Strategic Project Management

“A vision without a strategy remains an illusion.” – By Lee Bolman, a professor of leadership at the University of Missouri-Kansas City

How would you define strategy? In simple terms, it's essentially a roadmap to reach your goals. Now, when delving into organizational strategy, consider it as the comprehensive plan crafted by top management to achieve the organization's mission and vision.

But is strategy only about planning and execution? Let's look at the bigger picture. Instead of just calling it a plan, ask yourself, "How are we planning to win?" The same idea applies to projects. In today's fast-paced world, we need to ask, "How are we going to stand out in this competitive environment?"

Today, it's not just about creating products or services; it's about shaping them in a way that positions you ahead in the competition. When it comes to project strategy, we're talking about going for a distinctive approach, forging a unique path, and setting a direction to win the business battle.

Ensuring that projects align with strategic goals is essential for both businesses and individuals. Project management and the projects themselves really step up to support these strategic goals. Organizations use projects to turn their overall strategy into the innovative products and services required for success.

Creating a strong connection between strategy and projects becomes increasingly challenging as organizations grow larger and more diverse. We used to think only the big shots in senior management dealt with strategy. However, in this fast-paced world, organizations are waking up to the idea that project managers need to step up and shift from just handling operations to thinking strategically.

The role of a project manager has evolved over time. Now, they're not just about getting things done; they're all about achieving real business results and helping the company win in the competitive market. When it comes to strategic thinking, a project manager's decisions can shape the entire life cycle of a project.

For instance, responding to suggestions for altering product design will vary depending on whether the company aims to lead through innovation or achieve operational excellence through cost-effective solutions. Project managers need to understand what the organization is all about and show how their projects fit into the bigger mission.

To succeed as an adaptive and strategic project manager, a thorough understanding of strategic management and project selection processes is crucial.

What is Strategic Management? It's like outlining your personal career goals—answering questions like 'who you are' and 'where you see yourself in the near future, and how you plan to get there.'

In strategic management for organizations, it's about tackling questions like "what we are," "what we intend to be," and "how we are going to get there." An organization's strategy outlines how it aims to compete, utilizing available resources in both the current and anticipated future environment.

In simple terms, it's about recognizing the robust connections among Mission, Goals, Objectives, Strategy, and Implementation.

• The Mission is the overall purpose of the organization.
• Goals are major targets aligning with this mission and setting the direction.
• Objectives provide specific targets to goals and give birth to strategies to achieve those goals.
• These strategies, in turn, require action and tasks for effective implementation.
• These actions represent the projects to be undertaken.

Project Selection Process - The selection criteria are categorized into financial and non-financial considerations.

Financial Criteria: Financial criteria encompass models such as the Payback Model and Net Present Value (NPV). While financial return is important, it may not always capture the strategic significance of a project.

Companies need to exercise discipline in rejecting profitable projects that fall outside the scope of their core mission. Criteria beyond direct financial return should be considered.

Non-Financial Criteria: Non-financial criteria include the Checklist Model and Multi-Weighted Scoring Model. The checklist model is handy for different divisions but it misses out determining the relative importance or value of potential projects. On the other hand, the multi-weighted scoring model consider both qualitative and quantitative factors. Projects with higher weighted scores are considered more favorable. For this priority system to work effectively, you must choose the right factors. If not, the screening process will lose its effectiveness. The weighted scoring model helps project managers in understanding how their projects contribute to organizational goals.

The underlying concept is that a project management team should acquire skills in handling the business aspects of their project. Instead of solely concentrating on meeting time, budget, and performance goals, it is essential for them to enhance support for their company's business strategy and sustainability.