Middle Market Needs Effective Strategic Portfolio Management Practices

The National Center for The Middle Market (NCMM) recently published their Midyear 2025 Middle Market Indicator report. The report sites that most middle market entities "report - and continue to project - growth". But they are growing at a slower rate as "growth is at its lowest point in the post-pandemic era".

Like their large enterprise counterparts, middle market organizations are facing the same economic and political headwinds. Unfortunately, they are doing it with significantly less resources. The report also sites that "attracting and hiring qualified talent, rising labor costs, wage pressure and compensation demands are still major challenges".

So, what's a middle market organization to do? They must continue to invest to support future growth. This investment must have a direct impact to driving business outcomes and present opportunities to develop existing employees while attracting and acquiring the right talent.

To invest in the right initiatives, middle market organizations must develop effective strategic portfolio management capabilities consisting of a highly integrated set of practices supporting the:

• Application of streamlined governance and promotion of good stewardship practices.

• Balancing of investments, priorities and resources.

• Continuous adaptation to an accelerating pace of change.

• Dynamic decision making regarding what to start, stop, continue, consolidate or change.

• Accommodation of various methodologies.