Effective strategic portfolio management is a critical component of any successful business. It is the process of managing a company’s portfolio of products, services, and investments to ensure that they align with the company’s overall strategy and goals. By prioritising and managing resources efficiently, strategic portfolio management drives better business outcomes. In this blog post, we will explore why effective strategic portfolio management is essential for a company’s success.
Effective strategic portfolio management ensures that a company’s resources are allocated to the most profitable and valuable projects. By selecting and prioritising projects that offer the highest return on investment (ROI), a company can maximse its profits and achieve better business outcomes. A well-managed portfolio can help identify the projects that are generating the most value and allocate resources accordingly.
A well-managed portfolio ensures that all projects align with a company’s overall business strategy. By aligning all projects with the company’s strategic goals, portfolio managers can ensure that resources are allocated to the projects that will have the most significant impact on the company’s success. This alignment helps to minimise risk and ensure that the company’s resources are used effectively.
Strategic portfolio management can reduce risk by diversifying a company’s portfolio. By spreading resources across different projects, a company can reduce its exposure to any single project’s failure. Additionally, portfolio managers can identify and mitigate potential risks early in the project life cycle, reducing the likelihood of significant losses or failures.
Strategic portfolio management helps to optimise resource allocation. By aligning resources with the company’s strategic goals and prioritising high-value projects, portfolio managers can ensure that resources are used most efficiently. This optimisation can help reduce costs and maximise the impact of the company’s investments.
A well-managed portfolio can help a company be more agile in responding to changes in the business environment. By prioritising projects that can be quickly adapted or changed, a company can respond to changes in the market or customer needs more effectively. This flexibility helps to ensure that the company can adapt to changes in the market and maintain a competitive edge.
Strategic portfolio management is critical for driving better business outcomes. By aligning resources with the company’s strategic goals, maximising ROI, reducing risk, optimising resource allocation, and increasing agility, portfolio managers can help ensure that a company is successful in achieving its business objectives.
A correctly implemented planning solution is among the most useful tools in an organisation’s software portfolio, helping businesses capitalise on new opportunities, deliver value faster and maximise their resources.
However, in the Gartner Portfolio Management in the Digital Business Survey, only 16% of organisations were found to be effective at SPM.
Ignite Technology have a team of experts who can help you on every step of the journey and our strong relationship with Planview means we are able to offer you access to one of Gartner’s highest-rated solutions.
We’ll work with you to help you identify what’s best for you now from the Planview portfolio, and what you might need in the future.