Why strategic project portfolio management is an efficient competitive advantage
Target-orientated investments, optimising workload and successfully implementing additional company strategies – strategic project portfolio management allows for effective project execution, for example when implementing changes as part of digitalisation and in relation to levelled capacity planning.
Two factors caused massive changes within the social and economic life during the last couple of years – globalisation and digitalisation have reached and penetrated all areas. Companies are faced with multiple and complex challenges, from optimising all processes to developing stable future strategies. Speed and volume of these changes will even increase further.
For decision makers powerful, strategic portfolio management will gradually become a solid rock to establish and maintain a high level of decision quality and speed of decisions. In addition, agile organizational forms ensure that overall transparency and the available information change.
The necessity to be able to use actual strategic portfolio management is clear but each one has to be developed individually for the respective company situation. The portfolio has to be able to show the relevant structures, but also the positioning of the companies. A medium-sized company has different requirements and preferences than a globally acting enterprise; a technology driven start-up within the IT sector has different organisational structures then a traditional manufacturing business.
Even companies which develop innovatively and already use agile project management methods and agile project organisations, profit from modern project portfolio management. In all cases it has to be evaluated sooner or later which undertaking, which project and which strategy causes what, for which price.
Investment transparency, efficiency and especially strategy conformity of the project portfolio have to be evaluated regarding their operative successes and innovation capacity, amongst others. A company wide portfolio also considers all other investments such as M&A activities and investments in real estate and locations, to deliver a truly comprehensive picture.
Only in this way is information made available that allows for analysis and evaluation and is the profound basis for considering further activities. Better and faster decisions lead to better company results.