Senior leaders are concerned with and conduct strategic planning thatis far removed from the operating level. Strategic planning, however, usesthe historical, tactical information from these operating level systems. In-formation ﬂow is piecemeal and inadequate for setting the strategic direc-tion and future of the organizations.Currently, senior leaders seek solutions through improved communi-cation of information and tools to measure performance. What is neededis a management strategy that uses operating units to perform the work and measure performance, analyze the effectiveness of the work beingperformed, and generate information for senior leaders. Project manage-ment does all this and is the choice of many senior leaders today forintensively managing critical aspects of the business.
4.1.3 Recognizing the Problem
Before senior leaders accept any solution, they must recognize the problemand be willing to act on that problem. The problem is clearly identiﬁed:‘‘more than 90 percent of organizations fail to effectively communicateand execute their strategic plans because the necessary management andcommunications systems are not in place.’’ Organization success is hingedon three requirements:
Having a management system that emphasizes accountability and con-trol
Taking advantage of available resources
Promoting cultural values dedicated to continual improvement that issupported by an appropriate management systemCurrent management systems are not delivering the desired results andthe communication of strategic goals from senior leaders to operating lev-els is weak. The layers of management between the senior leaders andoperating levels preclude effective information ﬂow down and the requiredperformance ﬂow back to the top.One perceived solution to the communication breakdown is to buy newtools. Better information systems are seen as the need while the efﬁciencyand effectiveness of the operating unit has not changed. More timely andaccurate reporting of the performance data is only one part of the chal-lenge to senior leaders.The management system and operating units retain the same structureand there is little or no improvement in productivity or meeting customerneeds.
THE STRATEGIC CONTEXT OF PROJECTS