Thursday, 20 December 2012 18:04

The Office of Strategy Management: a Response to the Failure of Portfolio Management in Strategy Execution

Written by  Fernando Santiago
Rate this item
(0 votes)

 stepup_to_the_plate

The recent Pulse of the Profession on Portfolio Management from PMI calls for elevating Portfolio Management to a strategic level. However, the term “execution of strategy” is not even mentioned in the report. PMI is saying many of the right things, but fails to make the connection: portfolio management should step up to the plate and become the natural owner of translation and execution of strategy.

Executives are accountable for formulation of strategy, but someone else needs to own translation and execution. Translation takes the strategy document and generates actionable, clear and measurable business outcomes or results and key capabilities that will allow the organization to achieve these outcomes. Of course, for this to happen, the strategy must be strong, not just a collection of tactics, goals and feel good statements.

Once translation has been done, execution starts with identifying all the initiatives required to deliver the capabilities and changes that will achieve the business objectives. This should be the foundation for defining a portfolio, from the top down, as opposed to the current practice of gathering proposals for projects and prioritizing them.

The practice of Portfolio Management so far has not helped companies with strategy translation and execution. According to Kaplan and Norton, creators of the Balanced Scorecard, nine out of ten companies fail to implement strategy. A most recent survey of over five thousand companies has this number as one out of three. It is still too high. Clearly, Portfolio Management has not fulfilled this role, and this explains why now corporations are looking at the concept of the Office of Strategy Management, or OSM, another creation of Kaplan and Norton.

The adoption of Top-down Portfolio Management can enable PMO’s and Portfolio Managers to step up to the plate and fulfil the role the OSM is starting to play. Starting with strategy, they can be a key player in the translation of the strategy and into execution through portfolios of initiatives defined from the top-down.  Tactical work still needs to be done to ensure delivery is successful, but strategy execution should be the main purpose of portfolio management.

 

Last modified on Thursday, 10 January 2013 11:12

158 comments

  • Comment Link Amyzckde Monday, 30 September 2013 17:36 posted by Amyzckde

    comment5, http://imuran1r6.soup.io/ purchase cheap imuran 50mg next day delivery, 1126, http://imuran7jy.soup.io/ order generic imuran next day delivery, %-[, http://imuranfc1.soup.io/ order cheap imuran over the counter, %), http://imuran9b2.soup.io/ buy cheapest imuran 50mg online without prescription, %-O, http://aberdeenpolicedepartment.webs.com/apps/profile/116396536/ purchase imuran cheap, jjoymb, http://imuranl9q.soup.io/ imuran cost canada, uhxmc, http://aandjtackle.webs.com/apps/profile/116334982/ purchase generic imuran 50mg online with no prescription, 960406,

  • Comment Link moncler discount jacket Monday, 30 September 2013 15:51 posted by moncler discount jacket

    Hi friends, good post and pleasant arguments commented at this place P3M , I am really enjoying by these.

  • Comment Link louis vuitton outlet yahoo answers Monday, 30 September 2013 15:25 posted by louis vuitton outlet yahoo answers

    Marvelous, what a weblog it is! This website P3M gives valuable information to us, keep it up.

  • Comment Link ルイヴィトン コピー Monday, 30 September 2013 13:31 posted by ルイヴィトン コピー

    私の中で、退屈その後その後 家私は取得取る頃だけ私のON PC とオープンユーチューブウェブサイト P3M 見るため%YouTubeのビデオレッスン。

  • Comment Link monster beats by dr dre nate robinson originals Monday, 30 September 2013 12:43 posted by monster beats by dr dre nate robinson originals

    Oh! Wow its really a comical and jockey P3M posted here. thanks for sharing it.

  • Comment Link カシオ 時計 Monday, 30 September 2013 12:34 posted by カシオ 時計

    Amazing blog! Do you have any hints for aspiring writers? I'm hoping to start my own website soon but I'm a little lost on everything. Would you propose starting with a free platform like Wordpress or go for a paid option? There are so many choices out there that I'm totally confused .. Any ideas? Thanks a lot!
    カシオ 時計

  • Comment Link wholesale oakleys vs raybans Monday, 30 September 2013 12:31 posted by wholesale oakleys vs raybans

    Oh! Wow its in fact a comic and jockey P3M posted at this place. thanks for sharing it.

  • Comment Link タイメックス 腕時計 Monday, 30 September 2013 11:53 posted by タイメックス 腕時計

    Excellent post however I was wondering if you could write a litte more on this topic? I'd be very thankful if you could elaborate a little bit more. Thank you!
    タイメックス 腕時計

  • Comment Link silverspike.net Monday, 30 September 2013 11:33 posted by silverspike.net

    Have you ever thought about adding a little bit more than just your articles? I mean, what you say is valuable and all. Nevertheless think about if you added some great graphics or video clips to give your posts more, "pop"! Your content is excellent but with pics and videos, this site could definitely be one of the greatest in its niche. Very good blog!
    silverspike.net

  • Comment Link アディダス adidas Monday, 30 September 2013 11:33 posted by アディダス adidas

    I know this if off topic but I'm looking into starting my own weblog and was curious what all is needed to get set up? I'm assuming having a blog like yours would cost a pretty penny? I'm not very web savvy so I'm not 100% certain. Any tips or advice would be greatly appreciated. Thank you
    アディダス adidas

«StartPrev12345678910NextEnd»

Leave a comment

Make sure you enter the (*) required information where indicated.
Basic HTML code is allowed.