These roadmaps help guide businesses to their final desired outcome. Given their profound importance, comprehending the strategic priorities of an organization is essential for any Portfolio Management Professional (PfMP). To do this, several methods such as document reviews, interviewing, and other information gathering techniques can be utilized.
I. Document Reviews
A document review is the process of examining and analyzing the existing documentation of an organization to glean insights about its strategic goals and objectives.
The documents that might be reviewed include:
- Strategic plans
- Annual reports
- Internal and external audit reports
- Process documentation
- Procedure manuals
- External publications
These documents provide insight into the organization’s mission and vision, key performance indicators, as well as past performance and future strategic initiatives.
II. Interviewing
Another effective method for understanding strategic priorities is interviewing. This technique involves interactions between the portfolio manager and several key individuals within the organization. By speaking directly with stakeholders, leadership, and other members of the organization, you can gain valuable insights into the strategic goals and objectives driving organization actions.
The key individuals might include:
- Organization’s Leadership Team
- Middle Management
- Project Managers
- Employees
- External stakeholders
The type of questions a PfMP may ask during these interviews could include:
- What does the organization aim to attain in the next five years?
- How are current projects supporting the organization’s strategic goals?
- What is considered a priority?
III. Other Information Gathering Techniques
In addition to document reviews and interviewing, PfMP may use other techniques including:
- Surveys and Questionnaires: They help gather quantitative and qualitative information around the organization’s strategic objectives.
- Workshops: They create opportunities for open discussion and collaboration, leading to a better understanding of the strategic intent.
- Direct Observation: Observing day-to-day operations can provide insights into the organization’s de facto priorities.
- Benchmarking: Comparing your organization’s policies, performance, products, and strategies against the industry’s best players can help identify gaps and set the right objectives.
Practically, let’s consider the example of an organization that aims to reduce operating costs and improve operational efficiency. These strategic goals could be deciphered from their annual reports and strategic plans, while interviewing the CFO could reveal further insights into ways they plan to accomplish this. More in-depth information could be gathered using surveys with employees on potential improvement areas. Benchmarking against industry peers might show best practices in the industry, aiding in the definition of achievable objectives.
In conclusion, understanding an organization’s strategic priorities is not a one-time task but ongoing. The PfMP must constantly revisit and reevaluate these priorities through document reviews, interviewing, and other information gathering techniques. These steps will ensure alignment between what an organization aims to achieve and the projects that are undertaken to achieve these goals.
Practice Test
True/False: Interviewing is not a common method used in information gathering for evaluating strategic goals and objectives.
- Answer: False
Explanation: Interviewing is one of the most common and effective methods used for information gathering when evaluating an organization’s strategic goals and objectives.
Which of the following is not a method used in gathering information for evaluating strategic goals and objectives?
- a. Document Reviews
- b. Brainstorming
- c. Interviews
- d. Financial Modeling
Answer: d. Financial Modeling
Explanation: While financial modeling is helpful for assessing the feasibility of strategic goals, it doesn’t inherently contribute to information gathering about those goals.
Single Select: Which technique is commonly used to understand strategic priorities in an organization?
- a. Financial Analysis
- b. Inventory Management
- c. Document Reviews
- d. Social Media Marketing
Answer: c. Document Reviews
Explanation: Document reviews, such as reviewing business plans or strategic planning documents, understand the strategic priorities of an organization.
Multiple Select: Which of the following techniques are effective in understanding an organization’s strategic priorities?
- a. Document Reviews
- b. Surveys
- c. Interviewing
- d. Machine Learning Algorithms
Answer: a. Document Reviews, b. Surveys, c. Interviewing
Explanation: Document reviews, surveys, and interviewing are all traditional methods of gathering information about an organization’s strategic priorities.
True/False: Portfolio management professionals do not need to understand an organization’s strategic goals and objectives.
- Answer: False
Explanation: Understanding organizational strategic goals and objectives is essential for portfolio management professionals as it helps them align the portfolio to those goals.
True/False: Information gathering techniques for evaluating strategic goals and objectives should always be rigid and uniform.
- Answer: False
Explanation: The information gathering techniques should be flexible and adaptable depending on the scope, context, and nature of the strategic goals and objectives.
True/False: Document reviews always give a comprehensive understanding of an organization’s strategic priorities.
- Answer: False
Explanation: While document reviews are important, they should be complemented with other techniques such as interviewing and surveys for a comprehensive understanding of the organization’s strategic priorities.
Multiple Select: What information could be gathered from interviews when evaluating strategic goals and objectives?
- a. Personal Biases
- b. Clear Explanation of Goals
- c. Interpretation of Documented Data
- d. Domestic Preferences
Answer: b. Clear Explanation of Goals, c. Interpretation of Documented Data
Explanation: Interviews offer the chance to clarify goals and get insight into how stakeholders view and interpret documented data.
Single Select: Why is information gathering necessary in understanding strategic priorities of an organization?
- a. Staff Training
- b. Decision Making
- c. Social Media Management
- d. Software Upgrade
Answer: b. Decision Making
Explanation: Information gathering aids decision-making processes by giving a clear picture of strategic goals and priorities.
Multiple Select: Which of the following sources can provide valuable information about an organization’s strategic priorities?
- a. Business Plans
- b. Annual Reports
- c. Website
- d. Employee Training Manuals
Answer: a. Business Plans, b. Annual Reports, c. Website
Explanation: Business plans, annual reports, and the company website can all provide key insights into strategic priorities set by the organization.
Interview Questions
1. What is the purpose of evaluating organizational strategic goals and objectives?
Organizational strategic goals and objectives are evaluated to understand the strategic priorities of the organization and align project portfolios with these priorities.
2. What role do document reviews play in evaluating organizational strategic goals and objectives?
Document reviews help in understanding the existing strategic goals and objectives of the organization and provide insights into the overall direction of the organization.
3. How can interviewing help in understanding the strategic priorities of an organization?
Interviewing key stakeholders and decision-makers within the organization can provide valuable insights into the strategic goals and priorities of the organization.
4. What are some other information gathering techniques that can be used to evaluate organizational strategic goals and objectives?
Other information gathering techniques include surveys, focus groups, and industry research to gather data on strategic priorities.
5. How can a PfMP use the information gathered through document reviews and interviews to understand the strategic priorities of an organization?
By analyzing the information gathered, a PfMP can gain a comprehensive understanding of the strategic goals and objectives of the organization and identify key priorities for project portfolio management.
6. What are some common challenges that organizations face when evaluating their strategic goals and objectives?
Some common challenges include conflicting priorities, lack of alignment between projects and strategic goals, and changing market conditions.
7. How important is it for organizations to regularly review and update their strategic goals and objectives?
Regularly reviewing and updating strategic goals and objectives is crucial to ensure that the organization remains agile and responsive to changes in the external environment.
8. How can a PfMP help organizations prioritize projects based on strategic goals and objectives?
A PfMP can use tools and techniques such as strategic alignment matrices and benefit realization plans to prioritize projects based on their alignment with organizational strategic goals.
9. What role does stakeholder engagement play in understanding organizational strategic priorities?
Engaging key stakeholders in the process of evaluating strategic priorities ensures alignment and buy-in from all relevant parties and helps in achieving organizational goals.
10. How can a PfMP ensure that project portfolios are aligned with organizational strategic goals and objectives?
A PfMP can regularly review and update project portfolios, conduct strategic reviews, and realign projects as needed to ensure alignment with organizational strategic goals.
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