“Strategic Alignment for Projects”

Key Takeaways• Understand importance of company’s vision, mission

and strategic objectives for a project

• Attaining business value through projects

• Identify elements of project’s strategy

• Alignment of project’s strategy with business strategy, goals and objectives

• Communicate strategic alignment to stakeholders

Agenda

• PMI Talent Triangle

• Business Strategy

• Strategic Planning

• Portfolio Management

• Project Strategic Alignment

• Project Strategic Communication

PMP Total PDUs Education Minimum Giving Back Maximum

60 35 PDUs 25 PDUs

Technical Leadership Strategic Remaining Total 8 8 8 11 35

Business Strategy

6

Elements of Strategic Management

Business Vision• Defines how company is to be perceived• Picture of future state of the business• It’s the reason for being!

‘Bring the Italian coffeehouse tradition to America to create a place for human connection, conversation and one that fosters a sense of community’ – Starbucks, Howard Schultz - Il Giornale

‘Make people happy’ - Disney

Business Mission• Provides direction for the company’s vision

• Defines company’s purpose and intent

• Describes what the business offers to its:• Employees

• Customers

• Owners

‘To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.’ –Starbucks

Disney’s MissionWorld’s leading producer and provider of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

Starbucks Core Values• Framework for behavior

• Guiding principles

OUR VALUES

• With our partners, our coffee and our customers at our core, we live these values:• Creating a culture of warmth and belonging, where everyone is

welcome.• Acting with courage, challenging the status quo and finding new ways

to grow our company and each other.• Being present, connecting with transparency, dignity and respect.• Delivering our very best in all we do, holding ourselves accountable for

results.

• We are performance driven, through the lens of humanity.

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Disney Core Values

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Business Goals and Objectives

Mission

Objectives: Define areas of pursuance

Goals: Milestones, Resources

Business Objectives• Expected results to be achieved and maintained• Intended outcome rather a process

‘Build all new, company-owned stores to achieve LEED® certification’ -Starbucks

Environmental Stewardship Goals - Disney

Use resources wisely and protect the planet as we operate and grow our business:

• Zero Net Greenhouse Gas Emissions

• Zero Waste

• Conserve Water Resources

Business Strategies

Strategies: Design of means through use of resources to accomplish organizational purpose

Objectives: Define areas of pursuance

Goals: Milestones, Resources

Mission

Business Strategies• How resources will be used to achieve goals or

objectives

• Implemented through• Portfolios

• Programs

• Projects

• Operational improvements

‘To maintain loyalty and repeat business among its customers which will encompass hiring and training knowledgeable baristas.’ - Starbucks

Strategies for Competitive Advantage• Michael Porter – Generic Strategies

• Cost leadership• Selling products or services at a lower cost than competitors

• Example: McDonalds’ McCafe

• Differentiation• Offering a product or service that offers unique qualities that

customers are willing to pay extra for

• Example: Latte Macchiato

• Market Focus or Segmentation• Focus on a particular niche to best sell its products or services

• Example: Whole Foods organic segment market

Strategic Planning

Strategic Planning• Sets overall vision for organization

Identifies key strategies to achieve vision

• Establishes critical measures to monitor progress

• Answers the questions• Where are we today?

• Where do we want to be? (Vision)

• How do we get there?

• How do we monitor our progress?

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Where are we today?

Strengths Weaknesses

Opportunities Threats

SWOT

Identified through internal analysis

Identified through external analysis

How do we get there?

• Critical Success Factors

• Key Performance Indicators

• Barriers

Portfolio Management

Business Value*• All organizations focus on attaining business value for

their activities

• Total value (both tangible and intangible) of organization

• Starts with comprehensive strategic planning and management

• Use of reliable, established processes help attain greater business value for project efforts

*Through the effective use of project, program, and portfolio management disciplines, organizations will possess the ability to employ reliable, established processes to meet enterprise objectives and obtain greater business value from their investments

*These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide)–Fifth Edition, Project Management Institute, Inc. 2013

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Portfolio Funnel

Business Case• Provides business information to determine whether

or not project is worth required investment

• Written by requesting organization or business analyst

• Business need and cost-benefit analysis are often used to justify project, including numerous project selection techniques

Portfolio, Programs and Projects

Key Definitions Portfolio

*Projects, programs, sub-portfolios and operations managed as a group to achieve strategic objectives

Program*Group of related projects, subprograms and program activities in a coordinated way to obtain benefits not available from managing them individually

*These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide) –Fifth Edition, Project Management Institute, Inc. 2013.

Benefit Realization• Clearly identified goals

• Properly planned route to reach them

• Milestones along the way to mark progress

• Criteria or defined targets against which to report success

Projects Results Usage Benefits

Begin with the end in mind – Stephen Covey

Projects Strategic Alignment

Project Strategy

• Forms project framework

• Identifies business strategy focus

• Provides standards for managed project

• Defines your competitive advantage

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Project Strategic Framework

Business Perspective

Business Objective

Product/ Service

Competitive Advantage &

Value

Success Criteria

Project Definition

Strategic Focus of Project

Project strategy

components

Reduce customer wait time by 25% when there are 5 or more customers

Develop mobile platform software for baristas to stand beside customers to enter orders and accept electronic payments, Need a scanning device

Position baristas on customer side of counter to take orders

Competitors don’t have this. Customers will love the experience

Measure wait time to be reduced by 25% and do a customer survey

Define requirements for software

Develop software to meet objectives

Project Charter• Translates business goals into project objectives

• Documents business needs, goals & objectives and initial customer requirements

• Created by project sponsor, PMO, portfolio steering committee or initiator external to the project organization

*Document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities

*These definitions are taken from the Glossary of the Project Management Institute, The Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. 2013.

Project Charter Content • Business goals, objectives and strategy• Project purpose or justification• Project objectives and related success criteria • High-level requirements, project description and risks• Summary milestone schedule and budget• Stakeholder list• Project approval requirements• Assigned project manager, responsibility and authority

level• Sponsor authorizing project charter

Project Strategic Communication

How do we monitor our progress?• Monthly

• Did we do what we said we would do?

• Quarterly• Are we making progress we expected to make?

• Annually• Are we going in the right direction?

Reporting Options

• Roadmap

• Executive dashboards

• Balanced scorecards

Roadmap

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Program Benefits

Executive Dashboard

Balance Scorecard Categories

Financial Performance Perspective

Customer Perspective

Learning and Growth

Perspective

Internal

Business Process

Perspective

Vision

Mission

Goals

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Balanced ScorecardStrategy Map Balanced Scorecard

Perspective Objective Measure Target

Financial • Profitability growth

• Revenue growth

• Cost reduction

• Market value

• Sale revenue

• Rent expense

• +15%

• +20%

• -5%

Customer • Higher retention

• Increased market share

• Number of

repeat

customers

• Number of new

customers

• 90%

• +10% per year

Internal • Time to market • Delivery time • Reduce by 50%

Learning

and

growth

• Develop competencies

• Align staff with strategy

• Competency

model

• Strategic

awareness

• 100%

• 100%

Fewer

stores

Profits

Higher

sales

New and existing

customers

Reduce

pricesOn-time

delivery

Fast order processing

Employee alignment

Key Takeaways• Understand importance of company’s vision, mission

and strategic objectives for a project

• Attaining business value through projects

• Identify elements of project’s strategy

• Alignment of project’s strategy with business strategy, goals and objectives

• Communicate strategic alignment to stakeholders

About NetCom Learning

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