Strategic Role of Projects

Strategic Role of Projects

Introduction

At present, organizations are faced with various challenges regarding changes in their environments. As a result, organizations require effective strategy processes to survive in highly dynamic environments. Strategy execution, therefore, forms an integral part of the strategy process given its ability to tackle in increasing project portfolio management significance. As such, the formulation of strategy implies the development of formulas to be utilized by business organizations to compete, formulate its goals, as well as policies that are essential for the attainment of the goals. Consequently, portfolio management implies the coordination of the management of portfolios to realize the objectives and strategies of an organization.

Discussion

Regarding how organization’s strategic initiatives may be attained using the portfolio projects, Hyväri (2014, p230) opines that the objective of correlating portfolio management with the organizational strategies mainly entails the establishment of executable, balance plans capable of enabling the organizations to achieve its goals. In this regard, Patanakul and Shenhar (2012, p. 3) maintain that, at present, the conventional focus on the project performance, meeting of time and budget objectives are not adequate to guarantee the realization of the goals of the organization. As such, a novel approach is fast emerging and has been referred to as strategic project management, which is an approach founded on the establishment that projects are mainly initiated to enable attainment of business outcomes and that the execution of project management has to be aligned with the business strategies. As such, this implies that the organizational portfolio managers have to focus the project implementation on the realization of the business outcomes of the central organization to realize the organizational goals.

Portfolio management has been noted to call for commitment to ensure the provision of the essential resources Hyväri (2014, p.235). In this case, Müller et al, (2013 p. 12) maintains that the reasons for execution of portfolio management within the organization as a strategy entails the need to eliminate silos in the organization, as well as the dearth of cooperation and communication amongst the individuals tasked with the formulation of strategy and those tasked with the execution of strategy. Further, the winning via effective project portfolios tends to corroborate the observation that successful portfolio management is dependent on not only the processes and strategy but also on other aspects such as the correlation of the portfolio to the organization’s strategies. Thus, a portfolio that is fully aligned to the organizational strategy takes in the whole organization tends to dictate the execution of the project at all levels in addition to aiming at the delivery of value at all phases throughout the way (Müller et al, 2013, p21). In concurrence, Hyväri (2014, p239) assert that the correlation of the portfolios to the organizational strategies performs more than merely assisting the organization to attain success; it enables the organization to effectively tackle uncertainty with regards to making the most appropriate and strategic decisions. In the present day’s increasingly competitive business milieu, the process of active portfolio management has been acknowledged to enhance the correlations between the organizational strategies and appropriate investment project selection. Moreover, it additionally offers the focus for the organizations to attain their goals through aiding in the ascertaining of effective and efficient utilization of the resources that are available (Aubry, Hobbs & Thuillier 2008, p.43).

Conclusion

In a nutshell, the strategic organizational initiatives may be attained through the portfolio projects in many ways. For instances, through the correlation of the portfolio projects to the organizational strategies, the strategic initiatives are prone to be attained as the strategies become executable and increasingly balanced. Moreover, the alignment of the portfolio projects with the strategic organizational initiatives is vital as it enables the elimination of communication silos in the organization, in addition to promoting cooperation between the managers of the portfolios.

References

Aubry, M., Hobbs, B. and Thuillier, D., 2008. Organisational project management: An historical   approach to the study of PMOs. International Journal of Project Management, 26(1),          pp.38-43.

Hyväri, I., 2014. Project portfolio management in a company strategy implementation, a case                    study. Procedia-Social and Behavioral Sciences, 119, pp.229-236.

Müller, R., Glückler, J., Aubry, M. and Shao, J., 2013. Project management knowledge flows in   networks of project managers and project management offices: A case study in the        pharmaceutical industry. Project Management Journal, 44(2), pp.4-19.

Patanakul, P. and Shenhar, A.J., 2012. What project strategy really is: The fundamental building block in strategic project management. Project Management Journal, 43(1), pp.4-20.