The fundamental challenge of strategic portfolio management is to provide a comprehensive, up-to-date view of a company's entire project portfolio and to answer several key questions.
Is the portfolio aligned with the company's objectives?
What is the future demand and capacity for the resources?
Are the most talented employees working on the most suitable projects?
Will the portfolio meet the business performance targets?
What are the risks and impact of a delay?
Providing timely answers to these questions is critical in determining which projects will be followed up and which will be corrected or cancelled.
Implementing a business-wide decision-making process for project registration and approval is another critical area in strategic portfolio management.
Strategic portfolio management integrates and brings together all projects in a unified manner through decision-making and management strategies, providing financial, strategic, and operational visibility across the entire portfolio to maximize current profitability.