One of project portfolio management’s (PPM) greatest gift is that it allows the project-driven organization to create a framework for decision-making within a project and an organization. Enterprises are now becoming more project-driven, and the need to ensure alignment between projects and strategy is essential for long-term success. In this article at PMO360, Francesco Pecoraro explains how companies must align project portfolio with business strategy to achieve long-term success.
Steps to Align Project Portfolio with Business Strategy
When companies decide to align strategy with a project portfolio, business leaders must consider two aspects. “The first thing to take into consideration is that all projects should be consistent with their business strategy. The second element is that the breakdown of the spending should reflect their strategic priorities,” says Francesco. Here are some steps that you must follow to succeed with PPM.
Determine the Project’s Impact on Company-Wide Strategy
As a business leader, you must make sure that every project provides a clear and undeniable value towards further company strategy in the long term. You must trace and document these values and, further, communicate them to all the stakeholders.
Adjust Project Strategy Whenever Necessary
Change is constant. Therefore, you must revisit the company goal, all available resources, each project within each program to ensure PPM remains aligned with business strategy. Investing money and resources in non-relevant projects demonstrates that your organization is not revisiting and adjusting to changes in the strategy.
Careful and complete documentation saves misinterpretation and misunderstandings. You must document the company-wide goals, how programs and projects align with goals, resource allocation, capacity planning, and everything that follows.
Communication is the Foundation for Success
Having a plan and documenting everything proves ineffective if no one knows about it. Further, there is no benefit in communicating information to the wrong people. Hence, you must communicate the information required with the right stakeholders promptly.
To read the full article, click on https://www.pmworld360.com/blog/2020/08/04/how-to-align-project-portfolio-with-business-strategy/.