Presentation on theme: "Strategic Project Management"— Presentation transcript:
1 Strategic Project Management Alex S. Brown, PMPMitsui Sumitomo Insurance (MSIG USA)Session ADV09
2 What is a Project Nightmare? Over budget?Late delivery?Poor quality?Even worse: on-time, on-budget, great quality, but delivering something your organization does not need
3 Case Study Mitsui Sumitomo Insurance Group USA 400-person subsidiary of MSI JapanProperty & Casualty insurer, mostly commercialLargest book is the US risks of Japanese companiesOne-person Strategic Planning Office
4 Session Overview What is strategic planning at MSIG USA? How does project management complement strategic planning?How do senior executives participate in projects and strategy at MSIG USA?What project management trends support strategic planning?
5 What is “Strategic Planning”? Definition debated for years among academics and business leadersTypically a one- to five-year plan at MSIG USAWhat projects to launch, what to continueAlign with medium- and long-term business plans from USA and Tokyo
6 Key Concepts for MSIG USA Executive Steering CommitteeWas an actual committee in the pastChanged to become the President and CEOApprove changes, provide executive oversightThe Strategic PlanBy definition, a collection of projectsProjects are essential to strategy at MSIG
7 What is the Strategic Plan? A collection of 15 to 25 active projects, plus more planned for the futureMonitored by a Strategic Planning OfficeAuthorized by top managementCross-departmental impactRelevant to medium- and long-term plans
8 Strategic Planning Office Combination of a corporate planning function and a PMO“Project Portfolio Administration” functionMentor all project managersAudit and monitor budgets, schedules, results
11 Strategic Planning – Ideas Projects are based on ideas and objectivesStrategic planning creates themSWOT (Strengths Weaknesses Opportunities Threats)Competitive Analysis and other studiesMarket share goalsVision statements
12 Project Management Achieves Results How to execute strategy?Project management provides a robust way to execute changeAssign project manager, defining accountability and responsibilityAvoid creating strategy that is never realized or even attempted
13 Project Results Drive Change Each project advances one or more strategic goalSome projects investigate an issue, creating new strategic goals at the endSome projects fail, but all are relevantFailure often uncovers key information
14 Continuous Feedback Loop Staff Feedback and IdeasOrganizational Plan Updates
15 Events that Join Strategy and Projects Project start-upProject closureBudget and resource authorizationResource conflicts and prioritiesOrganizational crisis and strategic change
16 Project Start-UpMost strategic moment of a project is right when it is authorizedStrategy helps answer, “Why should we do this?” or “What is the goal?”PM helps you climb the ladder, strategy helps make sure it is on the right wall
17 Project Closure A time to gather new ideas Teams see unsolved problems and issuesAt MSIG these ideas become new project proposalsEnsure that good ideas are not lostA gift to the strategic planner
18 Budget and Resource Authorization Projects constantly fight for resources and fundingTying projects to strategy allows PMs to explain their need in strategic termsExamining all project resource requests in terms of strategy helps eliminate “pet projects”
19 Project Prioritization Often project conflicts arise, requiring a decisionOrganizational strategy can provide a more relevant way to score and rank projectsStrategic planners are accustomed to scoring systems to set priorities, and can help design an appropriate system
20 Crisis and Strategic Change Any crisis or critical event causes project uncertaintyStrategic planners face uncertainty as wellThese times call for coordinationPractical, tactical ideas from project managersIndustry trends and top-down perspectives from strategists
21 Involving Senior Management Tie project management to something they must doDecision makingTrainingConstant reinforcement
22 Project Management Tied to Strategy At MSIG USA, medium- and long-term plans were required by TokyoProject management easy to support as a way to implement these plansProject practices have become an ordinary way of doing business for executives
23 Decision MakingAt MSIG USA, projects have become a way for executives to see progress more clearlyEach status report is a chance to provide inputProvided a formal, documented decision-making processEasier for senior managers to control
24 Project Management Training Over 10% of the staff, including senior management, was trained in project managementMany managers accepted roles as project managers or sponsorsMiddle and senior management reinforce training by using the terms regularly
25 Constant Reinforcement Projects appear everywhere nowCompany intranetBimonthly reports to senior management and staffContinuing education for project managersProjects are now normal business
26 Trends in Project Management Related to Strategy Project Management Maturity ModelsStandards and BooksPMI Goals and Marketing
27 Project Management Maturity Models An explosion of modelsHard to measure process maturity without organizational strategyOPM3: “Transform Strategy into Results”Executive-level focus of these models encouraging project managers and strategists to meet and talk
28 Portfolio Management Standards and Books How long can we focus on “selection”?Strategy encourages “start up” and “creation”Design new projects to fill voids in the portfolioDo not just select projects from a fixed list
29 Many Books “Selection-Focused” Standard for Portfolio Management (PMI)“priority” & “select” appear 70 times“new component” appears 10 timesNew books account for the creation of the project and organizational strategyHeerkens, The Business-Savvy Project ManagerDinsmore & Cooke-Davies, The Right Projects Done Right!
30 PMI Goals and Marketing PMI is promoting project management at the executive level“Worldwide, organizations will embrace, value and utilize project management and attribute their success to it.”“Making project management indispensable for business results.”Achievable in partnership with strategists
31 SummaryMSIG USA made “project management” inseparable from “strategic planning”Reinforced from start-up to closureStrategic planning and project management support and reinforce each otherIndustry trends support integrating them
32 Challenge: Link Strategy to Project Management at Your Organization How could the MSIG USA example help?What can you change? Whose help do you need?Are your projects already strategically aligned? If not, why not?PMI has set a vision for all of us – achieve it in your organization!
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