Download Kerzner (Chapter 5)

MITM743
Advanced Project Management
Dr. Abdul Rahim Ahmad
Assoc. Professor
College of IT, UNITEN
Kerzner Chapter 4
Strategic Planning for Excellence in PM
4 Strategic Planning for Excellence
Strategic Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Influence of Economic Conditions
General Strategic Planning (SP)
SP for PM
CSF for SP
Strategic resources
Strategic selection of projects
Horizontal Accounting
Continuous Improvement
Restructuring
PM Maturity Model
Introduction
Why Organization need Strategic Planning
Consider all aspects in planning
•
Employees, managers, staff, management,
sponsors, corporate structure, culture
For long term
•
Includes career plan for Project Managers
5.1 Influence of Economic Conditions
Economic Conditions
Economic conditions fluctuates:
Ups and downs
Favourable and unfavourable
Causes change and take years to realise
and manage.
Relationship between SP and PM
SP and PM has special
relationship
SP must be implemented
Implementing SP needs
PM
In fact any planning
needs PM
PM could be used for the
strategy implementation
(of strategic plans)
PM use in SP
Creation of
Business Units
PM is used
implement any
type of plans
or projects
within the
business units
Strategic Factor in Achieving Excellence
5.2 General Strategic Planning
General Strategic planning
Process of formulating and implementing
decisions about an organization’s future
direction
Organization adapts to its environment
Process is applicable to all management levels
and all types of organizations.
Steps in SP
Formulation
where to go, what decisions to be made, when to make
in order to get there.
performed at the top levels
What's done
•
•
•
•
•
Scans external and industry environment
Interprets changes : opportunities or threats
Analyzes resource base : asset strength/weakness
Defines mission of business: matching opportunities and
threats with strengths and weaknesses
Sets goals: pursue mission based on values/responsibility.
Steps in SP
Implementation
Translates formulated plan into policies and procedures
Involves all levels of management
Seeks to fit organization’s formulated goal and activities.
Involves all levels of the organization, resulting in
integration of all aspects of the firm’s functioning.
Integration management is a core competency of project
management.
Activities done by middle and lower-level managers
5.3 Strategic Planning for Project
Management
SP for PM
Is the development of a standard
methodology for project management
that can be used over and over again
that will produce a high likelihood of achieving the
project’s objectives.
SP for methodology and execution of the
methodology does not guarantee profits or
success, but improve the chances of success.
Advantages of methodology
Provides a consistency of action.
Increase in interrelated functional units
increase the benefits from the integrating
direction afforded by the project management
implementation process.
Ease communication
Thinking process required – rational and
logically ordered
PM methodology
Simple project management methodology
structure.
Identifies
•how costs will
be collected and
analyzed
•how variances
will be
explained
•how reports
will be prepared
Project Selection Process
Supporting Strategies
integration opportunities strategy
performance improvement opportunities strategy
Business Macro environment
5.4 CSF for Strategic Planning
CSF for PM
Include activities to achieve long term objectives.
Only a few CSF which are critical
Apply equally to all types of organizations
3 CSF in achieving project management excellence:
Qualitative factors:
• achieve project success with constraint of time, budget,
performance and standards.
Organizational factors:
• Roles of Project manager, line manager, project sponsor
• Accountability = Responsibility + Authority
Quantitative factors.
• Project management education + software education.
• support for use of the software and project management
5.5 Identifying Strategic Resources
Resources
Tangible Resources
Measuring strengths and weaknesses of an organization
Common classification for tangible resources:
• Equipment/ Facilities / Manpower/ Materials / Money /
Information technology
Other classifications
•
•
•
•
Human Resources
Nonhuman Resources
Organizational Resources
Financial Resources.
Another view of resources
5.6 Strategic Selection
Selection
Using Portfolio Classification matrix (pg 176)
5.9 Why SP for PM fail
Reasons
Failure to get CEO endorsement, Failure to
examine, Being blinded by success, Over
responsiveness to information, failure to
Educate, Failure of Organizational
Acceptance, Failure to keep the methodology
single, Blaming failures on the methodology,
Failure to prioritize, Rigid acquisition
5.13 Project management maturity
Model
(pg 193/pg41)
PMMM
Project Management Maturity Model (PMMM)
Comprised of five levels
Each level represents a different degree of
maturity
Levels
Overlap of Levels
Overlapping Levels
Feedback among the five levels of
PMMM
Degree of difficulty associated with
each level of the PMMM
End of Slide
Project Management….
Work Smart Not Hard !!!