The Strategic Alignment of the Project Portfolio (Part 2)

“Without strategy, execution is aimless. Without execution, strategy is useless.” —Morris Chang, founding CEO, Taiwan Semiconductor Manufacturing Company Ltd.

In the first part of this series, I outlined the groups in the organization that must support the strategic alignment of the project portfolio:

  • Executive Group
  • Project Group
  • Operations Group

Let’s dive into those groups a little further.

The Executive Group

The executive group shares the strategic plan with the organization, highlighting the high–level strategic objectives that will support its growth and move it to the next stage.

This group defines the strategic governance processes — that includes policies and monitoring guidelines to ensure the strategic objectives will be achieved. It establishes a governing body that will ensure accountability, fairness and transparency. The project portfolio governance will adhere to the strategic governance to align the project portfolio and drive the execution of the strategic plan.

During the development of the strategic plan, a thorough risk assessment should be conducted to assign a risk level to the initiatives included in the strategic plan. The risk assessment will feed into the strategic alignment process to ensure the portfolio of projects will keep these risks top of mind each step of the way.

The governance body will also monitor the performance of  programs and project to ensure the expected benefits are being delivered as planned.

The executive group will interact on a frequent basis with the project group to address governance issues, changes in strategy that may impact the portfolio and risks. Meetings with the operations team, on the other hand, will focus on monitoring whether benefits are being created and harvested, as well as how those benefits are impacting — postively or negatively —the strategic objectives.

The Project Group

The project group will cover all areas of the project management profession: portfolio management, program management and project management.

This group will “translate” the strategic plan into elements of the project portfolio and align them with the strategy. Priorities, sequences, dependencies, risks and other elements from the strategic plan will cascade into the project portfolio.

The project portfolio will establish an execution framework that will consider the organization’s existing cross-functional capabilities, operations, and processes, and assess technical and operational requirements to identify gaps that need to be filled to support the successful execution of the project portfolio.

The project tam will:

  • Monitor risk: Establish the context of the risk identified in the strategic plan with the project portfolio and additional risks that have been identified in the portfolio. Update mitigation plans as required based on discussions with executive team.
  • Adhere to organizational governance: The project portfolio will follow the guidelines of corporate culture, transparent communication, accountability and integrity.
  • Assess capabilities: Identify the required capabilities through short-term and long-term program and project scenarios to ensure the required resources will be available when needed.
  • Delineate operational and technical requirements: Based on the prioritization and sequence of programs and projects defined in the portfolio, define the requirements with a holistic portfolio view and bind them with the strategic plan.
  • Establish metrics: Integrate metrics across operations and technology using industry baseline metrics in order to provide credibility to measurements and a route to quantification.

The project group will interact on a frequent basis with the operations group to ensure projects will deliver the expected benefits, and define how those benefits will be “harvested” and used as an input to subsequent phases of the protfolio and strategic plan.

The Operations Group

The operations group will support program and project teams during implementation and will be the recipient of the benefits delivered by the programs and projects. The execution of the strategic plan is a cross-functional effort and every function in the organization will need to contribute to its success.

The operations group may encompass many of the functions of the organization and will be active participants throughout project implementation. But this group’s participation is most important in the post-implementation phase to ensure a sustainable environment for the achievement of the strategic goals.

This group will work closely with the project group on the ongoing management of the portfolio to monitor benefits realization, and will play an active role in the orchestration of demand management and capability management to ensure resources will be available when needed in order to avoid any delays in the portfolio.

Source: www.projectmanagement.com

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