Why strategic portfolio management can leverage the advantages of adaptive governance
Successful portfolio management requires understanding which projects match the strategic goals of the company, which resources are available at the given moment and when is the right time to manage those projects. Many times, companies struggle to choose the right projects to manage and obtain poor results. Most of the time, it is due to misallocation of resources or mistakes in budget management. This can prevent those companies from meeting their business goals or even slow down their overall growth.
If the data is incomplete, it is almost impossible to make the right decisions. Creating successful portfolio management can be hard when there is a large degree of uncertainty involved. However, decisions have to be made at all times, even when the circumstances are changing in unpredictable ways.
Implementing strategic portfolio management and adaptive approach to management is the best solution to help organizations get a much better handle on their project portfolio and maximize its overall success.
What is a Strategic Portfolio Management (SPM)?
In today’s world, companies heavily rely on portfolio project management to meet their business goals and optimize their resources. However, PPM doesn’t take into account the fact that the external circumstances surrounding the projects won’t stay stable. We live in a world that is constantly changing. While the outside circumstances and conditions can look a certain way while strategically planning the execution of a project, they may change and fluctuate during the execution phase.
Not taking into account these ever-changing circumstances is the main reason why so many projects fail. Traditional PPM focuses on deciding which projects to work on at a given moment. Strategic portfolio management, however, focuses on deciding which projects to continuously work on to improve the project portfolio’s overall performance. This is also where an adaptive approach to management comes in. While the concept of adaptive governance has originally been developed to improve environmental processes, it can also be used in business.
Adaptive governance is a learning approach that helps companies make decisions and adapt their procedures and strategies to the constantly changing environment. In conjunction with strategic portfolio management, implementing an adaptive approach to management can help organizations embrace uncertainty, rather than feel threatened by it. As the world keeps on changing at all times, embracing uncertainty and change through adaptive management as well as SPM is the most effective way to improve business results.
There is a number of tools that allow companies to implement strategic portfolio management. One of these tools is Uppwise SPM, which is a Strategy & Portfolio Management software that makes it extremely easy to map, plan and execute your strategies.
5 reasons to consider strategic portfolio management to leverage the advantages of adaptive governance
There are several powerful reasons to consider SPM to leverage the advantages of adaptive governance. Let’s explore them.
1. Strategic portfolio management allows organizations to create adaptive strategies
In other words, SPM enables organizations to define strategies for the execution of the projects while taking into account the changing circumstances throughout all the project execution phases. Uppwise SPM has a dedicated strategy module that allows for careful strategy-to-execution planning and mapping out all the key elements leading to the desired business outcome to help organizations create adaptive strategies for their projects.
2. Strategic portfolio management allows organizations to align investments with strategy
Having a well-planned, investment-aligned strategy is essential to improve project execution and achieve the desired business goals. Traditional PPM tools do not offer enough flexibility to support investment strategies in alignment with the ever-changing circumstances. One of the key benefits that Uppwise SPM offers is a unique set of features that allow for funds to be allocated in a strategic way, based on the outcomes of the strategic portfolio analysis.
3. Strategic portfolio management allows organizations to optimize their project portfolio and reach their strategic goals faster
SPM tools, such as Uppwise SPM, offer a bird-eye view on the whole project portfolio and more visibility into each one of the company’s projects. This allows for efficient optimization of key elements in the delivery of the project. Uppwise SPM helps companies choose the optimum portfolio composition and maximize the strategic alignment of key elements such as investments, business capabilities, products, and projects. This allows for a more successful delivery.
4. Strategic portfolio management allows organizations to analyze real-time data for project optimization
Implementing strategic portfolio management and an adaptive approach to management helps with the overall portfolio optimization. In the world of constant change, analyzing real-time data and using it to improve and optimize the execution of the projects give decision-makers better insights to make strategic decisions. Uppwise SPM enables what-if analysis and the creation of multiple scenarios to help organizations make better decisions and align the strategy-to-execution processes of their projects to the changing environment.
5. Strategic portfolio management allows for better decision making
Managing a project portfolio in an ever-changing environment is not an easy task. Using the right SPM tool can make this process much easier, as tools such as Uppwise SPM provide deeper insights into the company’s projects. The goal of implementing strategic portfolio management within a company is to help decision-makers make better and faster decisions based on deep data analysis. The right SPM tool can help organizations choose the right projects that align with their strategic goals and ultimately optimize their project portfolio.
Companies that still implement a traditional portfolio management system may run into multiple obstacles when faced with inevitable, external changes. The most efficient solution is incorporating strategic portfolio management. Thanks to strategic portfolio management implemented with an adaptive approach to management, organizations are able to create a more profitable, high-value project portfolio that generates more return on investment, saves resources, brings more efficiency in cost and budget management, and improves the overall business results.
Companies who want to reach their strategic goals faster and ensure customer satisfaction even when external circumstances change should consider investing in the right SPM tool. Tools such as Uppwise SPM exist to help these companies make better decisions and achieve better results in an ever-changing environment.
Founder of Uppwise, Gioacchino has solid hands-on, experience and vision in the PPM Market, gained as a startupper and founder of a number of software & cloud-services companies. During the last two years he has lead the company transformation, shifting from the offering of a traditional PPM product to a new suite of SPM, APM and CWM products.