The document discusses the relationship between business strategy and project management. It defines what a strategy is and explains that a strategy must be simple, understood, and remembered in order to influence action. It also discusses how a Project Management Office (PMO) can help align projects with organizational strategy by choosing the right projects and delivering projects correctly. A PMO needs leadership support, the right talent, and to measure results beyond just project metrics. Questions are then asked about resources for strategy and project management, other popular agile methodologies, and tools that can help keep projects aligned with strategy.
28. Overview
Where are we going?
The future. The dreams.
Who are we as a company?
What we do. Why we exist.
Our purpose. Values.
What are going to do to achieve
our objectives?
How are we going to get there?
Vision
Mission
Strategy
69. The projects are expected to be:
1. On Budget
2. On Time
3. Synchronized with
strategy
Otherwise, it is a waste of
company’s resources
(human capital and $$)
Project
Expectations
70. But less than 42% of organizations
report NO high alignment of
projects to strategy
PMI “The High Cost of Low Performance”, 2014
71. Fact
90% of Senior Executives report that
Executing Strategic initiatives are
critical for the company’s competitive
advantage ( 2013 The Economist Intelligence Unit report)
72. Facts
Senior Executives report that:
- 61% struggle with the execution of those
strategies
- Only 56% of strategic initiatives are
successful ( 2013 The Economist Intelligence Unit report)
73. Why there is no alignment ?
That’s where the PMO comes in
PMI “The High Cost of Low Performance”, 2014
- Strong PMO
- No PMO (large firms)
- Not a strong PMO
74. 1. If company lacks uniform management and
oversight processes
2. Leadership has hard time gathering information
about the project progress and results
3. Project goals are not aligned with business goals
An Organization will
benefit from a PMO:
Business
Unit PMO
Project
Specific PMO
Enterprise
PMO
75. No
Alignment
Factors with
PMO office
1. Internal Factors: No top support,
resources, talent, etc
2. External factors: constant change,
volatile markets, competitors, etc
76. 1. If company lacks uniform management and
oversight processes
2. Leadership has hard time gathering information
about the project progress and results
3. Project goals are not aligned with business goals
An Organization will
benefit from a PMO:
Business
Unit PMO
Project
Specific PMO
Enterprise
PMO
77. TOP DOWN APPROACH:
Recipe for Success
1. Have Leadership buy-in
2. Executive team needs to engage PMO in
Strategic Planning
3. PMO needs to report to C-level
(Forrester Research found in those case the PMO is highly successful)
78. PMO: The RIGHT TALENT
High performance vs Low Performance PMO:
1. 2x more likely to succeed as they have people
with the right talent (technical and business)
2. 1/3 more like to succeed as they have the
adequate number of people
(The Project Management Office Report. PMI 2014)
- General Business Acumen
- Leadership
- Decision Making
- Financial/Cost Control
79. MEASURING RESULTS
Right Procedures + Right Talent = Results
1. Need to measure
2. Look beyond simple project metrics: scope/
budget / schedule. Look for:
• Customer Satisfaction
• Delivery time
• Etc
80. Alignment
Takeaways
1. The main way to bridge the gap between strategy
and project execution is the PMO
2. PMO needs to have the support of the company’s
leadership to succeed: Top Down Approach
3. PMO needs people with business acumen and
measure other factors on top of project metrics.
85. 15
Question #2
PMI & ASP
Are there other popular Agile
methodologies in practice especially in
the Chicago land besides Scrum?
86. 15
Question #3
PMI & ASP
As a case study, looking at Yahoo,
where did program and project
managers fail or was this more a
corporate strategy failure?
87. 15
Question #4
PMI & ASP
Can we share some tools that help
keep things aligned with the
organizational strategy?
88. Aligning Strategy to Execution: Balance
Scorecard
BALANCE SCORECARD
Robert Kaplan HBS in 1990s
What you measure is what you get
89. Aligning Strategy to Execution: Balance
Scorecard
BALANCE SCORECARD
Robert Kaplan HBS in 1990s
What you measure is what you get
91. Aligning Strategy to Execution
Robert Kaplan &
Norton
2008. They present their management system,
which houses six sequential stages intended to
help organizations capture what they call an
“execution premium”—a measurable increase in
value derived from successful strategy
execution. They outline six stages in this system:
1. Develop the strategy
2. Plan the strategy
3. Align the organization
4. Plan operations
5. Monitor and learn
6. Test and adapt
http://www.amanet.org/training/articles/What-Is-Strategy-Execution.aspx
92. 15
Question #5
PMI & ASP
Do you determine strategy first and
project management is the tool that
helps you manage the projects to
complete the strategy?
95. Strategy > Business Model Canvas
http://www.peterjthomson.com/2013/11/value-proposition-canvas/
By Alexander Osterwalder “Business Model Generation”
96. 15
Question #7
PMI & ASP
Does all strategies include projects and
the underlying management of them?
97. 15
Question #8
PMI & ASP
Does project management have any
influence on strategy?
98. 15
Question #9
PMI & ASP
How can I get a PMO started in a
company where I am the only PMP
certified person?
100. 15
Question #10
PMI & ASP
How can the PMO get a stronger voice
into the 'C' level suite if not property
represented through the
Organizational Chart ?
107. Strategy > Project Selection for Strategy
http://www.techrepublic.com/blog/tech-decision-maker/prioritize-projects-to-align-
FUNDS (MONEY)
PRIORITIZE
EQUIPMENT
PEOPLE
Company resources are
limited /scarce
Need a project
selection and
priority system to
ensure strong link
between projects
and the strategic
plan
108. 15
Question #14
PMI & ASP
How do we ensure that projects we've
taken on are still delivering the
business value that was promised in
the business case?
109. Strategy > Delivery Business Value
http://https://www.mindtools.com/pages/article/newPPM_58.htm/
BUSINESS VALUE
1. Continuous support from
SPONSOR
2. Realistic Project
Requirements
3. Measuring ongoing results
4. Feedback / Communication
To continue to
deliver business
value is critical
that the following
occur:
111. Strategy > Resource Loading/Allocation
http://www.techrepublic.com/blog/tech-decision-maker/prioritize-projects-to-align-
with-strategic-plan-116516/
Strategic Planning: Resource allocation begins at strategic planning when a
company formulates its vision and goals for the future. The vision and
strategic goals are accomplished through achievement of objectives.
Budgeting: Once you have set your objective, you will need to allocate
sufficient resources to accomplish it. In practical terms, this is often a matter
of project budgeting.
113. Strategy > Definition
“Business Strategic” is the direction/path and scope 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 fulfil stakeholder expectations".
114. 15
Question #17
PMI & ASP
How do you ensure benefit realization
is tracked consistently and accurately?
115. 15
Question #18
PMI & ASP
How do you get executives to be more
transparent with the PMO with regards
to the business strategy? It seems PMO
tends to be that last to know.
116. Strategy > Management to Support PMO
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-
Strategy-Implementation.ashx
THE IMPACT ON PMOS ON
STRATEGY IMPLEMENTATION: Conclusions
118. 15
Question #20
PMI & ASP
How do you manage project and
strategy integration cross culturally?
119. Strategy > Cross Culture Project Management
Time
Orientation
Individualism
Communication
Project Manager shall be culturally sensitive and
promote creativity and motivation through flexible
leadership. The PM needs to promote an environment of
cross-cultural communication with respect and
understanding of differences among team members.
Main
Challenges:
https://www.gwu.edu/~umpleby/recent_papers/2009%20PMI%20Anbari%20Cultural%
20Differences.pdf
131. 15
Question #31
PMI & ASP
I have seen a lot of divestment by
formerly large companies, e.g., HP,
Abbott, and parts are being sold off.
Does strategy come first before
projects, programs and portfolios ?
132. 15
Question #32
PMI & ASP
I majored in MIS, specializing in IT project
management. While I have a little PM
experience from past work experience I
have never been a real PM. How do I get
started towards a true PM career ?
133. 15
Question #33
PMI & ASP
If I gave you a laptop to plan your next
project, what software would you want
on it?
134. 15
Question #34
PMI & ASP
I'm interested to hear about the
alignment of strategy with PM
135. 15
Question #35
PMI & ASP
In a large organization, how can a PMO
do a better job to help facilitate project
selection/prioritization across
departments?
136. 15
Question #36
PMI & ASP
In an acquisition situation, when 2
cultures are radically different, what
type of turnover would be expected?
137. 15
Question #37
PMI & ASP
In the arena of IT, much focus is on
new/shiny features that will advance
strategic objectives. How can we help
the business to understand the
importance of underlying ?
138. 15
Question #38
PMI & ASP
Is having a $ value or cost avoidance
the only true measures of aligning
projects with business strategy ?
139. 15
Question #39
PMI & ASP
Is it always necessary to have a
strategy defined around a project or is
it enough just to have scope and
deliverables ?
140. 15
Question #40
PMI & ASP
Is it still project or maybe program
management already ?
141. 15
Question #41
PMI & ASP
Is there a recommended framework for
aligning strategy with performance ?
142. 15
Question #42
PMI & ASP
Does this question of strategy and
projects differ in large organizations
versus start-ups ?
143. 15
Question #43
PMI & ASP
I just want to get a high level
background on Strategic & Business
144. 15
Question #44
PMI & ASP
Please explain your experience in
expressing the value of PM's to upper
management.
152. 15
Question #52
PMI & ASP
Since many functions tend to become
siloed over time, what steps can a PM
take to insert themselves into the
strategy conversation ?
160. 15
Question #60
PMI & ASP
What are the ways that portfolio
management aligns company's project
management practices with its
corporate objectives ?
163. 15
Question #63
PMI & ASP
What is the best example of a project
well aligned with strategy that you
have led? How did that alignment
affect the project outcome ?
166. 15
Question #66
PMI & ASP
What mechanisms do you recommend
to address outcomes when project
managers are contractors and no
longer at the company ?
167. 15
Question #67
PMI & ASP
When would a project be chartered
that does not align with the strategy
and why ?
168. 15
Question #68
PMI & ASP
Where have you seen project
management efforts fail during
strategic initiatives ?
169. 15
Question #69
PMI & ASP
Would this vary between Waterfall and
Agile environments ?
170. 15
Question #70
PMI & ASP
Wouldn’t your company’s business
strategy dictate whether or not to
initiate a project ? (internal or external
clients)