Aligning Project Management with Business Strategy
Business strategy is characterised as a way of generating competitive advantages to attain sustainability while recruiting consumers and defending against competitive forces, as learnt when studying for the business analysis certification. Porter’s general business strategy typology is used to lay the groundwork for assessing the alignment of project management with business strategy. Cost leadership, distinctiveness, and focus are three of Porter’s generic tactics. According to Porter, organisations can get a competitive edge by using one of these tactics. In response to global competition, however, businesses are forced to rely on a variety of tactics. The best-cost strategy is what it’s called. The key business strategies used by Milosevic and Srivannaboon in their analysis are cost leadership, differentiation, and best cost. Shenhar’s strategic project leadership framework aspects, which include strategy, organisation, process, tools, metrics, and culture, are also mentioned by the writers.
The authors conclude that the focus and substance of project management aspects are driven by the competitive qualities of the company strategy. According to a pattern discovered via study, companies may align projects with corporate strategy on three levels: strategic, tactical, and corrective emergent strategic feedback. The beginning of the alignment process is Level 1 (the strategic mediating process). Strategic managers at this level develop the desired strategy and, in most cases, employ portfolio management to identify the projects that will help the firm achieve its objectives. Level 2 (the project-level mediating process) entails elaborating on the projects chosen during Level 1 interactions in order to achieve correct alignment with the project life cycle.
The planning and monitoring processes are two parts of the project life cycle. Project managers at this level build a project management strategy that relates back to the company goals and objectives, as I learnt when studying for the business analysis certification. Stage gates or milestone reviews are used at Level 3 (the mediating process at the emergent strategic feedback level) to assess the project’s scope, schedule, and budget. Emergent activities may affect the intended approach while the project is carried out. This level ensures project-level input in order for the company plan to adapt to its competitive qualities as a result of change. As a result, the authors conclude that project management and business strategy must be aligned using a combination of planned and emergent strategies.
Portfolio management may aid in the decision-making processes of picking the correct projects that will contribute to the organisational needs once strategic managers have chosen a business plan with the goal of maintaining the firm. In order to match the business strategy and project management aspects, a consistent project lifecycle is also required. The success of implementing the business plan will be determined by projects structured into portfolios that use best practises, common processes, and continuous improvement.
The feedback loop, also known as stage gates, ensures that resources are channelled wisely and that non-performing initiatives are efficiently and effectively discontinued. Change on projects is unavoidable, hence emergent strategy is common. The project’s strategic input to the strategic business unit is crucial for adjusting the strategy as it moves through the mediating processes. Initially aligning the business strategy to the project is one thing, closing the gap between projects and strategy is a whole other storey.
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