Facilitate Decision Making In Support of Corporate Strategy

Portfolio managers facilitate decision making in support of Corporate Strategy.  Certainly the group of executives charged with this responsibility can determine and execute Corporate Strategy by themselves. But unless the company is small, portfolio managers can significantly facility the process.  They facilitate the process in a number of ways.

  1. Understanding the Consequences of Changes to Corporate Strategy. Portfolio managers have a unique unbiased view of the dynamics of the project portfolio. They should be able to articulate the consequences of changes to corporate strategy – how such changes will affect the project portfolio.  Such consequences may not be readily apparent to executives focused on line functions.  To these executives the changes to the project portfolio may appear as unintended consequences.
  1. Determining Alternatives that Maximize Positive Changes and Minimize Negative Changes to the Project Portfolio. Portfolio managers should be able to propose alternative changes in Corporate Strategy that will maximize the positive and minimize the negative impact on the project portfolio.
  1. Change Management. Changes in Corporate Strategy may impact the Stage-Gate organization of the company with new or altered milestones, or new stage definitions.  The changes may also impact the organization of line departments or business units which will have knock-on consequences on how the project portfolio is organized.   Projects may need to be terminated, or responsibility transferred to different business units.  Some therapy areas or business unites may be charged with ramping up its project portfolio, while others may need to reduce their portfolios.  Project and Portfolio managers will be instrumental in supporting these changes.  Portfolio Data Management systems may need to be changed.
  1. Measuring the Impact on the Project Portfolio – Goals and Metrics. Inevitably the senior managers will want to be able to show that the changes in corporate strategy have succeeded.  Goals and metrics (measures of progress towards achieving a goal) will be devised that measure the impact on the project portfolio.  Most often it will be the responsibility of the portfolio managers to track these metrics and provide reports on these metrics.  See Goals and Metrics