Business Benefits of Strategic Analyses - Article Example

Running Header: Project Management Student’s name: Lecturer’s name: Course: Date Submitted: Project Management Business Benefits of Strategic Analyses Strategic planning has three elements namely; strategic analysis, strategic choice and strategic implementation. Strategic analysis techniques are applied in project management in the development of the business case in the project’s life cycle during the implementation phase (Bentley pg. 9). The idea or plan that initiated the project will be refined into the directive and later developed into a feasible project plan. This project will be represented by the project initiation document during commencement phase. Strategic analyses will employ the use of strategic planning tools; SWOT (Strengths, Weakness, Opportunities and Threats) and PESTELE (Political, Economic, Social, Technological, Educational, Legal and Environmental) in the intention of identifying potential business benefits of the project. The SWOT analysis in the project disclosed the weakness of leadership in the organization’s existing model. The model did not focus on team development or performance; two factors that can help improve organization’s performance. This model revealed lack of understanding in relation to what comprised of good performance. Educational and Social components of PESTELE discovered a weak attitude towards learning and this was entrenched in old fashioned views of success in an organization. The issues raised became central focus in a management programme customized to support organizational change. Purpose of Leadership and Communication in Project Implementation There are various project management systems that require the leadership of both project manager and project team and communication between the two parties. These systems will not work without the work unit. Prince2 is an example of project management systems that is most effective when leadership and communication take center stage in an organization (Bentley pg. 80). The project manager has an important role of preparing the Project Initiation Document (PID) and also selecting appropriate and competent project team (Bentley pg. 16). A project manager should be possess effective leadership qualities and clear intentions of the project giving a time period through planning. Project planning should be written in details and also explained to the Board so as to obtain consent and authority to proceed with the project. The authority given will represent the closure of initiation phase in the project’s life cycle. Implementation phase is where leadership and communication roles of the project manager are are manifested. A team of competent workforce is selected through advertisement and interviews. Work will begin when the team has been assembled and the project manager assigns tasks to each individual but working as a team. Coaching and mentoring is the work of project manager in inspiring the project team and also making them achieve their goals and also those of the organization (Bentley pg. 22). Leadership techniques help a manager to identify, address and rectify poor performance so as to ensure that the project’s products are successfully delivered. Comparison of PRINCE2 and PMBOK as Methods of Project Management Projects in Controlled Environment (PRINCE2) are a method of project management that mainly focuses on management components of projects. This method provides direction on the planning, delegation, monitoring and control of all essentials of the projects with key objectives in place within the anticipated performance targets for cost, time, benefits and also risks (Bentley pg. 28). Prince2 accomplishes these things through specification structures and processes, roles and responsibilities within the project team and also at the organizational level. Prince2 provides the tools needed for carefully specification of deliverables, manage changes and costs and also to authorize projects. It also provides short lines of communication that lead to quick decision making and also ensures that senior managers are actively involved (Bentley pg. 39). This method however does not explain the technical responsibilities of the project team members. Project Management Body of Knowledge (PMBoK) was published by Project Management Institute (USA). This is a standardization of project management practices. It is used to create a link between inputs and outputs through techniques and tools that have been used before and have been successful. PMBoK however does not specify a single method as in Prince2. The processes employed in PMBoK are approximately similar to processes in Prince2 but they are less regulatory. Prince2 is successful as compared to PMBoK because of it has been evaluated to deliver projects in required time period, cost management and also high quality (Bentley pg. 45). Identification, Assessment and Management of Risks for a Successful Project In projects, there are risks that can be identified and also those that are unforeseen. The risks that can be identified and are often included in the PID so as to be managed. New risks can also be included in this document as risks that surfaced during the implementation phase of project management (Bentley pg. 71). Risks in projects must be assessed for their severity and this helps the project team and managers know the level of interference that will result from the occurring risks. The project managers should also assess the likelihood of these risks occurring. The two dimensions of risk management can be plotted on a 2x2 chart. This will show the high and also low risk assessment for both dimensions hence providing a simple illustration risk evaluation. This will make sure that risks are managed when they happened or prevented. This system can be made to be designed to be more refined by graduating the axes of the risks in the chart with three or more fragments. This is done in exceptional cases and it requires careful determination of the significance of each segment in the risk chart. The risks that are known or that are emerging will be assessed using this model to provide a risk management approach. In my project, all risks were first identified in the Initiation phase and they were subjected to this chief method of risk assessment. There were four risks in the project that were either medium or high and detailed plans for improvement were developed. The plans were later incorporated into the planning tasks by finding ways to manage the risks and also the associated costs. Risk identification, assessment and management were instrumental in successfully finishing the project on time, with the given cost and to quality. Strategic and Operational Benefits of Using Prince2 Benefits The chief purpose of project management is to predict risks that can occur but to also have a risk management plan that will cater for emerging risks during implementation phase. This will ensure that the project is planned, organized and even controlled in a manner that will ensure successful project completion despite risks encountered (Bentley pg. 28). A project is different from daily routine business activities that occur in an organization because projects have a definite lifespan, key objectives and corresponding sets of activities to achieve deliverables. A project has distinct funds and mechanisms within a structure of processes, responsibilities and roles to manage the project effectively. The costs of new products in the project will be controlled and managed properly (Bentley pg. 28). Prince2 is a process based method used in project management to define responsibilities, roles, and processes based on evaluation and knowledge of good business practice usually used by the UK government. Small projects, large IT corporations and construction companies in UK and also internationally require this method of project management because it is scalable (Bentley pg. 9). Prince2 is generic and can also be tailored to fit organization’s needs and budget. The processes are based on confirmed principles that can be adopted as a standard project management method to substantially advance the capacity of the organization to carry out projects and deliver change. This method mainly focuses on products’ definition, delivery and lastly their quality requirements. Prince2 will ensure a continued business justification, defined responsibilities and roles, process managed at stages, product quality and also project tailored or customized for a particular product location or environment (Bentley pg. 35). Nature of Project Team Leadership and Communication in Project Management Prince2 and other methods that are used in project management are mere systems that have been confirmed to produce quality projects (Bentley pg. 35). The guidance provided does not however show how leadership or communication should be implemented into the system. There are projects that have failed due to poor leadership and communication and also neglect of important details. The Office of Government Commerce in the UK has listed eight critical success features for organizational projects after a long period of evaluation of important reasons why some projects failed in the past. Among these success factors are decisions made at the right time due to clear and short lines or reporting. Another factor is an ongoing support to project team from senior management. These two factors both indicate that active leadership is required for a project to be successful as compared to simply managing the project. Managers select small project teams comprised of competent specialist from different disciplines. A project is not the same as an organization’s routine business. A project brings together specialists from different disciplines and the prevailing autocracy form of leadership exercised in the organization will have to be revised in the intention of inspiring the work unit by giving each member a voice when making decisions and also during communication. This requires a supportive and democratic form of relationship between team project and managers. Leadership qualities involve inspiring and motivating the project team through coaching and mentoring. When the project team feels appreciated and important in the project, then the team will work together to achieve both personal and organizational goals. The goals of members of the project team are to earn more, get more experience and improve in their careers. The goals of the project in the organization are to make sure products make a lot of profits by meeting the needs of the target group and also by creating a lasting relationship with the clientele (Bentley pg. 91). Success of Project Management Using PRINCE2 Contemporary organizations incorporate new ventures into their routine activities. These ventures can be new mechanisms of working, new premises or new products. All ventures incorporated into an organization require effective and efficient management to be successful. The costs of such ventures and timescales need to be effectively controlled and also the quality deliverables must meet the consumers’ needs. The argument above strongly suggests that the organization requires a competent project management system that can assess viability of all proposed projects, consent and authorize projects that add value to the entire organization. This system also requires a structure or roles, processes and responsibilities by both the project team and managers to complete the project successfully. Many organizations have used available standard systems while some organizations have designed their own systems to suit their requirements and even budget. The most famous and successful system used by many organizations in the UK and also internationally is Prince2. Prince2 as a method of project management has been considered bureaucratic but this system doesn’t have to be so. Prince2 can be changed from technical to simple management projects. But not all projects are simple and this requires slight bureaucracy for large ICT and construction projects that prove to be complex. Prince2 is a method that has been evaluated over a long period of time to successfully manage risks, costs involved and resources. Assessment of Risks to the Success of the Project The Project Initiation Document (PID) contains the identified risks that can occur during implementation stage. This document does not however contain unforeseen risks that might arise in future while the project is in operation. This means that while the project is in the implementation stage, a risk management plan has to be created (Bentley pg. 81). This plan can be put on a 2x2 chart which will explain the high and low of the risk. This is a preventive and protective measure all business projects must have to limit the amount of damage that can be caused by unforeseen risks. Risk management plan created helped to manage the risks that occurred during the project implementation. The project was successfully completed because the risks did not hinder the activities geared towards adding value to the organization and also the lives of the project team who were assembled because of the project. Some organizations have failed projects because of lack of leadership qualities or poor communication but most projects in organizations have failed because the severity of unforeseen risks were so intense the organization had to suspend all operations in the project. A project that adds value to the organization, the project team and consumers is better than that that leads to loss of funds and organization principles (Bentley pg. 81). Risk management plan which means identifying the risk, assessing it and finally managing it leads to a management of funds that are supposed to successfully complete the project. Such an organization will be faced with loyal customers and even project team in the next project because projects have a short lifespan with key objectives achieved within the set period of time. Work Cited Bentley, Colin. PRINCE2 revealed: including how to use PRINCE2 for small projects. Oxford: Elsevier Butterworth-Heinmann, 2006, Pg (16-97) Read More