Today’s competition is getting more fierce than ever. In addition, product life cycles are becoming shorter, and never-ending change emphasizes the importance for companies to deliver on strategic intent in the most efficient ways. In fact, it is not acceptable to waste time and money to achieve objectives. Delivering low-quality products is not a solution. Effective portfolio management helps organizations to optimize their resources in order to support the most important and strategic projects and programs.
Portfolio management benefits
Project Portfolio management allows companies to improve communications and cooperation between people who define the strategy and those involved in executing it. In fact, this can be particularly useful in organization that have functional silos which usually produce lack of communication and collaboration.
Portfolios are created to ensure projects and programs align with the strategy of the business.
When projects and programs align with portfolio management strategy organizations succeed. This can happen because it allows them to deal with uncertainty by making the best and most strategic decisions. In addition, it is important that project execution aims to deliver value at each step along the way.
The success in portfolio management depends on people, processes, and cultural factors. In fact, specific tools or techniques are secondary.
Portfolio management requires companies to make a commitment in order to provide the needed resources.
The most successful companies that use portfolio management effectively have numerous traits in common. For instance, they focus on the practice of portfolio management and dedicate attention to its key elements. In addition, successful organizations firmly believe that portfolio management gives them a big competitive advantage.
Keep in mind
To be successful organizations need to balance risks and opportunities across the whole portfolio. In fact, portfolio management allows organizations to improve delivery, and most importantly identify and bring greater value from strategic project and program investments.