Strategic prioritization: Identify, prioritize and execute to maximize value

Technological progress and exponential growth in digitization in the last decade have changed the way businesses operate. These shifts—compounded by COVID-19, geopolitical uncertainty, inflationary pressure and re-globalization—have accelerated transformations that were already underway and forced the hand of others who have not yet begun.

In fact, the capability to accelerate, transform or modernize businesses quickly is a core capability for companies to remain sustainable.  The days when business models were sustainable for the long term are behind us.

So how do organizations adapt?  How can they capture intellectual input and ideas from inside and outside their enterprise, articulate those ideas into discrete, valuable and executable projects, and then place strategic bets on the ones that drive the highest sustainable value?  

Part of the answer resides inside the businesses themselves—specifically, in the way they rationally formulate and select projects that best align to their strategy and deliver value. 

Companies need a foundational framework to identify, prioritize, execute and monitor projects.  Without it, the number of initiatives will naturally balloon in size, sap the focus and energy of talented people, and diminish resources.  Or worse, the company will spend valuable resources and time on projects that do not support the organization’s objectives. 

To future-proof critical decisions as much as possible, organizations need to evaluate how they can significantly improve the quality of projects they select and build a new process that allows them to execute the best project at the optimal moment while achieving key organizational objectives and goals. This is the essence of project portfolio management and value realization.

When done successfully, it increases the likelihood of appropriately funded projects that are completed on time and on budget and that align with business objectives.

Projects are then approved not based on who has a relationship with senior management, or which senior manager can unilaterally call the shots. Projects are approved that drive agreement through broad socialization and transparency.  Support can therefore be garnered, and a rational case can be made so the most valuable projects are self-evident.  

So where should businesses begin? 

These are general guidelines that outline the process that, if followed consistently, can help businesses make efficient use of resources and effectively execute their enterprise strategy and business objectives.

There is of course more complexity involved in bringing this to life in a business, but the essence it seeks to achieve should not be complicated for its own sake. It needs to be a process that is understandable and rational if it has any chance of getting adopted.

In today’s rapidly changing business environment, organizations that successfully do the right projects at the right time are more likely to enter new markets, capture greater market share, retain their customers, optimize their processes, and enjoy long-term success. To get there, organizations must utilize a consistent project portfolio management process to identify, prioritize and execute projects. It begins with establishing a clear enterprise strategy and creating transparency in a decision process that is effective through being relentless in measuring project performance and value.