When it comes to investments, there’s no doubt it’s important to look at the return on investment, but when you’re considering the overall investment or enterprise, you need to think beyond that.
With Strategic Portfolio Management you can ensure that strategy is properly connected and aligned with execution, through a structured framework that connects all parts of the enterprise.
What is Strategic Portfolio Management?
While it is true that each organization or investor will have different strategic objectives, you can’t deny there are some aspects of the entire enterprise that anyone will have to take into account. It’s not just setting an objective and achieving it; there is a lot that goes on in the middle and many disruptions can come up.
There is constant work that is required to ensure that objectives are achieved, all while implementing any changes that are needed and ensuring that return on investment is always at optimum levels. Achieving all this requires effective communication and alignment, and Strategic Portfolio Management provides this, allowing organizations to oversee everything from strategy to execution.
Strategic Portfolio Management also provides real-time data on the organization, allowing you to pinpoint areas of improvement and further improve focus.
The communication aspect gives high-level executives insight into the execution of planned strategy across all groups of the organization. This ensures that crucial information related to these groups, including timelines, budgets, and dependencies, is effectively communicated to all stakeholders.
Benefits of Strategic Portfolio Management
Respond Fast to Changes and Disruptions
Strategic Portfolio Management continuously gathers data and insights into organizational performance, especially when it comes to strategy execution. One of the biggest advantages of this is the ability to adapt to changes and mitigate risks.
This has become a crucial ability to possess for organizations, as today’s world is filled with disruptions that can affect almost any business. One notable example is the 2020 pandemic, something which not only affected almost every business but did so with such an impact that many businesses are STILL recovering from its effects.
Businesses that had a system implemented that gave them live data and insights could adapt and improvise to keep operating during the pandemic. As such, having a system like Strategic Portfolio Management can be a precious tool.
Implement Ideas Faster In The Market
Another benefit of the data acquired from Strategic Portfolio Management is businesses being able to implement ideas and introduce goods or services in a faster time frame.
Usually, without Strategic Portfolio Management, businesses will do surveys and gather information in a single track, which means they have to assess each aspect of the product or service individually.
With Strategic Portfolio Management, businesses get all this information simultaneously which significantly reduces the time it takes to introduce any goods or services to the market. The reduced time also translates to reduced expenses for the business and a faster pace to optimum return on investment.
Optimum Alignment Between Strategy and Execution
You would be surprised at how many businesses face failure when it comes to strategy, or how much of the original strategy plan has to be compromised.
Significant research shows that most businesses often fail or have shortcomings when it comes to the execution of strategy. This same research shows that successful companies constantly assess and identify opportunities, adjusting goals wherever necessary and doing so at every level of the organization.
Strategic Portfolio Management makes it easier for companies to carry out this constant assessment and re-alignment of goals. Moreover, Strategic Portfolio Management also allows businesses to evaluate resources and their appropriate allocation depending on the project and its needs.
ROI
All of the above advantages are of such a nature that they’re bound to have a positive impact on ROI. In essence, Strategic Portfolio Management is an efficient and multifaceted advantageous way to optimize your return on investment.
Less time and resources are spent on gathering information, and resources are constantly being assessed to ensure the most is saved. This is always going to result in better bottom-line savings.
Challenges of Strategic Portfolio Management
By far the biggest challenge is the need for more awareness when it comes to Strategic Portfolio Management.
In Project Portfolio Management, organizations overlook the actual portfolio and focus only or mostly on project delivery. Such organizations are often not aware of Strategic Portfolio Management and its advantages, and just how much these organizations are losing without having such a beneficial system in place.
If the rare odd organization does become aware of Strategic Portfolio Management, they will implement parts of the system only, which does not help.
At times the focus will be on some aspects of strategy only, which results in some improvements but no significant successes. Sometimes the necessary technology environment is not adequately implemented, making alignment between strategy and execution a bit shaky, and affecting the data that organizations receive and how fast they receive it.
To overcome these challenges, more awareness needs to be raised about Strategic Portfolio Management and how it should be properly implemented in an organization. The best way to learn more about how strategic portfolio management can be helpful for your investment portfolio or future investment goals consult with a financial advisor or wealth management expert.
Strategic Portfolio Management: Creating A Balance With The Help of Experts!
There is no doubt that Strategic Portfolio Management can have great benefits for a business. A system that can have a positive impact on communication between stakeholders, alignment between strategy and execution, resource allocation, and return on investment is too precious a tool to ignore, especially in today’s economic climate.
However, all these benefits are possible if Strategic Portfolio Management is implemented properly and adequate technological infrastructure is in place. As such, it would be prudent to consult a financial expert for wealth management in Halifax to see what your organization needs to ensure Strategic Portfolio Management is being used correctly and at its highest potential.
To learn more about how we can help give us a call at 902-474-5433 or email us at info@eastportfinancial.com
