The Rock in the Surf

Thursday, 19. September 2019

Why Strategic Project Portfolio Management Is an Efficient Competitive Advantage

A guest article by Jörg Rietsch
 

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.

Answers to the Question If and When Which Type of Investment Is Efficient

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.

Strategic Portfolio Process
Illustration: Project Portfolio Management taken apart – components and impacts.

Strategic Portfolio Management: Taking Stock of Projects and Creating Qualified Basis for Decisions


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.


Credits (from top):
© istock.com | boule13
© adensio GmbH I Jörg Rietsch
© adensio GmbH I Jörg Rietsch



About the Author

Jörg Rietsch For Jörg Rietsch, the cultural aspect in change processes is one of the most important. This is another reason why, in addition to his strong practical orientation – which can sometimes deviate from "standards" – he always includes the impact on people and their working methods in companies in his consulting mandates. Jörg Rietsch accompanies his clients as a discussion and sparring partner as well as a pioneer for sustainable portfolio and project management.
 
He is founder, managing director and change architect at adensio GmbH – ways to project culture and offers 20 years of experience in medium-sized and large companies on processes and methods, the human factor and software implementation in the field of portfolio and project management/multi-project management. In addition, he has a teaching assignment in project management at the Duale Hochschule Lörrach and a teaching assignment in portfolio management at Avanti KV in Basel/Switzerland. Various further training courses in project management, project portfolio management, agile corporate management, IT project coordinator/experience education and change management round off his profile.

About adensio

Strategic project portfolio management defines topics, disciplines and goals in advance. In that way a maximal benefit can be reached – regardless if it involves strategic control of the company, risk minimisation, profit maximisation, reorientation and increasing of innovation power, optimising resource workload or optimising quantitative and qualitative implementation of projects.

adensio GmbH is an established external service provider in the field of project and portfolio management. adensio accompanies, consults and support as project partner, technology and process expert, PPM competence and change architect as well as presenter, coach and certified trainer.

Satisfying differing and complex demands and tasks – adensio GmbH disposes of specialised expertise and experience in relation to up to date and powerful strategic project portfolio management.