Project Management Chapter 3 Project Management for Strategic

Introduction • Projects deliver most benefit when focused on achieving the strategic objectives of

Project Management in Context 5 broad knowledge areas of management in an organisation: Strategic

Match the term? 1. 2. 3. 4. 5. Dr. Jana Jagodick Polytechnic of Namibia,

Strategic Management • The strategic plan develops the mission and states the objectives and

Strategic Management Process Consists of the following steps: – – – environmental scanning vision

Project Management This involves the initiation, planning and execution of projects integrated into the

Process Management The aim here is to improve current organisational processes and to design

Performance Management All staff must know what management’s expectations are and must be trained

Issues Management • used for situation assessments, decision making and problem solving. Dr. Jana

Strategic Alignment of Projects Strategic Alignment and Systems Integration Dr. Jana Jagodick Polytechnic of

Strategic Alignment of Projects • Projects often seem to be implemented on an ad

What is needed for effective alignment & integration ? • • • effective communication

Examples To organize the world's information and make it universally accessible – whose vision

Examples Types of projects aligned – implementing technology that will help them to organise

Approaches to ensure this happens • Managing by Projects • Balanced scorecard • Business

Managing by Projects • This management approach has become increasingly popular due to the

Managing by Projects • Organisations using such an approach treat all tasks as projects

Setting up Project Offices (PO or PMO) Needed for a ‘managing by projects’ approach

Advantages of Having a Project Office • Organisational structures are aligned with cross functional

The Balanced Scorecard (BSC) The balanced scorecard (BSC) is a technique that helps to

BSC – BSC not concerned with control over specific actions to reach the objective,

Business Process Focused Project Management (BFPM) • • Developed by Comninos in 1990 s

Business Process Focused PM (BFPM) • The two major elements are: – Wrappers Model

Wrappers Model • • • Integrates various management levels. At the core of the

ODPM • • This process is at the heart of the Wrappers Model Outputs

Main Characteristics of BFPM • • • Driven by results and objectives Fosters commitment

Multiple Projects • Most organisations, regardless of the approach they use for managing projects,

Managing Multiple Projects • Interactions often occur between the different projects • Managers review

How to manage multiple projects • Implementation checklists are useful • During the roll-out/implementation

In class Mock test 1. What are the main knowledge areas that need to

In class Mock test 1. Knowledge areas that need to be considered in the

In class Mock test 3. Issues organisations face with Strategic Alignment and Systems Integration?

In class Mock test 4. What approaches are taken to ensure better alignment and

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Project Management Chapter 3 Project Management for Strategic Goal Achievement Dr. Jana Jagodick Polytechnic of Namibia, 2012

Introduction • Projects deliver most benefit when focused on achieving the strategic objectives of the organisation Dr. Jana Jagodick Polytechnic of Namibia, 2012

Project Management in Context 5 broad knowledge areas of management in an organisation: Strategic management Project management Process management Strategic objectives – – Performance management Dr. Jana Jagodick Polytechnic of Namibia, 2012 Issues management – Strategic management Process Management Project Management Performance Management Issues Management

Match the term? 1. 2. 3. 4. 5. Dr. Jana Jagodick Polytechnic of Namibia, 2012 How people will be managed to achieve the strategic objectives How to recognise and address performance gaps to ensure strategic objectives are obtained What needs to improve or be implemented to deliver the strategic objectives How projects should be delivered to meet the strategic objectives Where the organisation wants to be

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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic of Namibia, 2012

Process Management The aim here is to improve current organisational processes and to design improved processes. Dr. Jana Jagodick Polytechnic 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 Jagodick Polytechnic of Namibia, 2012

Issues Management • used for situation assessments, decision making and problem solving. Dr. Jana Jagodick Polytechnic of Namibia, 2012

Strategic Alignment of Projects Strategic Alignment and Systems Integration Dr. Jana Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic of Namibia, 2012

Approaches to ensure this happens • Managing by Projects • Balanced scorecard • Business Process Focused Project Management Dr. Jana Jagodick Polytechnic 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 ‘projectoriented. ’ • This philosophy often categorises all activities as: ‘projects of change’, or ‘operational projects’. Dr. Jana Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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. Ref: www. balancedscorecard. org Dr. Jana Jagodick Polytechnic of Namibia, 2012 A recent survey (2007) found that 62% of companies in the western world were using a balanced scorecard to track performance (Thompson, Strickland Gamble)

BSC – BSC not concerned with control over specific actions to reach the objective, but with the objective itself – It focuses on the interrelationship between: • • financial issues the client or customer internal processes Learning and growth To achieve strategic goals Dr. Jana Jagodick Polytechnic of Namibia, 2012

Business Process Focused Project Management (BFPM) • • Developed by Comninos in 1990 s 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Dr. Jana Jagodick Polytechnic of Namibia, 2012 ODPM strate

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 interrelated steps, tools and techniques to manage projects Dr. Jana Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic 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 Jagodick Polytechnic of Namibia, 2012

In class Mock test 1. 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 areas 3. 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 Jagodick Polytechnic of Namibia, 2012

In class Mock test 1. 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 Jagodick Polytechnic 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 Jagodick Polytechnic of Namibia, 2012

In class Mock test 4. 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 Dr. Jana Jagodick Polytechnic of Namibia, 2012