The newly released State of Strategic Portfolio Management: 2026 Global Trends report confirms something many of us have sensed for years: Strategic portfolio management (SPM) is now a board-level priority, but execution maturity is lagging.

Respondents in 95% of organizations say SPM is critical. Only 44% believe their processes are effective, however. Fragmented systems, siloed data, and weak forecasting continue to undermine strategy. AI investments are exposing those cracks even faster.

When I look at those findings, I do not find them surprising. I see them as the natural outcome of how our industry has evolved.

From PPM discipline to SPM accountability

Earlier in my career, the focus was on project portfolio management (PPM). PPM brought structure. It standardized intake. It improved reporting. It introduced governance where there had been none. For its time, that was real innovation.

Why is PPM falling short for teams looking to accelerate digital transformation? Fundamentally, PPM was built around managing projects. It answered operational questions. Are we on time? Are we on budget?

As digital transformation accelerated, PPM became insufficient. Executives began asking different questions:

  • Are we funding the right bets?

  • Are we aligning capacity to strategy.

  • Are we generating measurable gains from our largest investments?

PPM could not fully answer those questions because it was not designed to connect strategy, finance, and execution in one system of record.

That is why SPM emerged.

Why the shift was necessary

Why is SPM now considered a board-level priority for global organizations? These three forces made the transition inevitable:

  • First, technology became central to business strategy. Portfolios were no longer administrative constructs. They became vehicles for growth, resilience, and competitive differentiation.

  • Second, the cost model changed. Cloud spending, technical debt, and shadow IT increased the need for financial governance and transparency. Leaders needed visibility into the total cost of ownership, not just milestone tracking.

  • Third, execution speed became strategic. Developer velocity, capacity planning, and cross-functional alignment now have a direct impact on revenue and risk. Siloed data simply could not support that level of decision-making.

SPM reframed the conversation. It elevated portfolio management from project oversight to investment accountability. (Learn more about how SPM software can fuel improved business outcomes.)

Where we stand now

The report makes clear that leaders in most organizations understand the need for this shift to SPM. The language of strategic alignment and governance is mainstream. AI initiatives have intensified the urgency. When only half of organizations can even establish ROI for AI projects, the stakes are obvious. (See our prior post to learn more about why AI ROI is proving elusive.)

But belief is not maturity.

The next phase of SPM is about integration. It requires unifying data, strengthening governance, and building the discipline to connect strategy to execution in a measurable way. That is hard work. There are no shortcuts.

What encourages me is that the direction is clear. The move from PPM to SPM is not a rebrand. It is a response to a more complex, more dynamic, and more competitive environment.

The organizations that embrace that reality and invest in connected, transparent portfolio practices will not just manage work more efficiently. They will execute strategy more confidently.

That is the real evolution we are watching.

Read the State of Strategic Portfolio Management report and find out more about the key trends shaping the industry.

Frequently asked questions

Q: Why is project portfolio management (PPM) no longer sufficient for modern digital transformation?

A: While PPM successfully standardized intake and governance, it was designed to answer operational questions about budgets and timelines rather than connecting capacity to high-level strategy.

Q: What are the primary forces driving the shift toward strategic portfolio management (SPM)?

A: The transition is fueled by several key trends. This includes such factors as technology becoming central to growth, the rising complexity of cloud and shadow IT costs, and the need for fast strategic execution.

Q: How does the rise of AI affect the need for SPM?

A: AI investments have made it increasingly urgent for teams to make the move to SPM. Currently, only half of organizations can determine the ROI of their AI projects, exposing existing cracks in data and forecasting.

Q: What is required for an organization to reach the next phase of SPM maturity?

A: While survey results show a clear understanding of the need for SPM, this recognition must result in action. To be successful, teams need to actively integrate SPM, pursuing such efforts as unifying data, strengthening governance, and building a disciplined connection between strategy and measurable execution.