Organizations SE projects to convert strategy Into new products, services, and processes needed for success. For e example, Intel’s major strategy is one of differentiation. Its projects target innovation and time to mar get. Currently, Intel is directing its strategy toward specialty chips for products other than computers, such h as autos, security, http://textbook. Medication. Com/parser. PH? 113 cell phones, alarm controls. Another goal Is to reduce project cycle times. Intel, NECK, Gene real Electric, and AT have reduced their cycle times by 20- 0 percent.
Projects and project management play the key role in supporting strategic goals. It is vital for project managers to think and act strata clerically. Aligning projects with the strategic goals of the organization Is crucial for project such sees. Today’s on, and financial uncertainty. These conditions make strategy/ project alignment even more essential for success. Ensuring a strong link between the strategic plan and projects is a difficult task that demands constant attention from top and middle management.
The larger and more diverse an organization, the more difficult it is to create and maim maintain this strong link. Companies today are under enormous pressure to manage a process that clear y aligns projects to organization strategy. Ample evidence still suggests that many organizations have no t developed a process that clearly aligns project selection to the strategic plan. The result is poor UT allocation of the organization’s resources-? people, money, equipment, and core competencies.
Conversely, organizations hat have a coherent link of projects to strategy have more cooperation across the org animation, perform better on projects, and have fewer projects.
How can an organization ensure this link and alignment? The answer requires integer action of projects with the strategic plan. Integration assumes the existence of a strategic plan and a process s for proportioning projects by their contribution to the plan. A crucial factor to ensure the success of into grating the plan with projects lies in the creation of a process that is open and transparent for all part captain to review.
This chapter presents an overview of the importance of strategic planning and the pr access for developing a strategic plan. Typical problems encountered when strategy and projects are not lie need are noted. A generic methodology that ensures integration by creating very strong linkages of prop etc selection and priority to the strategic plan is then discussed. The intended outcomes are clear organ nation focus, best use of scarce organization resources (people, equipment, capital), and improved com nomination across projects and departments. GE 26 Why Project Managers Need to Understand Strategy Project management historically has been preoccupied solely with the planning and execution of projects. Strategy was considered to be under the purview of senior management. This is old school thinking. New school thinking recognizes that project management is at the apex of strategy and pop orations. Aaron Sheehan speaks to this issue when he states, “.