Methods for Strategic Portfolio Management.
In our previous blogs we explained what strategic porfolio management is and how you assess and evaluate the strategic value of projects. To flesh out the daily practice of strategic portfolio management, there are several methodologies and approaches. The popularity of these methodologies varies by industry, the size of the organization and the specific needs of the organization. Here are some popular methodologies for strategic portfolio management:
Balanced Scorecard (BSC): The Balanced Scorecard is a methodology that provides a balanced approach to defining, measuring and tracking an organization’s strategic objectives. It uses a set of financial and non-financial performance indicators to assess and measure the strategic contribution of projects.
Value-based management (VBM): Value-based management focuses on maximizing value creation for the organization and shareholders. It takes a holistic approach that assesses the value of projects based on their financial impact, such as net worth, return on investment and economic value creation.
Strategic Alignment Model (SAM): The Strategic Alignment Model provides a framework for aligning an organization’s strategic objectives with its project portfolio. The model identifies strategic direction, internal capabilities, external opportunities and projects/initiatives to ensure optimal strategic alignment.
MoP – Management of Portfolios ®: Portfolio Management with MoP approaches the management of change projects and programs from a strategic point of view. It provides an overview of all change activities, including what is in the portfolio, what it costs, what risks are involved, what progress is being made, and how it impacts the organization’s business as usual and strategic objectives.
Stage-Gate® process: The Stage-Gate® process is a structured method for managing the development process of new products or services. The process consists of several stages (stages) and go/no-go decision points (gates) where projects are evaluated based on their strategic contribution, technical feasibility, market potential and other relevant factors.
Agile portfolio management: Agile portfolio management is an approach inspired by agile principles and methodologies such as Scrum and Kanban. It focuses on flexibly managing and prioritizing projects based on advancing insight, customer feedback and the organization’s strategic objectives.
These methodologies and approaches are often used not exclusively, but in combination with other frameworks and tools. Organizations can adapt and combine methodologies based on their specific needs and context. The choice of a specific methodology for strategic portfolio management depends on organizational culture, project portfolio complexity, degree of strategic focus and available resources, among other factors.
Fortes Change Cloud (FCC) is software that supports organizations in Strategic portfolio management. FCC supports several methods, including in combination. We would be happy to show you what FCC can do for your organization in a personal demo. Request a demo here now.
More of an visual thinker? Then download the Infographic Strategic Portfolio Management Methods now.
