Business strategy is “an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., a new social, financial, or political environment.” Mostly, this is defined by the Board of Directors or the business owner depending on the size of the organization. Once the strategy is established, it will be up to the next lower level of management to execute and deliver the strategic goals and objectives.
Although the organizations’ business strategy defines what markets and industries it wants to be in and what it wants to achieve from an organizational standpoint; what it does not do is define the types of projects, which will be initiated and funded to help it achieve its long-term strategy. Thus, the need for a project Portfolio Strategy.
Portfolio Strategy is defined as the ongoing process that assesses how projects are selected, staffed, managed, and monitored across the enterprise; the assessment of the estimated and actual return on investment for projects within the portfolio; the assessment of the organizations resources to ensure that the proper skills, competencies and organizational structure are in place to deliver the projects; and the frequent reassessment of the organizations project portfolio to ensure that projects being funded are supporting the overall business strategy throughout their entire lifecycle .