Mastering Strategic Portfolio Management
Unlocking strategic portfolio management starts by acknowledge these key imperatives
Organizations that focus on execution are already using some combination of adaptive project management tools. But if you’re looking to increase business agility, Gartner advises you to also invest in strategic portfolio management. The key to successfully adopting strategic portfolio management is balancing mastery of execution with the ability to deliver strategically across all investments. To do that, you’ll need to address these imperatives.
Gain Visibility Across All Work
Today’s PMO must address the Tri-Modal Reality – the fact that projects are executed in a variety of methodologies and tools across the enterprise – and develop capabilities to deliver visibility & insight across all work.
Derive Execution from Strategy (from projects to products)
Leveraging the right top-down investment approach (Project-, Program- or Product / Capability-Driven) enables you to prioritize all investment and provide a direct line-of-sight from strategy through execution.
Adopt a Continuous / Dynamic Planning Model
Move from a static annual planning model to a continuous or rolling-wave planning model will enable you to dynamically adjust priorities to reflect changing/emerging needs/strategy, and provide the agility to optimize spend and maximize value.
Manage Portfolio Outcomes
Whether it’s financial, reputational, regulatory, or any other category label you want to apply, every investment has to produce a meaningful outcome or it fails. Outcome management is the key to ensuring that every initiative delivers what you were actually hoping for.
Standardized and align all demand with strategy
Most organizations are trying to deal with the dual challenge of controlling the amount of demand and where it’s coming from, and the ability to analyze and prioritize that demand. Effective strategic portfolio management, enables you to address both of those issues.
Maximize Resource Utilization
Balance resource demand and supply and better utilize your most important assets, and develop the capabilities you need to better support your organization’s preferred execution technique(s).
Generate Cost Transparency
Become “CFO of your portfolios” by elevating the importance of financial data and more effectively integrate it across the entire project and program lifecycle, so you can treat every project/program as the business investments they are.
Generate Roadmaps to help visualize and manage dependencies across the enterprise
Automate and maintain strategic roadmaps to develop the ability to visualize, understand and manage the relationships between all investments and the strategic capabilities they are intended to impact.
Check the status of your status reports
Generating status reports can be a logistical nightmare, but with the right automation, it’s possible for any organization to dynamically build performance dashboards and centralize the administration of the entire process.
Model the impact of any decision
In an uncertain world, it’s critical to be able to understand the impact of any change to your portfolio before you make it. It’s not enough to rely on static reports, you need the ability to run what-if scenarios , analyze changes from any angle and manage it all work across the tri-modal reality.
Scale Agile Across Your Business
Whether actively integrating Agile tools and work management into your organization, or simply trying to harmonize the wide variety of tools and methods with your overall approach to work governance, it’s critical you do so without impacting or slowing innovation.
Going beyond managing projects
Organizations must go beyond project execution to manage the business & IT assets they are transforming. Unless you understand and manage that dynamic and relationship, you’ll fail to develop a 360-degree view of your business and you’ll underperform.