Project Portfolio Management As an Effective Mean to Strategy Implementation

Strategy is the overarching concept of the organization indicating the key directions and objectives of development – the master plan of changes and transformation of the organization. Its development involves a considerable investment of manpower and resources, while its implementation poses significant difficulties to organizations. The difficulties stem from the high level planning and shortcomings of tools and methods to effectively translate strategic goals into activities on a tactical and operational level. Despite extensive output of strategic management discipline solutions to these problems are hard to find within this area. Existing practices, such as the BSC and programs are partial and fragmentary, solving some problems, and leave many others outside the scope of support. As a result, organizations have sought solutions to the implementation of the strategy in other places. Projects and project management fill the gap. Project management has been traditionally associated (and by some still is) with the operational management and seen through network techniques such as critical path method. However, over the years the area has evolved significantly expanding its reach, complementing perfectly so far underdeveloped level of management at the tactical level. Projects, programs and portfolios pair with the strategic management to become an effective tool in translating long-term development plans into the practical and pragmatic projects initiatives. By managing projects, programs and portfolios, organizations can identify projects focusing its efforts on those creating the most value, plan and organize their execution with regard to resource constraints, as well as constantly and carefully monitor their progress 80 Paweł Wyrozębski through the appropriate management structures. From both the theoretical and practical perspective projects today are undoubtedly effective tool to ensure the success of the implementation of strategic plans.