Quick Tour of Project Management: Integration of Organization Strategy with Projects

Strategic Management Process

Strategic Management Process Includes Four 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.

Strategy, Objectives and Project Linkages

Organization: Mission --> Objectives

Cause-and-Effect Worksheet Example

Click here for larger version of above diagram

Project Screening Process

Project proposal idea

Data collection and backup <-- Need strategic fit ROI/payback risk

Abandon <-- Self evaluation of project by criteria

Periodic reassessment of priorities <--> Priority team evaluates proposal and reviews portfolio for risk balance --> Return for more information

Hold for resources ---- Assign priority, Assign resources, Assign project manager, Evaluate progress

Project Screening Matrix

For any given project(s)/project proposal(s) within an organization (i.e. Project 1 through Project n), this matrix assigns weight to the following project criteria:

• Stay with core competencies



• Strategic fit



• Urgency



• 25% of sales from new products



• Reduce defects to less than 1%



• Improve customer loyalty



• FOI of 18% plus



• Weighted total

Project Priority System

Annually (Long-range plan) / Ongoing (Project proposals for major projects)

… both lead to…

Monthly

Priority team: Prioritize major projects (includes Project priority and Risk analysis) --> Allocating resources --> Major project priority and status report

Functional managers identify available resources --> Allocating resources --> Assign project managers --> Feedback status--ongoing projects

Rank Objectives

Analyze objective independently in three dimensions

1. Seriousness -- What is the current impact of the results of the objective on the organization?

(0) Small impact <-----------> (10) Large Impact

2. Urgency -- Time factor. What will be the relative consequences of not taking action over the next 12 months?

(0) Can defer <-----------> (10) Must take action

3. Future seriousness -- What is the chance of the objectives seriousness changing over time?

(0) Decrease or remain same <-----------> (10) Dramatically increase

Click here for larger version of above figure

Priority Analysis

Includes:

• Project number



• Must objectives (e.g.: All activities meet current legal, safety, and environmental standards; All new products will have a complete market analysis)



• Must meet if impacts



• Total weighted score



• Priority

Major Project Proposal

Includes:

• Date



• Project Number



• Project Title



• Responsible Manager (name/signature)



• Project Manager (name/signature)



• Project type/categorization: General Support, Quality, Cost reduction, Legal, new Product, Capacity



• Effort used (man-hours)



• Problem definition: Describe the problem/opportunity



• Goal definition: Describe the project goal



• Objective definition: Performance: Quantify the savings/benefits you expect from the project; Cost: Labor hours, materials, methods, equipment?; Schedule: Overall duration in months

Above: Sample proposal document

Risk Analysis

Addresses question: What are the three major risks for this project?

Risk Analysis report includes criteria similar to Priority Analysis:

• Project number



• Must objectives (e.g.: All activities meet current legal, safety, and environmental standards; All new products will have a complete market analysis)



• Must meet if impacts



• Want objectives (Provides immediate response to field problems; "Create $5 million in new sales by 199x"; Improve external customer service)



• Total weighted score



• Priority

Above: Sample Risk Analysis report