Strategic Portfolio Management, what's different?

As an organization, you are constantly faced with the challenge of using your resources effectively and achieving your strategic goals. Whether in a government organization, a healthcare facility or a large commercial company, managing change initiatives is a complex task. It is essential to select the right projects and prioritize those that have the greatest impact on strategic objectives. In this blog, we explore the difference between ordinary portfolio management and strategic portfolio management.

Regular portfolio management.

Portfolio management often focuses on managing a collection of projects and programs within an organization. The primary goal is to understand all ongoing initiatives, assess their progress and make decisions based on available resources. Ordinary portfolio management focuses primarily on operational aspects, such as resource planning, budget management and monitoring the performance of individual projects. It focuses on delivering projects efficiently and effectively within the specified time frame and budget.

A key feature of strategic portfolio management is the active involvement of senior management in the decision-making process. It goes beyond simply judging individual projects based on their performance. It’s about understanding the strategic priorities and making the right choices to achieve those priorities. This means that there must be continuous alignment between strategic objectives, available resources and the project portfolio. Senior management plays a crucial role in determining strategic direction and setting priorities based on available resources.

Strategic portfolio management is not a standard process that every organization can follow in the same way. It requires customization and a deep understanding of each organization’s specific strategic goals and challenges.

Thus, the difference between ordinary portfolio management and strategic portfolio management lies in the focus on operational optimization versus the organization’s strategic objectives.

Fortes Change Cloud is a software solution that helps organizations gain insight and oversight and make informed decisions that help achieve their strategic objectives. Want to learn more about how Fortes Change cloud supports Strategic portfolio management? Then request a personal demo here.