In today’s business environment, organizational agility has become a critical success factor for companies to stay competitive.
Project Portfolio Management (PPM) is a powerful tool that helps organizations to achieve agility by aligning project portfolios with strategic goals and optimizing resource allocation.
Here we take a close look at how organizational agility is boosted by using PPM as an integral part of your organization’s workflow management.
What Is Organizational Agility and Why Is It Important?
Organizational agility refers to a company’s ability to respond quickly and effectively to changes in the business environment. An agile organization can adapt to new opportunities, challenges, and market conditions with speed and flexibility while maintaining a high level of performance and customer satisfaction.
In today’s fast-paced and highly competitive marketplace, agility has become a critical success factor for organizations to stay relevant and thrive. Some of the benefits of an agile organization include:
- Quickly adjust to changes in market trends and customer preferences
- Incorporate technological innovations quickly and seamlessly
- Minimize risk and maximize efficiency by continuously improving processes
Overall, organizational agility helps companies to stay ahead of the competition, deliver value to customers, and achieve long-term growth and success.
What is Project Portfolio Management?
Project Portfolio Management (PPM) is a strategic management process that enables organizations to manage their project portfolios in a coordinated and efficient manner. PPM involves selecting, prioritizing, and managing a group of projects that align with the organization’s goals, objectives, and resources.
The importance of PPM cannot be overstated in the modern business environment. The way we work and conduct business is rapidly evolving. Effective Project Portfolio Management is essential for organizations to attain the flexibility to react and prosper under such circumstances.
Additionally, geopolitical tensions and tough trading conditions have brought the requirement for organizational agility even more to the forefront. In such circumstances, the benefits that effective PPM brings to the table are even more critical.
How Project Portfolio Management Contributes to Organizational Agility
Now, we get to the crux of the matter – how effective PPM can give an organization the ability to thrive in an ever-changing and tricky trading environment. PPM brings agility to the table in several distinct ways, which we will cover in detail a little further down.
But, in order to improve an organization’s agility, PPM itself has to be an agile tool. It is this dynamism that is the core reason that PPM can help organizations become more agile. History is littered with examples of successful businesses that lost market share or failed altogether because they didn’t possess the agility to react as their market evolved.
You only need to think of the mobile phone sector to get an example of two companies that were once market leaders but effectively fell off a trading cliff when they failed to react to market trends. We are talking about Nokia and Blackberry. They were once among the biggest names in mobile telecommunications, but their business model wasn’t agile enough to keep them there.
These are extreme examples, but the point is that if it can happen to companies of this standing, it can happen to any organization.
This is why PPM is critical if companies want to prosper even as the market continues to change. PPM provides several benefits to organizations, including:
- Better alignment of projects with organizational goals – PPM ensures projects are aligned with the organization’s strategic objectives, vision, and mission. This helps to ensure that each project is chosen on the basis that it will contribute to the overall success of the organization.
- Improved resource allocation – Optimizing finite resources is a major challenge for companies seeking true agility. PPM assists by improving the allocation of resources, including personnel, budget, time and other resources.
- Enhances risk management and decision-making – PPM provides a structured and data-driven approach to decision-making, enabling companies to identify and mitigate risks, allocate resources efficiently, and prioritize projects based on their potential benefits and risks.
- Increased collaboration and communication – PPM promotes collaboration and communication among project teams, stakeholders, and management, fostering a culture of teamwork, accountability, and transparency.
- Continuous improvement and learning – PPM enables organizations to learn from their project experiences, identify best practices, and continuously improve their project management processes and methodologies.
PPM is a powerful tool that promotes organizational agility and flexibility. The ability to adapt to rapidly changing market conditions and trends is critical for businesses to seize new opportunities and steal a march over their competitors.
Agile Organizations are Successful Organizations
The last few years have seen some of the most disruptive trading conditions that we faced in a generation. From the rise of remote and hybrid working, geopolitical tensions, and the challenges faced during the recent epidemic, the challenges facing organizations have been and continue to be, immense.
In such circumstances, the ability to change quickly to adapt to these challenges is absolutely critical. Effective PPM can achieve this. By allowing your organization to maximize the use of its resources and change quickly to match an ever-changing business environment, PPM can help organizations thrive even as the world around them changes.