Introduction
Projects involve temporary endeavours that are undertaken with the objective of attaining predetermined goals. Moreover, projects are adopted in an effort to address various organisational activities that might be difficult to achieve through the normal organisational operations.
Soderlund (2004) argues that the decision to adopt projects is prompted by a number of factors, which include customers request, change in market demand, legal requirements, and technological changes.
The intensity of competition and the high rate of globalisation have prompted organisations to focus on achieving competitive advantage. Subsequently, different management practices have been formulated in an effort to drive the attainment of long-term organisational goals.
Soderlund (2004) confirms that projects are being utilised as an avenue of attaining the goals and objectives as stipulated by an organisation’s strategic plans. However, the effectiveness of projects in enhancing attainment of goals can only be achieved if the project goals are aligned with the formulated strategic plan.
Srivannaboon (2006) asserts that project management “is a specialised form of management that is used to accomplish business goals, strategies, and tasks within a well-defined schedule and budget” (p.1). A significant gap exists between project management goals and an organisation’s strategic intent.
Therefore, in a bid to bridge the gap between an organisation’s project management goals and the strategic intents, it is imperative for the management team to integrate strategic project management concepts (Srivannaboon, 2006).
Soderlund (2004) defines strategic project management as the various processes, tools, behaviours, practices, and procedures that are adopted in order to establish valuable connection between an organisation’s business practices and project management practices. Subsequently, strategic project management increases the likelihood of achieving the overall organisational strategic objectives.
Most projects are complex, for they involve the execution of diverse tasks. Therefore, it is vital for an organisation to implement effective strategies to manage such complexities. Some of the aspects that project managers should consider include improving control and coordination of project activities.
This research paper evaluates the various strategic aspects that an organisation should employ in the process of applying project management in its operations.
Project management and its linkage to strategic management
Most managers recognise that projects improve an organisation’s ability to implement change. Additionally, the rapid change within the contemporary business environment is stimulating the need for organisations to implement radical organisational changes.
Consequently, most organisations are adopting project-based approach in an effort to attain the desired level of growth. However, the outcome of the project is influenced by how well the projects have been implemented (Srivannaboon, 2006).
Strategic management is an essential element in ensuring that projects are aligned effectively with business strategy. At the strategic level, the alignment process is comprised of two main elements, which include the strategic planning and project portfolio management (Srivannaboon, 2006). Project portfolio management entails the process of selecting and managing different projects as a group.
It is expected that the significance of project portfolio management will grow into the future. Therefore, organisations will be compelled to maximise their resource utilisation. Moreover, projects will be selected based on their alignment with the organisational goals. Srivannaboon (2006) argues that projects “are first selected into the project portfolio to support the implementation of the business strategy” (p. 5).
Conversely, organisations must ensure that the projects align optimally with the business strategy during the implementation phase. Figure 1 below illustrates how business strategy is linked with project management elements.
Figure 1: Theoretical framework for aligning business strategy and project management. Source: (Srivannaboon, 2006)
Figure 1 above shows that business strategy is critical in promoting focus and determining content in project management. Project management is extensive and it is comprised of a number of key areas, which include project management office, portfolio management, and program management.
Srivannaboon (2006) is of the view that establishing and maintaining “the process used to align project management elements and business strategy requires organisations to use the mediating process, which is comprised of strategic planning and project portfolio management” (p. 6).
Soderlund (2004) emphasises that project management is based on a hierarchy of sub-projects, project, program, portfolio, and strategic plan. A program is composed of different related tasks that are coordinated in order to achieve the project goal.
Conversely, portfolio entails a set of programs that are grouped together in order to ensure that they are effectively coordinated, hence increasing the likelihood of achieving the strategic objectives. The respective projects in the portfolio may be related or interdependent.
Soderlund (2004) emphasises that organisations manage their project portfolio based on the formulated goals. In most cases, portfolio management in organisations is mainly reserved for senior management teams.
In the quest to improve project outcomes, the overall projects are subdivided into small manageable components [subprojects]. The sub-projects may be assigned to different functional units or external enterprises.
Also, to the above project management elements, it is imperative for organisations to establish a functional Project Management Office, which entails an organisational unit charged with the responsibility of centralising and coordinating the management of various projects.
Therefore, the Project Management Offices [PMOs] undertake different strategic tasks, which include planning, prioritisation, coordination, and execution of various project activities that are linked with the overall business objective. Additionally, the PMOs may also make crucial decisions relating to project human resource management, such as deployment of project personnel to specific project tasks.
Strategic consideration; Planning
Projects are complex undertakings, and hence the risk of failure is high. The degree of complexity varies from one project to another (Soderlund 2004). Subsequently, the implementation process varies across different projects. Projects will become smaller going into future as organisations increasingly invest in short-term projects as opposed to long-term projects.
However, the level of complexity will increase substantially. In order to deal with project complexities, organisational leaders will be required to invest in effective project management skills in order to improve the likelihood of the project teams attaining the desired goals.
Whilst projects are complex, PMOs are obliged to ensure that the respective projects are implemented successfully. This goal can only be achieved if PMOs integrate a number of strategic considerations. One of aspects that project managers should focus on entails establishing a strategic fit within the project, which ensures that the project is aligned with the organisations’ business strategy (Srivannaboon 2006).
One of the strategic considerations that organisations should take into account relates to planning. Soderlund (2004) posits, “Planning has been viewed as the main task of the project management unit” (p. 188).
Moreover, Soderlund (2004) suggests that planning should not be considered as a simple task as it involves a myriad of activities. It is expected that strategic planning will become one of the most important project management elements in organisations’ efforts to deal with strategic change.
Within the project context, project managers should ensure that planning is implemented effectively in the various project processes such as communication, managing risk, human resource, and project quality. An analysis of the various aspects that project managers should consider with respect to the above areas is illustrated below.
Communication planning
Effective communication is a fundamental element in successful project implementation. Despite the significance of projects in enhancing organisational performance, it is challenging to achieve desired project goals if the project stakeholders are not informed adequately about the project.
Subsequently, PMOs should communicate regarding the project to sponsors, customers, and project team members, amongst other stakeholders. In a bid to be effective in their communication process, PMOs should undertake comprehensive communication planning by taking into consideration a number of issues.
First, the PMOs should undertake a comprehensive communication requirement analysis by assessing the information needs of the respective project stakeholders. Secondly, the mechanisms to be used in sharing information among the stakeholders should be defined. The communication methodology selected is determined by the urgency of project information, the project environment, and length of project.
Lack of knowledge hinders the extent to which project team members are focused and enthusiastic in executing the project tasks. In a bid to improve the execution of project tasks, project leaders should establish effective communication system throughout the course of the project timeframe.
During the initial phase, it is imperative for the project manager to explain the project goal and the value that it is expected to deliver to the organisation. This goal can be achieved by establishing a clear link between the project and the organisation’s operational and strategic goals.
For example, the project manager should explain how the project would contribute to the improvement in the firm’s market share, profit margins, and cost minimisation (Srivannaboon, 2006).
Project managers should consider how information would be distributed to the respective project stakeholders. Therefore, project managers should ensure that the project team members are provided with necessary information as demanded. This goal can only be achieved if project information cascades the various levels of management.
Effective flow of information across the various project management levels increases the extent to which the project stakeholders understand how the various project tasks are aligned with the overall organisational strategy (Srivannaboon, 2006).
Thus, it is essential for project managers to ensure that practical information distribution techniques are adopted. Some of the methods that can be adopted include hosting project meetings, conferencing tools, and other electronic tools like Web interfaces.
Performance reporting is another core aspect that PMOs should ensure during the project implementation process. In a bid to achieve this goal, PMOs should gather sufficient project baseline data and distribute it to the stakeholders. Performance reporting should focus on different aspects, such as the utilisation of the various project resources.
Additionally, the reports should outline the extent to which the milestones achieved have adhered to the set standards with reference to project cost, quality, and project schedule. Considering the view that projects are exposed to different risks, it is vital for PMOs to communication on the various project risks faced coupled with how they can be avoided.
Human resource planning
In order to ensure that projects are executed effectively, it is imperative for organisational leaders to constitute a comprehensive project team. Soderlund (2004) asserts that projects constitute fundamental elements through which organisations can promote development of future leaders especially if the projects being implemented have strategic implications.
Subsequently, human resource planning constitutes one of the core strategic considerations in project management. The decision on the size of the project team depends on the available project roles and responsibilities. In order to be successful in planning the human resource component in projects, project managers should consider four main aspects, which include
- Selection of project team
- Development of project team
- Management of project team
During the human resource-planning phase, project managers should clearly define the project roles and reporting relationships. Additionally, this phase should also involve the establishment of a staffing plan.
The project manager may decide to allocate the identified project roles to internal stakeholders or subcontract external stakeholders. Conversely, the staffing plan outlines the criteria to be adopted in selecting the project team members and the training needs.
In a bid to succeed in human resource planning, project managers should incorporate a number of aspects. First, the project managers should determine departments from which the project team members will be selected. Also, to determine the most effective organisational units to be involved in the project, organisations should assess the necessary specialities and disciplines.
Moreover, the project manager should examine the logistics amongst the various project teams, for example, assessing the distance between the project teams. Human resource planning also involves a clear description of the project positions by adopting an organisation chart.
Some of the organisation charts that the manager might adopt include hierarchical or the matrix structure. Therefore, investing in human resource planning plays an essential role in developing a clear definition of the roles and responsibilities, adoption of organisation chart, and formulating a staff acquisition plan.
Acquisition of project team
Considering the complexity associated with project implementation, it is crucial for organisational leaders to ensure that the selected team members are capable of handling the complexities. In a bid to eliminate possible skills deficiency within the project team, organisations should consider sourcing project team members from the internal and the external environments.
Skills outsourcing will play a fundamental role in improving the project teams’ competencies. During the process of constituting the project team, it is essential for organisations to assess the degree to which potential project team members are interested in executing the various project tasks.
Success in constituting a project team can be achieved by adopting effective tools and techniques. One of these tools involves pre-assignment, which entails assigning project tasks to potential candidates (Soderlund, 2004). This technique is effective if the project being implemented requires a specific level of expertise.
Alternatively, organisations can also adopt virtual teams if the project task being implemented does not require the team members to be physically involved. If an organisation adopts virtual teams, an effective communication plan must be developed to enhance data and information sharing.
Developing project team
After successful acquisition of the project team members, organisational leaders should formulate a plan to be adopted in order to enhance collaboration amongst the team members. This goal can be achieved by nurturing cohesiveness and trust amongst the project team members.
Fostering these elements will nurture an optimal project environment whereby the team members assist each other in undertaking the project tasks. The plan should also outline how the organisation intends to improve the team members’ skills to enhance their competency in executing the project tasks.
One of the techniques that organisations should consider in their quest to develop the selected project team includes training.
The training process may involve on-the-job approach through mentoring and coaching. Conversely, off-the-job approaches can also be adopted by adopting computerised or online training sessions. Alternatively, organisations may also decide to foster team development through various team-building activities.
According to Soderlund (2004), organisations should consider incorporating rewards and recognition as one of their team development strategies. Thus, organisations should recognise positive behaviour portrayed by the project team members.
Recognition of positive behaviour will significantly motivate the project team members, hence increasing their commitment towards the respective responsibilities.
Managing project team
This aspect involves the process of tracking and evaluating team performance. Moreover, team management also entails establishing an effective feedback mechanism and resolving issues that might emerge during the project implementation phase. In a bid to be effective in managing project team, it is critical for organisational leaders to evaluate the behaviours of the project team members continuously.
If the organisation has adopted the matrix organisation structure, it becomes difficult to manage the project team. The difficulty arises from the dual reporting relationship because the team members report to two parties, viz. the project manager and the functional manager. Thus, it is imperative for organisational leaders to manage the dual reporting relationship effectively.
Quality planning
Projects are designed in an effort to achieve a specific goal or objective. Additionally, the outcome of the project affects different organisational stakeholders such as the shareholders, customers, and employees. Srivannaboon (2006) corroborates that the “essence of project management is to support the execution of organisations’ competitive strategy to deliver a desired outcome” (p. 2).
Thus, organisational leaders have a duty to assure the project stakeholders of optimal project outcome. In a bid to achieve this goal, organisations should consider investing in effective project quality planning. Thus, a number of aspects should be considered in quality planning process.
First, project managers should develop a quality policy outlining the quality standards, regulations, and guidelines to be used in gauging the project outcome. Additionally, the project managers should ensure that the project team members understand the quality policy and outline how the stipulated quality standards will be satisfied.
The second phase involves performing quality assurance by assessing whether the project complies with the stipulated requirements. The quality planning process also involves defining how the quality gaps identified will be improved. Consequently, the project manager should formulate the steps that will be undertaken in order to determine the need for quality improvement.
This goal can be attained by implementing various continuous improvement models, such as the PDCA cycle [Plan-Do-Check- Act]. Other quality management models that can be integrated in planning project quality include total quality management and six-sigma. Quality planning in project management should enable organisations to increase the level of satisfaction amongst the target stakeholders.
In addition to the above quality management tools, organisational leaders should focus on incorporating various quality planning tools. Some of the strategic planning techniques that should be considered include cost-benefit analysis, cost of quality, and benchmarking.
Benchmarking will enable the project manager to assess the costs and benefits of effective project implementation. For example, conducting a cost-benefit analysis will enable the project manager to understand the value of meeting the set quality standards by eliminating possibilities of re-work. Additionally, cost-benefit analysis will enable the organisations to determine the stakeholders’ level of satisfaction (Srivannaboon, 2006).
Planning for risk
Risks involve unfavourable outcomes and it is impossible to rule out their occurrence. As one of the organisational processes, projects are characterised by unique features and they are not free from risk. However, the nature of risk differs across projects. Some of the common sources of risks in projects relate to the project budget, time management, and assumptions made (Soderlund, 2004).
Project risks may also arise from the project’s technical, commercial, or relational elements. In order to minimise the adverse effects associated with risks, project managers should invest in effective risk planning. One of the aspects that project managers should consider when planning for risk entails conducting a comprehensive risk analysis.
The risk management plan should clearly outline the approaches and data sources to be adopted in managing potential risks. Risk planning should also clearly outline the risk management personnel, their roles, and responsibilities.
The other elements that project managers should consider in the risk planning phase entails budgeting and timing. Risk budgeting involves estimating the cost to be incurred in managing risks. Conversely, timing entails planning the frequency within which risk should be assessed during the project’s life cycle.
Conclusion
Changes occurring the in the contemporary business environment are motivating organisations to adopt project-based approach in an effort to align their operations with the business environment. Moreover, most organisations have realised the significance of project-approach in achieving their strategic goals.
Despite these changes, projects are characterised by a high degree of complexity and hence they require effective management. One of the sources of project complexity is that they involve different tasks, which must be effectively coordinated in order to achieve the desired outcome.
Additionally, most projects consume a substantial amount of resources. Consequently, project failure can significantly affect an organisation’s competitiveness.
In their quest to adopt project as a method of achieving the desired goals, it is critical for organisations to ensure that the likelihood of project failure is eliminated. This goal can be achieved by integrating project planning as one of the strategic considerations in their project management processes.
The strategic planning process in project management should focus on a number of critical areas. Some of core planning areas include communication, human resource, risk planning, and project quality.
Organisations should ensure that an effective communication plan is adopted. The communication plan should focus on ensuring that all the project stakeholders are adequately informed about the various project aspects together with how it will benefit the organisation and the project stakeholders.
Effective communication planning can only be achieved if the “project manager understands the communication needs of the internal and external project stakeholders” (Soderlund, 2004, p. 187). Human resource planning is essential in developing a project team that will execute the various project tasks. This aspect increases the likelihood of successful project completion.
Conversely, risk planning is essential in ensuring that the project is not affected adversely by unforeseen occurrences, while quality planning ensures that the project outcome satisfies the target stakeholders. From the analysis conducted, strategic planning should be conducted throughout the project life cycle. Furthermore, the necessary adjustments should be implemented in the project plan.
References
Soderlund, J. (2004). Building of project management: past research, questions for the future. International Journal of Project Management, 22(2), 183-191.
Srivannaboon, S. (2006). Linking project management with business strategy. Project Management Journal, 37(6), 88-96.