Advantages of Strategic Project Management - Coursework Example

Name Class Unit Table of Contents Introduction 2 Strategic project management 3 Advantages of strategic project management 5 Major factors that promote or inhibit the successful implementation of contemporary projects 6 Conclusion 7 References 9 Appendix 10 Introduction In an organisation, projects are very critical for success. Through the projects, new or changed products, services or processes are developed (Callahan & Brooks, 2004). Projects make it possible for the sales to increase, enhance customer service and make a better working environment. A project can be defined as a time constrained efforts aimed at attaining a defined set of objectives through the use of defined set of objectives (Ofer & Shlomo, 2006). Project management is associated with initiating, planning, controlling and closing a project. Every project should have a link to the overall organisation strategy (Linetsky, 2008). Strategies determine how an organisation will compete. Through the use of projects, it becomes possible to convert a strategy into a product, service or process which is required for success. In modern organisations, project management requires strategy. This has led to strategic project management. According to Callahan & Brooks (2004), strategic project management is simply defined as use of required project management knowledge, skills and tools in an organisation based on goals and objectives. It is aimed at having outcomes that contribute to the organisation value in a manner that can be measured. This essay explains strategic project management and its importance in the organisation. The paper also explains the major factors that promote or inhibit successful implementation of contemporary projects in the context of strategic project management. Strategic project management To gain an in-depth understanding of strategic project management, it is important to understand what strategic management is. Strategic management is defined as a process used in assessing the position an organisation is, deciding where it ought to be and how to get there (Larson & Gray, 2014). Through strategy, it becomes possible to outline the way in which an organisation intends to compete based on the available resources, current and expected future environment. Strategic management makes it possible to respond to the external environment and also allocate the scarce resources with an aim of improving organisation competitive position. In past, project management had been associated with planning and executing projects. The strategy was not used and was considered to be for the senior management. At the moment, project management is carried out in relation to the organisation strategy (Callahan & Brooks, 2004). The role of project manager has changed from being operational to being strategic. This has made it vital for the project managers to have an understanding of organisation strategy and mission. Through understanding the organisation strategy, it becomes easy for the project managers to make decisions as well as adjustments in their products. It also helps in setting the project deadline based on the business needs. When project managers can understand the organisation strategy, they act as project advocates (Larson & Gray, 2014). This allows them to explain to the senior management how the project contributes to the organisation mission. To come up with a contemporary project, one has to follow strategic management process. This is through using the sequence of activities that are in a strategic management process. The first step is reviewing and defining the organisation mission. The mission helps in giving a focus to the project managers (Larson & Gray, 2014). Through the mission statement, the likelihood of having a false direction is reduced. The mission is then used in setting the parameters to be used in coming up with the objectives. The second step is setting long-term goals and objectives. Objectives help in understanding where the organisation is heading and how it aims to get there. The third step is coming up with strategies to reach the set objectives. This is through analysing the business environment and coming up with a strategy that fits the organisation and within the acceptable risk range (Linetsky, 2008). The strategies that have been set are then implemented through the project. During the implementation, it becomes possible to determine how the set strategies will be attained. The implementation process requires taking action to complete a task. This is only attained through allocating resources, supporting strategy and project, planning and control systems, motivation and lastly prioritising the project (Larson & Gray, 2014). Advantages of strategic project management Advantages of strategic project management are attained through strategic planning. This involves being able to develop a standard methodology to use in managing a project (Baar, 2002). This is a methodology that can be used over and over again to attain the project objectives. Strategic project planning improves the chances of succeeding in a project. Through strategic project planning, it becomes possible to have consistency in action. The number of interrelated functional units in an organisation are increased which leads to an increase in benefits (Larson & Gray, 2014). The methodology starts with the project definition process. This is then broken down to the technical baseline and financial baseline. Through the financial baseline, the costs are analysed and the methods of preparing the reports identified. This methodology ensures that there is a common direction for the diverse activities hence a common process (Ika & Saint-Macary, 2012). Strategic project management is advantageous since it makes it easy to communicate on all levels of management. It creates a feedback loop in functional units (Baar, 2002). Through smooth communication, the resistance to change is reduced. Strategic project management gives all involved an opportunity to communicate reducing the fear of unknown. The methodologies used in project planning are based on logical thinking process (Larson & Gray, 2014). This is a major advantage of strategic project management. Major factors that promote or inhibit the successful implementation of contemporary projects To successfully implement a project, project management structures plays a major role. They act as a framework to be used in launching and implementing a project. This is through balancing the need for the project and organisation based on authority, resources and the project outcomes integration to mainstream operations. A good project management structures are vital for the project success (Larson & Gray, 2014). An organisation may decide to organise a project based on the existing functional hierarchy. The different segments of a project are given to respective functional units. In this case, coordination is maintained through the normal management channels. The advantages of using this approach are that there are no radical changes, flexibility is enhanced, in-depth expertise and there is an easy post-project transition. The existing disadvantages are lack of focus, poor integration, slowness and lack of ownership. The second approach is organising the project as dedicated teams. The teams operate as separate units from the organisation with a full-time project manager. The main advantages of this approach are simplicity, speed, cohesiveness and cross-functional integration. The weaknesses in this approach are expense, internal strife, limited expertise and difficulty in post-project transition. Lastly, the project can be organised based on matrix arrangement. This is where the project manager shares their responsibilities with the functional managers. Team members’ reports to both functional and project managers (Lecomber, 2010). Matrix arrangement is associated with efficiency, high project focus, flexibility and ease in post project transition. The main drawbacks are infighting, stress, slowness and conflict (Larson & Gray, 2014). Choosing the right project management structure will determine the success or failure of a project. Another factor that determines the success or failure of a project is the organisation culture (Larson & Gray, 2014). The ability of the project manager to operate in a given culture determines the success or failure of a project. This is due to the existing relationship between the organisation culture, project management structure and the success of a project. In an organisation, certain cultural aspects can lead to successful project management while others can hinder or act as the deterrent to successful project management. A culture where the management can balance their focus on the needs of the people and project is needed for success. It is a culture which can balance the deliverables and means. For example, a culture that supports teamwork is very important for most projects. The culture should also support risk taking and can tolerate innovation through diverse ideas. It is important to note that culture gives a sense of identity to the members of an organisation (Linetsky, 2008). This enhances the level of commitment and energy devoted to the project. Culture also helps in legitimising the management system. It gives the reason for respect to the authority. When implementing a project, culture helps in reinforcing the standards of behaviour and creates a social order. This reduces cases of anarchy and chaos in project implementation (Larson & Gray, 2014). Without a supportive and strong organisation culture, implementing a project successful becomes hard. Conclusion To sum up, projects are very important for the success of an organisation. Projects in an organisation should be linked with the overall strategy. Strategic project management can be defined as the use of required project management knowledge, skills and tools in an organisation based on goals and objectives. This is aimed at having outcomes that contribute to the organisation value in a manner that can be measured. This involves aligning the project with the organisation strategy. For the contemporary project to be successful in implementation, project management structure and organisation culture plays a very vital role. The interaction of the project with the management structure used and organisation culture is complex as explained and will determine its success or failure. Therefore, through linking up the project with a strategy and ensuring a proper management structure and organisation culture, it is possible to have a successful project. References Baar, J. E. (2002). Project planning: A great communicator. AACE International Transactions, PS11-PS15. Lecomber, A. (2010). New Projects: Bold New World - Planning for New and Complex Projects [online]. The Project Manager, 30(1), Dec/Jan, 8-10. Callahan, K., & Brooks, L. (2004). Essentials of strategic project management. Hoboken, NJ: John Wiley & Sons. Ika, L. A., & Saint-Macary, J. (2012). The project planning myth in international development. International Journal of Managing Projects in Business, 5(3), 420-439. Ofer Z., & Shlomo G. (2006). Benchmarking of project planning and success in selected industries, Benchmarking: An International Journal, 13(6), 688 - 700. Larson, E. W., & Gray, C. F. (2014). Project Management: The Managerial Process with MS Project. McGraw-Hill Education (Australia) Pty Limited. Linetsky, B. L. (2008). The project management paradox: achieving more by doing less. Ivey Business Journal, 72(2), 1-8. Appendix Fig.1, strategic management project cycle (Allied consultants, 2013) Fig.2 project governance framework (Allied consultants, 2013) http://alliedconsultantseurope.net/competencies/project-management Read More