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Effective Strategic
Portfolio Management
Drives Better
Business Outcomes
By Robert Handler, Lorri Callahan,
Will McHenry, Shilpa Pental
Effective Strategic Portfolio Management Drives
Better Business Outcomes
Published 25 June 2021 - ID - 9 min read
By Analyst(s): Robert Handler, Lorri Callahan, Will McHenry, Shilpa Pental
Initiatives: PMO Evolution for Digital
Organizations that are highly effective at strategic portfolio
management are twice as likely to achieve better business
outcomes as those that aren’t. IT leaders responsible for portfolio
management can become effective at SPM by following four
specific recommendations.
Overview
Key Findings
■ Organizations that effectively connect portfolio management processes to enterprise
strategies are 3.2 times more likely to achieve strategic portfolio management than
those that don’t.
■ Organizations that expose the dependencies between work and strategic goals
significantly increase the likelihood of achieving SPM.
■ As organizations scale product-centric delivery models, involving solution delivery
teams in portfolio reprioritization decisions boosts the odds of attaining SPM by
2.7X.
■ Organizations that dynamically reallocate resources based on changing strategic
priorities are 5X more likely to achieve SPM.
Recommendations
To achieve the better business benefits of effective SPM, IT leaders responsible for
portfolio management must go beyond narrowly focusing on on-time and on-budget
delivery, and take a series of specific actions:
■ Connect enterprise strategy to portfolio management processes; ensure relevance of
strategy is clear and enables proper trade-off decisions by incorporating it into the
prioritization process and rubric.
Gartner, Inc. | Page 1 of 13
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