Strategic portfolio management plays an intricate part in project management. Through this paper, the reader will gain a stronger understanding of the relationship that strategic portfolio management plays in project management.
Strategic Management Relation to Project Management
Project management involves several parts, but the meaning must be understood first. “Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives” (Kezner, 2013, p4). Knowing this allows the project manager to implement steps toward achievement of the defined goals and objectives. Part of these steps has to do with strategic management. Project management is strategically managed to advance the corporation’s organizational goals. Strategic management insures the right initiatives are pursued and supported with resources. Strategy today needs to align to a more fluid nature of business environments. It has to be flexible enough to adapt constantly to changing external and internal conditions.
The relationship between strategic portfolio management and project management is a very important relationship. Strategic management compliments project management in that it attempts to ensure success by way of doing things at the most opportune time. If a company attempts something too early or too late then possible negative consequences may occur. Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Although a group of projects within a program can have discrete benefits, they can also contribute to the benefits of the program, to the objectives of the portfolio, and to the strategic plan of the organization.
As stated at the beginning of this paper “strategic portfolio management plays an intricate part in project management”. The reader should now have a stronger understanding of the relationship that strategic portfolio management plays in project management.
Kerzner, Ph.D., H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (11th ed.). Retrieved from The University of Phoenix eBook Collection. Project Management Institute. (2013). A guide to the project management body of knowledge. (PMBOK guide). Newtown Square, Pa: Project Management Institute.