In the world of strategic portfolio management, the traditional approach has largely been focused on aligning a project portfolio with an organization’s strategy. However, in our current dynamic business environment characterized by constant change and disruption, this definition needs a transformation.
Today, strategic portfolio management must be seen as the coordination of change across both functional and project teams, aligning them with the strategic objectives of the organization. This enhanced definition focuses on accelerating change and optimizing resource usage – and at the heart of this evolution are Objectives and Key Results (OKRs).
Functional and Project Teams: The OKR Effect
Changes within an organization materialize at two levels: functional and cross-functional, driven by project teams. Functional changes occur within individual departments, while cross-functional changes driven by project teams have a more widespread organizational impact.
When both levels of change are managed using the OKR framework, organizations gain a comprehensive view of their strategic initiatives. The use of OKRs ensures that all changes – whether within specific functions or across multiple functions – are tied to strategic objectives, effectively aligning resources and efforts, and promoting a stronger focus on the desired outcomes.
Accelerating Change with OKRs
The primary aim of redefining strategic portfolio management, with OKRs at its core, is to expedite change. In a rapidly evolving business landscape, the ability to quickly and effectively respond to market changes is paramount.
OKRs provide a clear path to drive change. By defining objectives and measuring progress through key results, organizations can manage change in a more focused and efficient manner. OKRs provide both the direction and the momentum, enabling organizations to transform more swiftly and align more closely with their strategic vision.
Optimal Resource Allocation: Maximizing Impact with OKRs
The integration of OKRs into strategic portfolio management also emphasizes optimizing the use of resources. In an age where efficiency is key, the ability to allocate resources in a way that maximizes impact is vital.
In the context of strategic portfolio management, OKRs provide a mechanism for resource allocation. They allow organizations to prioritize changes and initiatives that are most aligned with strategic objectives. By identifying what matters the most, organizations can ensure that resources—people, capital, or time—are deployed where they can create the most value.
To stay agile and competitive, it’s time to redefine strategic portfolio management. It’s no longer just about aligning projects with strategy. It’s about leveraging OKRs to drive and accelerate change within and across functional teams, and making the most of available resources. With this new approach, organizations can effectively navigate their journey of transformation, keeping pace with a rapidly evolving business landscape.