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

4 Strategic Planning for Excellence

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

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

5.1 Influence of Economic Conditions

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

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)

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

Strategic Factor in Achieving Excellence

5.2 General Strategic Planning

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.

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.

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

5.3 Strategic Planning for Project Management

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.

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

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

Project Selection Process

Supporting Strategies integration opportunities strategy performance improvement opportunities strategy

Business Macro environment

5.4 CSF for Strategic Planning

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

5.5 Identifying Strategic Resources

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.

Another view of resources

5.6 Strategic Selection

Selection Using Portfolio Classification matrix (pg 176)

5.9 Why SP for PM fail

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

5.13 Project management maturity Model (pg 193/pg41)

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

Levels

Overlap of Levels

Overlapping Levels

Feedback among the five levels of PMMM

Degree of difficulty associated with each level of the PMMM

End of Slide

Project Management…. Work Smart Not Hard !!!