Development Of Strategic Project Management Management Essay

Development Of Strategic excogitate Management Management EssayIn the past project vigilance was considered tactical to facilitate the running of various(prenominal) projects much(prenominal) as constration of new plant, installation of new software/hardware but it did not enavble organizations to grow over time by achieving strategic objectives such as entering into new markete, new product increasing markete/shareholder share etc.Grundy and Brown mention that it is reasonable for the organizations to combine project commission and strategic management into a process that they call strategic project management.Link from schema to project management-it is a process influence by privileged external change-orginasation vision give rise ideas of strategic breatkthroughs-this lead to the establishment of strategic progrrame , then strategic projects.the Standish Groups Research Report, Resolution of Projects, 20 May 2005, www.standishgroup.com/sample_ question/PDFpages/q3-spotl ight.pdACCORDING to the reportRoughly 70% of projects were failed40% end users complained problems50% projects were rolled back and discontinued40% projects were reworked as a outlet wastage of financial resourcesThe rout cause of the failure of these projects was1-business requirement was not understand properly in strategic point of view2-There was no connection mingled with scheme and projects.Organizations must-Explain where they want to be future-identify problems and define which project/program requires to correct them such as cost reduction, staff reduction, stimulateting to market faster.-Identify its internal/externial resources both human and financial-Manage change management initiative effectively by motivating employess to move into goal congrance along with organisation-Perform project portfolio management in order to identify which project will add value in strategy-Monitoring and managing investments in projects in terms of strategy, ROI,and NPVProject Portfolio Management (PPM) gibe to Callahan Brooks (2004) PPM is the use of the appropriate management companionship, skills, tools and techniques to maximize the conjunctive of the companys project portfolioPrinciples of PPMSo PPM is a technique for selecting those projects that are well align and contribute to strategySelect those projects that support business strategyOptimize projects and resources to make sure maximum return to company-use accouting tecquotes in order to quantify benefits such as ROI, NPVPerform risk managementPortfolio managers must monitor planned and actual performance in terms of time, budged/scope and quality and then report to portfolio management.in order to align with strategy portfoloio management keep itself inform/update of any strategic change and those components which no longer support of company strategy might be discontinued.TodayPPM is becoming popular in modern business and the markete for project portfolio management software is growing fastally an d offering these tools=Support full project life cycleResourceallocation,wbs,chartsDetail project planningGartner questionThe main reason of success is that portfolio managers combine strategy and it,s project rather than traditionalistic tactically focused projects.Environmental change forces and strategic project1-PESTEL2-PORTER 5 FORCESBusiness environments usually change and organizations adopt the change into their strategies and this new ripening constitutes a project.Strategic planning some(a) strategis are developed in incremental focal point and project management is government agency of making ad hoc strategy more than deliberate and as a result better considered.Strategic implementation pm play important role in this stage of strategy so it must be able to handle complex, ambiguous and political issues and ensure it support overall strategyA wider strategic awareness is requirement in all members of pm manager as what organization actually needs.Excellency in Proj ect Management core competence (PMMM)Kerzner suggests that where PM is core competence, a continous improvement go on should be interpreted to developing and consolidating the methodology.Organizations has always been seeking ways to achieve excellency in PM and continusally adopted different methologies and supportive culture.Kerzner describes a fiver take project management maturity pretence (PMMM) of continuous organizational improvement which erect guidance to the organizations in order to achieve excellency in PM methology.Level 1 common land KnowledgeThe importance of PM to the organization is understood and basic training and technique is providedLevel 2 Common ProcessesSuccessfully implemented process are standardized and PM principles are recognosed and can be used for future projects and support other methodology such as TQMLevel 3 Singular MethodologyOrganization combine all coporate methologies into a singular metholodgy and recognize synergic effect and PM is placed at the centre of single corporate methology.Level 4 BenchmarkingIn order to achieve competitive advantage based on process improvement organizations continually undertake benchmarkingLevel 5 Continuous ImprovementInformation achieved through benchmarking can be use to make improvement of the singular methodologyThis model is particularly used in corporate training and career development routes for project managersEffect of Human Resource Management on Strategic Project ManagementHRM are strategic asset and core competence of the organizationsThe efficient HRM management of and integration with organisational goal is crucial for strategic success, as, for example, noted Gary Hamel , managing the various technologies and knowledge and learning became the foundation the core competence and competitive advantage of company for producing products or services.The objective of resource management to ensure the right people and the skills necessary to implement certain projects. B esides using different operating personnel requirements of the functional department of company, every organization similarly use its functional HR force for selected for projects as well .. Due to the increasing costs of human resources in todays economy, it is expected that this trend as multitasking will continue.According to the observation of food turner and Muller (2005) restore of HRM such as competency of project manager and leadership style was ignored in the past have direct impact on organizational capability to implement its strategy.SPM recognizes the leadership and management skills are rare, with an emphasis on business, and very valuable. Therefore, it is their expertise which leads to tacit knowledge which is the important factors for sustainable competitive advantage.PROJECT MANAGERIt is likely that project manager will be appointed by and be responsible to a higher level of management who manage project.Skill required by PM-knowledge of company strategy-leadersh ip and teambuilding-organisational ability-communication skills-technical knoledge of project-inter personnel skillsLeadership styleThere is no single best leadership style due to different personality style of managers. However leadership style adopted will affect the way decisions relating to the project are made.Although an autocrative more consultative style may prove successful in some situations because members of project feel more a part of the project. expeditious skills of Project LeadersLong experience in managing projects and dealing with the problems it faces, allowing them to see through complexity and get to the heart of the matter.. A desire to get things done, to litigate something and make a contribution.vi. Have Excellent political and diplomatic skillsiii. The ability to see through the eyes of others and empathize with others, and that the contribution tolerate underperformance or liberal teamix. Win loyalty of others, charisma courage, and empathy with people please .Gap AnalysisGap analysis is widely used in business strategy to target the gap between the expected future strategic performance and likely future performance. It may be in a similar way in project selection and definition as a way to create what both projects should be found out and what their scope should be.Research philosophy and approachthe researcher focuses on gradually finding out his research conclusion by applying critical interpretations methods.The literature describes two different approaches that can be applied in this thesis deductive and inductive. A deductive approach to research is believed to scientific research, the researcher developed a hypothesis tested and examined to designate a suitable theory.the researcher will gradually formulate the theory strategic project management by applying Exploratory Research and critical rating of research variables and followed inductive research approach , which offer more flexibility and opportunity for the re searchers to research subject areasResearch StrategyResearcher adopted appropriate research strategy such as inductive and distcriptive research and used secondary research methods.The researcher used up-to-date historical research approach and get evidence through case study evidence and electronically research report of companies relate to Software and Construction /Engeerning industry for example Standish Groups Third quarter Research Report 2005 statesRoughly 70% of projects were failed and the rout cause of the failure of these projects wasThere was no connection between strategy and projects.RESEARCH METHODOLOGYThis slit is divided into five categories ,which explain the research process of each category in detail.Research methodsThis research sought data collection using the multi-method, or combination of quantitative and qualitative methods. Basically, the quantitative approach is used facts and continues where researchers wish to acquire the statistical truth.Informatio n about the Topic/industry is gathered generally by secondary sources and script analysis.Secondary sources which I used include Text books, websites such as Gartner research Standish Groups , analysie the work done by some researchers on Institute of Project Management in capital of Ireland importance of HRM in SPM . online surveys, newspapers, journals/articles ,research reports , media and personal experiences.I did not use primary source because my chosen topic SPM cover the many huge compines who point in different sectors so this was difficult to get primary information of eatch company.Ethics will be taken in to consideration while gathering information and if any issues arise, they would be disclosed and resolved.Research out comeIn general, following findings have been obtained from research report.Some individual projects are considered tactical but organisational project management manage projects in alignment with strategic objectives are strategic advantage for the company.SPM and PPM provide great advantage to the organisation which help to identify those projects which add value.There are great advantages for an organization to review its PM function and upgrade and operate into SPM practices involved in the selection of projects.The concept of Organizational Project Management based on the sense that a relationship exists between the organizational skills in project management, program management and portfolio management and efficiency in implementing the strategy.Importance of the human factor in SPM as they help to achieve common strategic goal of organization such as project completion on time, within cost and to the quality laid down in the initial stipulationIndustory backroundI have chosen software and construction/engeerning industries for undertaking my research report such as gartner research and Standish Groups Research Report.According to these reports there shoud be a link between PM, PPM and Strategy for overall success.I a nalysed the wordk done by some researchers on Institute of Project Management in Dublin who found , how organisations transfers their project management capabilities into a strategic asset?LIMITATIONSResearch shows there are many Organizations that ignored the important fact or alignment projects with corporate strategy.Primary source was ignored so not all research report is reliableDue to short time period I couldnt prepare a perfect research report at high qualityI didnt choose one specific industry and my research methods also limited to some companies.ConclusionIn fact, senior leadership management should participate in defining the selection and prioritization of projects and all projects should have measurable targets development of guidelines for organizations to ensure alignment with the strategic vision of the organization.REFEREBCESCallahan Brooks (2004)Standard for Portfolio Management