1

The Intersection of Strategic

and Project Management

Without a vision the

people project will

perish

E.L. Owens, Jr. Ed.D, PMP,

CPPM

2

What brings me to this issue?

Several interviews with senior v.p.’s directors, and clients

Teaching over 9,000 students project management

Current market miscomprehension of the difference in project management and project coordination

A perceive lack of authority given project managers based on senior management ignorance of the role

3

Outline Strategic Management

Process Strategy to Project Project Management Process Project to Process Implications

4Th

e In

ters

ectio

n of

Stra

tegi

c

and

Proje

ct M

anag

emen

t “ Only 30 percent of projects come in on time schedule, and/or budget!” PMI Research Conference 2009

5

What are the implications to our firms?

Strategic Management Process

6

Know the Vision and Mission of your enterprise or business unit.Will this project aid the theory of your business?Are the objectives clear and do you have clarity

of purpose?Are you organized based on your purpose?What are the dominate strategy formations?

Based on Strategic Direction

Strategic Management Process

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OWENS’ STRATEGIC MODEL FOR RE-ENGINEERINGTURNING VISION INTO ACTION

INFORMATION RE-ENGINEERING

REAL ORGANIZATIONAL VALUES

Planning On Purpose

Enterprise’sCompetency

MISSIONVISION

QUALITATIVE -CONCEPTUAL

ExternalCustomer

Market Assessment

Enterprise’s Culture

Views of Future

Leadership Values

GOALS

GRANDSTRATEGIES

OBJECTIVES

INFORMATION STRATEGY PLAN

BENCHMARKING

BUSINESS AREAS ANALYSIS

BUSINESS SYSTEMS ANALYSIS

FUNCTIONAL STRATEGIES

ACTION PLAN

OPERATIONAL PLAN

PERFORMANCE PLAN

QUANTITATIVE – TASK ORIENTATED

OPERATIONS RE-ENGINEERING

DESIRED BEHAVIORS

Sphere ofInfluence

RESULTS

BUSINESS SYSTEMS INTEGRATION

06/05/06

STRATEGIC RE-ENGINNERING

Strategic Plan

Tactical Plan Tactical Plan Tactical Plan

Project Team

Operational PlansOperational Plans Operational PlansOperational Plans

Projects Processes

Processes Projects Processes

Chaos Process Projects

Pro

gram

A

Program B

Program C

Strategic Management Process

8Strategic Management ProcessPortfolio, Program , and Project

Narrative

9Strategy to Project

FIGURE 2.1

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Theory of the ProjectProjects have the greatest chance of success when they emanate out of:

Strategic Plans

Best Practices

Been Given Thoughtful Reflection

Strategy to Project

11

Strategic Plan

Tactical Plan Tactical Plan Tactical Plan

Project Team

Operational PlansOperational Plans Operational PlansOperational Plans

Projects Processes

Processes Projects Processes

Chaos Process Projects

Pro

gram

AProgram B

Program C

Strategy to Project

12

Transformation - WBS

Project Hypothesis

Outputs

Where you want to be:•Key deliverables•Stakeholder analysis•Communications Plan•Strategic Impact•Competitive Posture

Project Plan

to get there

Project Definition Gap Statement

Define the Problem

Environment

History

Resource

Inputs

Strategic Choice Work

Informal Organization

People

Formal Organization Outputs

Systems

Process

Capabilities

Desired Outcomes

Congruence Model

Why?

Strategy to Project

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Why am I here!

Why am I here!

Why am I here!

Why am I here!

Needs and WantsStrategy to Project

14Strategy to Project

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Project management is the leadership art and operations science of organizing the components of a project, whether the project is development of a new process, product, service, policy, strategy, or experience. A project is a one time, multitask effort with a clearly defined start and end date. A project is not something that is part of normal business operations. Projects are owned by a sponsor and managed by a professional practicing project management(P3M). It's typically created once, it's temporary,and it's specific. A project consumes differentcapital resources (human, financial, materials,equipment, and time) based on assumptionsand constraints.

Project Management Definition

Strategy to Project

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PMI Project Phases PMBOK 4th ed.

P3M Effort

Process GroupInitiating Develop Project Charter Identify Goals and Objectives Develop Strategies and Plans Research Previous Experience Develop Project Charter Stakeholder Analysis Feasibility Analysis Requirements Analysis Develop Preliminary Project Scope Statement

Process GroupPlanning Set Up Project Environment Define Scope Develop Project Schedule Develop Risk Plans Plan for Quality Organize Project Resources Develop Procurement Plans Develop Financial Plan Develop Project Support Plans Develop Project Management Plan

Process GroupExecuting Acquire Project Team Obtain Resources Conduct Team Orientation Assign Responsibilities Direct and Manage Project Execution Manage Team Performance Assure Quality Manage Project Communication Contracting with Subcontractors

Process GroupMonitoring and Controlling Monitor and Control Project Work Integrated Change Control Scope Verification Schedule Control Manage Finances Perform Quality Control Manage Project Team Produce Performance Reports Manage Stakeholders Risk Monitoring and Control Contract Administration

Process GroupClosing Close Project Assess Satisfaction Summarize Project Results and Lessons Learned Review and Recognize Team Performance Close Out the Project Records Review and Reconcile Financial Performance Contract Closure Close Contract

Project Management Process

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.

Quality

Scope

Cost Schedule

Risk Resources

Requirements

Key Project Elements for Success

Project Management Process

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People

Process

Application

Information

Technology

Business FrameworkChange Management

Who?What?Where?When?How?Why?How Much?How Risky?What Value?

PM manages the orchestration of change across layers of a business framework

Project Management Process

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Program Mgmt Project Mgmt

Leadership/Ownership

Project to Process

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Four Functions of Organizational Culture

Project to Process

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Change ManagementThe different “constituencies” go through various stages of reaction to change,

at different times.

Certainty Denial

Shock

Anger

Fear

Confusion SurrenderAcceptance

Curiosity

Experimentation

AHA!

Practices

New ProcessesNew Competence

Letting go > real curiosity > experimentation > insight (AHA!) > change

Endings Neutral Zone New Beginnings

Project to Process

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Product/Process Cash flow

To Tp

Tb Tf Tr

Tv Tpb Te

ProfitNew Development

To= opportunity costTp= perceivedTb= beginTf= frozen spec.

Tr= releasedTv= volume ramp upTpb= payback positiveTe= end of life

Project Effort

Delivered Process

Project to Process

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PM Network Diagramming Tool Set

Project to Process

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SPI = BCWP (EV)/BCWS (PV) Scheduling EfficiencyShows how much work has been accomplished

for each dollar worth of schedule to date.

CPI = BCWP (EV)/ACWP (AC)Cost EfficiencyShows how much work has been completed for

each dollar actually spent. This is the more common ratio used

Earned-Value AnalysisProject to Process

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Investment Returns• The difficulty with cost benefit analysis is that some of

the costs and most of the benefits will occur in the future, while the development costs must be paid in the present.

• We try to determine what each of the future costs and benefits are worthnow (their present values) so that valid comparisons can be made.

• Therefore a clear sense of the project ROI, ROA, and ROE is essential for understanding the firms strategic viability.

Project to Process

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Learn from the Effort

Lessoned LearnedA summary of mistakes avoided

and risk managed. Actions are defined to ensure success.Reflection of difficulties encountered and insights

turned into gains.

Project to Process

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Some PM Perceptions• PM or P3M (Professional Practicing Project or Program

Management)Is there a distinction?

• PM or Task JockeyingThe team leadership narrative

• Method maturity match to cultureWhat is the right amount of rigor?

• Role between sponsor and P3MFidelity: the quid pro quo – referent power Law of Reciprocity

Implications

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Power of Access and AgendasHaving a seat or impact at the strategic decision making table.-Boman & Deal

Power & Influence

Implications

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Improper P3M assignment will frustrate the project team and enable scope creep. Can the P3M stand up to the forces embedded in the plan!

Assigning the Project ManagerImplications

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A Systems Model of Change

Figure 16-1

Implications

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Project System View

Environment

History

Resource

Inputs

Strategic Choice Outputs

Systems

Process

Capabilities

Desired Outcomes

Congruence Model

(Nadler, 1999)

Implications

Work

Informal Organization

People

Formal Organization

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VisionMission

Programs and Projects

Objectives

Implications

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PM BibliographyBolman, Lee G. and Deal, Terrence E. Reframing Organizations, San

Francisco: Jossey-Bass, 1997Gray, Clifford F. and Larson, Erik W. Project Management-The Managerial

Process Boston : McGraw-Hill, 2003Kerzner, Harold. Project Management 8th ed. Ohio: Wiley & Sons, 2003Lewis, James P. The Project Managers Desk Reference. Boston: McGraw-

Hill, 2000Nadler, D.A. & Tushman, M.L. (1980) A model for diagnosing

organizational behavior. Organizational Dynamics, 9 (2), 35-51PMBOK Guide. A guide to the Project Management Body of Knowledge.

3rd ed. Newton Square: Project Management Institute, 2004Senge, Peter M. The Fifth Discipline: The Art & Practice of the Learning

Organization. New York: Currency, 2006Schwartz, Peter, Art of the Long View. New York: Currency Doubleday,

1991

Strategy to Project