Project Management Strategy

The main purpose of a project management project is to determine how to add VALUE to an organization's product or services, which can include decreasing the cost of providing products or services, improving the delivery of products or services, reducing the number of failed business projects, or improving the alignment of an organization's projects and work with its objectives.

How are Projects Selected and Managed

Projects are selected through a hierarchical strategy that includes:

????? Portfolio management: Centralized management of one or more programs, projects and ongoing operations.

????? Program management: Management of a related series of projects over time to accomplish broad goals to which individual projects contribute.

????? Operations management: Tasks, processes and policies that keep a business running on a day-to-day basis. Operations support projects, and projects can support and/or change operations.

The structure, operation and staffing of a Project Management Office (PMO) depend on a myriad of factors, including corporate culture, company size and strategic goals. Deciding which type will work best for an organization is an exercise in both evaluation and customization.

?Role of the PMO

?As a separate organizational unit, the PMO’s role is to centralize and coordinate the efficient management of projects.

The PMO typically has the authority to make key decisions, and to recommend when it’s time to postpone, scale back or cancel unnecessary or less strategic projects. Some of the roles the PMO plays include:

????????? Shares and organizes resources across projects.

????????? Acts as the central repository for project information.

????????? Coordinates communications across projects.

????????? Educates and mentors project managers.

????? Identifies and develops standards.

How are projects managed

How an organization is structured — the arrangement and relationships between the various corporate elements — plays a large part in how projects are selected and managed.

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Types of organizations

Generally, there are three types of organization:

????? Functional organization: Hierarchical in nature, it groups people according to area of specialization or eld. Staff is organized by skillset, work is done independent of other departments, and every employee is assigned a supervisor. Project authority lies with the functional manager, with the project manager wielding limited authority and power.

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?????? Projectized organization: Activities are arranged into portfolios or programs, which are then implemented through projects. The project manager is in charge and independent, with direct reporting from the project team. In essence, the opposite of a functional organization.

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?????? Matrix organization: Considered a mix of functional and projectized structures, a matrix organization is one in which employees report to multiple managers. The project manager shares authority with the functional manager. Commonly classified as weak, balanced or strong.

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?In a weak organization, the project manager has limited authority and power; authority resides with the functional manager. In a balanced structure, authority and power are shared between the project manager and the functional manager. While in a strong matrix organization, authority and power predominantly rest with the project manager.

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?·???????? Virtual organizations: With dispersed team members — whether in different buildings, cities or even countries — virtual organizations offer the advantage of incorporating experts who are not co-located and support teleworking options. With a heavy reliance on technology, communication and team building can be challenging. This requires the virtual project manager to spend additional time planning for those issues and project managements may be shared with the team members.

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Project Selection Process

?Projects exist to address problems, opportunities or organizational directives, commonly referred to as business drivers — crucial conditions for the continued growth and success of a company.

Often, a company’s business drivers lead to project selection. To be successful, project selection requires support from the top.

Involved are the PMO and executive leadership, whose task is to ensure each project aligns with and supports the organization’s strategy and objectives. That’s why projects should be formally reviewed and approved before resources and time are spent.

The demand for new projects will occasionally outweigh a company’s capacity to accomplish them. Whether due to financial constraints or skills exhausted elsewhere, organizations have to prioritize projects.

Projects that bring the highest return on investment from scarce resources must be pushed forward. Projects that don’t have a positive return on investment should be discarded or, at the very least, put on hold.

A good project selection process provides value that embraces business needs, while offering a method to determine the project’s impact on the organization. As you mull over which projects will gain approval and receive funding, consider this question: Is the project really worth the expense?

To answer that question and decide which projects you’ll green-light, go through a thoughtful series of steps:

1.????? Give projects a priority or ranking.

2.????? Assess client or stakeholder needs.

3.????? Look at market trends.

4.????? Take the time to understand what method was used to select the project, and why it was selected over others. Understanding a project’s “why?” will help you balance time, cost and resources, and determine the best way to proceed.

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The next article will be on “WHY” use project management