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Strategic planning and portfolio management have a lot of things in common. For example, strategic planning sets the priority groups that are involved and directly impacted by any given project. This plan is used to communicate within the organization what the end goal of any given project consist of. Portfolio management takes all the data that is collected during the strategic planning stage and prioritizes it more in depth. In order to successfully manage a portfolio you must have a solid and variable strategic plan. All the components involved must make continual progress to positively impact the key indicators of the organization. The strategic plan provides the basis for what your key indicators are. These include the companies’ vision, mission, goals and final outcome while benefiting all parties involved. Strategic planning process is the main tool for delivering what is needed for performance management. Not having a well-structured strategy will cause an organizations to have an uncoordinated, unfocused plan to improve. The impact of being unprepared will dramatically hinder the success of the performance management’s goal. In order to improve performance you have to continually innovate and execute an evolving strategic plan to allow for a more successful and profitable project outcome. In order to successfully manage a portfolio you must have a solid strategic plan.
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