In organization, projects become one of the tools for implementing the business strategy. In order to ensure the implementation runs properly, projects should be able to give contribution to the strategic plan. The organization should also ensure that projects are integrated within strategic plan and conducted through a process of prioritizing projects based on their contribution to the strategic plan.
Key Points to Implement Successful Business Strategy
A business strategy defines as the combination of all decisions that have been taken and actions performed by business to accomplish its goals. The implementation of business strategy in organization shall focus on several key points.
First, create a mechanism for resources allocation in executing a work based on organizational priorities to avoid conflicting demands on resources. Then, implement an organizational structure that supports projects. Next, build project management processes for planning, executing, and controlling projects to ensure strategy is implemented effectively. Lastly, create a project selection and priority system to ensure that projects and strategic plan are closely linked.
Steps of Strategic Management Process
Strategic management process is important for organization. It is not only a set of rules that should be followed but it also a philosophical approach to business. With the absence of effective strategic management, organization might have difficulty to achieve success in project management.
Organization could use several steps of strategic management process: first, define vision and mission to further communicate them to staff and stakeholders. Then, analyze external and internal environments to understand the needs of business. After that, identify the goals and objectives of business and formulate strategies to achieve those objectives. Lastly, implement strategies through projects as an action stage of strategic management process.
Essential Things to Achieve Strategic Goals and Objectives
Organization needs to look at three essential things in strategic management process in order to achieve strategic goals and objectives. These three things are project, program, and portfolio that often mistaken as a same thing, yet they have a quite different meaning and usage.
Project is a temporary endeavour that conducted to create unique product, service or certain desired outcomes. On the other hand, program is a term of a projects collection that need to be managed in order to obtain benefits and control. Last but not least, portfolio is a combination of projects and programs that are managed as a group aims to achieve strategic goals and business value.
Differences Between Project, Program, & Portfolio Management
As mentioned above, project, program, and portfolio managements are three different things. Organization needs to have better understanding of those differences as a way to achieve strategic goals and objectives.
Project management is a term of product and service delivery. It consists of scope, cost, and schedule that responsible for the quality of deliverables. Next, program management is sponsored by the business that consists of multiple projects. Program should align projects with overall program benefits as well as compliance with project management standards and stakeholder value. Lastly, portfolio management is led by the business. Portfolio management consists of business goal alignment, business value alignment (risk or benefit), program selection, portfolio optimization, and business value.
Conclusion
A business strategy defines as the combination of all decisions that have been taken and actions performed by business to accomplish its goals. There are several steps of strategic management process that shall be taken by organization to achieve success in project management. Furthermore, in order to achieve the strategic goals and objectives, organization should also understand the three essential things in strategic management process that consist of project, program, and portfolio.
Reference:
ESI International, Inc. (2006). Project Management and the Organisational Strategy.
Jim Clayton., The Five Stages of the Strategic Management Process., (2019). Retrieved from: https://smallbusiness.chron.com/five-stages-strategic-management-process-18785.html
