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What Project Strategy Really Is: The Fundamental Building Block in Strategic Project Management
What Project Strategy Really Is: The Fundamental Building Block in Strategic Project Management
ABSTRACT ■ INTRODUCTION ■
ith accelerated competition, increased economic pressures, and
W
Strategic project management is gradually becoming
a popular and growing trend within the discipline of rapid technological change, researchers and practitioners are
project management. The general idea is that project continuously searching for better ways to manage projects. Yet,
management teams must learn how to deal with the both communities are gradually realizing that many projects are
business aspects of their projects, as well as better still managed in an ineffective way, thus leading to significant losses in pro-
support their company’s business strategy and sus- ductivity, profitability, and employee morale (Davies & Hobday, 2005;
tainability, rather than just focus on meeting tradi- Williams, 2005). It seems that the traditional emphasis on meeting time,
tional time, budget, and performance goals. Although budget, and project performance (or scope) goals is no longer sufficient to
this approach has been gaining popularity, strategic guarantee the achievement of organizational objectives (Shenhar & Dvir,
project management has not yet become an explicit 2007). A new approach is thus emerging, collectively called “strategic project
and widely used approach in the practice of project management” (Cleland, 1998; Davies & Hobday, 2005; Jugdev, 2003; Shenhar,
implementation. One of the concepts mentioned as 2004). The strategic project management approach is based on the realiza-
an important element is project strategy; however, tion that projects are, most of the time, initiated to achieve business results
no universal framework or even a clear definition of (Pennypacker & Dye, 2002) and that project management implementation
what project strategy is has so far emerged. The goal should be better aligned with the higher-level enterprise strategy. What that
of this article is to fill in this gap and provide a useful implies is that organizations, project teams, project managers, and execu-
definition and a framework for the further study and tives must better learn how to focus project execution on achieving the busi-
implementation of the project strategy concept. ness results of the mother organization—more profits, additional growth,
Specifically, to achieve this goal, we first look at the and improved market position, to name a few (Cleland, 1998; Shenhar,
origins of strategy in military and business research 2004). Ironically, however, the traditional approach is still widely ingrained,
to discuss the question of what, exactly, project and is still accepted as the common way of running a project: When project
strategy is; we follow this discussion with an explicit managers and project teams are engaged in day-to-day project execution,
definition of a project strategy. We then outline a they typically are not focused on the business aspects. Their focus and atten-
framework for building a dedicated project strategy tion, rather, is operational, and their mind-set is on “getting the job done.”
document for an individual project, and show how While this mind-set does contribute to project teams doing their work effi-
this framework can guide the project planning and ciently, left alone, it may lead to disappointing business results and even
execution processes. Using a case study approach, failure—when the job was not done effectively.
which included an action research phase, we demon- We support the view that a new mind-set and approach must be built on
strate how project teams can adopt the strategy con- top of the traditional project management concept. Strategic project man-
cept in a natural way that would lead their project to agement will not discard the traditional mind-set; instead, it will expand it.
better business results. Meeting operational goals and efficiency has always been and will continue
to be important for project success (Shenhar, Levy, & Dvir, 1997). But in the
KEYWORDS: project strategy; strategic modern organization, project teams should and could be asked to do more.
project management; competitive advantage; They should learn how to better understand the needs of the higher enter-
project success prise and then plan and execute their projects, not just for meeting time and
budget goals, but also for creating customer satisfaction and, above all,
Project Management Journal, Vol. 43, No. 1, 4–20 achieving business results.
© 2011 by the Project Management Institute Although sometimes challenged by traditional thinkers, these changes
Published online in Wiley Online Library are perhaps inevitable and unstoppable. However, they are not trivial, for at
(wileyonlinelibrary.com). DOI: 10.1002/pmj.20282 least three reasons. First, as mentioned, such thinking represents an
Ultimately, in addition to suggesting a when dealing with strategy, everything strategy. It must be a given in the mod-
framework for further research, the that has been written about organiza- ern organization, and could no longer
goal is to provide a framework and tion could be legitimately discussed. serve as competitive advantage. This
guidelines for organizations and man- Strategy, therefore, on one hand, has view, however, was strongly criticized
agers on how to plan their projects with been claimed to be limited to top man- by others (e.g., Mintzberg et al., 1998).
a strategic focus in mind, and how to agement’s planning, while on the other In addition to Porter’s generic strate-
manage them in a more strategic way hand to include everything the organi- gies, several other typologies have been
for better business results. zation does. proposed to describe different strate-
To cope with the multiple ways of gies (Maidique & Patch, 1988; Miles &
What Is Strategy? looking at strategy, Mintzberg (1994) Snow, 1978; Mintzberg et al., 1998;
The concept of strategy in society is not offered five different definitions for Venkatraman, 1989; Venkatraman &
new; its origin was apparently rooted in strategy (the five “P”s). According to Camillus, 1984).
the early days of writing about war, Mintzberg, strategy is one or more of
published in famous works, such as Sun the following: it is a plan, a direction
Building the Concept of Strategy
Tzu’s The Art of War (1994), first written of how to get from here to there; a pat-
in Project Management
Since the 1950s, project management
around 400 BCE, and Carl von tern of consistent behavior over time; a
scholars have focused on the develop-
Clausewitz’s On War (1989), first written position, created by a different set of
ment of tools, techniques, and proce-
after the Napoleonic wars in the early activities, which typically results in a
dures that would assist in managing
eighteenth century. Early war philoso- unique set of products in particular
projects effectively. However, as men-
phers had no difficulties in defining markets; a perspective, a fundamental
tioned, not until recently have studies
strategy. They saw it as a quest for find- way of doing things; and finally a ploy, a
shifted the focus from traditional proj-
ing the best way to ensure winning the deception, a specific maneuver intend-
ect management to new research agen-
war or the battle. They typically delin- ed to outwit an opponent or competitor.
das on the strategic aspects of project
eated different strategies and matched Mintzberg (1987) also argued, correctly,
management. Researchers realized that
them to the conditions that seemed that strategy can involve a deliberate
even when project management proce-
most suitable (Mintzberg et al., 1998). approach, an emergent one, or a com-
dures have been carefully followed, a
Hence, in the early days, strategy was a bination of both. He added that the
project’s business outcomes could still
clear concept, and it was focused only most effective strategies were devel-
be disappointing (Williams, 2005).
on one thing: how to win the war. oped by combining deliberation and
How, then, can one inject the concepts
In the modern era, the concept of control with flexibility and organiza-
of strategy into the project manage-
strategy has been expanded to addi- tional learning (Mintzberg, 1987).
ment experience?
tional aspects of life. The term strategy Finally, Porter (1980, 1985) estab-
is now used in different environments lished a foundation for the concepts of Strategy Is About Winning
and in much broader contexts, includ- competitive analysis, a set of generic As also mentioned, the contemporary
ing the organizational arena. Some strategies, and the notion of the value views about strategy have made the
people see strategy as a direction, a chain. In particular, his generic strate- field quite broad, and probably too
plan, a guide, a course of action into the gies include cost leadership, differentia- vague. In the modern organization,
future, or a path to get from here to tion, and focus. He claimed that an every action, every plan, and almost every
there (Mintzberg, 1994). Others see organization must make a choice decision is easily called strategy. Yet
strategy as a pattern of behavior that is among these to gain competitive projects are often about focus and
consistent with time. In an organiza- advantage. Porter’s work created a con- about specific activities to achieve spe-
tional context, famous works by tinuous debate on the essence of strate- cific goals. In order to conceptualize the
Selznick (1957) or Chandler (1962) dis- gy that considered whether companies idea of project strategy, one must nar-
cussed the concepts of “distinctive should focus on one strategy or com- row the scope and discussion about
competence” or the relationship bine different and sometimes even strategy. Instead of talking about plans
between strategy and structure. opposing strategies. In a later work, to attend outcomes or courses of
A typical definition of organization- Porter (1996, p. 68) re-described strate- actions, we propose returning to the
al strategy is the plans developed by top gy as “the creation of a unique and valu- original idea—namely, the military
management to achieve outcomes that able position, involving a different set arena. In the military environment,
are consistent with the missions and of activities.” Porter claimed that strate- strategy simply and unmistakably
goals of the organization (Wright, gy is doing different things, or doing the means how we are planning to win.
Pringle, & Kroll, 1992). In a wider per- same things differently, and emphasized The same principle should apply to
spective, Starbuck (1965) claimed that that operational effectiveness is not projects.
Project Strategy: the project perspective, position, and guidelines for what to
do and how to do it, to achieve the highest competitive advantage and the best
value from the project
Strategic Concept
Success/Failure
Criteria
It includes the following three ele- consumer products to create a new principle that would dominate the
ments: business background, business business for the company. project’s plan and execution and will
objective, and strategic concept. Business Objective: This element guide the project’s product creation
The business background defines states the ultimate business goal of and deployment. Apple’s strategic
the business environment, reason, and the project. Typically, it expresses the concept was to integrate an easy-to-
opportunity behind the project. We long-term business status that will be use music player, with friendly soft-
note that sometimes this is called the achieved for the company when the ware to manage files and an Internet-
“business case” (Project Management project will be completed. This may based music store, which would pro-
Institute, 2008). Business background also explicitly express the support of vide the company with a unique
typically starts with describing the the company’s vision and mission market position.
environment and identifying the cus- through the project’s outcome. As an
tomer and/or user. It then describes organization today may place more The Position
and articulates their need, identifying emphasis on corporate sustainabili- This is the second “P,” the position that
the problem and delivering a feasible ty, in addition to the business or eco- will be achieved after the project has
way to solve that problem. Next, the nomic aspect, the business objective been completed. The position part
background states how this need could may be stated in terms of ecological involves what we expect to get once the
be addressed, and finally outlines the and social aspects as well (Dyllick & project has been completed. It is the
business opportunity associated with Hockerts, 2002; Hardjono & Klein, “state of the world” and the position
this need and solution. 2004; Marrewijk & Werre, 2003). In that the company will achieve in its
The business background of Apple’s Apple’s case, the objective was to business environment after the project
iPod/iTunes initiative was the late penetrate the digital music purchase ends. The position includes the follow-
1990s environment when people start- and usage domain and eventually ing parts:
ed to use MP3 players to carry their dominate it. Product Definition: This describes
music around and to download music Strategic Concept: This element the specific outcome that will exist
files from the Internet. Apple identified describes the general strategic idea once the project is completed. It
a need for an easy-to-use player that behind the project’s expected busi- defines the kind of product, its scope,
also provided an efficient way to buy ness and how this idea is aligned with and how it will be used. A product
music, and saw this as an opportunity the company’s business strategy. definition may include the product’s
to use its strength in well-designed Specifically, it is the guiding strategic concept of operation, as well as its
framework, the project novelty level • Policies—The right policy will drive may be the best approach to the formu-
involved a platform product, since team activities that are consistent lation of a project strategy.
similar products existed before; a with the competitive advantage, To demonstrate the role of the pro-
medium-to-high-tech project, since and will free managers from day-to- ject’s strategy in actual projects, we
most of the technology existed; a day decisions. The policy will artic- present here the findings of a field
complexity at an array level, since ulate how to manage and leverage study on three projects that were not
the project combined a physical company strengths, exploit profes- only successfully completed, but also
product, several software packages, sional expertise, use internal syner- met or exceeded their business objec-
and Internet-based service; and gy, and create and take advantage of tives.
numerous external music compa- external alliances.
nies that became partners in the • Processes—These are specific pro-
The Empirical Research
project. Finally, the pace of the proj- cesses that will consistently support Research Design
ect was fast and competitive, since the creation of competitive advantage, To test the project strategy construct in
the project needed to reach the mar- including learning through feedback practice and finalize its framework, we
ket at a competitive pace while other loops and revisions to the strategy. have conducted an in-depth study on
companies were trying to do the • Roles and Responsibilities—The ongoing projects. Our study combined
same. specific roles that different team two research methods in two phases.
Strategic Focus. This is the last com- members will take on to foster the The first was based on case study
ponent of the project strategy, and creation of competitive advantage research, focusing on the dynamics
the second most important. It creates should be well defined. They could within single projects (Yin, 1984). That
the mind-set and guidelines for include responsibility for cost, ease type of research is mostly useful for
behavior to achieve the product’s of use, or product performance. grounded theory building. Specifically,
competitive advantage and value. we have used the process of building
The right strategic focus translates In Apple’s case, the strategic focus theory from case study research as sug-
the desired competitive advantage involved a focus on easy-to-use product gested by Eisenhardt (1989). This kind
into guidelines for project partici- design (for example, coming up with the of process is common in cases when an
pants. These guidelines help focus “wheel” concept to navigate quickly a priori specification of a construct
activities and foster behavior that among 1,000 songs, instead of the typi- exists, and it is triangulated by multiple
will make the competitive advantage cal up or down buttons), a policy of investigators and within-case and
a reality. In particular, strategic focus acquiring as many externally available cross-case analyses, and combined with
may be reviewed during project exe- technologies from outside companies the role of existing literature
cution, through feedback loop learn- as possible, and a smooth integration of (Eisenhardt, 1989; Kirk & Miller, 1985;
ing (Bierly & Hamalainen, 1995; software, hardware, and Internet access. Strauss & Corbin, 1990). During this
Crossan & Berdrow, 2003; Methe To formulate a project strategy, all phase we studied the ongoing project
et al., 1997), which will help sharpen eight elements have to be defined and management practices of the planning,
the focus and make it relevant to the integrated seamlessly to support one execution, monitoring, and problem-
business and project situation. another. Even though some of the strat- solving processes within each project.
Ultimately, the right strategic focus egy elements are not new to the disci- The second phase involved action
should create in the project an envi- pline of project management, they may research, which is typically an interac-
ronment of relentless pursuit of com- not be effectively defined and integrat- tive and reflective data-driven process
petitive advantage (Poli, 2006). The ed to reflect the business perspective of progressive problem solving to
strategic focus should also address and competitive advantage and value. update the way teams address issues
the business, ecological, and social Echoing Mintzberg (1987), the formula- and improve their strategies, practices,
aspects addressed as part of the busi- tion of a project strategy can be done and knowledge of the environment
ness objectives. In essence, strategic using a deliberate approach, an emer- within which they practice (Lewin,
focus may include, among other gent approach, or a combination there- 1958). Action research is composed of a
things, the following items: of. In many situations, flexibility and spiral of steps, each of which is com-
• Guidelines for Behavior—These are learning during strategy formulation posed of a circle of planning, action,
the rules and guidelines that direct are particularly needed (Crossan & and fact finding about the result of the
behavior and decision making. The Berdrow, 2003). Some refer to this as action (Reason & Bradbury, 2007).
right pattern of behavior will cumu- “muddling through” (Lindblom, 1959, During the second phase, we intro-
latively contribute to the expected 1979). Thus, combining deliberation duced an initial project strategy frame-
competitive advantage. and control with flexibility and learning work to the project teams we addressed
in the first phase, and involved them in Project 1: Network Collaboration continued business operations around
actively creating and assessing the System such untoward incidents in advance.
validity and applicability of the frame- The organization that initiated this proj- Finally, the company’s managers and
work for their projects. We also encour- ect was a major telecommunications executives would also be able to effec-
aged them to offer modifications in the company that provides network services tively manage their resources and focus
framework that may better fit their to thousands of commercial customers, their groups’ attention on critical prob-
objectives. with 80% of the company’s business lems that affect business profitability.
coming from 20% of the high-profile The project execution involved analyz-
Case Selection and Description customers. The company’s revenue ing system needs and requirements,
We selected three cases based on the depends directly on the amount of avail- enterprise architecture and system
following criteria: All cases must be able network uptime and bandwidth design, hardware and code develop-
ongoing projects that have passed their that it is able to provide in the dynamic ment, testing, deployment, and produc-
planning phase but have not yet been and highly competitive world of tion support, and building a customer
completed. This allowed introducing telecommunications. The need for this support organization. The project was
modifications in initial plans and deci- project was accentuated by a major executed during a period of 18 months
sions, which may influence the final service outage for one of its biggest cus- by a team of 16 people, with an intro-
outcome. We were also looking for proj- tomers, a major financial institution. duction of an interim limited-features
ects in diverse industries, which repre- The Network Collaboration project was prototype, which enabled early testing
sented commercial, military, and gov- initiated to retire a previous manual after six months. The final system
ernment markets, and involved a vari- intervention process, which was highly proved to be highly successful. It saved
ety of outcomes such as the creation of unreliable and notably slow, and the company over 85% of problem noti-
new products, processes, and services. replace it with an automated program- fication costs and reduced by 50% the
Finally, since the area of research was mable software framework that could mean time to problem repair (MTTR) in
strategic project management, all proj- be used for faster network trouble iden- addition to producing considerable
ects had to be of strategic importance tification, trouble assignment, and savings from reducing its network
to their performing organizations and trouble recovery. The customers of this maintenance personnel.
to their customers/users. A short sum- project included internal company
mary of the selected cases is provided employees responsible for network Project 2: Air and Ground Military
in Table 1. Each case’s background, health, but also employees of external Communication System
goal, scope, and main outcome are corporate customers who would be The nexus of this project was based on the
described in more detail in the sections notified of potential network conges- desire of the United States Army to
that follow. tion or failure so they could plan their upgrade combat capabilities by digitizing
its battlefield information and commu- The project involved completing a and data collection through interviews
nication systems. Realizing that its pres- market value appraisal of every proper- with informants who played different
ent legacy communication systems suf- ty in town within a period of 18 months. roles in the projects.
fered from insufficient bandwidth, limit- It also involved communicating the For each case, we interviewed at least
ed range, limited mobility, and limited assessment results to the tax assessor, five people, including the project manag-
interoperability between ground, air, city council, and taxpayers; establishing er, team members, customers, and exec-
and space systems, the project was initi- and implementing a review and appeal utives. Each interview lasted between 60
ated to provide troops with increased process; and creating an updated data- and 90 minutes. Teams of two to three
flexibility, adaptability, and interoper- base of all properties and an online sys- researchers conducted the interviews,
ability. The objective was to develop, tem for quick access to tax evaluation using a semistructured interview format.
test, and demonstrate a modern military data for city residents, real estate Questions were asked about the project
communication capability by building agents, and prospective buyers. Finally, mission and objectives and the motiva-
two interchangeable radios (one for the system would enable repetition of tion for the project of the various parties
ground and one for air), with multichan- the assessments process in future years involved, including the contractor, cus-
nel, simultaneous voice, video, and data with increased efficiency and reduced tomer, and user. Data were also obtained
communication functions that are inter- cost. The assessment data results would on project organization, managerial pro-
operable with previous legacy field serve as a base for property tax charges cedures, planning and control methods,
radios. The contractor for this project for the next year. To perform the mass design practices, software packages, and
was competitively selected among sev- appraisal process, the city engaged an documentation. Finally, data were also
eral major defense industry companies. external assessment firm, which was obtained on decision-making processes,
The government customer expected to contracted to finish the job quickly and information flow, and communication
use the demonstrating radios as a basis inexpensively, and has used dedicated patterns. However, in this phase, we also
for a larger contract that would eventu- appraisal software and the collection of asked the informants about existing ele-
ally deliver hundreds of units to the the city’s tax maps. The project’s budget ments that may relate to project strategy
armed forces. The contractor had hoped was $700,000 and it involved two full- in general. We also examined whether
that success in this project was expected time staff members at the city tax asses- those elements were integrated into day-
to lead to follow-on awards for produc- sor’s office in addition to the external to-day project operations, and whether
tion systems to satisfy the larger needs of assessment firm. The project was com- the project team understood them.
the armed forces. The development and pleted on time and built the first system Following a first phase of data col-
demonstration project lasted for two of its kind in the state. Its continued lection, a draft report was prepared for
years and carried a budget of $20 mil- service allowed a second assessment each project according to a common
lion. The contractor completed the proj- within three years, which saved the city set of guidelines. After an interteam
ect successfully and became the leading hundreds of thousands of dollars in reliability test based on thoroughness
candidate for future orders. administrative costs and millions in tax and detail and an initial integration
refunds. The assessment cycle time was stage of these drafts, teams were usual-
Project 3: City Property Tax Evaluation
reduced from 18 months to two months ly asked to obtain additional data to
This project followed a mandated prop-
and produced more transparency than discover new facts (Eisenhardt, 1989;
erty tax revaluation by the state govern-
any other neighboring municipality. Kirk & Miller, 1985) before a final case
ment’s Division of Taxation. Previous
study report was prepared. In two of
statistical analysis of assessed values The Case Study Research Phase
these cases, the field investigators
displayed that property owners with With limited previous studies or per-
returned to the project to clarify addi-
properties of similar market values had spectives on project strategy, we selected
tional questions and cross-check rele-
been paying dissimilar property taxes. a case study research approach for the
vant data. Cross-case analysis was then
The city saw this as an opportunity to first phase of this study. In particular, we
performed to confirm the existence of
equitably redistribute the tax burden employed a multiple-case design, which
the project strategy elements across
among its home property owners, to allowed a replication of logic. Cases were
cases. In addition, this analysis was also
modernize its taxation system, and to thus treated like experiments, so that
conducted to identify similarities/dis-
increase citizens’ satisfaction by each case served to confirm or negate
similarities of strategy among cases.
demonstrating that all taxpayers are the conclusion drawn from others (Yin,
being treated fairly and equitably. 1984). We also employed an embedded The Action Research Phase
Another expected benefit from the design, which allows multiple data Following the first phase of data collec-
project would be a reduction in the rate sources and multiple levels of analysis, tion and data analysis, the research
of tax appeals. involving reviewing project documents teams continued their involvement in
project, or to create dominance in the While the product definition defines the that will indicate that success was
“battlefield” and win future business, as end result, the competitive advantage/ achieved. Such criteria should be quan-
in the A&G Communication project, or value articulates the unique product tifiable as much as possible to allow
to give citizens a sense of equitability attributes that will attract customers to objective evaluation of success.
and fairness, as in the City Taxation select the project’s product and not com-
project, which was clearly aligned with peting products. When no competition Plan—How
the sustainability objectives of the city’s exists, the value created replaces the The project definition is defining how
government. Finally, the strategic con- competitive advantage but serves the the objectives and the competitive
cept clarifies what approach is taken to same function for the product’s cus- advantage are going to be achieved. A
achieve the business objectives, and tomers and users. The competitive well-defined project definition is a nec-
how the product is going to “win” in the advantage of the Network Collaboration essary basis for good project manage-
marketplace. It reflects the big-picture product was the ease of use and the ment, with the major part involving the
strategy of the project and guides the reduction of network downtime; the com- traditional project definition. It
specific elements of competitive advan- petitive advantage of the A&G Com- includes a scope statement, the time
tage and value that will be achieved munication’s product was an integrated frame, and a ballpark budget. It also
once the project was completed. communication system, which allowed defines the organization, the team, and
interoperability and high reliability. The the project manager who will perform
Position—What City Taxation product’s value was equi- the project. But since one size does
The product definition defines the end tability, satisfied citizens, and a positive not fit all, it also defines the uniqueness
product of the project, the end result that city image. Finally, the success and failure of the project type, using a framework
will be delivered to customers or users that criteria establish the metrics with which to distinguish among projects (e.g.,
did not exist at project initiation. It defines project success or failure will be judged. Shenhar and Dvir’s Diamond [2007]).
the kind of product and its main require- These criteria articulate the short- and Finally, to complete the “how” part, the
ments, functions, and specifications. long-term expectations and the measures strategic focus defines the behavior and
Project Strategy
Components Questions Details
Perspective—“Why” Business Background Why should we do the project? Who is the customer/user?
What is the business perspective What is the need?
and motivation? How we address this need?
What is the business oppor-
tunity?
Business Objective What do we want to achieve? What is the ultimate goal to
be achieved after project
completion?
Strategic Concept Why will the project support the What is the guiding strategic
company’s business strategy? principle that would domi-
What is the general strategic nate the project’s plan and
competitive idea? execution, and will it support
the company’s strategy?
Position—“What” Product Definition What is the product that will be What are we producing?
created or produced by the project? What kind of product is it?
What is the concept of opera-
tion and its major product
characteristics?
Competitive Advantage/Value How good is it? What is the advantage to
Why is it better? customer/user over:
Why would the customer buy it? – Competitors?
What is the value for us? – Previous products?
– Alternative solutions?
Product cost/effectiveness—
How would we benefit?
Success and Failure Criteria What are the expectations? What are the success dimen-
How do we assess success? sions and measures?
What can go wrong? What are the major risks and
their consequences?
Guidelines—“How” Project Definition How do we do it? – Project scope
What is the project? – Project deliverables
– Project type—classification
– Project leader, project team
– Resources
Strategic Focus How to behave? Guidelines for behavior
What to do to achieve competitive Policy for managing and
advantage/value? leveraging:
How to create a relentless pursuit – Company competencies
of competitive advantage/value? – Professional expertise
How to encourage learning for – Internal synergy
improving strategy and making it – External alliances
sustainable? – Ongoing learning
How to integrate economic, ecological,
and social aspects to project
management?
Table 3: The elements of project strategy.
policy that will guide the project execu- articulate the components of project As the research on project strategy
tion in order to achieve the desired strategy, adjust it according to learning is still in its early stages, more work is
competitive advantage and or value. feedback loops, and manage the project needed in the future. For example, it
The strategic focus of the Network according to the specific strategic com- may be that not all projects need a
Collaboration project was on customer ponents. The formal framework of proj- detailed articulated project strategy.
interface, ease of use, and modularity; ect strategy we propose should help The framework we proposed may fit
the focus of the A&G Communication was business leaders, project managers, and major strategic initiatives, but some
on team experience and empowerment project teams learn to define and man- projects only involve modifications or
and intimate interaction with users; age their projects’ strategies. Using a improvements in previous products, or
and the focus of the City Taxation proj- formal document of project strategy in the fixing of a particular problem. Such
ect was fairness, accuracy, and frequent addition to the traditional plans will projects may not require a detailed
contact with the public. In all of these train project teams to pay attention to project strategy. Some projects may
cases, the strategic focus was what real- the business perspective, the strategic require specific substrategies, which
ly created the desired competitive concept, and, above all, what the com- were not addressed in this study. Such
advantage and value, including long- petitive advantage is that their project strategies may involve technology,
term sustainability. needs to achieve and how they can funding, or logistics strategy, to name a
make it work. few. In other cases, business strategy
The Strategy Questions and Answers
The transition from the traditional may not always be consistent with cus-
Table 3 provides a summary of the proj-
approach to the strategic approach tomer needs or immediate satisfaction,
ect strategy framework in terms of the
requires a shift in mind-set of project and more research may be needed to
questions each component answers
teams as well as that of higher-level sort such situations out. Future
and the detailed elements that provide
management. For example, there is cur- research may also be needed to distin-
these answers.
rently not always a clear connection guish between different strategic goals
Implications and Possible Next between a project charter and the and the optimal strategy for each proj-
Steps enterprise mission. In a strategic ect type. Another research topic may
The concept of project strategy has still approach environment, such a connec- deal with different kinds of competitive
not become an integral piece of most tion must be made stronger and much advantages (Porter, 1985), different
project plans and execution practices. more explicit. Subtle and complex busi- industries or markets, or strategies for
Although many teams understand the ness realities should be discussed as projects that are conducted as a joint
importance of their projects to their com- part of the challenges of formulating a effort of multiple companies (Artto
pany’s business success, they often lack a strategic alignment concept. Although et al., 2008).
formal framework that could be applied some frameworks have been suggested Finally, research on the perception
and followed throughout the project. to deal with this reality, such as the of senior management on project strate-
Instead, many companies and proj- Japanese P2M, or also known as A gy is worth pursuing. This includes
ect managers use implicit strategic Guidebook of Project and Program research on the implementation chal-
thinking. In this study, we have pro- Management for Enterprise Innovation lenges, limitations, and disadvantages of
posed, defined, and tested a formal (Ohara, 2005), few have explicitly project strategy. Another possible
framework of project strategy and out- shown how an individual project research area is to study the relation-
lined its components. However, our should be managed to focus it on the ships between sponsor strategy and
study is raising several important explicit needs of winning in the market. project strategy and to investigate
implications and open questions that In addition, there may be cases where whether the alignment of project strate-
need to be addressed in the future. the measurement of project success is gy and business strategy is always desir-
To promote project management as not tied to strategic measures. The con- able. These investigations should further
a strategic activity with the explicit goal cept of project strategy presented here improve the concept of project strategy,
of creating a competitive weapon for on the other hand provides a connec- making it more applicable to the
organizations, the project strategy con- tion between project and organization- dynamics of the modern organization. ■
cept must to be well understood, al strategic objectives and encourages
defined, articulated, and managed and the use of strategic measures. Without References
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accumulated 18 years of technical and manage- management, innovation management, and the Diamond Approach to Successful Growth and
ment experience as an executive at Rafael, a leadership of professional workers in technolo- Innovation (Harvard Business School Press,
leading organization in the defense industry in gy-based organizations. He is coauthor of the 2007). The book was selected among the best
Israel. In his research, he is focused on project book, Reinventing Project Management: The five top business books of 2007.