||Organizations achieve their strategy through projects. Organizations also
embark on strategic change initiatives to fill performance gaps in their
operational practices. The interaction between strategy and organizational
activities is complicated. Accordingly, integrating the performance of the
organizational domains with the strategy domain is a challenge.
The strategic portfolio performance management approach in three large
organizations was investigated to have a closer look at the performance
management practices. Understanding the views of practitioners regarding the
strategic portfolio performance management practices in their organizations
or those of their clients was important. Therefore, a questionnaire was
conducted, and 164 professionals represent different industries, and
geographical locations participated.
The results showed the absence of a comprehensive enterprise-wide performance
management model. Moreover, organizations usually confuse between the success
factors of various organizational domains. Therefore, it is not uncommon to
find project management metrics used to measure strategic objectives
performance. A similar confusion was observed between project performance and
operation performance. Additionally, communicating the organization strategy
to project and operation domains is still a challenge. More importantly, it
was observed that existing portfolio performance models and practices focus
on the performance of only projects, and ignore other portfolio components.
Finally, organizations overlook the continuity of the strategic alignment of
the projects in a portfolio, even though it was significantly relevant.
Based on the findings, there is a need for an enterprise-wide strategic
portfolio performance management system that looks at enterprise portfolio
from a broader perspective than that of just a portfolio of projects.
The findings of the field study, semi-structured interviews, questionnaire
and literature review were used to develop Enterprise Strategic Portfolio
Performance (ESP2) Management Model. The ESP2 model suggests structuring the
organizational units into portfolios. Each portfolio encompasses three
portfolio components: projects, operations, and change initiatives. The ESP2
model uses a Strategy- Portfolio Integration Matrix that fully integrate
between the performance of the portfolio domains with that of the strategy
domain. The integration matrix also serves as a useful dashboard that
facilitates executive dictions making related to the enterprise performance
The research contributes to improving the practices of the strategic
portfolio performance management. The proposed ESP2 model serves as a basis
for further enhancements and research in the field.