What is strategic portfolio management?

[Shashank Bhaskar]

Strategic portfolio management is a set of business procedures and competencies to decide the best investments for achieving the organisation's overall strategy.

Strategic portfolio management establishes a global, enterprise-wide strategy, together with its goals and expected outcomes. It delivers them over time through initiatives, products, and services that alter the organisation in the desired direction.

Here, the term investment refers to a wide range of potential actions that affect almost every organisation. Large-scale business projects, major transformation projects, and important financial decisions are a few examples. The organisation's top executives carry out strategic portfolio management.

It is closely related to both PPM and Project Management, although it covers a considerably broader scope. Due to the need for more organisations to reinvent themselves in the face of disruptions like the internet or catastrophes such as the COVID outbreak, SPM is becoming increasingly popular.