2026 State of Strategic Portfolio Management report
Tempo Team
Between October and November 2025, Tempo Software surveyed 667 planning and PMO leaders across 43 countries to understand how they are putting their plans into action, what is having the most impact on execution. This data is from the front lines of portfolio management – revealing the practices that work, the assumptions that don't, and the measurable cost of strategic drift.
1 in 3 projects fail to deliver meaningful ROI
Across the organizations we surveyed, over 70% of projects deliver measurable ROI or strategic value. That sounds promising – until you realize it means almost one out of every three projects isn't delivering.
Projects delivering meaningful ROI
For an enterprise with $880M in strategic spend, that translates to $260M lost annually to strategic drift. Recoverable waste? Between $75M and $85M per year.
ROI impact calculator
Adjust the inputs to see how portfolio waste and value at risk change.
Industry benchmark: 35%
Industry benchmark: 20%
Industry benchmark: 2%
Industry benchmark: 25%
Estimated waste from failed initiatives
$308,000,000
Estimated waste from misaligned work
$176,000,000
Total potential annual waste
$484,000,000
Cost of delay from reallocation lag
$17,600,000
Daily cost of delay
$3,520,000
Total estimated value at risk
$501,600,000
Projected annual savings
$125,400,000
Based on 25% reduction.
The issue isn't a lack of planning. It's that plans gradually misalign from reality – and most organizations don't see it happening until it's too late.
90% of organizations say they encourage adaptability
But when we asked planning leaders what would most improve their ability to deliver strategic outcomes, the answers tell a different story:
Organizations are encouraging alignment, but planning leaders are desperately craving it. Something is going wrong.
The #1 issue holding teams back from executing plans? Understanding your team's capacity (29.5% ranked it first), followed closely by resource allocation and prioritization – the very problems SPM was designed to solve.
The gap between what organizations think they're doing and what planning leaders actually need is costing real money and real results.
"This year's data is clear: Organizations practicing real SPM principles have a 32-percentage-point advantage in the share of projects delivering measurable ROI or strategic value compared to those stuck in annual planning cycles. They pivot away from underperforming projects, adapt faster, and make harder decisions earlier.”
Vic Chynoweth, CEO at Tempo Software
The cancellation paradox: Why the best planners quit more often
Conventional wisdom says canceling projects is a failure of planning. The data says the opposite.
Organizations with more mature planning and portfolio management cancel more projects – but deliver higher ROI.
Reforecast every 2 weeks or more
Mean percentage of projects delivering ROI
Mean percentage of projects cancelled
So mature planners cancel 8 percentage points more projects, but deliver 8 percentage points more ROI.
This isn't due to poor planning. It's a fundamental shift in how high performers approach strategic work. The most ambitious goals don't drive success. Success comes from goals that adapt to reality and keep people's capacity and resources in mind.
How frequently does your organization re-evaluate and adjust portfolio priorities?
Are you a Dynamic Planner or a Plodder?
Our research identified a clear divide: The top 10% of organizations – we call them Dynamic Planners – are seeing dramatically different results from everyone else.
Want to know why?
Download the full report to see the measurable advantages of integrated processes and scenario planning, and get a framework for identifying what's holding your team back.
