Going the distance
Creating an organizational strategy is like planning a road trip: The route is as important as the destination. And for organizations trying to meet strategic objectives, portfolio management is the roadmap that can help them reach their goals. This article discusses how measuring a portfolio's strategic success can help an organization deliver on its long-term business goals. In doing so, it notes how a suite of metrics may help executives guide the organization and examines portfolio metrics and project metrics: project metrics measure performance and portfolio metrics measure benefits. It then identifies these five essential portfolio metrics: percent resource utilization; business value realized; project success rate; alignment with strategic objectives; and risk appetite. The article concludes by detailing how portfolio managers define a portfolio's success.