That Failed At Digital Transformation And What We Can Learn From Them, Blake Morgan, Forbes, 2019 and conversations with Gartner analysts.
[ii] Effective Strategic Portfolio Management Drives Better Business Outcomes, Robert Handler, Lorri Callahan, Will McHenry, Shilpa Pental