Strategy And Project Alignment V1.0
1 like699 views
This document discusses the importance of aligning projects with business strategy to avoid wasted resources. It recommends establishing a project management office (PMO) and project portfolio management (PPM) process to select and prioritize projects based on strategic goals. The PMO standardizes processes and supports projects, while PPM evaluates projects using a balanced scorecard across financial, customer, business and learning metrics to focus on high value work.
![Aligning Projects
• Utilize multiple metrics to measure project
utility/performance: Financial, Customer,
Business Process, Growth and
Learning perspectives.[1]
• Project justification includes a business
case or value proposition that
encompasses all four perspectives.
[1] “The Balanced Scorecard: Translating Strategy Into Action”, Robert S. Kaplan
and David P. Norton](https://image.slidesharecdn.com/strategyandprojectalignmentv10-12892900197177-phpapp02/85/Strategy-And-Project-Alignment-V1-0-4-320.jpg)
Strategy And Project Alignment V1.0
- 1. Catalyst Project Solutions Business Strategy and Project Alignment The information provided herein is Catalyst confidential and not to be revealed to any third party without the express written consent of Catalyst Project Solutions.
- 2. Perils of Uncontrolled Projects • Business goals are not met and valuable resources are wasted when projects are not aligned with strategic business plans. • Uncoordinated development results in projects that are non-aligned, duplicative or unneeded - increases overall costs. • Lack of project management practices increases risk, causes budget and schedule overruns, and compromises functionality.
- 3. Budget Measures Not Enough • Budget based project selection criteria are insufficient to insure that projects are aligned with strategic goals. • No relationship to actions that produce results. • No information about what needs to happen in the future. • Does not show if strategies are effective. • Accounting, not operational view of the project process.
- 4. Aligning Projects • Utilize multiple metrics to measure project utility/performance: Financial, Customer, Business Process, Growth and Learning perspectives.[1] • Project justification includes a business case or value proposition that encompasses all four perspectives. [1] “The Balanced Scorecard: Translating Strategy Into Action”, Robert S. Kaplan and David P. Norton
- 5. Controlling Projects • Establish common metrics, methods, and reporting tools, create a common project repository. • Use standard processes and templates for all projects. • Select, prioritize, and authorize projects at high level by groups/managers representative of all business units.
- 6. Getting Projects Under Control Step 1: Project Management Office (PMO) • Integrated into the organization. • Common repository and reporting. • Standard processes and templates. • Coaching and support for projects. • Organization wide tracking of business metrics.
- 7. PMO Value Proposition • Reduced cycle time and delivery costs. • Early ID of project issues and risks. • Improved quality of project deliverables. • Better containment of project scope. • Improved accuracy of estimates. • Opportunities to reuse knowledge. • Better stakeholder communications. • Improved people and resource management.
- 8. Getting Projects Under Control Step 2: Project Portfolio Management (PPM) • Value based measures of project utility. • Business strategy sets the specific metrics and actions by which projects are selected. • Targets constraints/impediments to meeting business objectives (weakest link). • Establishes the process for selecting and prioritizing competing projects. • High level decisions that focus on total organization needs, not a division.
- 9. PPM Value Proposition • Resources are allocated to the most important work. • Improved alignment of projects with business objectives. • Better balance of projects. • Improved scrutiny of project requests. • More open authorization process. • Increased communication and collaboration. • Low value projects are killed.
- 10. Balanced Scorecard Metrics Projects are evaluated in four areas: • Financial – How does this project provide value to our shareholders? • Customer – How does this project make us appear to our customers? • Business Processes – How does this project improve our ability to respond? • Learning and Growth – How does this process sustain change and improvement?