Interest in project portfolio management has increased during the last few years. it has happened because organizations increasingly need efficient strategy processes to address the challenges in their changing environment. Basically, organizations increasingly need to innovate in order to survive. Project portfolio management allows the coordination of one or more portfolios to achieve the organization’s strategic objectives.
Implementing the Strategy
To implement the company’s strategy it is important to have a strategy process in place. In fact, a strategy is important because it helps to determine the goals, mission/objectives and the policies needed.
Today, companies create a plan of action that helps to achieve a particular goal. This plan is often defined as a strategy. Luckily, organizations have learned to define their position in the market, analyse their competitive environments, acquire competitive and corporate advantage. Finally, they have also understood the threats to sustaining that advantage.
Strategic transformation cannot be accomplished without deeply involving senior management in project management.
Competitive strategy
Competitive Strategy is a long term plan that a company creates to gain competitive advantage over its competitors in a specific industry. Basically, it has the objective of creating a defensive position by generating a superior Return on Investment (ROI).
This type of strategy can be really helpful when the industry is very competitive and consumers have almost similar products to buy.
According to Porter, competitive strategy with its core disciplines of competitor analysis, strategic positioning, and industry analysis, are now an accepted part of common management practices. Connecting a company to its environment, is the essence of formulating a competitive strategy. Basically, the environment refers to the industry or industries in which the company competes, including the economic and social forces.
Keep in mind
The business can become complex, but by understanding the order of strategies and problems, solutions can more likely be identified. Project portfolio management allows to achieve the organization’s strategic objectives. Finally, today the leading firms of a specific industry are those who have taken advantage of the changing environment (globalization, technological change and so on). These firms compete differently and most importantly are innovative in their business model.
