Project Portfolio as a reliable strategy execution tool
It has been generally stated that the organisation knows what should be done to achieve the strategic goals. Executing the organisation’s strategy is seen as one of the biggest challenges.
If the execution requires actions, such as, for example, development of operations, product development, or investments, we move to the next challenge. How is the organisation able to prioritise the objects of development (=input/output/risks), set the right objectives for the development task, appoint resources and come up with a realistic schedule? Here, even a single wrong choice creates a risk for the development task to fail even before the actual work has started. The project is doomed to fail (at the wrong time – in the wrong place), and not even the best project manager can save it.
If the management has no understanding as to how the current development activities are emphasised and prioritised regarding objectives, how key people are available, and how the project should be timed to the present – management cannot create good conditions for success.
It does not help to polish the strategy when it is time to perform and execute
In the execution phase, one should not go back to sharpen or polish the strategy. One should prioritise what needs to be done, allocate resources and the schedule, and really start doing things. When a market-based business environment requires differently prioritised actions from strategy execution – then management needs to come up with quick decisions. Without decisions, there will be no change in the direction of activities. Projects do not change their directions, they proceed according to the plan.
By examining the existing project portfolio, the direction to which it is taking the organisation should be visible. If the project portfolio does not convey and direct it, the project portfolio has not been parameterised correctly for decision-making.
When were the criteria and classifications of the organisation’s project portfolio last assessed and updated?
It is important to assess if the project portfolio has already helped the organisation reach its objective, or if there is still work to do. Is it time to define new objectives, new development activities, and give them the right priorities? When projects are completed and provide the organisation with enabling changes – it is necessary to regularly check how the entire project portfolio has succeeded, and how the remaining activities should be prioritised going forward.
An outdated project portfolio is a risk for execution
For execution, a project portfolio with outdated strategic goals provides wrong premises and objectives. An outdated project portfolio is one of the risks for execution The reason why a project portfolio is not updated could be that the ownership of the project portfolio is unclear, and there is no one providing the order to update. It is important that the owner of the project portfolio knows his or her responsibility and is active.
