Projects programs and portfolios in strategic organizational transformation are important. They are important because they work together to ensure that a company reaches its strategic objectives. While each one has its own set of goals, aligning your projects, programs and portfolios makes your company more resistant to market shifts.
What Factors Impact Alignment?
A company’s projects determine its profitability. Projects are also what companies use to meet their goals. Many businesses establish a project management office (PMO). They do this to make sure that they are achieving their objectives. This division is also key in developing criteria for choosing projects that keep groups working toward the same goal.
Companies that use this type of strategy usually begin projects that provide a better Return on Investment (ROI). For project managers, the strategy makes sure that each of the projects aids their standing within their companies. This strategy also supports them when it’s time for a promotion.
If a project should fail to meet a company’s overall planning goals, then it would be a drain on its resources. The situation would also likely impact profits. This means that prioritizing and choosing a project is an important part of a portfolio’s strategic alignment.
Large and small organizations run differently in today’s economy than they did in the past. According to the Harvard Business Review(link), several decades ago, organizations typically dedicated 80% of their resources toward operations and 20% for projects. These days, that percentage has flipped.
Creating a Resource Distribution Strategy
For most projects programs and portfolios, resources tend to be limited. Once a company’s planning team has chosen a project and prioritized it, leadership must determine and distribute the proper resources to develop the project. Creating a resource distribution strategy is an important task, one that ensures that a company will be able to meet its goals. The task also works to maintain productivity.
When a company develops a resource distribution strategy, it will send important resources toward various projects instead of just focusing on one major project. A resource strategy will also help you avoid overloading your resources and possible conflicts.
If a company’s resources aren’t distributed properly, it may result in the company initiating more projects than it can handle. The company may wind up overwhelming its workforce and causing harm to employee performance and engagement levels.
As a PMO, it will up to you to determine project accountability and develop an oversight committee. This strategy helps different divisions align. A PMO’s job is to make sure that the company doesn’t begin new projects until the proper resources are available. Organizational transformation will help you create a consistent strategy.
The Benefits of Strategic Organizational Transformation
When you implement strategic organizational transformation within your business, you’ll be aligning the company’s different areas. With strategic alignment, a company can make the best use of its people, financial resources, and other assets. For guidance, contact me at the Productivity Intelligence Institute.