Portfolio Management and Target Setting

How OKRs and other Goal Systems Drive Project Success

Companies today face the challenge of planning and executing numerous projects simultaneously while aligning them with strategic goals. This is where portfolio management comes into play - a method that helps select the right projects, use resources efficiently, and ensure that all initiatives contribute to overarching objectives. In this article, we explore how goal-setting systems like OKRs (Objectives and Key Results) are integrated into portfolio management and how businesses can achieve measurable success through this connection.

1. Goal Systems in Business: An Overview

Goal-setting systems serve as a strategic compass for companies, ensuring that all activities and projects align with overall business objectives. OKRs (Objectives and Key Results) are one of the most well-known systems, connecting clear objectives with measurable outcomes. But there are different other frameworks available in order to align your strategic and corporate goals broken down to operational work

OKRs: OKRs consist of a clearly defined objective and key results that measure progress toward achieving the objective. They promote transparency and focus on the essentials.
KPIs (Key Performance Indicators): KPIs are specific performance metrics that measure the success of particular business activities.
SMART Goals: This method ensures that goals are specific, measurable, achievable, relevant, and time-bound.

Each of these systems aims to set strategic priorities and ensure that projects align with those goals.

2. How OKRs Guide Portfolio Management

Linking OKRs to portfolio management is crucial to ensuring that projects are not only individually successful but also contribute to the company’s long-term strategy. Portfolio management provides the framework for allocating resources to projects that generate the highest value for the company.

Process of Integration

Setting Goals
First, strategic OKRs are defined at both the corporate and departmental levels.
Prioritization in the Portfolio
Projects included in the portfolio must be directly related to these goals. Every project should clearly demonstrate how it contributes to the overarching OKRs.
Resource Allocation
Resources - such as budget, time, and personnel - are allocated based on priorities and the potential value of the projects. Projects that make the greatest contribution to the OKRs are given priority.
Continuous Review
The portfolio must be reviewed regularly to ensure that all projects are on track and continue to align with the OKRs. Tools like Jira Align or Advanced Roadmaps help provide this level of transparency.

Effective portfolio management must apply strict criteria to ensure that only projects with real strategic value are pursued. Key criteria include:

Contribution to OKRs

How significantly does the project contribute to achieving the set OKRs?

Resource Availability

Are sufficient resources available to successfully execute the project without jeopardizing other important initiatives?

Risk Profile

What risks are associated with the project, and how realistic is its successful implementation?

Financial Benefit

What measurable financial or operational value does the project bring to the company?

Time Horizon

How long will it take for the project to be completed and deliver results?

4. Technological Support with Atlassian Tools

Tools like Jira Align and Advanced Roadmaps provide the perfect platform to link goal-setting systems like OKRs with portfolio planning. They offer a transparent view of project progress and how these efforts contribute to achieving strategic goals.

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Rainer Warmdt, Senior Consultant bei Communardo Software GmbH

A clear target-setting process like OKRs, combined with a well-thought-out portfolio management system, ensures that companies execute their projects with focus and efficient use of resources. By continuously linking strategic goals with the project landscape, companies create transparency and efficiency—two critical success factors in a constantly changing business environment.

Rainer Warmdt, Senior Consultant, Communardo