The most common mistake in portfolio management isn’t a mistake at all.
A lot of organizations focus on doing projects well – creating streamlined processes, collecting data and optimizing resource management. This creates amazing results with projects that deliver value with minimal wasted time.
The mistake happens when this becomes the sole focus to the point of eradicating work that doesn’t “fit.”
It’s not just about doing things right.
It’s about doing the right things.
Everything you do should be connected to your strategic goals.
Whether it’s initiatives, projects, epics, etc. it’s all allowed in xPM. This means people can work and track it the way they want to while reporting key indicators, such as progress, budget, or issues upward.
The essential thing in xPM is that work is linked to strategy – all work. It’s this alignment that minimizes wasted effort because it eliminates projects with diminishing strategic returns.
You can do this a couple of ways.
For example, mapping expected results onto business drivers is one way to get an overview into are whether your’re driving your strategy forward while also gaining insight into the distribution and balancing of initiatives.
Another tool is Objectives and Key Results, OKRs.
OKRs help communicate the strategy and define good initiatives for strategic aims, and it also provides a way to track work against strategy.
The connection between work and strategy is valuable for prioritization – it becomes less about immediate returns and more about finding the right balance between short and long term value creation and strategic execution, leading to healthier portfolios and more robust growth for your organization.
For C-level, it is now easier to prioritize work that is visibly aligned with strategic priorities providing funding and building executive support.
Clear success metrics also give better tracking of progress and outcomes – and it makes it easier to communicate the why of doing things, which has a motivational factor on teams.
Linking work to strategy requires a strong process where work is assessed individually on clear metrics. Prioritization frameworks like OKRs or balanced scorecards can help align project selection criteria.
The link is important – there is no strategy without executing the work.
The link is a visible part of the execution: if the project no longer contributes to strategy, it should be cut or refactored. And this is a lot easier to do, once you’re aware of the factors. Done right, xPM can give you a foundation for better prioritization which means a healthier portfolios that drive strategy. This united approach isn't just talk - it leads to a streamlined organization with much stronger buy-in because it's clear that the work people do actually contributes to the overall mission of the company.
In short, the strategic link creates a better decision-making foundation for creating long-term value.
