Diagnostic Questions

• How is the Corporate Strategy translated into

Business Strategy?
• How are the business strategy objectives translated
into projects?
– Portfolio Management
– Programme Management
• What is a project strategy?
– The role of the PMO
• Is the temporary organisation an obedient servant?

1
The Strategic Alignment of Projects

The Strategic Positioning of a

corporation and the businesses within it
Corporate
Strategy
Influenced

The Strategic Positioning of

Alignment Business business in relation to its
customers, markets and competitors
Strategy

Influenced
Projects designed to realise
organisational strategy

Projects
 Levels of Strategy

Corporate Strategy Corporate “Which businesses

Level should we be in”

Business Strategy “How should we compete”

SBU SBU SBU SBU

Operations Strategy
“How should we arrange our
processes” Projects

Functions Functions
 Corporate and Business Strategy
At the general At the individual
corporate-level: business-level:
• What business are we • How do we compete
“What is the
in? What business should successfully? What is our
we be in? objective of
the sustainable competitive
• What are our basic advantage?
organisation?
directions for the future? • How can we innovate?
And what are
• What is our culture and our strategies • Who are our customers?
leadership style? to achieve
this?” • What value do we add?
• What is our attitude to Where? Why? How?
strategic change? What
should it be?

Business Policy Competitive Strategy

 Strategic Hierarchy of Projects
feedback
Corporate
Strategy
Context Business
Strategy
Context

Executive Senior Managers

The Hierarchy of Objectives

Archibald, R.D (1987)

 Strategic Alignment
Corporate Alignment
Strategy through Business
Competitive Context & models
Strategy Objectives

SBU SBU SBU

Alignment
through Business Context & Portfolios and
models Objectives Programmes

Projects Projects Projects

 Portfolio, Program, Project and Subproject relationship

Gowrie Vinayan
 Project Portfolio Management
• Portfolio
– A range of investments
– Collection; aggregation; variety; accumulation; assortment; ensemble
• Project Portfolio Management
– Selecting the right project
• Meet the strategic objectives of the SBU
• Select from where?
– Having the right mix of projects
• Balanced portfolio
• Maximum value
– Prioritization
• Which projects to invest in first
 Stream of Projects
• An enterprise that is successful has a “stream of
projects” flowing through it at all times
• Competition
– Attracts imitators; changing markets; changing forces
• Some projects will never be realised
– Lack of strategic fit
• Changes in strategic priorities
– And strategic fit
– Resources
• Share common resources of the SBU
 Stream of Projects
Projects
Projects Projects Projects Projects
Projects Projects

Projects SBU Projects

Projects Projects
Projects Projects

Projects
Projects Projects Projects

11
 Strategic Hierarchy of Projects
feedback
Corporate
Strategy
feedback
Context Business
Strategy
Context Portfolio
Strategy
Portfolio
Objectives

Executive Senior Managers

 Project Portfolio
SBU

Strategy Strategy / Strategy

Benefits

Project Project Project Project Project Project Project Project Project

• Strategy is complex
– Requires a number of projects to be realised
• Projects grouped to deliver strategy
– Benefits
13
 Programme Management
• Link between the business strategy and the projects
implemented within the business
• A coordinated set of projects that together achieve a
beneficial change of strategic nature for an organisation
• Grouped in terms of the change objective
– Reside within a single SBU
– Share the same resources
• Related by
– Contribution to the same strategy
• Projects are components of the strategy
– Contribute to delivering the related benefits
14
 Programmes
• Projects within Programmes
•

KL Mega Project: MRT Malaysia

https://www.youtube.com/watch?v=ZtCOzkihGag

Smart tunnel Malaysia

https://www.youtube.com/watch?v=WDl73ryGEt8

15
 The Clyde Gateway
Clyde Gateway is Scotland’s
biggest and most ambitious
regeneration programme. It is a
partnership between Glasgow
City Council, South Lanarkshire
Council and Scottish Enterprise,
backed by funding and direct
support from the Scottish
Government. The task, over a
20-year period until 2028, is to
lead the way on achieving
unparalleled social, economic
and physical change across our
communities over an area of
840 hectares in the east end of
Glasgow and in Rutherglen

www.youtube.com/watch?v=1KWgRs5nSt0 16
 The Strategic Hierarchy of Projects
Corporate
Strategy Alignment

SBU SBU SBU

Alignment
Project
Portfolio
Alignment

Programme Programme Programme

Alignment

Project Project Project Project Project Project Project Project Project

17
 Programme Management Environment
Strategies &
Initiatives
Portfolio

Programmes Blueprint
achieved

Vision
Projects

Business Operations

18
 Strategic Hierarchy of Projects
feedback
Corporate
Strategy
feedback
Context Business
Strategy
feedback
Context Portfolio
Strategy
Portfolio Programme
Objectives Strategy
Programme
Objectives

Executive Senior Managers Programme Managers

 Project Strategy
• Project Strategy
– Haniff & Fernie 2008; Artto et al 2008; Morris & Jamieson 2005;
Srivannaboon & Milosevic 2006
• All organisations have strategy
– A project is a temporary organisation
• Must have a strategy
• Unique approach a project takes to deliver organisational
strategy
• Not a single formal document
– Not explicit
– Contained within the initial project plan
• Developed to deliver overall organisational initiatives
– Strategic Objectives
20
 Project Strategy
• “Project Strategy is a direction in a project that contributes to
success of the project and its environment” (Artto et al)
• Direction
– Towards the strategy
– Maintaining direction
• Contribution
– Ensures direction – alignment
– Making a difference
• Success
– Goals, purpose of the project
– Stakeholder expectations
– Survival
• Environment
– External changes
– External influences
21
 Business Case Development
• Project Manager normally assigned after the
Business Case
• Project Manager has no input into strategy
– Focus on operational detail
• PM may not be able to contribute to Business
Case Development
– Project may not be approved and/or funded yet
• Project may not be sufficiently defined
• Role of the PMO
– Support alignment

22
 Project Management Office
• A central organizational Temporary
Organisation
unit responsible for
ensuring optimum
performance of the Temporary Temporary
Organisation Organisation
portfolio Project
Management
• Defines projects and Office

project management within

the organization
• Essential for the Temporary
Organisation
Temporary
Organisation
Governance of Projects
– Bureaucracy
23
 Project Management Office
• Strategic Role
– Business case development
– Selecting and prioritisation of projects
– Strategic alignment
• Consulting Role
– New methods, tools, techniques and Knowledge
• Supporting Role
– Risk planning, assessment,
– Resource allocation / negotiation
– Problem solutions
• Operating Role
– Responsibility to manage the project
– Project support, 24
 PMO Governing
• Governing standardisation across the
organisation
• Institutional policy on how projects should be
managed and governed
– Independent audit?
• Excellence in project mismanagement
• Facilitate Communications
– Linkages
• Health Check, Reviews
• Maintain alignment
• PMO Knowledge

25
 PMO Knowledge
PMO
Knowledge

Communities
of practice
Project Risk Value Any Topic
Methodology Management Management Area
Subject
Matter
Experts

Projects implemented and feedback lessons learned and

updated best practice

26
Temporary Organisation
Temporary
Organisation
Temporary
Organisation

Temporary
Organisation

Programme

Temporary
Programme Programme Organisation

Programme SBU Programme

Programme Programme

Programme

27
 Temporary
Multiple organisations Organisation

Temporary
Temporary Temporary Organisation Temporary
Organisation Organisation
Organisation
Temporary
Temporary Organisation
Organisation
Temporary Temporary
Organisation Organisation

Programme
Temporary
Organisation Temporary
Programme Programme Organisation

Temporary Temporary
Organisation Organisation
Temporary
Organisation Temporary
Organisation

Programme SBU Programme

Temporary
Organisation
Temporary Temporary
Organisation Temporary Organisation
Organisation

Temporary Programme Programme Temporary

Organisation
Organisation

Programme
Temporary Temporary
Organisation Organisation
Temporary
Organisation Temporary
Temporary Organisation
Temporary
Temporary Organisation Organisation Temporary
Organisation Organisation
Temporary
Organisation 28
 Project Strategy

Projects

Projects Projects

Projects SBU Projects

Projects Projects

Projects

29
 Obedient Servant

Parent Project
Organisation

30
 Independent Innovator

Parent Project
Organisation

31
 Strategic Hierarchy of Projects
feedback
Corporate
Strategy
feedback
Context Business
Strategy
feedback Project
Context Portfolio Manager
Strategy
feedback
Portfolio Programme
Objectives Strategy
Programme Project
Objectives Strategy
Project
Objectives
Executive Senior Managers Programme Managers

32
 Project Plan
• A summary of how the project will be developed
– A Statement of expected results
• A summary of what is included in the project
– Scope Statement
• Tangible Goals of the project
– Objectives
• How the organisational resources will be used to accomplish
the ends
• Gantt charts and network diagrams showing sequences of
work-packages
• A description of how authority and responsibility is delegated
• Policy guidelines on how project will be controlled monitored
and evaluated
• Project participants
33
 Project Managers Strategy
• Bounded Rational of the project manager (is the
idea that when individuals make decisions, their rationality is limited by the information they have, the
cognitive limitations of their minds, and the time available to make the decision).

• Experience
• Knowledge
• Personal judgement
– Prescriptive plan
– Emergent plan
• Reaction to changes
• Influences

34
 Strategic Hierarchy of Projects
feedback
Corporate
Strategy
feedback
Context Business
Strategy Project
feedback Project
Context Portfolio Manager Managers
Strategy
feedback
Portfolio Programme
Objectives Strategy
feedback
Programme Project
Objectives Strategy
Fragmented Project Project
Alignment Objectives Management
Executive Strategy
Senior Managers Programme Managers
Project
Management
35
Objectives
 Understand Strategy and projects linkages

• Recognise strategic management involves continued

examination of the environment
– How organisational resources can be used
• Understand the relationship between strategy and projects
• Recognition that projects are the building blocks of strategy
• The existence of documentation explaining the linkages
between projects and strategy
– Project Strategy

36