Realizing Strategy through Projects: The Executive's Guide

Carl Marnewick

• Publisher: Auerbach Publications
• Year: 2018
• ISBN:
  9781315303857
• Edition: 1
• Topic: Business
• Subtopic: Project Management
• Index: Business

Executives should not necessarily know the intricacies of project management, but they should know how project management, as a discipline, can benefit the organization in implementing its strategies and realizing its vision. The only way that executives can effectively apply project management to realize these goals is to have sound knowledge of the project management discipline.

The purpose of this book is to provide executives with a comprehensive overview of the discipline of project management. It focuses on the benefits of project management to an organization. The goal is to provide executives with a view as to how project management can deliver organizational strategies. The various chapters focus on specific aspects within the project management discipline and how each aspect should be managed from a business perspective.

The book covers the entire spectrum of project management from a management and leadership perspective. The focus is not necessarily on what needs to be done from a project management perspective, but on what organizations and senior executives can do to facilitate projects. The book covers:

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• The value of project management
• Project management as a strategic enabler
• Project, program, and portfolio management
• The role of the project management office in the successful delivery of projects, programs, and portfolios
• The benefits of project deliverables bring
• Sustainability of the organization
• Governance and the role of the project sponsor.

The book concludes with a comprehensive portfolio, program, and project management framework. This holistic framework enables organizations to achieve value from project management and realize strategic goals.

Chapter 1

Introduction

~ Begin, be bold, and venture to be wise. ~

— Horace^*

Executives in any organisation have the duty and obligation to ensure the success of that organisation. Success can be measured in many different ways—for instance, profit or percentage of the market share. The ultimate success is achieved when the vision and organisational strategies are implemented and realised. There are different ways and manners to achieve this, and one arrow in the quiver that will assist is project management (PM).

The question that springs to mind is whether executives should only know how to use the arrow or whether they should know how the arrow is made as well. Executives should not necessarily know the intricacies of project management, but they should know how project management, as a discipline, can benefit the organisation in implementing its strategies and realising its vision. The only way that executives can effectively apply project management to realise these goals is to have sound knowledge of the project management discipline. The purpose of this book is to provide executives with a comprehensive overview of the discipline of project management. The aim is not to explain how to manage projects, as there are a plethora of books that do that. Rather, the book focuses on the benefits of project management to the organisation. The ultimate goal is to provide executives with a view as to how project management can deliver the organisational strategies. The various chapters focus on specific aspects within the project management discipline and how each aspect should be managed from a business perspective and not necessarily from a project management perspective.

The book covers the entire spectrum of project management from a management and leadership perspective. The focus is not necessarily on what needs to be done from a project management perspective, but on what organisations and senior executives can do to make the facilitation of projects easier.

The first part of the book covers two aspects. The first aspect is what value project management (Chapter 2) has for the organisation at large. The focus is on value-driven project management and the rationale for project management. The second aspect focuses on project management as a strategic enabler (Chapter 3).

The second part focuses on project management per se and provides a view of project management from a management perspective. The first concept is portfolio management (Chapter 4) and what it all entails. It then evolves into programme (Chapter 5) and project management (Chapter 6) and how these two disciplines contribute to the success of the organisation at large. These three concepts are explained from the viewpoint of the executive leadership. The fourth concept focuses on the role of the project management office (Chapter 7) as an organisational institution that can facilitate the successful delivery of projects, programmes, and portfolios.

The third part focuses on benefits management (Chapter 8) and sustainability (Chapter 9). The focus is on the benefits that project deliverables bring to the organisation as well as the ultimate sustainability of the organisation. Sustainability within the project is also addressed.

The fourth part focuses on governance within the project management domain (Chapter 10). The focus is on the adherence of projects, programmes, and portfolios to inherent governance principles as well as formal governance aspects, such as legislation. The role of the sponsor is also addressed as a topic for discussion within the realm of governance (Chapter 11).

The layout of the book follows a logical trail, starting with a look at the value of project management. The trail finally ends with the role that executives or organisational leaders can play as executive project sponsors. The book can be read either from start to finish, or each chapter can be read individually. It all depends on the needs of the reader.

Chapter 2 focuses on the value of project management and answers the question of why organisation leaders should invest in project management. Three components have been identified that can be used to determine the value of project management—that is, project management, organisational, and value context. The success rates of projects are briefly discussed, arguing the fact that value cannot be realised given the high number of project failures. The chapter concludes with a section on how executives can contribute to realise the value of project management.

Chapter 3 introduces the notion of the strategic alignment of programmes and projects. The argument is made that all programmes and projects should be aligned to the organisational vision and strategies. A framework is provided that organisational leaders can use to derive programmes and projects from the vision and strategies. The chapter concludes that there are various actions that executives can perform to ensure the strategic alignment of programmes and projects.

Chapter 4 introduces the concept of portfolio management. Current standards on portfolio management are discussed, with an explanation of the portfolio management process. Portfolio management success is explained in the next section, followed by the role of the portfolio manager. As in the previous chapters, this chapter concludes with the executive’s role in portfolio management.

Chapter 5 focuses on programme management. The notion of programme management is debated as well as the rationale for a programme. A distinction is made between a programme and a large project, as different skills are needed for each. The same layout is followed as in the portfolio management chapter, where a framework is provided followed by a discussion on the current programme management standards. The role of the programme manager is followed by a brief discussion on what constitutes programme management success. The chapter concludes with the executive’s role in programme management.

Chapter 6 focuses on project management and introduces the project management life cycle as well as the process groups. Three standards and one methodology are discussed. The competencies that project managers should master are discussed in the fourth section of this chapter. The focus is on the various competency models and how a competent project manager can have a positive impact on the success of a project. PM maturity is introduced, and the benefits to the organisation when PM as a discipline is mature are explained. The notion of PM success is discussed based on a continuum.

Chapter 7 introduces the concept of the project management office (PMO). The role of the PMO is explained based on five activities that the PMO should perform. The role of the PMO is based on the maturity of the PMO itself, and five maturity stages are explained to position the role of the PMO. The fourth section of this chapter elaborates on metrics and how the PMO should go about determining and measuring metrics that can be used to ensure programme and project success. The various challenges that a PMO faces are discussed, focusing on the role of the executive in the success of the PMO.

Chapter 8 introduces the concept of benefits realisation management. Projects are implemented to generate benefits, and the process of realising benefits is discussed and explained in this chapter. Executives as well as project managers have a specific role to play in ensuring the optimum realisation of the benefits. These roles are unpacked to indicate to executives their role in the benefits realisation process. This chapter continues by discussing a benefit profile and what constitutes a benefit. This information is used to create a benefits dependency network. This network is used to manage benefits throughout the life cycle. The chapter concludes with a discussion on benefits realisation management maturity and the executive’s role in benefits realisation.

Chapter 9 addresses the important notion of sustainability. Sustainability is the new buzzword, and executives need to understand how project management and sustainability should be combined. Sustainability is discussed based on the three sustainability dimensions—that is, people, plant, and profit. The focus is on how these dimensions can be introduced into the daily management of a project and contribute to the ultimate sustainability of the organisation itself. A project management sustainability model is provided that executives can use to incorporate sustainability into project management.

Chapter 10 talks to the important notion of governance. Three concepts related to governance are discussed. These concepts are governance of projects, project governance, and governmentality. The positive relationship between project governance and project success is further elaborated on, with a focus on the various roles and responsibilities. A project governance framework provides insights into the different domains and functions. This chapter also focuses on the auditing of projects and the important role of continuous auditing throughout the project’s life cycle.

Chapter 11 shifts the focus towards the executives and the role that they play as sponsors of programmes and projects. Attention is given to the characteristics of an executive sponsor and the role that the sponsor should fulfil. Challenges facing an executive sponsor are mentioned as well as how an executive sponsor can be empowered to play a meaningful role.

The final chapter (Chapter 12) concludes with a comprehensive portfolio, programme, and project management framework. This framework ties all of the concepts together and illustrates the relationships between the various concepts, as discussed in this book. This framework underlines the notion that each concept influences the other, and to achieve value from project management, a comprehensive or holistic view is needed.

*  Retrieved from https://www.brainyquote.com/quotes/quotes/li/horace152482.html

Chapter 2

Value of Project Management

~ Price is what you pay. Value is what you get. ~

— Warren Buffet, American Investment Entrepreneur^*

Organisational leaders will only invest in something if there is a perception that they will get some value from this specific investment. This is regardless of the type of organisation or the type of investment. For organisations to invest in the project management (PM) discipline, project management should be able to provide benefits back to the organisation. The following question is thus raised: Does project management provide value to organisations? Or if we state it differently: Can organisational leaders function and perform without project management?

Before any argument or conversation can start on the concept of value, it is best to first understand what value means and, more importantly, implies. The Oxford Dictionary of English (ODE) (Stevenson, 2010) stipulates that value can be either a noun or a verb. When the noun “value” is applied to project management, then the following can be derived from the ODE’s definition:

1. Project management must be worth something to the organisation or must be desirable to the organisation.

2. Organisations should be able to exchange project management for either money or goods in the open market.

3. Project management should also be able to substitute or replace something else within the organisation that holds similar value.

4. Project management should be perceived as something well worth the money spent on it.

5. Project management should be able to serve a purpose or cause an effect.

Given the explanation in points one to five, it seems as if pressure is placed on project management to fulfil the expectations associated with the noun “value.” At the end of the day, organisations spend some money and other resources on project management, which determines project management’s financial value. Second, organisations then, in return, expect that project management will be a solid investment that will bring about either tangible (money, revenue) or intangible benefits. Third, organisations also expect project management to have a positive effect within the organisation—for instance, the improvement of processes such as the strategic alignment of objectives or risk management viewing risks as both threats and opportunities.

2.1 Value Components

Senior executives have queried the value of project management since i...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Dedication
• Table of Contents
• Preface
• Acknowledgements
• About the Author
• Chapter 1 Introduction
• Chapter 2 Value of Project Management
• Chapter 3 Strategic Alignment of Programmes and Projects
• Chapter 4 Portfolio Management
• Chapter 5 Programme Management
• Chapter 6 Project Management
• Chapter 7 Project Management Offices
• Chapter 8 Benefits Realisation Management
• Chapter 9 Sustainability in Project Management
• Chapter 10 Project Governance and Auditing
• Chapter 11 Executive Sponsor
• Chapter 12 Comprehensive Overview of Project Management
• List of Acronyms
• Index