THE PLACE OF THE PORTFOLIO OF PROJECTS AND PROGRAMS IN THE STRATEGIC MANAGEMENT SYSTEM: A COMPARATIVE ANALYSIS OF THE PMI, PRINCE2 (MOP), SAFE AND BALANCED SCORECARD APPROACHES

Abstract

This article explored the use of a project portfolio in detailed strategic management as a tool for the consistency of management decisions with the long-term strategy of an organization. To adequately compare these, four of the most common management methods were chosen, specifically: the PMI Standard for Portfolio Management, Axelos Management of Portfolios (MoP), SAFe Lean Portfolio Management, and, finally, the Balanced Scorecard (BSC). The comparison of these models highlighted how each of them assists in the management of the process at the portfolio level, the mechanisms of management employed, and what the priorities are in various circumstances. Following an extensive study of each of the models discussed, it has been noted that all of them, despite some differences in emphasis and methods applied, adhere to five main principles: Strategy Alignment, Portfolio Balance, Transparency, Benefits Management, and Iterative Adaptation. Emphasis has been given to how the five above principles are implemented through the selection and prioritizing of initiatives, management of resources, measuring of performance and monitoring of implemented planned benefits. Although the different standards present various advantages and stresses, these have been grouped and united into a hybrid portfolio management system model, which brings together the main aspects and characteristics of each standard and enables the project portfolio to be seen as a managed system, where selection, measurement and adaptation follow specific rules. The new proposed portfolio management system inherited the discipline of PMI, the benefits-driven philosophy of MoP, the adaptive capability of SAFe and the precision of BSC measurements. This combination makes the gap between plan and execution much smaller; the management system aligns investments with strategy, improve change management, support continuous learning and improvement by constant evaluation of decisions and results.