We can put project management in two ways in management. First, the strategic management level with emphasis on business transformation, change management and organization restructuring. Second, in more operational level. In strategic management level, a project is defined as breakthrough initiative to execute strategy in order to response changes in business environment where organization should perform a simple change management, organization restructuring or even a radical business transformation. In operational level, as defined by PMI, a project is defined as a temporary endeavor undertaken to create a unique product, service or result. It has a defined beginning and end in time, and therefore defined scope and resources. It is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. There are several issues about project management in strategic management level. There are (1) alignment to business strategy, (2) business contribution of project using Measured Organization Value (MOV), (3) change management strategy for projects, (4) multi-projects management as governed by Project Management Office (PMO) and (5) project-based organization and agile theory of organization. Riri Satria will address his empirical lessons learned as strategic management and organization development practitioner in project management (with emphasis in business transformation, change management and organization restructuring) combined with his experience as academician with theories in project and strategic management.

1. RIRI SATRIA is Founder and CEO of Value Alignment Advisory (VA2), a
consulting firm that provide services in strategic management, organisation
development and human capital management. He is a senior lecturer at Master
of Information Technology Program, Faculty of Computer Science, University of
Indonesia and Master of Management Program PPM School of Management.
Currently, Riri also serves Indonesian National Police (Polri) as expert advisor
(penasihat ahli) for strategic management, bureaucracy reform and information
technology, after more than 8 years as external consultant for Polri for many
strategic organisational issues.
Riri started his career as a management consultant at Klynveld Peat Marwick
Goerdeler (KPMG) Indonesia in 1995, then moved to PPM Institute of
Management, joined People Performance Consulting as Director in 2007 and
established Value Alignment Advisory (VA2) in 2012.

3. PROJECTS IN STRATEGIC MANAGEMENT
FRAMEWORK

4. • Contingency theory states that in order to manage its
environment effectively, an organization should design
its structure and systems to fit with its environment.
• A poor fit between structure and environment leads to
failure, a close fit leads to success.
The basic principles for
CHANGE MANAGEMENT

5. BUSINESS ENVIRONMENT CHANGE
ORGANIZATION CHANGE
(STRATEGIC AND OPERATIONAL)
VARIOUS PROJECTS WITHIN
ORGANIZATION

6. … a project is defined as a temporary endeavor
undertaken to create a unique product, service or result. It
has a defined beginning and end in time, and therefore
defined scope and resources. It is unique in that it is not a
routine operation, but a specific set of operations
designed to accomplish a singular goal.

7. … a project is defined as breakthrough initiative to
execute strategy in order to response changes in
business environment where organization should
perform a simple change management,
organization restructuring or even a radical
business transformation.

8. PREVIOUS
CONDITIONS
DESIRED
CONDITIONS
STRATEGY /
BREAKTHROUGH INITIATIVES
PROJECT 1 PROJECT 2 PROJECT N…

9. 1. Alignment to business strategy
2. Business contribution using Measured Organization Value (MOV)
3. Change management strategy
4. Multi-projects management
5. Project-based organization and agile theory of organization

10. Stakeholder / Financial
Perspective
Customer
Perspective
Internal Process
Perspective
Learn & Growth
Perspective
Strategic Outcome
Strategic Actions /
Drivers
Strategic Asset
Strategic Output

11. Financial /
stakeholder
(outcome)
Customer
(output)
Internal process
(process)
Learn and growth
(input)
The objectives of projects
are to (1) create new
capability, and (2) to
improve current
capability of
organization.
Capability comprised of :
people competencies,
technology and
infrastructures, corporate
culture, organization
structure, etc.

12. • The project’s goal
• Measure of success
• Must be measurable
• Provides value to the organization
• Must be agreed upon
• Must be verifiable at the end of the project
• Guides the project throughout its life cycle
• Should align with the organization’s strategy and goals

13. Organizational
Strategy
Project’s
Organizational
Measurable
Value
(MOV)
Organizational
Vision & Mission
Drives
Drives
Supports
Supports

14. Financial /
stakeholder
(outcome)
Customer
(output)
Internal process
(process)
Learn and growth
(input)
Measured Organizational
Value (MOV) of various
projects are the Key
Performance Indicators
(KPI) assigned to strategic
objectives in the
perspectives : internal
process, customer and
financial / stakeholders.

15. • Rational-empirical approach (pattern)
• Normative-reeducation approach
• Power-coercive approach
• Environmental-adaptive approach

16. Recognizing the
need for change
Attempting to
create a new state
of affairs
Incorporating the changes,
creating and maintaining a
new organizational system
Step 1: Unfreezing
Step 3: Refreezing
Step 2: Changing

17. PREVIOUS
CONDITIONS
DESIRED
CONDITIONS
CHANGE / TRANSFORMATION
DRIVING
FORCE
RESISTING
FORCE

18. THE PROJECT
CHANGINGUNFREEZING REFREEZING

19. LESSONS LEARNED IN INDONESIA
(Government and Business)

20. • Private business organizations : 4
• State-owned enterprises : 3
• Government Institutions : 5
Methodology : ethnographic research

21. • Unfreezing phase is relatively quick.
• Spending much efforts in changing and refreezing phases.
• Resisting force is less than driving force.
• Change strategies : rational-empirical approach (pattern) and
normative-reeducationapproach.
• Management systems development is critical success factor.

22. • Unfreezing phase is relatively long and lots of effort,should involve
many stakeholders, and KemenBUMN is the most important one.
• Less effortin changing process, but again, lots of effortin refreezing
phase (new SOP and internal / external control).
• Somehow, driving force is relatively equal to than resisting force.
• Change strategies : combination of the four strategies.
• Leaders involvement is critical success factor, although
management systems are also important.

23. • Unfreezing phase is relatively long and lots of effort,should involve
many stakeholders (MenPANRB, BKN, Bappenas, KemenKeu, etc).
• Less effortin changing process, but again, lots of effortin
refreezing phase (new SOP and internal / external control).
• Driving force is less than resisting force.
• Change strategies : power-coercive approach and environmental-
adaptive approach
• Leaders involvement is critical success factor.

24. • http://about.me/ririsatria
• Facebook : ririsatria.va2
• Twitter : @ririsatria
• E-mail : ririsatria@gmail.com
• http://strategy4management.wordpress.com
• http://catatandosen43.wordpress.com
• http://kepolisian.wordpress.com