Notes This preview shows page 1 - 2 out of 2 pages. •Why Project Managers Need to Understand the Strategic Management Process•Changes in the organization’s mission and strategy–Project managers must respond to changes with appropriate decisionsabout future projects and adjustments to current projects.–Project managers who understand their organization’s strategy can becomeeffective advocates of projects aligned with the firm’s mission.•Projects and Strategy•Mistakes caused by not understanding the role of projects in accomplishingstrategy:–Focusing on problems or solutions with low strategic priority.–Focusing on the immediate customer rather than the whole market placeand value chain.–Overemphasizing technology that results in projects that pursue exotictechnology that does not fit the strategy or customer need–Trying to solve customer issues with a product or service rather thanfocusing on the 20% with 80% of the value (Pareto’s Law). Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 2 pages? Upload your study docs or become a Course Hero member to access this document Presentation on theme: "Why Project Managers Need to Understand the Strategic Management Process"— Presentation transcript:1
2 Why Project Managers Need to Understand the Strategic Management Process
3 Projects and Strategy Mistakes caused by not understanding the role of projects in accomplishing strategy: Focusing on problems or solutions with
low strategic priority. Focusing on the immediate customer rather than the whole market place and value chain. Overemphasizing technology that results in projects that pursue exotic technology that does not fit the strategy or customer need Trying to solve customer issues with a product or service rather than focusing on the 20% with 80% of the value (Pareto’s Law). Engaging in a never-ending search for perfection only the project team really
cares about. 4 The Strategic Management Process: An Overview 5 Strategic
Management Process (cont’d)
6 Strategic Management Process 7 Strategy Planning Process 8 Characteristics of Objectives 9 Needs for Project Portfolio Management 10 Benefits of Project Portfolio Management
11 A Portfolio Management System 12 A Portfolio Management System 13 Financial Models The Payback Model Limitations of Payback: 14
Financial Models (cont’d)
15 Net Present Value (NPV) and Internal Rate of Return (IRR): Example Comparing Two Projects
16 Multi-Criteria Selection Models 17 Checklist Selection
Model
18 Nonfinancial Strategic Criteria 19 Portfolio of Projects by Type
20 Project Screening Matrix 21 Managing the Portfolio
22 Managing the Portfolio 23 Managing the Portfolio
24 Project Screening Process 25 Major Project Proposal
26 Risk Analysis FIGURE 2.4B 27 Priority Analysis FIGURE 2.6
28 Project Portfolio Matrix 29 Project Portfolio Matrix
Dimensions
30 Key Terms Implementation gap Net present value Organizational politics Why is strategy important in project?Having a project strategy makes you think out and plan the steps you need to transform your business vision and idea into a reality. Of course, in the business world, you need backing and investment, which is where having a detailed business case comes into play.
What is the importance of strategy in an organization?Strategy touches every employee and serves as an actionable way to reach your company's goals. One significant benefit of strategic planning is that it creates a single, forward-focused vision that can align your company and its shareholders.
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