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0Chap002-Organization Strategy and Project Selection

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13 views8 pages

0Chap002-Organization Strategy and Project Selection

Uploaded by

sadeelkhalil5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CHAPTER TWO

Organization
Strategy and
Project Selection

McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All
rights reserved.
Where We Are Now

2–2
Why Project Managers Need to Understand
the Strategic Management Process

• Changes in the organization’s mission and


strategy
– Project managers must respond to changes with
appropriate decisions about future projects and
adjustments to current projects.
– Project managers who understand their
organization’s strategy can become effective
advocates of projects aligned with the firm’s mission.

2–3
Projects and Strategy
• Mistakes caused by not understanding the role of
projects in accomplishing strategy:
– Focusing on problems or solutions with low strategic priority.
– Focusing on the immediate customer rather than the whole
market place and value chain.
– Overemphasizing technology that results in projects that pursue
exotic technology that does not fit the strategy or customer need
– Trying to solve customer issues with a product or service rather
than focusing on the 20% with 80% of the value (Pareto’s Law).
– Engaging in a never-ending search for perfection only the
project team really cares about.

2–4
The Strategic Management Process:
An Overview

• Strategic Management
– Requires every project to be clearly linked to strategy.
– Provides theme and focus of firm’s future direction.
• Responding to changes in the external environment—
environmental scanning
• Allocating scarce resources of the firm to improve its
competitive position—internal responses to new programs
– Requires strong links among mission, goals,
objectives, strategy, and implementation.

2–5
Strategic Management Process Activities

1. Review and define the organizational mission.


2. Set long-range goals and objectives.
3. Analyze and formulate strategies to reach
objectives.
4. Implement strategies through projects

2–6
Strategic
Management
Process

FIGURE 2.1

2–7
Characteristics of Objectives

S Specific Be specific in targeting an objective

M Measurable Establish a measurable indicator(s) of progress

A Assignable Make the objective assignable to one person


for completion

R Realistic State what can realistically be done with


available resources

T Time related State when the objective can be achieved,


that is, duration

EXHIBIT 2.1

2–8

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