Strategic Alignment of Projects
1 like7,119 views
The document discusses strategic alignment of projects with business strategy. It emphasizes understanding the company's vision, mission, and strategic objectives to ensure projects deliver business value. Projects must identify their strategic elements and align their strategy with overarching business goals. Regular communication is needed to demonstrate a project's strategic alignment to stakeholders using tools like roadmaps, dashboards, and balanced scorecards.
Strategic Alignment of Projects
- 1. “Strategic Alignment for Projects”
- 2. Key Takeaways • Understand importance of company’s vision, mission and strategic objectives for a project • Attaining business value through projects • Identify elements of project’s strategy • Alignment of project’s strategy with business strategy, goals and objectives • Communicate strategic alignment to stakeholders
- 3. Agenda • PMI Talent Triangle • Business Strategy • Strategic Planning • Portfolio Management • Project Strategic Alignment • Project Strategic Communication
- 4. PMP Total PDUs Education Minimum Giving Back Maximum 60 35 PDUs 25 PDUs Technical Leadership Strategic Remaining Total 8 8 8 11 35
- 6. 6 Elements of Strategic Management
- 7. Business Vision • Defines how company is to be perceived • Picture of future state of the business • It’s the reason for being! ‘Bring the Italian coffeehouse tradition to America to create a place for human connection, conversation and one that fosters a sense of community’ – Starbucks, Howard Schultz - Il Giornale ‘Make people happy’ - Disney
- 8. Business Mission • Provides direction for the company’s vision • Defines company’s purpose and intent • Describes what the business offers to its: • Employees • Customers • Owners ‘To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.’ –Starbucks
- 9. Disney’s Mission World’s leading producer and provider of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.
- 10. Starbucks Core Values • Framework for behavior • Guiding principles OUR VALUES • With our partners, our coffee and our customers at our core, we live these values: • Creating a culture of warmth and belonging, where everyone is welcome. • Acting with courage, challenging the status quo and finding new ways to grow our company and each other. • Being present, connecting with transparency, dignity and respect. • Delivering our very best in all we do, holding ourselves accountable for results. • We are performance driven, through the lens of humanity.
- 12. 12 Business Goals and Objectives Mission Objectives: Define areas of pursuance Goals: Milestones, Resources
- 13. Business Objectives • Expected results to be achieved and maintained • Intended outcome rather a process ‘Build all new, company-owned stores to achieve LEED® certification’ -Starbucks Environmental Stewardship Goals - Disney Use resources wisely and protect the planet as we operate and grow our business: • Zero Net Greenhouse Gas Emissions • Zero Waste • Conserve Water Resources
- 14. Business Strategies Strategies: Design of means through use of resources to accomplish organizational purpose Objectives: Define areas of pursuance Goals: Milestones, Resources Mission
- 15. Business Strategies • How resources will be used to achieve goals or objectives • Implemented through • Portfolios • Programs • Projects • Operational improvements ‘To maintain loyalty and repeat business among its customers which will encompass hiring and training knowledgeable baristas.’ - Starbucks
- 16. Strategies for Competitive Advantage • Michael Porter – Generic Strategies • Cost leadership • Selling products or services at a lower cost than competitors • Example: McDonalds’ McCafe • Differentiation • Offering a product or service that offers unique qualities that customers are willing to pay extra for • Example: Latte Macchiato • Market Focus or Segmentation • Focus on a particular niche to best sell its products or services • Example: Whole Foods organic segment market
- 18. Strategic Planning • Sets overall vision for organization Identifies key strategies to achieve vision • Establishes critical measures to monitor progress • Answers the questions • Where are we today? • Where do we want to be? (Vision) • How do we get there? • How do we monitor our progress?
- 19. 19 Where are we today? Strengths Weaknesses Opportunities Threats SWOT Identified through internal analysis Identified through external analysis
- 20. How do we get there? • Critical Success Factors • Key Performance Indicators • Barriers
- 22. Business Value* • All organizations focus on attaining business value for their activities • Total value (both tangible and intangible) of organization • Starts with comprehensive strategic planning and management • Use of reliable, established processes help attain greater business value for project efforts *Through the effective use of project, program, and portfolio management disciplines, organizations will possess the ability to employ reliable, established processes to meet enterprise objectives and obtain greater business value from their investments *These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide)– Fifth Edition, Project Management Institute, Inc. 2013
- 24. Business Case • Provides business information to determine whether or not project is worth required investment • Written by requesting organization or business analyst • Business need and cost-benefit analysis are often used to justify project, including numerous project selection techniques
- 25. Portfolio, Programs and Projects
- 26. Key Definitions Portfolio *Projects, programs, sub-portfolios and operations managed as a group to achieve strategic objectives Program *Group of related projects, subprograms and program activities in a coordinated way to obtain benefits not available from managing them individually *These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. 2013.
- 27. Benefit Realization • Clearly identified goals • Properly planned route to reach them • Milestones along the way to mark progress • Criteria or defined targets against which to report success Projects Results Usage Benefits Begin with the end in mind – Stephen Covey
- 29. Project Strategy • Forms project framework • Identifies business strategy focus • Provides standards for managed project • Defines your competitive advantage
- 30. 30 Project Strategic Framework Business Perspective Business Objective Product/ Service Competitive Advantage & Value Success Criteria Project Definition Strategic Focus of Project Project strategy components Reduce customer wait time by 25% when there are 5 or more customers Develop mobile platform software for baristas to stand beside customers to enter orders and accept electronic payments, Need a scanning device Position baristas on customer side of counter to take orders Competitors don’t have this. Customers will love the experience Measure wait time to be reduced by 25% and do a customer survey Define requirements for software Develop software to meet objectives
- 31. Project Charter • Translates business goals into project objectives • Documents business needs, goals & objectives and initial customer requirements • Created by project sponsor, PMO, portfolio steering committee or initiator external to the project organization *Document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities *These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. 2013.
- 32. Project Charter Content • Business goals, objectives and strategy • Project purpose or justification • Project objectives and related success criteria • High-level requirements, project description and risks • Summary milestone schedule and budget • Stakeholder list • Project approval requirements • Assigned project manager, responsibility and authority level • Sponsor authorizing project charter
- 34. How do we monitor our progress? • Monthly • Did we do what we said we would do? • Quarterly • Are we making progress we expected to make? • Annually • Are we going in the right direction?
- 35. Reporting Options • Roadmap • Executive dashboards • Balanced scorecards
- 36. Roadmap
- 39. Balance Scorecard Categories Financial Performance Perspective Customer Perspective Learning and Growth Perspective Internal Business Process Perspective Vision Mission Goals
- 40. 40 Balanced Scorecard Strategy Map Balanced Scorecard Perspective Objective Measure Target Financial • Profitability growth • Revenue growth • Cost reduction • Market value • Sale revenue • Rent expense • +15% • +20% • -5% Customer • Higher retention • Increased market share • Number of repeat customers • Number of new customers • 90% • +10% per year Internal • Time to market • Delivery time • Reduce by 50% Learning and growth • Develop competencies • Align staff with strategy • Competency model • Strategic awareness • 100% • 100% Fewer stores Profits Higher sales New and existing customers Reduce prices On-time delivery Fast order processing Employee alignment
- 41. Key Takeaways • Understand importance of company’s vision, mission and strategic objectives for a project • Attaining business value through projects • Identify elements of project’s strategy • Alignment of project’s strategy with business strategy, goals and objectives • Communicate strategic alignment to stakeholders
- 43. Recommended Courses » Certified Associate in Project Management (CAPM)® » PMI Agile Certified Practitioner (PMI-ACP)® » PMI Professional in Business Analysis (PMI-PBA)® » Project Management Professional (PMP)®
- 44. Making Good Presentations Using Microsoft Power Point
- 47. THANK YOU !!!