POST GRADUATE DIPLOMA IN PROJECT MANAGEMENT (PGDPM) Group 3 ± Practical 1

The Three Pillars of Delivering Strategy ± Demystify!
(Portfolio Management, Project Management, Programme Management)

GROUP 3 MEMBERS
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Edward Musiwa Happymore Mutasa Irene T. Nyayera Fungai Marowa Herbert Kazonda Charles Mahlanze Hilda Mufema Taurai Tsuro Godknows Simbanegavi Shepherd Magombedze

Introduction Portfolios Programs Projects The Three Pillars of Delivering Strategy Demystified Strategy and Project Management Conclusion Bibliography

Introduction
‡ Strategy derives from the ancient Athenian position of µstrategos¶
± Stratos ± µarmy¶ or an encamped army spread out over ground ± Agein ± µto lead¶
± (Cummins, 1993)

Introduction (Cont«)
‡ Johnson and Scholes (2001) defined strategy as the scope and direction of an organization over the long-term which achieves advantage for the organization
± through its configuration of resources ± within a challenging environment, ± to meet the needs of markets ± and to fulfill stakeholder expectations.

Intro- Portfolio Management
‡ Def: A Portfolio is a collection of projects or programs grouped together to facilitate effective management of efforts to meet strategic business objectives (Robertson, 2011). ‡ Portfolio management aligns the portfolio of projects and other work with the objectives of the organization and ensures that the work delivers value to the business.

Intro ± Portfolios (Cont«)
‡ Portfolios are made up of projects, programs and other work. ‡ Other work includes:
± on-going operations, ± ad-hoc activities ± and other ³business as usual´ work.

Intro - Program
‡ A Program is a group of related projects managed in a coordinated manner to obtain benefits and control not available from managing them individually (Robertson, 2011).
± Programs may include elements of related work outside of the scope of the discreet projects in the program

Intro - Program Management
‡ Def: Program management is the process of managing several related projects (Meredith and Mantel, 2010),
± often with the intention of improving an organization's performance.

‡ Program management provides overall leadership and vision to the project management process.

Intro - Projects
‡ A Project is a temporary endeavor undertaken to create a unique product or service, (PMI,2004, p.5) ‡ Projects serve as the vehicle to implement and execute the corporate strategy.
± Some firms are project-based organizations and recognize revenue by delivering on contractual projects. ± However, other firms may perform projects internally as a means to grow the company.

Intro - Project Management
‡ Project management ensures the successful completion of initiatives and deliverables within time, scope and cost. ‡ The project manager manages stakeholder expectations and communication.

Project Management Hierarchy

The Three pillars of Delivering Strategy - Demystify

PMBOK Depiction of Project Mgt:
‡ Project management exists in a broader context that includes:
± program management, ± portfolio management, ± and project management.
(PMBOK page 16)

‡ The important point is the recognition of a hierarchy linking strategy to projects as illustrated below:

The Project Structure for Delivering Strategy

Diagram 1: P3MO Relationship Venn

The Three Levels of Strategy
‡ Organizations can align projects with business strategies into three levels namely:
‡ the strategic, ‡ the tactical, ‡ the corrective emergent strategic feedback. »(Meredith and Mantel, 2010)

Strategic Level
‡ At this high level the main focus is on ensuring that projects provide maximum value to business ‡ Portfolio Management level
± It is the level at which the alignment of projects and strategy begins. ± At this level strategic managers derive the intended strategy and typically use portfolio management to determine the right projects that would contribute to the organization¶s goals.

Tactical Level
‡ Focused on the provision of maximum value to stakeholders ‡ At this level is where Program Management takes place.
± involves delineating additional detail for the projects selected during strategic level interactions as a means to ensure proper alignment with the project life cycle. ± At this level project managers develop a project management plan that ties back to the business goals and objectives.

Corrective Emergent Strategic Level
‡ Project Management
± stage gates or milestone reviews to evaluate the project status on scope, schedule, and budget. ± As the project is executed, emergent actions occur that may change the intended strategy. ± This level ensures feedback from the project level as a means to allow the business strategy to adapt to its competitive attributes brought on by change.

Linking Projects to Strategy
‡ The strategy of the company or organization is intended to drive all decisions within an organization. ‡ It provides direction, a rallying point and a test for decisions at all levels. ‡ As such strategy would lead the projects, programs, and the process of portfolio management.

Diagram 2: Hierarchy Linking Strategy to Projects

Project

Program -A Strategic Plan

‡Project Aa ‡Sub-Proj Aa ‡Sub-Proj Ab ‡Project Ab

Portfolio
Project
‡Project Ba ‡Sub-Proj Ba ‡Sub-Proj Bb ‡Project Bb

Program -B

Conclusion
‡ Aligning PM with Strategy gives you an indepth analysis of the process leading from strategy formation to portfolio development to the project implementation.
± It is important to learn how to link your project to the business strategy, ± develop an appropriate project execution strategy, ± apply and maintain alignment of the project strategy, ± and manage the expectations and interests of those who have a stake in the project outcome.

Bibliography and References
Books ‡Deborah Kezsbom, et al., Dynamic Project Management. John Wiley & Sons, 1989 ‡John Wiley & Sons. Chapter 12, pp 257-287. ‡Morris Eds Peter W G & Jeffrey K Pinto, The Wiley Guide to Managing Projects, Hoboken, NJ; ‡Stretton Alan 2011g. ³Time to re-unite project management with general management ‡Thiry, Michel 2004a ³Program Management: A Strategic Decision Management Process

Bibliography and References
Publications ‡ Banda P.J 2011, PMIZ PGDPM Module 6 Workbook, p.38 ,55. ‡ PMI (PROGRAM MANAGEMENT INSTITUTE) 2006a. ³The Standard for Program Management´. Newtown Square, PA: Project Management Institute. ‡ PM World Today, Vol XIII, Issue V, May. PMI, PMBOK , page 16. ‡ IBM Rational SUMMIT Ascendant, "The Program Management Method." Version 8.1, February 2004. ‡ Office of Government Commerce (OGC): HMSO, "Managing Successful Programmes." Copyright 2003.

Bibliography and References
Websites http://pmstudent.com/a-theoretical-framework-foraligning-project-management-with-business-strategy/ http://pmstudent.com/linking-business-strategy-toproject-strategy/

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