The Standard for Portfolio Management (2013) lists vision, mission, and organizational strategy and objectives as the drivers of portfolio management. Portfolio management is a coordinated management of a collection of programs, projects and operations components. As part of portfolio management, it is imperative that the daily execution of various components continue to align with the organizational vision.
While on-going operations are recurring activities which produce value, programs and projects increase value production capability. All of these activities must be initiated, planned and executed in tandem to ensure that they continue to deliver the strategic objectives.
Elements of the portfolio are planned investments of the organization so they must be quantifiably measurable. Each item must be constantly measured, ranked and prioritized. Lower ranked portfolio components will obviously receive lesser attention when competing with higher ranked portfolio components.
You’re holding a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises. It’s a book for the business model generation.
Written by Alexander Osterwalder and Yves Pigneur, Business Model Generation provides a canvas for defining a business model with nine building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.
The pattern examples (unbundling business models, the long tail, multi-sided platforms, free as a business model, and open business models) highlight the dynamics of the business model and serve as an inspiration to refine your organization’s business model. From there, you can explore new opportunities, optimize existing structures or extend current offering.
Business Model Canvas serves as a natural extension to Kim and Mauborgne’s Blue Ocean Strategy.
It is one thing to define an organizational strategy and quite another to deliver it.
With your executive team, reflect on the following statements:
- We have an action plan to rectify deficiencies in strategy definition, alignment, governance and execution
- Senior executives and delivery teams have a shared understanding of how to achieve strategic alignment
- Strategic goals are clear and measurable, and wide enough to remain valid for the next three years
On a scale of 1 (fully disagree) to 10 (fully agree), where do you stand?
If you rated each statement around 6 or 7, then your organization is not doing too badly. However, there are still plenty of room for improvement. Conversely, if at least one statement was rated as 5 or lower, then examine how your organizational strategy aligns (or not) with various strategic initiatives.