Measuring portfolio strategic performance using key performance indicators

Project managers can use a variety of different techniques to effectively gauge the progress of their projects. But portfolio managers need different tools to gauge the strategic performance of a portfolio of projects. This article examines a dynamic model that can help portfolio managers develop the key strategic performance indicators needed to measure the progress of projects implemented as part of a portfolio of projects. In doing so, it overviews why organizations need a method for tracking the performance of interconnected projects, one that measures how well a portfolio is realizing both benefits and objectives; it looks at the field's literature on techniques for measuring the progression of project portfolios, describing those studies that explore the evolution of the three areas most related to the present study: key performance indicators, critical success factors, and tangible and intangible benefits.
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