Business Strategy and Project Alignment
The information provided herein is Catalyst confidential and not to be revealed to any third
party without the express written consent of Catalyst Project Solutions.
Perils of Uncontrolled Projects
• Business goals are not met and valuable
resources are wasted when projects are not
aligned with strategic business plans.
• Uncoordinated development results in projects
that are non-aligned, duplicative or unneeded -
increases overall costs.
• Lack of project management practices increases
risk, causes budget and schedule overruns, and
Budget Measures Not Enough
• Budget based project selection criteria are
insufficient to insure that projects are aligned
with strategic goals.
• No relationship to actions that produce results.
• No information about what needs to happen in
• Does not show if strategies are effective.
• Accounting, not operational view of the project
• Utilize multiple metrics to measure project
utility/performance: Financial, Customer,
Business Process, Growth and
• Project justification includes a business
case or value proposition that
encompasses all four perspectives.
 “The Balanced Scorecard: Translating Strategy Into Action”, Robert S. Kaplan
and David P. Norton
• Establish common metrics, methods, and
reporting tools, create a common project
• Use standard processes and templates for
• Select, prioritize, and authorize projects at
high level by groups/managers
representative of all business units.
Getting Projects Under Control
Step 1: Project Management Office (PMO)
• Integrated into the organization.
• Common repository and reporting.
• Standard processes and templates.
• Coaching and support for projects.
• Organization wide tracking of business
PMO Value Proposition
• Reduced cycle time and delivery costs.
• Early ID of project issues and risks.
• Improved quality of project deliverables.
• Better containment of project scope.
• Improved accuracy of estimates.
• Opportunities to reuse knowledge.
• Better stakeholder communications.
• Improved people and resource management.
Getting Projects Under Control
Step 2: Project Portfolio Management (PPM)
• Value based measures of project utility.
• Business strategy sets the specific metrics and
actions by which projects are selected.
• Targets constraints/impediments to meeting
business objectives (weakest link).
• Establishes the process for selecting and
prioritizing competing projects.
• High level decisions that focus on total
organization needs, not a division.
PPM Value Proposition
• Resources are allocated to the most important
• Improved alignment of projects with business
• Better balance of projects.
• Improved scrutiny of project requests.
• More open authorization process.
• Increased communication and collaboration.
• Low value projects are killed.
Balanced Scorecard Metrics
Projects are evaluated in four areas:
• Financial – How does this project provide value
to our shareholders?
• Customer – How does this project make us
appear to our customers?
• Business Processes – How does this project
improve our ability to respond?
• Learning and Growth – How does this process
sustain change and improvement?