Optimism is a valuable trait. But to a strategic project portfolio, it can be a downfall.
Integrated Project Management Company, Inc. (IPM) has surveyed 1,330 people over the course of six years when assessing project portfolios. Fully 56 percent of people say they’re confident in their organization’s ability to meet its strategic goals. Yet only 40 percent say their projects finish on time. Confidence is even higher for executives, 65 percent of whom say they’re confident the company is able to meet its strategic goals. And only 36 percent of executives say projects finish on time.
The results back up the thesis of IPM’s white paper, “Prioritization’s Toughest Challenge: Human Nature.” One of the biases working against prioritization and project portfolio management is overoptimism. We seem to be hard-wired to plan for the best-case scenario or what we want to happen. But in reality, confidence is outweighed by the ability to get projects done on time.
Combine Strategy and Project Portfolio Management
Within an effective project portfolio management (PPM) process, companies determine priorities and align on the projects that will help them accomplish their most important work. While almost two-thirds of respondents say their portfolio is aligned to their strategic goals, only one in five are satisfied with their PPM practices. Download the PDF for the complete data.
What Might be Hindering the Strategic Project Portfolio
The five biggest challenges to the project portfolio, in order, are (respondents could select three):
- Not enough people to complete the number of projects
- Changing priorities
- Projects are not well executed (over budget, late, additional resources required)
- There are too many projects that don’t provide a sizable benefit to the organization
- The portfolio is not analyzed
Prioritization Can Align the Organization
A company with advanced project portfolio management and effective strategic prioritization can align the entire organization on its mission-critical work. And building a reliable execution competency can increase the chances of accomplishing it.
For complete details and additional insights, read the full white paper Prioritization’s Toughest Challenge: Human Nature. →
Download a PDF of the infographic. →
Services: Project Portfolio Management
Industries: Life Sciences | Healthcare | Consumer Products | Industrial Products
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