Virgin media is consolidating its domains


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Strategic portfolio management is conducted at a much higher level within the organization, where those involved are deciding if the projects and programs selected for execution align with the organization's strategies (is the organization doing the right projects given its strategy).

Not surprisingly, as illustrated in Exhibit 5, there is a wide variation in the strategic alignment of projects between low performing and high performing organizations (39% versus 86%). As the three forces of 1) globalization, 2) changing technology, and 3) demanding ownership (investors) have converged, many executives have concluded they have no choice but to equip their organization for rapid response to whatever changes may occur next in the competitive environment.

Exhibit 7 depicts six core initiatives developed by the executive leadership team.

Exhibit 8 shows how one of these initiatives might be broken down into the programs and projects necessary to reach the preferred future state.

Strategic portfolio management: the key to the executive suite. This paper is a case study in strategic portfolio management focusing on one example from the United States, the Boeing 787 and one example from EMEA, the EADS Airbus A380.

Organizations build strategy to define how their vision will be achieved.

The vision is enabled by the mission, which directs the execution of the strategy [PMI, Portfolio Management Standard, 2008].

Exhibit 2 is based on Jim Collins' bestseller, Good to Great (Collins 2005).

The Cabanis-Brewin research findings found only 33% of low performing companies were executing their strategy according to plan, as compared to high performers who achieved 83%.

This paper is organized as follows: Exhibit 1 shows the relationship between project portfolio management and organizational strategy.

Paper presented at PMI® Global Congress 2008—EMEA, St. The overarching learning objective of this paper and subsequent presentation is to highlight best practices that the attendees can bring back to their organizations to close the gap between strategy as developed by their executive leadership team and the actual results realized.

(Friedman, 2005) The Boeing 787 program is an illustration of successfully adapting to this new environment.

Executive “pain points” frequently revolve around issues including shortfalls in strategy execution, getting product to market on time, capacity constraints, demanding ownership, global competition, changing technology, and regulatory compliance.

Some of the factors likely to have been considered include: 1) Technology (do we, Boeing, know how to make a composite fuselage? 2) Do we, Airbus, want to keep our captive factories full? 4) Where will we find the greatest return on our investment? Is short, the senior executives of Boeing and Airbus were envisioning a preferred future state they wanted their companies to achieve in three to five years.