ISQM 410 Project Management

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ISQM 410 Project Management

• Chapter 2 Aligning Projects with Organizational
  Strategy

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Aligning Projects w/ Strategy

• Strategic management process
• Review define the organizational mission
• May/should include major products/services,
  target customers/markets, geographical domain,
  philosophy, key technology, public image, etc. gt
  specificity
• Set long-range goals objectives
• May cover markets, products/services,
  productivity, quality, finance, profitability,
  employees, customers
• Analyze and formulate strategies to reach
  objectives (SMART characteristics)
• Specific, Measurable, Assignable, Realistic,
  Time-related
• Implement strategies through existing operations
  and projects alignment of projects with
  mission, objectives, and strategies is critical
  success factor in PM

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Aligning Projects w/ Strategy

• Strategy implementation via projects key
  considerations
• Resource allocation funds, people, managerial
  talent, technological skills, equipment, etc.
• Formal informal organization that supports and
  complements strategy
• Planning control systems must be in place
  effective
• Motivation of project contributors
• Defined strategy implementation process
  increased focus in recent years (prior emphasis
  on strategy formulation)

4
Aligning Projects w/ Strategy

• Projects should reflect a balanced approach for
  achieving goals objectives requires a
  consistent method for this
• Alignment between strategic goals and projects
  often affected by
• Implementation gap functional managers lack
  of trust, constant re-negotiation of priorities,
  frequent resource shifting, multiple projects
  leads to inefficiency, inadequate resources
• Organizational politics (silos, big-dog approach,
  sacred cows, CEOs new baby, etc.)
• Resource conflicts and multi-tasking
  competition for resources, org. structure
  prioritization, projects gt resources

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Aligning Projects w/ Strategy

• Typical reasons for project not achieving desired
  impacts or completion
• No consistent approval system
• Many approving authorities
• Poor communication of priorities
• Different priority systems
• Functional turf battles
• Human resources not budgeted for projects
• Priorities mis-aligned with strategic plan
• No consistent criteria for project prioritization
• No feedback system for assessing effectiveness
• Pet projects given higher priority

6
Aligning Projects w/ Strategy

• Project Portfolio Management
• Includes classification/selection criteria,
  sources of proposals, evaluation management
• Classification
• Strategic, operations, compliance, emergency
• Capital, maintenance, business infrastructure
• Criteria driven by classification system
• Financial - Payback model, NPV
• System reliability
• Sources functional, departmental,
  classification driven
• Ranking system selection criteria (multiple),
  weighting, risks gt tied to classification system
• Inputs Executives, senior managers, functional
  managers, marketing/sales, prioritization team
  (matrix team)