Challenges Faced By Senior Management

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The business environment of today is complex; thereby faster decisions have to be made and better allocation of resource is essential with a clearer focus of the future. This poses a major problem to senior management because organizations consist of a changing mix of large and small projects which brings new challenges in prioritization of projects, resource planning and monitoring (Elonen and Artto, 2003). According to Engwall and Jerbant (2003) cited in Kaizer et al., 2015, the number of available project alternatives far outnumber the projects an organization can handle at a given time with its limited resources, and making the right choice from all these alternatives is rarely easy. Mankins and Steele (2005) cited in Meskendahl (2010) posits that only 63% of strategies’ potential values are realized by firms and Johnson (2004) cited in Meskendahl (2010) reveals that about 66% of corporate strategy is never realised. Nonetheless, Hrebiniak (2006) cited in Meskendahl (2010) states that making strategy work is more difficult than making strategy itself. In other words, it is difficult for firms to put strategy into action. This is where Project portfolio management (PPM) comes in. Building on this, the aim of this essay is to evaluate PPM elements in an organization, discuss the tools and criteria used to support the decision making and evaluation of project success, and consider the significance of PPM for other organizations that may want to consider it.
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