PPM has long been the name of the game, encompassing the way organizations select and drive projects. However, with the advent of the hybrid organization, it’s become clear that PPM has a couple of disadvantages. Maybe you find it hard to focus on a common way of doing projects when half the organization is agile, another part is creating products with strict milestones, and still others are running initiatives that deliver results to different parts of the organization.
That’s where SPM comes in. Strategic Portfolio Management puts strategy first: aligning the portfolio according to strategy and practicing decision-making that brings the portfolio closer to the overall goal.
But this doesn’t mean that your efforts have been wasted. But you can still gain a lot from shifting your focus from project execution to strategy execution.
The difference between SPM and PPM
A lot of elements of PPM are also part of SPM. Both involve managing portfolios and getting good results; however, their focus can vary somewhat.
In short, the key differences can be summed up like this:
PPM drives projects. SPM drives strategy.
So, where PPM often keeps the focus on project execution, SPM keeps long-term organization strategy in mind.
Where PPM ensures efficient execution, SPM aims to align projects with the strategic goal so projects are feasible as well as contributing to your company vision, both now and in the future.
Where PPM decisions often revolve around project feasibility, risk management, and resource management, SPM takes it a step further and includes the strategic relevance of projects, how they impact the business, and the overall portfolio balance.
Strategic Portfolio Management is not just about the projects. It’s about making the parts fit together in a way that drives strategy forward.