Tempo Software has released its 2026 State of Strategic Portfolio Management (SPM) Report, revealing that nearly one in three enterprise projects fails to deliver meaningful return on investment.
The research, based on a survey of 667 planning and PMO leaders across 43 countries, highlights a widening performance gap between organisations that adopt adaptive planning approaches and those relying on traditional methods.
According to the report, high-performing organisations deliver measurable ROI or strategic value on 81% of projects, compared to just 45% among traditional planning organisations. In a modelled scenario, this gap equates to as much as $260 million in lost annual value.
The findings point to the cost of outdated planning practices, with misalignment, delays and low-value initiatives contributing to significant financial inefficiencies. Limited visibility, poor resource allocation and slow decision-making are identified as key barriers to effective execution.
Vic Chynoweth, CEO of Tempo Software, said:
“Adaptive Strategic Portfolio Management is fundamentally about resource allocation – are you dedicating your money, people, and time to the work that optimizes measurable value? The highest-performing teams aren’t clinging to perfect plans or heroic roadmaps. They’re reviewing frequently, leveraging the power and insights of AI, adapting based on real execution data, and making timely disciplined decisions. And they’re seeing the returns to prove it.”
The report identifies a group of organisations, referred to as “Dynamic Planners”, that outperform their peers by combining scenario planning, integrated portfolio management and continuous reprioritisation. These organisations report stronger alignment between strategy and execution, higher confidence in decision-making and faster responses to change.
Key findings show that teams using scenario planning achieve a 17 percentage point increase in projects delivering ROI or strategic value, while organisations with integrated portfolio processes see a 14 percentage point improvement compared to those operating in silos.
The research also highlights what Tempo describes as a “cancellation paradox”. Teams that review priorities more frequently cancel more projects, yet deliver higher overall ROI, suggesting that stopping low-value work early is a critical capability rather than a failure.
Visibility remains a major challenge. Only 37% of organisations report having good or complete visibility across projects, compared to 82% among those with fully integrated portfolio processes.
The report also underscores the financial impact of strategic drift. In an organisation with $880 million in strategic spend, poor alignment and delayed decision-making can result in up to $260 million in lost value annually, with a significant portion considered recoverable.
“The takeaway is clear,” added Chynoweth. “SPM isn’t about certainty – it’s about being ready for and adapting to change. The organizations delivering the strongest outcomes are the ones continuously choosing the right work, at the right time, with eyes wide open.”
The findings reinforce a broader shift in project and portfolio management, where adaptability, data-driven decision-making and continuous alignment are becoming essential to delivering value at scale.
