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Enterprise Strategic Portfolio Performance (ESP2) Management Model Open Access

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 management. 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.


Hussein, Moataz
GW Unit
Project Management
Date Created
Type of Work
Attribution 3.0 United States

Project management
Strategic alignment
Organizational performance management
Project portfolio management
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