MANAJEMEN PROYEK

MAGISTER MANAJEMEN TEKNOLOGI

INSTITUT TEKNOLOGI SEPULUH NOPEMBER SURABAYA
Where We Are Now

2–2
1–3
 Why Project Managers Need to Understand
the Strategic Management Process

 Traditional Role-> planning and execution of project

 Modern Role -> to achieve business result and winning
the market place (strategic perspective)

2–5
1–6
1–7
Why Project Managers Need to Understand the
Strategic Management Process

 Mistakes caused by not understanding the role of

projects in accomplishing strategy:
 Focusing on problems or solutions with low
strategic priority.
 Focusing on the immediate customer rather
than the whole market place and value chain.
to solve every customer issues with a
 Trying
product or service rather than focusing on the
20% with 80% of the value (Pareto’s Law).
2–8
 Strategic management is the
process of:

 Assessing what we are

 Deciding and implementing
 what we intend to be
 How are going to get there
The Strategic Management Process:
An Overview

 Provides theme and focus of firm’s future direction.

 Respondingto changes in the external
environment—environmental scanning
 Allocatingscarce resources of the firm to improve
its competitive position—internal responses to new
programs
 Requires and ensure every project to be clearly linked
to strategy.
2–10
Strategic
Management
Process

FIGURE 2.1
2–11
Closely linked
toward future Mission
sucess of General
purpose
organization

Goals
Implemen
-tation Global
(via target
projects) within
Strategic mission
Management

Objectives
Strategy Specific
To reach target to
objective goals
Mission
General
purpose Review and Define organization
mission

 Mission statement communicates and identifies

the purpose of the organization to all
stakeholder
 Mission statement changes infrequently (when
nature of business is shifted/changed)
 Need to specific -> set parameter for
developing objectives
 1–14

 Mission of Apple computer

Apple is commited to bringing the best
personal computeing experience to students,
educators, creative profesionnals and
consumer around the world through innovative
hardware , software and internet offerings
Goals
Global
target 1–15
within
mission
Objectives
Specific
Set Long range Goal and
target to
goals Objectives

 Objectives translate mission into specific, concrete

and measurable terms
 Set target for all level of organization (low level
support higher level)
 Covers markets, products, innovation, productivity,
qualitiy, finance, profitability, employees and
consumers
 Include time frame, be measurable, be realistics
 Characteristics of Objectives

S Specific Be specific in targeting an objective

M Measurable Establish a measurable indicator(s) of progress

A Assignable Make the objective assignable to one person

for completion

R Realistic State what can realistically be done with

available resources

T Time related State when the objective can be achieved,

that is, duration EXHIBIT 2.1
2–16
Strategy
To reach 1–17
objective
Implemen Implement strategies through
-tation
(via projects
projects)

 How strategies will be realized:

1. Allocation of resources (fund, people,
management talents, technological skills, and
equipment)
2. Formal and informal organization that
complements and support strategy projects
3. Planning and control system to ensure strategies
are effectively performed
4. Motivation for project contributors
 1–
18
Company objective – Example
(PT TELKOM)
 1–19
Company objective – Example
(PT TELKOM)
 1–20
Company objective – Example
(PT WIKA)
 1–21
Company objective – Example
(PT WIKA)
 1–22
Company objective – Example
(PT WIKA)
 1–23
Company objective – Example
(PT WIKA)
 1–24
Project Portfolio Management
System

 Why is needed?
 Aimingat aligning project with strategic
goal and prioritized appropriately system.
 Nostrong priority system linked to strategy
create problems
Benefits of Project Portfolio Management

 Builds discipline into the project selection process.

 Links project selection to strategic metrics.
 Prioritizes project proposals across a common set of
criteria, rather than on politics or emotion.
 Allocates resources to projects that align with strategic
direction.
 Balances risk across all projects.
 Justifies killing projects that do not support strategy.
 Improves communication and supports agreement on
project goals. EXHIBIT 2.2
2–25
 Portfolio of Projects by Type

Needed to meet regulatory

conditions or emergency

Needed to support organization’s long Needed to support current

run mission, aim to increasing operations, to improve
revenue and market share, (e.q NPD) performance (e.q TQM)
Project Screening
Process

FIGURE 2.5
2–27
 A Portfolio Management
System

 Selection Criteria
 Financial (when high level of confidence
with estimation of future cash flow):
payback, net present value (NPV), internal
rate of return (IRR)
 Non-financial:
projects of strategic
importance to the firm (imposible to
measure)
2–28
 Financial Models

 The Payback Model

 Measures the time the project will take to recover
the project investment.
 Uses more desirable shorter paybacks.
 Emphasizes cash flows, a key factor in business.
 Limitations of Payback:
 Ignores the time value of money.
 Does not consider profitability.

2–29
 Financial Models (cont’d)

 The Net Present Value (NPV) model

 Uses management’s minimum desired rate-of-return
(discount rate) to compute the present value of all
net cash inflows.
 Positive NPV: project meets minimum desired rate
of return and is eligible for further consideration.
 Negative NPV: project is rejected.

2–30
Example Comparing Two Projects
Using Payback Method

EXHIBIT 2.3a
2–31
Example Comparing Two Projects
Using Net Present Value Method

EXHIBIT 2.3b
2–32
 Nonfinancial Strategic Criteria

 To capture larger market share

 To make it difficult for competitors to enter the market
 To develop an enabler product, which by its introduction
will increase sales in more profitable products
 To develop core technology that will be used in next-
generation products
 To reduce dependency on unreliable suppliers
 To prevent government intervention and regulation
2–33
 1–34
Multicriteria Selection Models

 No single model can reflect strategic

significance, multiple criteria needed

 Checklist Model
 Uses a list of questions to review potential projects
and to determine their acceptance or rejection.
Fails to answer the relative importance or value of a
potential project and doesn’t to allow for
comparison with other potential projects.
Sample Selection Questions Used in Practice

Topic Question
Strategy/alignment What specific strategy does this project align with?

Driver What business problem does the project solve?

Success metrics How will we measure success?

Sponsorship Who is the project sponsor?

Risk What is the impact of not doing this project?

Risk What is the project risk to our organization?

Risk Where does the proposed project fit in our risk profile?

Benefits, value, ROI What is the value of the project to this organization?

Benefits, value, ROI When will the project show results?

Objectives What are the project objectives? EXHIBIT 2.4

2–35
Sample Selection Questions Used in Practice
(cont)

Topic Question
Organization culture Is our organization culture right for this type of project?

Resources Will internal resources be available for this project?

Approach Will we build or buy?

Schedule How long will this project take?

Schedule Is the time line realistic?

Training/resources Will staff training be required?

Finance/portfolio What is the estimated cost of the project?

Portfolio Is this a new initiative or part of an existing initiative?

Portfolio How does this project interact with current projects?

Technology Is the technology available or new?

EXHIBIT 2.4 cont’d
2–36
 Multi-Criteria Selection Models

 Multi-Weighted Scoring Model

 Uses several weighted qualitative and/or quantitative
selection criteria to evaluate project proposals.
 Allows for comparison of projects with other potential
projects

2–37
Project Screening Matrix –project scoring
matrix

FIGURE 2.3
2–38
Project Portfolio Matrix

capitalize
balance

eliminate balance

FIGURE 2.7
2–39
 Project Portfolio Matrix
Dimensions
 Bread-and-butter Projects
 Involve evolutionary improvements to current
products and services.
 Ex : software upgrade and manufacturing cost
reduction efforts
 Pearls
 Represent revolutionary commercial opportunities
using proven technical advances.
 Ex : next generation integrated circuit chip and
subsurface imaging to locate oil and gas.
 Oysters
 Involve technological breakthroughs with high
commercial payoffs.
 Ex : embryonic DNA treatment and new kinds of
metal alloys.
 White Elephants
 Showed promise at one time but are no longer
viable.
 Ex : product for saturated market. 2–40
 Key Terms

Implementation gap
Net present value
Organizational politics
Payback
Priority system
Priority team
Project portfolio
Project screening matrix
Project sponsor
Sacred cow
2–41
Strategic management process
SOURCE

Larson, E.W. & Gray, C.F (2008). Project Management: The

Managerial Process (5e). New York: McGraw-Hill/Irwin. Chapter 2