Archive for the ‘Strategic Planning’ Category

Project Management – part of Business Strategy Planning

Conventional project management approach is that projects are successful if they meet schedule, scope & budget goals. Yet statistics indicate that most projects are late, over budget, and more importantly, many projects do not contribute to Business success.  Even good Projects that use industry best practices merely focus on process efficiencies.  They lack a Strategic Focus associated with better business success.  Strategic Focus involves defining and meeting the business goals as a direct result of the project execution.

Project Management needs Strategic Planning to focus on business goals achievement and creating business value, and not just achieving the Triple Constraint.  Business Strategy planning is the process of formulating and implementing decisions about company’s future direction.  Effective strategic planning can mean the difference between success and failure.  The concept of business strategy planning is not new, however, the principles should be applied to Project Management.

Projects are critical to the success of any organization and should be seen as part of the strategic business processes.  Projects are the activities that result in new or changed products, services and environments.  Therefore, they provide direct benefits to the “bottom-line“; increased sales, cost reduction, quality improvements and customer satisfaction.  Today, successful companies do recognize the benefits that Project Management can provide to their bottom-line.  Therefore, all projects should be planned strategically as part of executing the overall business strategy.  Furthermore, projects should be evaluated on an on-going basis given the changes and dynamics in the competitive environment. 

Excellence in project management can occur, by incorporating a Strategic Focus and Planning approach to all Projects.