The environment can significantly impact the organization’s portfolio of programs and services. This is because external environment includes those factors that are outside the control of the organization but that considerably influences the organization’s ability to function. The organization’s environment consists of the following main components – customers, government, economy, and competition. Public opinion is also emerging as a strong component of external environment.
It is important for an organization to balance its portfolio of programs and services with the environment and with the society as well. Issues like global climate change, poverty and inequity, and unsustainable use of resources will have to be kept in mind by the managers of an organization with regards to its portfolio of programs and services. There has to be sufficient governance to respond to above mentioned issues. Vision and strategy will have to be aligned to ensure that portfolio of programs and services are being provided as per the minimum desired environmental criteria. Managers of the organization will have to adopt a program and portfolio approach to ensure that adherence to environmental requirements is present.
Specify how the environment might impact the organization’s portfolio of programs and services?