Portfolio Management : Strategic Management

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Portfolio Strategic Management
Introduction
Modern organisations devise a plan prior to the beginning of the project, in order to achieve desired objectives. The collection of programs, projects, or objectives managed to achieve the desired results is known as a portfolio, and the co-ordinated management of one or more portfolios in an effort towards achieving the organization’s objectives, is known as portfolio management (Project Management Institute, 2013). Portfolio management plays a critical role in any major decisions taken by the organization with respect to prioritizing and allocating personnel, and to evaluate the effectiveness of the organizational strategies. Portfolio strategic management involves managing, monitoring, and
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Morris and Pinto (2007), state that the wide range of markets that the global companies currently invest in, requires them to rely on project teams working on different portfolios to strive towards the achievement of the organizational objectives. With such daunting requirements to be met, organizations depend on designing and executing portfolio strategic management techniques, with an evaluation of the current challenges that the organization faces and an estimation of the expected challenges that might arise in the future. Once such an evaluation has been carried out, the organization can then come to an understanding and establish a roadmap towards achieving its objectives.
Since portfolios form a part of the overall managerial initiatives, it is imperative that the portfolio strategic management is devised in such a way that it supports the organizational plans. Morris and Pinto (2007), suggest that an ineffective portfolio strategic management plan leads to executional problems in monitoring and managing changes in organizational, which would eventually jeopardise the efforts towards accomplishing desired goals. Strategy planning and strategy implementation are two critical aspects of a portfolio strategic management plan, which define and pave the way towards an uneventful completion of the project (Sanchez and Robert, 2010). As discussed earlier, whilst
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