Every organization has an ultimate Mission that all of their long-term goals, yearly portfolios, quarterly outlooks and daily operations are striving to fulfill. The Mission often sounds simple on its surface, but there is an array of initiatives that are critical to achieving it and limited resources to dedicate to these initiatives.
The Mission is your organization’s ultimate destination, and projects are the vessel that get you there, with Organizational Vision and Strategy guiding you in the right direction.
Every organization, then, needs a core competency in how to define what the “best” projects are, and then they need to successfully execute projects in order to continually progress toward the organization’s Vision for the future. When projects are chosen that don’t enable the Mission, then an organization is set down the wrong road before the journey’s even begun, or when a slate is selected that allows for too much risk, then the trip is setup for potential disaster.
At the base of the pyramid above is the execution on the mission-critical initiatives themselves. This is where the gears of the high-level Organizational view engage with the PPM layer. Failures of execution is what most often keeps organizations from delivering on what they set out to do. To use an example from the IT world, 68% of projects in that industry fail. This means that an effective system for delivering the project portfolio is often the differentiator for organizations that ultimately accomplish their Mission.