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JONATHAN DONADO
Strategy Alignment to Project Management
PMI & ASP Linkedin.com/in/jonathandonado
March 23rd 2016
SOME COMMON MISTAKES:
Be #1 in our market ….Pursue a global expansion….Have unmatched customer
service….etc
Overview
Where are we going? The future. The dreams.
Who are we as a company? What we do. Why we exist. Our purpose. Values.
What are going to do to achieve our objectives? How are we going to get there?
Vision
Mission
Strategy
Example: Business
Canadian
Intellectual Property
Office
https://www.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr03475.html
Example: Strategy
vs Tactics
• Planning • Large Scale • Why • Difficult to Copy • Long Term
Frame
• Doing • Small Scale • How • Easy to Copy • Short Term
Frame
70% of employees don’t understand their company strategy
Forbes “When CEOs Talk Strategy, 70% Of The Company Doesn't Get It”, 2013
To make sure all employees understand the Business Strategy,
we need to make sure that it clarifies the following:
1. Key Drivers
Value proposition
to differentiate our products:
1. Product Differentiation 2. Cost Reduction
2. Challenges: Internal
What capabilities do we need to be the best in the market at delivering our value proposition ?
3. Must-Win Battles
Define battles that a company needs to win in the next 2 to 3 years to
overcome obstacles to value creation
FAILURE ? Companies
need to balance current
strategies with the
discovery of new ones
The “Strategy Trap” for successful companies:
Exploitation Get cash for growth
Exploration Find new wining products business models
FAILURE because
overtime as Companies
focus more on
Exploitation
The Strategy Trap for successful companies:
FAILURE overtime.
Companies focus
more on exploitation
1 / 3 firms become trapped in just a 5 year period
Exploitation
Exploration
FAILURE overtime.
Companies focus
more on exploitation
7 / 10 firms can’t escape the trap
Exploitation
Exploration
Business Strategy
Takeaways
3. a Strategy fails because companies focus on mainly in Exploiting instead or Exploring
Between high level Vision/Strategy and in-the-trenches project
implementation, we need to bridge the gap
The PMO delivers 2 main areas of improvement to the organization:
1. Helps choose the right projects 2. Helps deliver the projects correctly
The projects are expected to be: 1. On Budget 2. On Time 3. Synchronized with
strategy
Otherwise, it is a waste of company’s resources
(human capital and $$)
Project Expectations
But less than 42% of organizations report NO high alignment of
projects to strategy PMI “The High Cost of Low Performance”, 2014
Fact
90% of Senior Executives report that Executing Strategic initiatives are critical for the company’s competitive advantage ( 2013 The Economist Intelligence Unit report)
Facts
Senior Executives report that: - 61% struggle with the execution of those
strategies - Only 56% of strategic initiatives are
successful ( 2013 The Economist Intelligence Unit report)
Why there is no alignment ? That’s where the PMO comes in
PMI “The High Cost of Low Performance”, 2014
- Strong PMO
- No PMO (large firms)
- Not a strong PMO
1. If company lacks uniform management and oversight processes
2. Leadership has hard time gathering information about the project progress and results
3. Project goals are not aligned with business goals
An Organization will benefit from a PMO:
Business Unit PMO
Project Specific PMO
Enterprise PMO
No Alignment
Factors with PMO office
1. Internal Factors: No top support, resources, talent, etc
2. External factors: constant change, volatile markets, competitors, etc
1. If company lacks uniform management and oversight processes
2. Leadership has hard time gathering information about the project progress and results
3. Project goals are not aligned with business goals
An Organization will benefit from a PMO:
Business Unit PMO
Project Specific PMO
Enterprise PMO
TOP DOWN APPROACH: Recipe for Success
1. Have Leadership buy-in 2. Executive team needs to engage PMO in
Strategic Planning 3. PMO needs to report to C-level
(Forrester Research found in those case the PMO is highly successful)
PMO: The RIGHT TALENT
High performance vs Low Performance PMO: 1. 2x more likely to succeed as they have people
with the right talent (technical and business) 2. 1/3 more like to succeed as they have the
adequate number of people
(The Project Management Office Report. PMI 2014)
- General Business Acumen - Leadership - Decision Making - Financial/Cost Control
MEASURING RESULTS
Right Procedures + Right Talent = Results 1. Need to measure 2. Look beyond simple project metrics: scope/
budget / schedule. Look for: • Customer Satisfaction • Delivery time • Etc
Alignment Takeaways
1. The main way to bridge the gap between strategy and project execution is the PMO
2. PMO needs to have the support of the company’s leadership to succeed: Top Down Approach
3. PMO needs people with business acumen and measure other factors on top of project metrics.
15
Question #2
PMI & ASP
Are there other popular Agile methodologies in practice especially in
the Chicago land besides Scrum?
15
Question #3
PMI & ASP
As a case study, looking at Yahoo, where did program and project
managers fail or was this more a corporate strategy failure?
15
Question #4
PMI & ASP
Can we share some tools that help keep things aligned with the
organizational strategy?
Aligning Strategy to Execution: Balance Scorecard
BALANCE SCORECARD Robert Kaplan HBS in 1990s
What you measure is what you get
Aligning Strategy to Execution: Balance Scorecard
BALANCE SCORECARD Robert Kaplan HBS in 1990s
What you measure is what you get
Aligning Strategy to Execution
Robert Kaplan &
Norton 2008. They present their management system, which houses six sequential stages intended to help organizations capture what they call an “execution premium”—a measurable increase in value derived from successful strategy execution. They outline six stages in this system: 1. Develop the strategy 2. Plan the strategy 3. Align the organization 4. Plan operations 5. Monitor and learn 6. Test and adapt http://www.amanet.org/training/articles/What-Is-Strategy-Execution.aspx
15
Question #5
PMI & ASP
Do you determine strategy first and project management is the tool that
helps you manage the projects to complete the strategy?
Strategy >>> Implementation (PM)
http://www.amanet.org/training/articles/What-Is-Strategy-Execution.aspx
Strategy > Business Model Canvas
http://www.peterjthomson.com/2013/11/value-proposition-canvas/
By Alexander Osterwalder “Business Model Generation”
15
Question #7
PMI & ASP
Does all strategies include projects and the underlying management of them?
15
Question #9
PMI & ASP
How can I get a PMO started in a company where I am the only PMP
certified person?
Strategy > PM Influence
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-
Strategy-Implementation.ashx
15
Question #10
PMI & ASP
How can the PMO get a stronger voice into the 'C' level suite if not property
represented through the Organizational Chart ?
Strategy > PMO Voice
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-
Strategy-Implementation.ashx
Strategy > PM Bridging the Gap
http://www.herbrubenstein.com/articles/Implementation.pdf
COMMUNICATION
TOOLS: BALANCE SCORECARD
FORMULATION: SIMPLE STRATEGY
PMO
Strategy > Personal Interest comes from
EXPERIENCE
ROLES
INTEREST
EDUCATION
POST-GRAD
MASTERS
COLLEGE
RESPONSABILITIES
Strategy > Project Selection for Strategy
http://www.techrepublic.com/blog/tech-decision-maker/prioritize-projects-to-align-
with-strategic-plan-116516/
FUNDS (MONEY)
PRIORITIZE
EQUIPMENT
PEOPLE
Company resources are
limited /scarce
Need a project selection and
priority system to ensure strong link between projects and the strategic
plan
15
Question #14
PMI & ASP
How do we ensure that projects we've taken on are still delivering the
business value that was promised in the business case?
Strategy > Delivery Business Value
http://https://www.mindtools.com/pages/article/newPPM_58.htm/
BUSINESS VALUE
1. Continuous support from
SPONSOR
2. Realistic Project
Requirements
3. Measuring ongoing results
4. Feedback / Communication
To continue to deliver business value is critical
that the following occur:
Strategy > Resource Loading/Allocation
http://www.techrepublic.com/blog/tech-decision-maker/prioritize-projects-to-align-
with-strategic-plan-116516/
Strategic Planning: Resource allocation begins at strategic planning when a company formulates its vision and goals for the future. The vision and strategic goals are accomplished through achievement of objectives.
Budgeting: Once you have set your objective, you will need to allocate sufficient resources to accomplish it. In practical terms, this is often a matter of project budgeting.
Strategy > Definition
“Business Strategic” is the direction/path and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".
15
Question #17
PMI & ASP
How do you ensure benefit realization is tracked consistently and accurately?
15
Question #18
PMI & ASP
How do you get executives to be more transparent with the PMO with regards to the business strategy? It seems PMO
tends to be that last to know.
Strategy > Management to Support PMO
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-
Strategy-Implementation.ashx
THE IMPACT ON PMOS ON STRATEGY IMPLEMENTATION: Conclusions
Strategy > Cross Culture Project Management
Time Orientation
Individualism
Communication
Project Manager shall be culturally sensitive and promote creativity and motivation through flexible leadership. The PM needs to promote an environment of cross-cultural communication with respect and understanding of differences among team members.
Main Challenges:
https://www.gwu.edu/~umpleby/recent_papers/2009%20PMI%20Anbari%20Cultural%
20Differences.pdf
Strategy > Tools Used
https://www.gwu.edu/~umpleby/recent_papers/2009%20PMI%20Anbari%20Cultural%
20Differences.pdf
Tool Used: Business Plans, SWOT, Business Model Canvas, Balance Scorecard, Porter 5 Forces, McKinsey 7s
15
Question #22
PMI & ASP
How does one get to be empowered to say 'no' to a project, without hiding
behind process ?
15
Question #23
PMI & ASP
How does one put an end to pet projects that do not align to the mission/vision of the company ?
15
Question #24
PMI & ASP
How is the growth of Agile project management impacting strategic
planning?
15
Question #25
PMI & ASP
How much does the PMO influence either or both (agile project
management & strategic planning)?
15
Question #26
PMI & ASP
How much involvement in the strategy from external PM? (6 months contract)
15
Question #28
PMI & ASP
How to effectively communicate strategy up, down and across the
organization?
15
Question #29
PMI & ASP
How to identify the most effective project management methodology for
a project?
15
Question #31
PMI & ASP
I have seen a lot of divestment by formerly large companies, e.g., HP,
Abbott, and parts are being sold off. Does strategy come first before
projects, programs and portfolios ?
15
Question #32
PMI & ASP
I majored in MIS, specializing in IT project management. While I have a little PM
experience from past work experience I have never been a real PM. How do I get
started towards a true PM career ?
15
Question #33
PMI & ASP
If I gave you a laptop to plan your next project, what software would you want
on it?
15
Question #35
PMI & ASP
In a large organization, how can a PMO do a better job to help facilitate project
selection/prioritization across departments?
15
Question #36
PMI & ASP
In an acquisition situation, when 2 cultures are radically different, what type of turnover would be expected?
15
Question #37
PMI & ASP
In the arena of IT, much focus is on new/shiny features that will advance
strategic objectives. How can we help the business to understand the
importance of underlying ?
15
Question #38
PMI & ASP
Is having a $ value or cost avoidance the only true measures of aligning projects with business strategy ?
15
Question #39
PMI & ASP
Is it always necessary to have a strategy defined around a project or is
it enough just to have scope and deliverables ?
15
Question #42
PMI & ASP
Does this question of strategy and projects differ in large organizations
versus start-ups ?
15
Question #44
PMI & ASP
Please explain your experience in expressing the value of PM's to upper
management.
15
Question #48
PMI & ASP
Share your few thoughts on best business practices for Global Business
Management
15
Question #50
PMI & ASP
Should project strategy be dictated by the shareholders or recommended by
the project manager ?
15
Question #52
PMI & ASP
Since many functions tend to become siloed over time, what steps can a PM
take to insert themselves into the strategy conversation ?
15
Question #54
PMI & ASP
What are common techniques to align PMO objectives with corporate
strategies ?
15
Question #56
PMI & ASP
What are some ways to communicate that projects are not aligned properly
to affect change ?
15
Question #57
PMI & ASP
What are successful efforts you have used to integrate project management
efforts into strategic development efforts ?
15
Question #58
PMI & ASP
What are the major stumbling blocks to align strategy with project
management ?
15
Question #60
PMI & ASP
What are the ways that portfolio management aligns company's project
management practices with its corporate objectives ?
15
Question #63
PMI & ASP
What is the best example of a project well aligned with strategy that you have led? How did that alignment
affect the project outcome ?
15
Question #66
PMI & ASP
What mechanisms do you recommend to address outcomes when project managers are contractors and no
longer at the company ?
15
Question #67
PMI & ASP
When would a project be chartered that does not align with the strategy
and why ?
15
Question #68
PMI & ASP
Where have you seen project management efforts fail during
strategic initiatives ?
15
Question #70
PMI & ASP
Wouldn’t your company’s business strategy dictate whether or not to
initiate a project ? (internal or external clients)
15
Contact Info
Linkedin.com/in/jonathandonado
Thank You
www.branded.me/jonathandonado