Organizations execute their strategies through the creation of strategic initiatives. The execution of the organization’s strategy happens through the use of programs and project portfolios.
Senior management
It is important to consider that strategic transformation can only be accomplished when senior management engages deeply in project management.
In addition, the managerial perspective has changed from the past. It has changed from focusing on one project, towards managing a whole collection of projects as one large entity at the same time.
Portfolios of different project types are under the governance of organizational units or responsibility areas. Whereas, managerial processes must link projects to business goals and the expectations set by the company strategy.
Portfolio management
As the rate of change in any industry is so fast, organizations are increasingly becoming more projects based and therefore they are focusing more on effective project management.
Portfolio management is a practice to manage one or more portfolios that aims to achieve the organization’s strategic objectives. It is basically an executable plan of linking the projects, programmes, and portfolios to the organizational strategy.
There are different theories regarding the relationship between portfolio management practices and their performance. In general, a company should rather customize its project portfolio to correspond to all the different processes and the strategic innovation needs.
Program management
The management of multiple projects refers to the organizational level environment that allows management of projects concurrently. This can refer to projects that vary in size and importance, and they may not necessarily be directly related.
Program management is a centralized and coordinated approach that manages goal related projects to achieve the program’s strategic objectives.
It is important to understand that the complexity and maturity levels of every organization differ, and the way in which decisions are made must be adjusted accordingly.
Keep in mind
It is essential for each company to design a portfolio planning process to fit the nature of its business and to compliment the relationships the firm typically maintains with its customers and key partners.
