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.

1. JONATHAN DONADO
Strategy
Alignment to Project
Management
PMI & ASP
Linkedin.com/in/jonathandonado
March 23rd 2016

2. 1. The Basics
2. The Alignment
3. Questions
PMI & ASP

3. What is a Strategy ?

5. … an Art

6. Let’s start by defining what
it isn’t a Strategy

7. SOME COMMON MISTAKES:
Be #1 in our market ….Pursue a global
expansion….Have unmatched customer
service….etc

8. STRATEGY is NOT:
a TACTIC
an OBJECTIVE or a GOAL
a DESCRIPTION

9. Strategy is a common buzzword:

10. Where does the word
strategy come from?

11. From the Greek word
“Strategos” = The art of the
general

12. Strategy can be found in the
book “The ART of WAR”
by Sun Tzu (from 500 BC)

14. Today,
Business
is seen
as a
modern
day
war….

15. …challenges of a CEO are
similar to an ancient General

16. …a CEO needs to define a
set of tactics to lead to
business “victory”

17. How do we know what it is our
strategy? How do we make one?

18. A Google
Search
provides the
following
formal results

19. ?
So … is it a surprise we have
misunderstandings about
business strategies?

20. Or …. why do great strategies
have no impact on the
organization?
?

21. To blame:
1. A strategy that isn’t well defined?
… or
2. A lazy execution?
?

22. A large
proportion
of failure
is due to
Strategy
definition
and not in
the
execution

23. Strategy needs to influence
Action…. So, in order to influence
Action, it needs to be
Remembered….

24. In order for a strategy to be
Remembered…. It needs to be
Understood…

25. In order to be Understood… a
strategy needs to be SIMPLE
(if not it is a just a report)

26. So, a Strategy needs to be:
1. Remembered
2. Understood
3. Simple

27. Business
Components

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

29. Example:
Business
Canadian
Intellectual
Property
Office
https://www.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr03475.html

30. Example:
Mission
Vs
Vision
From a
philosopher

31. Example:
Strategy
vs
Tactics
• Planning
• Large Scale
• Why
• Difficult to Copy
• Long Term
Frame
• Doing
• Small Scale
• How
• Easy to Copy
• Short Term
Frame

32. Example:
Strategy
vs
Tactics

33. So…
Business
Strategy in
simple
terms

34. A BUSINESS STRATEGY
answers 2 questions:
1. How firms create value
2. How firms sustain value

35. What is Value ?
What Customers are willing to pay
What It cost the Company to produce it
VALUE

36. A Survey Says…

37. 70% of employees don’t understand
their company strategy
Forbes “When CEOs Talk Strategy, 70% Of The Company Doesn't Get It”, 2013

38. To make sure all employees
understand the Business Strategy,
we need to make sure that it
clarifies the following:

39. 1. Why Customers buy our
products?
Need to Clarify Key Drivers

40. Drivers to
increase
revenues or
lower cost
are defined
by Strategy
1. Key Drivers

41. 1. Key Drivers
Who are the people that make
out target market ?

42. 1. Key Drivers
Value
proposition
to
differentiate
our products:
1. Product Differentiation
2. Cost Reduction

43. 2. Identify Critical Challenges

44. 2. Challenges
Internal or External.
Need to define top 3 to 4
obstacles to focus attention

45. 2. Challenges:
Internal
What capabilities do we need to be
the best in the market at delivering
our value proposition ?

46. 2. Challenges:
External
- What is the competition doing?
- How is the market evolving?
- Etc

47. 2. Key Drivers
Strategy
Formulation

48. 2. Key Drivers
Strategy
Formulation

49. 2. Key Drivers
Strategy
Formulation
Porter
5 Forces

50. 3. Determine Must-Win Battles

51. 3. Must-Win
Battles
Define battles that a company needs
to win in the next 2 to 3 years to
overcome obstacles to value creation

52. Why do
companies
with good
strategies
fail ?

53. Not too
many
known
names
Let’s take the DOW
JONES. It started in
1896. The companies
were:

54. Some
names
unknown
DOW JONES 1976.
The companies were:

55. Only GE
remains
since 1st
Index
DOW JONES 2016.
The latest group as of
March 21 2016

56. FAILURE ?
Companies
need to
balance
current
strategies
with the
discovery of
new ones
The “Strategy Trap”
for successful
companies:
Exploitation
Get cash for growth
Exploration
Find new wining products
business models

57. FAILURE
because
overtime as
Companies
focus
more on
Exploitation
The Strategy Trap
for successful
companies:

58. FAILURE
overtime.
Companies
focus
more on
exploitation
1 / 3 firms
become trapped in
just a 5 year period
Exploitation
Exploration

59. FAILURE
overtime.
Companies
focus
more on
exploitation
7 / 10 firms
can’t escape the trap
Exploitation
Exploration

60. Business
Strategy:
Takeaways:

61. Business
Strategy
Takeaways
1. a Strategy defines how the
company creates and
sustains value

62. Business
Strategy
Takeaways
2. a Strategy has to be
remembered, understood
and be simple

63. Business
Strategy
Takeaways
3. a Strategy fails because
companies focus on mainly in
Exploiting instead or Exploring

64. 1. The Basics
2. The Alignment
3. Questions
PMI & ASP

65. Between high level Vision/Strategy
and in-the-trenches project
implementation, we need to
bridge the gap

67. The PMO delivers 2 main areas of
improvement to the organization:
1. Helps choose the right projects
2. Helps deliver the projects correctly

68. Project
Expectations:
The projects are expected to
be delivered meeting:
1. Budget
2. On Time
And …

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.

81. 1. The Basics
2. The Alignment
3. Questions
PMI & ASP

82. 15
Question #1
PMI & ASP
Are there any more resources (books,
web sites, etc.) on the topic?

83. Best Strategy Books

84. Websites

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

90. Aligning Strategy to Execution: Balance
Scorecard
BALANCE SCORECARD

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?

93. Strategy >>> Implementation (PM)
http://www.amanet.org/training/articles/What-Is-Strategy-Execution.aspx

94. 15
Question #6
PMI & ASP
Do you have a strategy development
template?

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?

99. Strategy > PM Influence
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-

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 ?

101. Strategy > PMO Voice
https://www.pmi.org/~/media/PDF/Publications/PMI-Pulse-Impact-of-PMOs-on-

102. 15
Question #11
PMI & ASP
How can we best bridge strategy and
project management ?

103. Strategy > PM Bridging the Gap
http://www.herbrubenstein.com/articles/Implementation.pdf
COMMUNICATION
TOOLS: BALANCE SCORECARD
FORMULATION: SIMPLE STRATEGY
PMO

104. 15
Question #12
PMI & ASP
How did you become interested in the
topic being discussed?

105. Strategy > Personal Interest comes from
EXPERIENCE
ROLES
INTEREST
EDUCATION
POST-GRAD
MASTERS
COLLEGE
RESPONSABILITIES

106. 15
Question #13
PMI & ASP
How do projects get chosen to align
with new strategies?

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:

110. 15
Question #15
PMI & ASP
How do you balance Strategy and
resource loading?

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.

112. 15
Question #16
PMI & ASP
How do you define a business strategy?

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

117. 15
Question #19
PMI & ASP
How do you get more funds for
resources? Best methods?

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

120. 15
Question #21
PMI & ASP
How do you use the tools discussed at
your job?

121. Strategy > Tools Used
https://www.gwu.edu/~umpleby/recent_papers/2009%20PMI%20Anbari%20Cultural%
20Differences.pdf
Tool Used: Business Plans, SWOT, Business Model Canvas, Balance Scorecard,
Porter 5 Forces, McKinsey 7s

122. 15
Question #22
PMI & ASP
How does one get to be empowered to
say 'no' to a project, without hiding
behind process ?

123. 15
Question #23
PMI & ASP
How does one put an end to pet
projects that do not align to the
mission/vision of the company ?

124. 15
Question #24
PMI & ASP
How is the growth of Agile project
management impacting strategic
planning?

125. 15
Question #25
PMI & ASP
How much does the PMO influence
either or both (agile project
management & strategic planning)?

126. 15
Question #26
PMI & ASP
How much involvement in the strategy
from external PM?
(6 months contract)

127. 15
Question #27
PMI & ASP
How should change of strategy be
communicated to all shareholders?

128. 15
Question #28
PMI & ASP
How to effectively communicate
strategy up, down and across the
organization?

129. 15
Question #29
PMI & ASP
How to identify the most effective
project management methodology for
a project?

130. 15
Question #30
PMI & ASP
How to measure cost of risk for your
project ?

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.

145. 15
Question #45
PMI & ASP
Project Management in the Federal
Government

146. 15
Question #46
PMI & ASP
Project with PMO role in it, and
without

147. 15
Question #47
PMI & ASP
Recommendations for newly certified
PMPs looking for work ?

148. 15
Question #48
PMI & ASP
Share your few thoughts on best
business practices for Global Business
Management

149. 15
Question #49
PMI & ASP
Should each team possess own
strategy?

150. 15
Question #50
PMI & ASP
Should project strategy be dictated by
the shareholders or recommended by
the project manager ?

151. 15
Question #51
PMI & ASP
Should a strategy be bottom up or top
down ?

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 ?

153. 15
Question #53
PMI & ASP
Tools and ideas ?

154. 15
Question #54
PMI & ASP
What are common techniques to align
PMO objectives with corporate
strategies ?

155. 15
Question #55
PMI & ASP
What are some techniques to verify
strategic and project alignment ?

156. 15
Question #56
PMI & ASP
What are some ways to communicate
that projects are not aligned properly
to affect change ?

157. 15
Question #57
PMI & ASP
What are successful efforts you have
used to integrate project management
efforts into strategic development
efforts ?

158. 15
Question #58
PMI & ASP
What are the major stumbling blocks to
align strategy with project
management ?

159. 15
Question #59
PMI & ASP
What are the ramifications of
misalignment ?

160. 15
Question #60
PMI & ASP
What are the ways that portfolio
management aligns company's project
management practices with its
corporate objectives ?

161. 15
Question #61
PMI & ASP
What are ways to view a list of
strategic initiatives ?

162. 15
Question #62
PMI & ASP
What characteristics needed of a PMO
leader ?

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 ?

164. 15
Question #64
PMI & ASP
What is the difference between tactical
and strategic ?

165. 15
Question #65
PMI & ASP
What is the fastest growing PM
methodology ?

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)

171. 15
PMI & ASP
THANK YOU
By Jonathan Donado

172. 15
Contact Info
Linkedin.com/in/jonathandonado
Thank You
Jonathan.L.Donado@gmail.com
www.branded.me/jonathandonado