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Strategic Alignment in ITM Platform

The Strategic Alignment feature in ITM Platform aids companies in making efficient project portfolio selections based on their strategic goals. The feature guides users through a three-phase process:

  1. Business Goal Prioritization
  2. Project Prioritization
  3. Project Selection

Accessing Strategic Alignment

To access the Strategic Alignment feature:

  1. Go to Programs under the Management section.
  2. Select the desired program.
  3. Navigate to the fifth tab within the program, labeled Strategic Alignment.

Setting Scenarios

Scenarios in ITM Platform apply to Programs, specifically within the Strategic Alignment feature. They allow users to configure different business goal prioritizations, component prioritizations, and component selections within a program. A scenario can be set as active to apply it to the program.

For example, you can set different scenarios, and therefore different project selections, based on the market conditions, such as:

  • Optimistic: A scenario with a higher budget and anticipated value.
  • Realistic: A scenario based on moderate projections.
  • Pessimistic: A scenario with a lower budget and anticipated value.

Business Goal Prioritization

The first tab, Business Goal Prioritization, enables the prioritization of company goals based on their strategic importance. This phase is typically managed by the board of directors or a team with expertise in the company's strategy.

Prioritization Methods

ITM Platform offers three methods for prioritizing goals:

  1. Quantitative Rating: Goals are prioritized by assigning percentages, reflecting their relative importance.
  2. Qualitative Rating: Goals are visually represented using Harvey balls, allowing for a quick, comparative assessment.
  3. Pairwise Comparison: Goals are compared against each other to establish a hierarchy of importance, with the system using the Analytic Hierarchy Process (AHP) to calculate the priority order and assign percentages. The Consistency Ratio displayed in the comparison chart indicates the reliability of the prioritization decisions. A ratio above 0.1 suggests potential inconsistencies in the judgments made.

Component Prioritization

The Component Prioritization tab focuses on assessing the value of individual projects (components) in relation to the defined business goals. This evaluation is usually carried out by a team separate from the board of directors to ensure an unbiased selection process.

The platform displays a list of values, representing each project's contribution to the overall business goals. Projects aligning strongly with high-priority goals receive higher value scores.

Similar to Business Goal Prioritization, users can prioritize components using the quantitative, qualitative, or pairwise comparison methods. The platform allows for comparing project priorities against business goals. A qualitative comparison table illustrates how each project aligns with different business goals.

Component Selection

The Component Selection tab assists in selecting the most efficient set of projects based on the prioritizations established in the previous phases. The table displays the selected projects, their value, budget, workforce requirements, and other relevant details.

Selection Guidance

Three graphs guide the selection process: 1. Value vs. Cost: This graph compares the total value of a project against its total cost, helping users identify cost-efficient options. 2. Efficient Frontier: This graph presents different project combinations that optimize the balance between cost and value. Points along the Efficient Frontier represent effective selections, either by minimizing cost for a given value or maximizing value within a given budget. 3. Selected Components vs. Business Prioritization: This graph compares the representation of business goals in the current project selection against the initial business prioritization. The visual comparison helps users align the project portfolio with strategic objectives.

Users can modify the project selection based on the information provided in the graphs, updating the charts to reflect the changes. Saving and approving the selection finalizes the component choices and informs project managers to proceed with their work.

Conclusion

ITM Platform's Strategic Alignment feature streamlines project portfolio selection by guiding users through a structured process of prioritizing business goals, evaluating project contributions, and selecting the most efficient set of projects. The feature provides tools for analysis, visualization, and informed decision-making, ensuring alignment between project initiatives and overarching strategic objectives.

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