Presentation on theme: "How to Align Strategic Business Improvement and Organizational Capabilities."— Presentation transcript:
How to Align Strategic Business Improvement and Organizational Capabilities
In a time of competing, fluid business needs, the alignment of an organization's strategy to a portfolio of projects in order to maximize their return on investment takes a highly coordinated effort. The requirement to create the link between projects and strategy often becomes apparent once an organization is in dire need of reaching a transformative or reduced state. "Strategies, Projects, Action!" provides the fundamentals of how to align business improvements, organizational capabilities and project leadership.
To understand the basic concept of organizational strategy and potential pitfalls To examine the tenants of project management and portfolio management Developing linkage and alignment between business improvements, organizational capabilities and project leadership.
strat·e·gy the art of devising or employing plans toward a goal proj·ect a planned undertaking ac·tion the bringing about of an alteration by force or through a natural agency Strategy Project Action Strategy Project Action “The art of devising a planned undertaking to bring about an alteration by force”
Strategy in the traditional sense addresses a general direction that an organization has set to reach within a defined span of time Strategy deals with succinctly defining the critical success factors to achieving market share, efficiency and/or quality. The outputs of a strong strategy model assures the organizations sustainability.
Corporations spend about $100 billion a year on management consulting and training with a large portion of it aimed at Strategy Development Less than 10 percent of meticulously developed strategy can be carried out to a successful implementation 90% of companies consistently fail to execute strategies effectively Harvard Business School Press, 2003
Organizational Vision & Analysis Analysis Design Roadmap The “5-year” Organizational Vision Identifies the Organization’s Strategic Tolerance (Culture) Gains an understanding of the inherent capabilities within the Organization Defines the Change Management Plan Implementation Planning Approach Budget Planning is tied to specific goals Identifies the Roadmap – The “Portfolio” of Projects that will get the organization to the “5 Year Vision”
Traditional Project Management creates discipline around how to achieve unique, critical initiatives in a timely manner. The PMBOK (Project Management Body of Knowledge) is the international standard for Project and Program Management
The relationship between Projects and Strategies translates goals and objectives into explicable and actionable terms The effective utilization of key resources where it counts most ($, people, technology, etc.) “They must meet head-on” “The Balance Act”
Step 1: Define and review mission Step 2: Analyze external and internal environments Step 3: Identify goals and objectives Step 4: Formulate strategies to achieve objectives Step 5 : Implement strategies through projects Step 6: Communicate progress of overall strategy plan
Strategy to Project Link Connect the Strategy through the Project Investment portal or “portfolio” Make the connection via a series of “calculated”, synergistic planning sessions and iterations to evaluate “what is the most valuable work to be done” Create frequent iterations for evaluating the portfolio of projects and their relativity to the Strategy Understand and communicate the necessity for constant realignment in order to maintain efficacy The link between Strategy and Strategic Projects is a solid, deliberate, daily ritual!!!! Organizational executives must learn the vernacular of project management in order to execute transformative strategies such as Portfolio Management, Project Management and Performance Improvement. Not easy but necessary!! “The Portfolio”
There are several questions that should be asked prior to setting the strategy: What is the organizational culture? Does the organization have the general concept of strategy? What are the top “5” goals of the organization Is there a “true” appreciation for transformational disciplines? (Project Management, PI, Strategy)
Identify the key core competencies needed to attain the strategy Use a SWOT Analysis (Strengths, Opportunities, Weaknesses and Threats) to understand the dynamics of the organization and its tolerance for change Create a feedback/communication mechanism that encourages the frontline staff to submit ideas for improvements
For Organizational Leaders- Focus more on the specific project outputs than on the hi- level strategy outcomes. The strategic execution will happen naturally if the project execution is successful. For Project Leaders –Maintain visibility into the strategic implications of the project work you are performing “Think Outside YOUR Box”
Revisit investment decisions on a regular basis. A bi- weekly meeting to review the project portfolio is a tactical approach to staying on track. (Monitor) Highlight what has changed in the organization or market since the last review Make sure that the proper tools are in place to view the strategy, portfolio, resources and ROI aggregately (i.e. Portfolio Management Tool) Make "mistakes” a necessary part of the lessons learned for future improvement Educate each level of the organization on basic strategy and project management principles
Deploy governance methodology within the portfolio tool to increase standardization across the continuum.
Make “real time, dynamic” info readily accessible to leadership and project teams to increase visibility and accountability
The Chinese military strategist and philosopher, Sun Tzu noted that “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved”.
Having a competitive strategy and projects tightly aligned to the strategy is key! Project Management must be successfully embedded in strategic objectives, values, and outcomes Project Management creates meaningful steps for strategic execution and corporate value delivery, and improves the track record of delivery
IDENTIFY - SIMPLIFY- EDUCATE – COLLABORATE In Summary, creating a strategically aligned entity is difficult to start and maintain. However, it is vital to drive strategy from the top of an organization to an actionable, manageable level. The ideas, the people, the culture, the money are optimized with a strong strategy tied to a strong portfolio of meaningful, productive projects IDENTIFY - SIMPLIFY- EDUCATE – COLLABORATE
Bennetta B. Raby MS, PMP, LSSBB For more information please contact at: email@example.com Upcoming Events: SHS Healthcare Systems Process Improvement Conference, Poster Presenter HIMSS Annual Conference, Session Speaker