MITM743 Advanced Project Management

1. MITM743Advanced Project Management Dr. Abdul Rahim Ahmad Assoc. Professor College of IT, UNITEN Kerzner Chapter 4 Strategic Planning for Excellence in PM

2. 4 Strategic Planning for Excellence

3. Strategic Planning • 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

4. 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. 5.1 Influence of Economic Conditions

6. Economic Conditions • Economic conditions fluctuates: • Ups and downs • Favourable and unfavourable • Causes change and take years to realise and manage.

7. 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)

8. PM use in SP • Creation of Business Units • PM is used implement any type of plans or projects within the business units

9. Strategic Factor in Achieving Excellence

10. 5.2 General Strategic Planning

11. 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.

12. 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.

13. 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

14. 5.3 Strategic Planning for Project Management

15. 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.

16. 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

17. 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

18. Project Selection Process

19. Supporting Strategies • integration opportunities strategy • performance improvement opportunities strategy

20. Business Macro environment

21. 5.4 CSF for Strategic Planning

22. CSF for PM • Include activities to achieve long termobjectives. • 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

23. 5.5 Identifying Strategic Resources

24. 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.

25. Another view of resources

26. 5.6 Strategic Selection

27. Selection • Using Portfolio Classification matrix (pg 176)

28. 5.9 Why SP for PM fail

29. 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

30. 5.13 Project management maturity Model(pg 193/pg41)

31. PMMM • Project Management Maturity Model (PMMM) • Comprised of five levels • Each level represents a different degree of maturity

32. Levels

33. Overlap of Levels

34. Overlapping Levels

35. Feedback among the five levels of PMMM

36. Degree of difficulty associated with each level of the PMMM

37. End of Slide

38. Project Management…. Work Smart Not Hard !!!