Strategic Alignment: How It Is Used in Project Portfolio Management?

Strategic Alignment How It Is Used in Project Portfolio Management

Strategic alignment is a concept that is becoming increasingly important in the world of project portfolio management.

It can be challenging to understand, but understanding how it works and how it can help you manage your projects more effectively is essential for success. 

In this blog article, we’ll explore strategic alignment and how it can be used to ensure efficient project portfolio management.  

What is Strategic Alignment?

Strategic Alignment is the process of ensuring that all activities within an organization are in line with the broader strategic goals and objectives.

This involves establishing a unified vision among all stakeholders and actively pursuing initiatives, processes, and resources to deliver on that vision. 

Achieving Strategic Alignment requires the skillful management of resources, goals, objectives, programs, and related initiatives so they remain aligned with those of the overall strategy. 

It also involves connecting individual projects and action plans with each other to ensure execution is successful, efficient, and directed towards a common goal. 

Ultimately, Strategic Alignment must enable organizations to work as one collective unit toward achieving their ultimate goals in an expedient manner while staying within budgetary constraints

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Understanding the Business Objectives

Understanding the business objectives is a critical step for the successful management of any organization. It defines what the business wants to achieve and how it will go about achieving them.

Companies must define their objectives clearly in order to focus their efforts on areas that are most likely to bring success.

Objectives should be measurable, such as increasing sales or reducing costs over a period of time, and should be written down so that everyone in the organization understands what is expected of them. 

Understanding business objectives also helps ensure all decisions made align with the overall strategy and ensure resources can be allocated efficiently towards their achievement. 

It helps create clarity around company goals which can help foster motivation among team members by helping them understand why they are doing certain tasks and how they relate to the bigger picture.

Project Portfolio Selection Process

A project portfolio selection process is an important tool used by organizations to help decide which projects should be pursued and funded. 

The process involves assessing the available projects and selecting those that offer the greatest potential value in terms of cost/benefit ratio, strategic fit, risk profile, and user requirements.

The first step in any project portfolio selection process is to define a set of criteria for evaluating prospective projects. 

This typically includes cost/benefit analysis, risk assessment, user demand, and alignment with organizational strategy. Once these criteria have been established it’s time to begin reviewing potential projects for consideration.

Once all the candidate projects have been identified and assessed against the pre-defined criteria it’s time to make decisions on which should move forward.

To do this a decision matrix can be employed where each project has a score assigned based on its performance against each criterion (e.g., high scores for low costs or high user demand). 

These scores are then used to rank order all potential candidate projects from most suitable through least suitable according to their overall score across all categories.  

Finally, once ranked ordered the organization can use its resources accordingly i.e., allocate resources such as funding or personnel to those higher scoring candidates while rejecting those with lower scores deemed less desirable or appropriate given their resource constraints at that point in time

Benefits of Strategic Alignment

  1. Improved Communication: When strategies are aligned across all levels, there is a greater understanding between different departments and personnel. This helps ensure that everyone is on the same page about what needs to be accomplished, allowing for smoother communication and faster decision-making throughout your organization. 
  1. Increased Efficiency: Aligning objectives across an organization allows tasks to be completed more quickly as resources are managed more effectively. With efficient resource utilization, you can increase your team’s productivity and reduce operational costs. 
  1. Greater Visibility: It’s difficult to measure success when organizational priorities aren’t clearly communicated or tracked properly. Having a clear set of strategic objectives gives everyone visibility into what they need to accomplish in order to meet those goals – providing employees with focus and motivation while allowing management teams more insight into the progress being made toward their strategic objectives. 
  1. Increased Adaptability: In today’s constantly changing business landscape, it’s important for organizations to stay ahead of trends or risk becoming obsolete or falling behind competitors. Strategic alignment helps ensure that teams are responsive and agile by having core strategies guide their operations so they can pivot quickly when needed.

Challenges and Pitfalls of Strategic Alignment

Achieving strategic alignment is a process that requires an organization to coordinate the activities of individuals and departments in order to achieve the desired goals.

For organizations striving for successful strategic alignment, there are several challenges and pitfalls that must be avoided.

One of the biggest challenges faced by organizations is accurate goal setting, as it is not easy to set realistic objectives that everyone can agree on and strive towards achieving.

Without clear and achievable goals, it will be difficult for all parts of the organization to realign their strategies in order to reach them. 

Additionally, there may be conflicts between different departments or parts of the organization that have different priorities or views on what should be accomplished first.

This can lead to disagreements about how resources are allocated or used, making strategic alignment more difficult.

Another pitfall with strategic alignment comes from a lack of communication between managers and staff members regarding which strategies need to be implemented in order for organizational goals to be met. 

Without proper guidance or support from leadership, employees may become confused by conflicting instructions or have difficulty understanding how their own efforts contribute toward reaching corporate objectives. 

Poor leadership can lead to low morale among workers who don’t feel like they are part of a unified effort toward success – something that needs careful management in order for effective strategic alignment. 

Prioritizing Project Investments

Prioritizing project investments is an important part of any successful business.

It involves careful consideration and analysis of the various aspects that need to be taken into account when making decisions about where, when, and how much capital should be allocated to a particular venture.

This can include factors such as economic feasibility, industry trends, market opportunity, and risk profile. 

The assessment process also needs to consider external factors like competition, government regulations, social changes, and even technological advances that could impact the success of an investment in the future.

By taking time to effectively prioritize investments, companies can ensure they are investing their money wisely in projects that will yield long-term returns on their investment.

Establishing Key Performance Indicators (KPIs)

Establishing key performance indicators (KPIs) is very important for any organization. KPIs are used to measure and monitor the progress of a company in its efforts to reach its established goals and objectives.

In order for KPIs to be effective, they must be specific, measurable, achievable, relevant, and time-bound (or SMART). 

It is also important that the chosen KPIs relate to the goals being sought by an organization. If a KPI does not support an organizational goal it should not be utilized as it will yield no value or insight. 

Furthermore, organizations should also ensure that all stakeholders are made aware of the chosen KPIs as well as what data needs to be gathered in order for them to accurately evaluate performance against their established goals.

By doing this companies can easily track performance over time in order to gauge results and make necessary changes accordingly when needed or desired.

Adopting an agile approach to project portfolio management

Agile project portfolio management focuses on the processes and principles that foster continuous innovation, efficient utilization of resources, and increased customer satisfaction.

An agile approach to PPM encourages organizations to measure performance at short intervals and quickly adapt to changes in business environments. 

It also emphasizes collaboration between multiple stakeholders including developers, product owners, executives, customers, and other stakeholders.

It places importance on quick decision-making with a focus on delivering value incrementally rather than at one go through a waterfall methodology or an early-life development cycle. 

This approach helps teams be more flexible and able to pivot quickly when objectives change or new insights are discovered throughout the course of a project’s development process. 

Additionally, an agile approach allows for faster feedback loops which can help adjust strategies mid-project if needed in order to reach desired outcomes even quicker.


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The Importance of Communication in Strategic Alignment

  • Communication is essential for successful strategic alignment, as it facilitates mutual understanding between all stakeholders.
  • Effective communication helps to ensure that everyone involved in the process can come to a common agreement about goals, objectives, and strategies.
  • It enables the identification of potential opportunities for improvement and provides a platform for constructive dialogue between individuals at different levels of an organization.
  • Achieving successful strategic alignment requires clear communication around expectations and roles – who is responsible for what? 
  • Clear objectives need to be communicated across teams so resources can be utilized effectively. 
  • Regular updates are essential to keep employees engaged with the company’s vision and encourage them to contribute their ideas on how they can help reach those objectives. 
  • Open, honest communication allows organizations to correct mistakes quickly and adapt strategies when needed in order to remain competitive in today’s marketplace.

What Does Strategic Alignment Have To Do With Project Managers?

Strategic alignment is a critical component of successful project management. It involves ensuring that the goals of the project are aligned with the overall strategy of the organization. This alignment is essential because it helps project managers to prioritize tasks, allocate resources more effectively, and ensure that the organization’s investments are directed toward initiatives that create value and support the organization’s mission and vision.

One of the primary benefits of strategic alignment is that it helps to minimize the risk of project failure. When projects are aligned with the organization’s strategic objectives, project managers can ensure that they are implemented to support the overall strategy. This alignment ensures that projects are not competing for resources and that the organization’s investments are directed towards initiatives that are most likely to succeed.

Another benefit of strategic alignment is that it helps project managers to prioritize projects more effectively. When projects are aligned with the organization’s strategic objectives, project managers can ensure that they are investing their resources into initiatives that are most likely to provide the greatest return on investment. This alignment ensures that projects are not only focused on short-term goals but also on long-term goals that support the organization’s overall strategy.

Strategic alignment also helps project managers to allocate resources more effectively. When projects are aligned with the organization’s strategic objectives, project managers can ensure that they are investing their resources into initiatives most likely to deliver the greatest value. This alignment ensures that resources are not wasted on projects that do not align with the organization’s overall strategy.

Examples of Successful Strategic Alignments

A successful strategic alignment is when an organization’s mission, vision, and values are aligned with its strategy and goals. 

This ensures that resources are used in the most efficient manner to achieve the desired result.

Nike is a prime example of a company that has achieved success by aligning its mission statement “to bring inspiration and innovation to every athlete in the world” with its strategies such as launching new product lines, engaging customers through marketing campaigns, investing in technology and improving their supply chain process. 

By doing so they have managed to become a leader among athletics companies while continuing to grow sales year after year.

Starbucks is another excellent example of strategic alignment where they focus on delivering high-quality coffee experiences for customers as part of their overall goal which improves customer loyalty leading to increased sales. 

They invest heavily in training staff, developing new products, and being active in local communities which all ties into their goals for growth.

Microsoft is also one of many examples that have successfully utilized strategic alignment by focusing on collaboration internally between departments before releasing any external products or services; this strategy has led them to remain at the forefront within the tech industry. 

These three examples demonstrate how powerful effective strategic alignment can be for any business looking to succeed long term.

How to Achieve Strategic Alignment?

Let’s look at some steps on how to achieve strategic alignment:

1. Understanding your goals: 

The first step in achieving strategic alignment is understanding the organization’s overall goals and strategy. This can be done by reviewing the organization’s mission and vision statements, as well as the strategic objectives outlined in the organization’s strategic plan.

2. Define roles: 

Clearly defining the roles and responsibilities of team members is critical to ensuring that everyone understands their contribution to the organization’s overall strategy. This can be achieved by creating a project charter that outlines the project’s scope, objectives, and key stakeholders.

3. Engage all team members:

Involving all team members in the process of strategic alignment is crucial to ensuring that everyone is committed to achieving the organization’s goals. This can be done by facilitating discussions and brainstorming sessions and encouraging team members to share their ideas and perspectives.

4. Align individual performance to organizational goals: 

Establishing individual performance objectives that are aligned with the organization’s overall strategy is essential to ensure that everyone is working towards the same goals. This can be done by setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals that align with the project’s objectives and the organization’s overall strategy.

5. Measure results: 

Regularly measuring and evaluating the results of projects is critical to ensuring that they are aligned with the organization’s strategic objectives. This can be done by setting Key Performance Indicators (KPIs) that measure the project’s progress toward achieving its objectives and the overall impact on the organization.


1. How to learn strategic alignment?

Several resources are available to learn about strategic alignment, including books, courses, and online resources. Additionally, seeking guidance from experienced project managers can be helpful.

2. Is strategic alignment effective for teams?

Absolutely yes, strategic alignment is effective for teams as it ensures everyone is working towards the same goals and priorities. It also helps to minimize the risk of project failure and increase the chances of project success by ensuring that projects are implemented in a way that aligns with the organization’s overall strategy.


A strategic alignment is an important tool for project portfolio management. It helps organizations to ensure that their projects are in line with their overall business objectives and strategies.

By aligning projects with the organization’s strategy, companies can prioritize investments, allocate resources effectively and execute successful projects. 

Strategic alignment also provides visibility into how the various projects fit together and creates a cohesive roadmap for success.

Utilizing strategic alignment as part of your project portfolio management process can help your organization achieve its goals more efficiently and effectively. 

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