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Dr. Jana JagodickPolytechnic of Namibia, 2012
Project Management
Chapter 3
Project Management for Strategic Goal Achievement
Dr. Jana JagodickPolytechnic of Namibia, 2012
Introduction• Projects deliver most benefit when
focused on achieving the strategic
objectives of the organisation
Dr. Jana JagodickPolytechnic of Namibia, 2012
Project Management in Context
Process management
Performance management
Issuesmanagement
Project management
Strategic management
Strategic objectives
5 broad knowledge areas of management in an organisation:
– Strategic management
– Process Management
– Project Management– Performance
Management– Issues Management
Dr. Jana JagodickPolytechnic of Namibia, 2012
Match the term?
1. How people will be managed to achieve the strategic objectives
2. How to recognise and address performance gaps to ensure strategic objectives are obtained
3. What needs to improve or be implemented to deliver the strategic objectives
4. How projects should be delivered to meet the strategic objectives
5. Where the organisation wants to be
Dr. Jana JagodickPolytechnic of Namibia, 2012
Strategic Management
• The strategic plan develops the mission and states the objectives and desired outcomes necessary for success.
• The relationship between the organisation and its environment is defined by making using tools such as SWOT analysis.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Strategic Management Process
Consists of the following steps:– environmental scanning
– vision and mission statement
– strategy formulation
– strategy implementation
– strategy evaluation and control
Dr. Jana JagodickPolytechnic of Namibia, 2012
Project Management
This involves the initiation, planning and execution of projects integrated into the business, by a project manager and his team.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Process Management
The aim here is to improve current organisational processes and to design improved processes.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Performance Management
All staff must know what management’s expectations are and must be trained and equipped to do their jobs well.
– A balanced scorecard helps as a performance measurement framework to clarify expectations for the people involved.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Issues Management
• used for situation assessments, decision making and problem solving.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Strategic Alignment of Projects
Strategic Alignment and
Systems Integration
Dr. Jana JagodickPolytechnic of Namibia, 2012
Strategic Alignment of Projects
• Projects often seem to be implemented on an ad hoc basis across the organisation without– clarifying the link to the organisation’s strategy– Understanding the number and scope of projects being
undertaken
• Staff often feel that they are working on unnecessary projects, some of which are in conflict with other areas of the business
• By giving projects a strategic focus, these concerns can be resolved
Dr. Jana JagodickPolytechnic of Namibia, 2012
What is needed for effective alignment & integration ?
• effective communication
• workable business practices
• cultivating a PM structure and culture
• project management training
• implementing project management practices
Dr. Jana JagodickPolytechnic of Namibia, 2012
Examples
To organize the world's information and make it universally accessible – whose vision statement?
What kinds of projects would be aligned to this?
What kinds of projects would not be aligned?
Dr. Jana JagodickPolytechnic of Namibia, 2012
Examples
Types of projects aligned – implementing technology that will help them to organise information better, developing infrastructure to allow people in developing countries access to information
Type of projects not aligned – developing hardware for people to be able to access the internet
Dr. Jana JagodickPolytechnic of Namibia, 2012
Approaches to ensure this happens
• Managing by Projects
• Balanced scorecard
• Business Process Focused Project Management
Dr. Jana JagodickPolytechnic of Namibia, 2012
Managing by Projects
• This management approach has become increasingly popular due to the increased interest in process redesign.
• Organisations begin to view all changes to their organisational processes as ‘project-oriented.’
• This philosophy often categorises all activities as: ‘projects of change’, or ‘operational projects’.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Managing by Projects
• Organisations using such an approach treat all tasks as projects
• Establishment of a project office becomes very important
• Managing by projects involves the entire organisation
Dr. Jana JagodickPolytechnic of Namibia, 2012
Setting up Project Offices (PO or PMO)Needed for a ‘managing by projects’ approach
Main functions are:• project initiation and planning• capturing and analysing historical data• risk assessment and issue management• maintaining and enhancing corporate PM techniques• supporting users of PM systems• PM training• quality assurance and quality control
Dr. Jana JagodickPolytechnic of Namibia, 2012
Advantages of Having a Project Office
• Organisational structures are aligned with cross functional change
• Allows a global view of resources• Skills are focused on strategic goals• Clear ownership/accountability for project
responsibility• Performance measurements are dynamic,
predictive forward looking
Dr. Jana JagodickPolytechnic of Namibia, 2012
The Balanced Scorecard (BSC) The balanced scorecard (BSC) is a technique that helps to align strategies with objectives, measure the implementation and progress in attempts to meet these objectives.
A recent survey (2007) found that 62% of companies in the western world were using a balanced scorecard to track performance (Thompson, Strickland and Gamble)
Ref: www.balancedscorecard.org
Dr. Jana JagodickPolytechnic of Namibia, 2012
BSC
– BSC not concerned with control over specific actions to reach the objective, but with the objective itself
– It focuses on the inter-relationship between:
• financial issues• the client or customer• internal processes• Learning and growth
To achieve strategic goals
Dr. Jana JagodickPolytechnic of Namibia, 2012
Business Process Focused Project Management (BFPM)
• Developed by Comninos in 1990s• Organisation-wide view of PM• Bring together projects and operations• Provides overview of strategic linkage between projects
and organisation strategy
• The two major components of BFPM are:– Wrappers Model– Objective-directed PM (ODPM)
• These two components embrace each other to provide philosophies, processes, concepts and tools used in BFPM
Dr. Jana JagodickPolytechnic of Namibia, 2012
Business Process Focused PM (BFPM)
• The two major elements are:– Wrappers Model– Objective-directed PM (ODPM)
• These two components embrace each other to provide philosophies, processes, concepts and tools used in BFPM
Dr. Jana JagodickPolytechnic of Namibia, 2012
Wrappers Model • Integrates various management
levels.• At the core of the model is the
objective-directed project management (ODPM) process, wrapped by the following levels/ layers of wrappers which can be peeled off or added as required:– the strategic wrapper– the business wrapper– the project wrapper
• Not all the wrappers apply to all projects
strateODPM
Dr. Jana JagodickPolytechnic of Namibia, 2012
ODPM
• This process is at the heart of the Wrappers Model• Outputs (deliverables) from this process are handed
over to the project layer and they move outwards from there
• Through ODPM an environment is created where everybody understands what he/she must deliver and how performance will be measured
• It defines cross-functional authority and performance accountability, and consists of a series of inter-related steps, tools and techniques to manage projects
Dr. Jana JagodickPolytechnic of Namibia, 2012
Main Characteristics of BFPM• Driven by results and objectives• Fosters commitment and ownership• Uses sound principles of management• Makes use of practical tools• Allows ‘fuzzy’ projects • Allows for understanding and participation by
all players• Ensures that authority & accountability are
adhered to• Aligns projects with business objectives• Allows creative thinking by all
Dr. Jana JagodickPolytechnic of Namibia, 2012
Multiple Projects
• Most organisations, regardless of the approach they use for managing projects, will be managing multiple projects at the same time
Dr. Jana JagodickPolytechnic of Namibia, 2012
Managing Multiple Projects
• Interactions often occur between the different projects
• Managers review the different projects progress individually but there is no mechanism to report problems caused by the interaction of one project with another, or resource shortages across projects
• In scenarios like this, managers should assign tasks to resources and not the traditional way of resources to tasks.
Dr. Jana JagodickPolytechnic of Namibia, 2012
Setting up Project Offices (PO or PMO)Needed for a ‘managing by projects’ approach
Main functions are:• project initiation and planning• capturing and analysing historical data• risk assessment and issue management• maintaining and enhancing corporate PM techniques• supporting users of PM systems• PM training• quality assurance and quality control
Dr. Jana JagodickPolytechnic of Namibia, 2012
How to manage multiple projects
• Implementation checklists are useful • During the roll-out/implementation phase good
communication is critical – clarify the purpose of the projects
– authorities of the project teams
• Good leadership is vital• Pilot new processes or technology in a controlled
environment• Don’t allow project overload – in any area or with
any group of people
Dr. Jana JagodickPolytechnic of Namibia, 2012
In class Mock test1. What are the main knowledge areas that need to
be considered in an organisation in the context of project management?
2. Describe each of these areas3. What issues do organisations face with Strategic
Alignment and Systems Integration?4. What approaches are taken to ensure better
alignment and integration (explain each one)?5. What is the role of a Project Office?
Dr. Jana JagodickPolytechnic of Namibia, 2012
In class Mock test1. Knowledge areas that need to be considered in the context of project
management:– Strategic management– Process Management– Project Management– Performance Management– Issues Management
2. Strategic management – where the organisation wants to be • Process Management – what needs to improve or be implemented to deliver the
strategic objectives• Project Management – how projects should be delivered to meet the strategic
objectives• Performance Management – how people will be managed to achieve the
strategic objectives• Issues Management – how to recognise and address performance gaps to
ensure strategic objectives are obtained
Dr. Jana JagodickPolytechnic of Namibia, 2012
In class Mock test
3. Issues organisations face with Strategic Alignment and Systems Integration?
• Projects often implemented on an ad hoc basis across the organisation without – Clarifying the link to the organisation’s strategy– Understanding the number and scope of projects being undertake
• Staff often feel that they are working on unnecessary projects, some of which are in conflict with other areas of the business
Dr. Jana JagodickPolytechnic of Namibia, 2012
In class Mock test4. What approaches are taken to ensure better alignment and
integration (explain each one)?– Managing by Projects– Balanced scorecard– Business Process Focused Project Management
5. What is the Role of a Project Office?– project initiation and planning– capturing and analysing historical data– risk assessment and issue management– maintaining and enhancing corporate PM techniques– supporting users of PM systems– PM training– quality assurance and quality control