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Aligning Projects with Organizational Strategy

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Every three to five years, Project Management Institute conducts a role delineation study. The most recent project management RDS led to development of what PMI calls the “Talent Triangle.” This is a list of competencies in three groups: technical project management, leadership, and strategic and business management. While most professional project managers “get” the first two, many are dubious about that last item. But employers expect us to think beyond our immediate responsibilities. In talking with business and government leaders, PMI found a recurring theme: project managers need to take an active role in aligning projects with organizational strategy.

The Project Manager as Reporter

[M]ost companies see “project trees” rather than “strategic forests.” Only a minority attempt to balance key attributes of strategy implementation across the portfolio, such as alignment to different strategic priorities (47 percent) and risk and reward (35 percent). Worse still, a large number of firms that do seek such balance fail: only 32 percent of respondents believe their organizations balance the relevant portfolios against strategic priorities; just 22 percent say the same of risk.

Implementing the Project Portfolio: A Vital C-Suite Focus

One of the recurring themes I see on my consulting projects is the difficulty of harmonizing processes and systems after a merger or acquisition. Executives negotiate these strategic deals without bothering to sweat the implementation details, because that’s the job of middle management. Of course, much of that sweat falls from the brows of project managers, who typically work across domains to implement that strategy. Few of those middle managers are positioned to see what’s going on outside their domain. They aren’t aware of conflicts, don’t realize what is being done to work around resource constraints, and may be oblivious to critical risks the organization is exposed to. This is especially true for middle managers who are stakeholders, but not sponsors of the projects underway. They are parties in interest, but not participants. It falls to the project managers to keep them informed, and sometimes to prompt them to action.

The Project Manager as Counselor

Project managers have little direct authority, but the good ones cultivate influence. Salespeople and consultants aspire to be “trusted advisors,” who can point out strengths, weaknesses, opportunities, and threats. But in order to become a walking SWOT analysis, you have to be perceived as knowledgeable, trustworthy, and collaborative. And as a project manager, you additionally need to be perceived as an agent of change – which you are, courtesy of your projects. Influence comes from perception.

Your stakeholders need current, actionable information, but they also need someone who will listen to their concerns and respond to their requests (even with “No”). You need to be able to frame conversations with your stakeholders in the context of the organization’s goals and the strategy to reach them, rather than your project’s goals. That requires hard conversations about priorities and risk tolerance with your project sponsor and senior folks who can put that strategy in context. You need to be able to facilitate conversations and guide decisions that are focused on the stated direction of the organization, rather than the personal goals of one manager. I’ve seen too many projects get bogged down delivering a scope change that never should have been approved, because it was considered and rejected by the portfolio manager before funding was approved.

A strategy is neither magical nor a guarantee of success. But it provides a structure for making decisions and taking action. Strategy depends on execution, and modern organizations are holding their project managers accountable for execution in alignment with strategy. Project managers who deliver on these expectations will be recognized for it, and those who don’t will be recognized for failing to deliver. Plan and act accordingly.

 

For more brilliant insights, check out Dave’s blog: The Practicing IT Project Manager

About Dave Gordon

Dave Gordon is a project manager with over twenty years of experience in implementing human capital management and payroll systems, including premises-based ERP solutions, like PeopleSoft and ADP Enterprise, and SaaS solutions, like Workday. He has an MS in IT with a concentration in project management, and a BS in Business. He also holds the project management professional (PMP) designation, as well as professional designations in human resources (GPHR and SPHR) and in benefits administration (CEBS). In addition to his articles and blog posts, he curates a weekly roundup of articles on project management, and he has authored or contributed to several books on project management. You can view his blog at The Practicing IT Project Manager by clicking the button below.

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