PPM and the link to the organization’s strategy

PPM and the link to the organization’s strategy

The trend of interest in the field of PPM and strategy topics has increased regularly in the last decades. It is expected to continue to increase in the future. Project Portfolio helps companies to achieve their organizational strategies and objectives. Organizations can use PPM to identify projects and portfolios that best align with their objectives.

The link with strategy 

Business strategy has a relation to PPM and its success. The alignment of the portfolio with the organization’s strategic direction depends on the ability people have in managing the project portfolio. The strategy relies on PPM approach, and at the same time the PPM practices depend on the organizational strategy.

Senior management involvement

To implement corporate strategy successfully it is important to involve senior management in project management. Today, unfortunately most executives have not learned the language of project management yet. In addition, to implement good governance practices it is key to have several things in place such as the formal alignment among project plans, programs, portfolios, and business.

Lastly, but not least important, it is crucial to provide executives with clear reporting of risk and status. In addition, there are also operational issues that may also require senior management involvement. Even in this case, it is important to have upward flows of information in order to allow executives to stay up-to-date.

Development of the strategies

Project portfolio management supports the development of the strategies by providing companies with useful information. In addition, a portfolio has relations with its components and projects.

PPM can influence company’s strategy in mainly five areas: measuring portfolio component performance and risk management, allocating financial resources, allocating human resources, allocating material or equipment resources, maintaining alignment to the strategic objectives (PMI, 2013).

Essentially, project and program management have the responsibility to manage resources. This is a critical aspect when implementing corporate strategy into projects.

Keep in mind

Strategic change can only be achieved when senior management is deeply involved in project management. To reach this goal the first step is to support strategic professionals and executives in learning the language of project management.

Francesco Pecoraro

Francesco has extensive experience as a project, program and portfolio manager, project management officer (PMO), digital transformation and strategic consultant. He is also considered a communication, public speaking and leadership expert.

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