Strategic Alignment of Projects
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Transcript of Strategic Alignment of Projects
“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
12
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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» PMI Professional in Business Analysis (PMI-PBA)®
» Project Management Professional (PMP)®
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