1. MITM743 Advanced Project Management
Dr. Abdul Rahim Ahmad
Assoc. Professor
College of IT, UNITEN
Kerzner Chapter 4
Strategic Planning for Excellence in PM

2. 4 Strategic Planning for Excellence

3. Strategic Planning Influence of Economic Conditions
General Strategic Planning (SP)
SP for PM
CSF for SP
Strategic resources
Strategic selection of projects
Horizontal Accounting
Continuous Improvement
Restructuring
PM Maturity Model

4. Introduction Why Organization need Strategic Planning
Consider all aspects in planning
Employees, managers, staff, management, sponsors, corporate structure, culture
For long term
Includes career plan for Project Managers

5. 5.1 Influence of Economic Conditions

6. Economic Conditions Economic conditions fluctuates:
Ups and downs
Favourable and unfavourable
Causes change and take years to realise and manage.

7. Relationship between SP and PM
SP and PM has special relationship
SP must be implemented
Implementing SP needs PM
In fact any planning needs PM
PM could be used for the strategy implementation (of strategic plans)

8. PM use in SP Creation of Business Units
PM is used implement any type of plans or projects within the business units

9. Strategic Factor in Achieving Excellence

10. 5.2 General Strategic Planning

11. General Strategic planning
Process of formulating and implementing decisions about an organization’s future direction
Organization adapts to its environment
Process is applicable to all management levels and all types of organizations.

12. Steps in SP Formulation
where to go, what decisions to be made, when to make in order to get there.
performed at the top levels
What's done
Scans external and industry environment
Interprets changes : opportunities or threats
Analyzes resource base : asset strength/weakness
Defines mission of business: matching opportunities and threats with strengths and weaknesses
Sets goals: pursue mission based on values/responsibility.

13. Steps in SP Implementation
Translates formulated plan into policies and procedures
Involves all levels of management
Seeks to fit organization’s formulated goal and activities.
Involves all levels of the organization, resulting in integration of all aspects of the firm’s functioning.
Integration management is a core competency of project management.
Activities done by middle and lower-level managers

14. 5.3 Strategic Planning for Project Management

15. SP for PM
Is the development of a standard methodology for project management
that can be used over and over again
that will produce a high likelihood of achieving the project’s objectives.
SP for methodology and execution of the methodology does not guarantee profits or success, but improve the chances of success.

16. Advantages of methodology
Provides a consistency of action.
Increase in interrelated functional units increase the benefits from the integrating direction afforded by the project management implementation process.
Ease communication
Thinking process required – rational and logically ordered

17. PM methodology Simple project management methodology structure.
Identifies
how costs will be collected and analyzed
how variances will be explained
how reports will be prepared

18. Project Selection Process

19. Supporting Strategies
integration opportunities strategy
performance improvement opportunities strategy

20. Business Macro environment

21. 5.4 CSF for Strategic Planning

22. CSF for PM Include activities to achieve long term objectives.
Only a few CSF which are critical
Apply equally to all types of organizations
3 CSF in achieving project management excellence:
Qualitative factors:
achieve project success with constraint of time, budget, performance and standards.
Organizational factors:
Roles of Project manager, line manager, project sponsor
Accountability = Responsibility + Authority
Quantitative factors.
Project management education + software education.
support for use of the software and project management

23. 5.5 Identifying Strategic Resources

24. Resources Tangible Resources Other classifications
Measuring strengths and weaknesses of an organization
Common classification for tangible resources:
Equipment/ Facilities / Manpower/ Materials / Money / Information technology
Other classifications
Human Resources
Nonhuman Resources
Organizational Resources
Financial Resources.

25. Another view of resources

26. 5.6 Strategic Selection

27. Selection
Using Portfolio Classification matrix (pg 176)

28. 5.9 Why SP for PM fail

29. Reasons
Failure to get CEO endorsement, Failure to examine, Being blinded by success, Over responsiveness to information, failure to Educate, Failure of Organizational Acceptance, Failure to keep the methodology single, Blaming failures on the methodology, Failure to piorotize, Rigid acquisition

30. 5.13 Project management maturity Model (pg 193/pg41)

31. PMMM Project Management Maturity Model (PMMM) Comprised of five levels
Each level represents a different degree of maturity

32. Levels

33. Overlap of Levels

34. Overlapping Levels

35. Feedback among the five levels of PMMM

36. Degree of difficulty associated with each level of the PMMM

37. End of Slide

38. Project Management….
Work Smart Not Hard !!!