As the dynamics of the business landscape evolve, staying attuned to industry trends becomes imperative for enterprises seeking sustained success. In light of extensive interactions with diverse enterprises globally, a nuanced understanding of trends shaping strategic portfolio planning for 2024 has emerged. Here are the top five trends in Project and Portfolio Management (PPM) and Strategic Portfolio Management (SPM) that demand attention as organizations navigate the challenges and opportunities ahead.
1. Shift From Turnkey to Tailored Technology
Historically, technology solutions were turnkey, requiring minimal customization. However, a significant shift has taken place, with organizations increasingly adopting tailored solutions. This transition demands a move from traditional project management to product management. Leveraging product management becomes crucial for maximizing software investments and customization efforts, ensuring businesses and customers derive optimal value.
2. Rethink Agile Methodologies
Reports indicate a growing sentiment within organizations that agile methodologies haven’t fully delivered anticipated value, prompting a reevaluation of approaches. Some teams are reverting to traditional practices, while others explore alternatives that go “beyond agile,” with the adoption of Scaled Agile Framework (SAFe) gaining prominence. A likely outcome is a hybrid approach that blends traditional and agile methodologies to strike a balance between flexibility and structure.
3. Engineering Efficiency to Investment Prioritization
While historically teams prioritized maximizing engineering efficiency, the focus is now shifting towards effective investment prioritization. The move to tailored technology amplifies the challenge, as external service providers find it increasingly challenging to contribute when software is highly customized. To overcome consistent bottlenecks, teams must instill discipline in prioritizing high-value efforts that align with organizational goals.
4. Addressing Increased Demand for Product Management Skills
Deep product management expertise is becoming a rare commodity in many organizations. The evolving landscape requires product managers to possess in-depth product knowledge and technical proficiency. Technical insight is crucial for credible prioritization of initiatives, especially in the era of tailored technology where understanding intricate details is fundamental for realizing value.
5. Transition from PMOs to SROs (Strategy Realization Offices)
The traditional focus of Product Management Offices (PMOs) on compliance is evolving into a more comprehensive role. Organizations are witnessing a transformation to Strategy Realization Offices (SROs) that prioritize coordination, communication, and strategic alignment with other teams. As the challenges associated with tailored technology intensify, SROs emerge as key facilitators, providing education, coaching, and process guidance.
In Conclusion
The trends outlined above are poised to shape organizational strategies and operations throughout 2024. Organizations must remain vigilant and adaptable to embrace these shifts in strategic portfolio planning. To gain deeper insights into these trends and others influencing our industry, a recommended resource is the “2024 SPM Industry Trends” webcast, offering an in-depth exploration of the evolving landscape and its implications for enterprises.
