Project management plays an important role in business transformation by increasing the efficiency and timeliness of work. Project managers are responsible for planning, monitoring, and executing projects within a designated timeline and budget.
While project management focuses on short-term objectives like staying within budget and meeting deadlines, project management tips for strategies focus on wider business objectives.
Projects that support an organization’s strategy may simply be called strategic projects. They don’t necessarily have to be large; they can be medium or small projects as well. But they should support the organization toward achieving its strategic outcomes.
What is strategic project management?
Strategic project management involves designing and managing a portfolio of projects whose goals support the organization’s strategic mission and objectives. Strategic project managers focus on achieving business outcomes, whereas tactically-managed projects concentrate on getting the work done.
Strategic project management has three components:
1. Strategic analysis
Organizations choose to take up projects that support their mission and work toward meeting their long-term objectives. Since strategic management takes a broad view, the impact of external factors is also considered when choosing projects.
Thus, project managers use business analysis tools like PESTLE (Political, Economic, Social, Technological, Legal, Environmental) to identify potential problems and determine the future scope of action.
2. Strategic choice
A strategic choice is made to identify a mix of projects that are appropriate and adequate to deliver an organization’s strategic objectives. These projects should play to the company’s strengths and also be in line with the expectations of stakeholders.
Project managers also identify and make use of external opportunities while avoiding external threats.
3. Strategic implementation
Strategic project management sets three types of goals for the chosen projects:
- and long-term.
Project managers optimize all the resources and opportunities available, taking into consideration the following:
- whether people and resources are appropriately assigned to tasks
- a bird’s eye view of the purpose of projects
- leveraging of collaborative project management tools
Strategic project management assesses performance in four areas: finance, customer, learning and growth, and internal business processes. Examples of strategic projects are the consolidation of operating companies, acquisition or spin-off of business units, and major overhauls of systems.
Why is it important to strategize projects?
Strategic project management defines the growth path for organizations.
- It enables teams to reach specific goals and tackle project challenges.
- It supports better teamwork and greater efficiency, thereby increasing productivity.
When projects run efficiently, they save time and money and generate greater profits.
Thus, there needs to be a close connection between strategic project management and leadership teams.
Strategic project managers ensure the long-term success and profitability of an organization by analyzing market data, improving customer satisfaction, and developing a competitive edge.