Typically, most organizations link strategy to execution using the following 3 management disciplines and process.
1. Strategic Management
First, executive management defines the strategy. Typically, the business strategy is captured via a collection of the following: vision statement, mission statement, statement of principles, enterprise objectives, core competencies and a strategic plan. Ultimately, strategy is about winning in the competitive marketplace.
2. Portfolio Management
Second, after the organization’s focus is established and understood, projects are selected, prioritized and resources are placed where it matters. The selection and prioritization process is called portfolio management. This discipline is concerned with:
- Strategic Alignment. Does the project fit within the focus of the organization?
- Valuation. What is the usefulness and value of this project?
- Diversification. How does the project relate to the enterprise’s collective portfolio and how can the project mix be optimized?
3. Project Management
Third, after the portfolio of projects is selected, the enterprise needs to do the work. In this phase, project management disciplines such as the PMI framework or SCRUM are applied to direct the firm’s capabilities – its coordination of skilled people, processes, information technology and other assets to accomplish project objectives.
The Missing Link: Enterprise Architecture
Unfortunately, many organizations fail to synchronize these 3 critical management disciplines. What they are missing is a holistic, strategic management discipline or uber-framework to link them (please refer to Figure 1). Enterprise Architecture is such a method. However, despite its upcoming 25 year birthday, it’s enigmatic to LiquidHub why so few firms have infused this way of thinking into their organizations? We collectively wonder what the reasons are for its lack of adoption. Any thoughts?