Project management knowledge

Project management homework #2 Organization Strategy and Project Selection Strategy is implemented through projects , Every project should have a clear link to the organization’s strategy . Components of Strategy Vision, Mission & Competitive Advantage So what is vision? Essentially, vision defines your purpose and your direction. Boiled down, vision clearly explains what you will be doing in the future, and provides the direction employees need to make good decisions. Many organizations today lack vision. Without vision, what is there for an organization to be passionate about? Vision is what gives focused purpose around day-today activities. It helps employees and managers alike understand the "why," as in "Why I am doing this?" From vision comes mission. Mission outlines how the vision will be translated into reality; that is, what should be done to achieve the vision. An effective mission clearly explains the activities that lead to vision reality. From a well-reasoned vision and mission the organization's true competitive advantage emerges. Competitive advantage, often defined in terms of cost leadership and differentiation, is the key to dominating a market. Knowing and understanding what sets your organization apart from all others, and working hard to preserve that advantage, helps sustain growth and profitability for almost any organization. Once defined, it is critical that all management and staff clearly understand the vision, mission and competitive advantage. Every day-to-day task should be done with full understanding of its impact on the competitive advantage, and for the ultimate strategic success. Project manager need to understand the strategy There two reasons that project manager need to understand Organization Strategy : • The first is they can make appropriate decision and adjustment because if the project manager do not understand the strategy of the organization so it trend to make many serious mistake • The second is they can be effective project advocates because the project manager have to able to demonstrate to senior manager For these reasons the project manager will find it valuable to have a clear understand of strategic management Strategic plan The Strategic Planning as an integral part of the management process may as following : • The Planning Team • State Assessment • Strategic Groundwork: vision, mission, core values • Key Success Factors - Strategic Objectives • Core Strategies • Action Items • The Budget • Creating for Strategic Change and senior management should understand the various elements involved in Strategy Implementation, the organization's capabilities now and what will be needed to reach their strategic objectives. In addition, the Effective Strategic Management as a continuing process that responds to competitive markets and changing environments by assessing and adjusting the organization's direction, providing a way to focus the organization's energy and ensuring that members of the organization are working toward the same goals. The strategic management processes The strategic management is the processes of assessing “ what we are “ and deciding and implementing “ what we are going to get there “ Strategy describes how and organization intends to complete with the resource available in the existing and perceive future environment The two dimensions of the strategic management are : • To change in the external environment and allocate scare resource of the firm to improve its competitive position for survival • To have a new action program aimed at enhancing the competitive position of the firm Four activities of the strategic management processes 1. Review and define the organization mission 2. St the long range goals and objectives 3. Analyze and formulate strategy to reach objectives 4. Implement strategies through projects Portfolio management system Implementation of the projects without a strongly priority system linked to strategy created problem. A project portfolio system can go a long way to reduce , or even eliminate , the impact of the problems Portfolio management system ensure project are aligned with the strategic goals and prioritized appropriate and it provide an information to make a better decision making Design of the Portfolio management system should include classification of the project , selection criteria depending upon classification , source of proposals, evaluating proposals and managing the portfolio projects