The document discusses strategic alignment of projects with business strategy. It emphasizes understanding the company's vision, mission, and strategic objectives to ensure projects deliver business value. Projects must identify their strategic elements and align their strategy with overarching business goals. Regular communication is needed to demonstrate a project's strategic alignment to stakeholders using tools like roadmaps, dashboards, and balanced scorecards.
2. Key Takeaways
• Understand importance of company’s vision, mission
and strategic objectives for a project
• Attaining business value through projects
• Identify elements of project’s strategy
• Alignment of project’s strategy with business
strategy, goals and objectives
• Communicate strategic alignment to stakeholders
7. Business Vision
• Defines how company is to be perceived
• Picture of future state of the business
• It’s the reason for being!
‘Bring the Italian coffeehouse tradition to America to
create a place for human connection, conversation and one
that fosters a sense of community’ – Starbucks, Howard
Schultz - Il Giornale
‘Make people happy’ - Disney
8. Business Mission
• Provides direction for the company’s vision
• Defines company’s purpose and intent
• Describes what the business offers to its:
• Employees
• Customers
• Owners
‘To inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time.’ –Starbucks
9. Disney’s Mission
World’s leading producer and provider of
entertainment and information. Using our portfolio of
brands to differentiate our content, services and
consumer products, we seek to develop the most
creative, innovative and profitable entertainment
experiences and related products in the world.
10. Starbucks Core Values
• Framework for behavior
• Guiding principles
OUR VALUES
• With our partners, our coffee and our customers at our core,
we live these values:
• Creating a culture of warmth and belonging, where everyone is
welcome.
• Acting with courage, challenging the status quo and finding new ways
to grow our company and each other.
• Being present, connecting with transparency, dignity and respect.
• Delivering our very best in all we do, holding ourselves accountable for
results.
• We are performance driven, through the lens of humanity.
12. 12
Business Goals and Objectives
Mission
Objectives: Define areas of pursuance
Goals: Milestones, Resources
13. Business Objectives
• Expected results to be achieved and maintained
• Intended outcome rather a process
‘Build all new, company-owned stores to achieve LEED®
certification’ -Starbucks
Environmental Stewardship Goals - Disney
Use resources wisely and protect the planet as we operate and
grow our business:
• Zero Net Greenhouse Gas Emissions
• Zero Waste
• Conserve Water Resources
14. Business Strategies
Strategies: Design of means through use of
resources to accomplish organizational purpose
Objectives: Define areas of pursuance
Goals: Milestones, Resources
Mission
15. Business Strategies
• How resources will be used to achieve goals or
objectives
• Implemented through
• Portfolios
• Programs
• Projects
• Operational improvements
‘To maintain loyalty and repeat business among its
customers which will encompass hiring and training
knowledgeable baristas.’ - Starbucks
16. Strategies for Competitive Advantage
• Michael Porter – Generic Strategies
• Cost leadership
• Selling products or services at a lower cost than competitors
• Example: McDonalds’ McCafe
• Differentiation
• Offering a product or service that offers unique qualities that
customers are willing to pay extra for
• Example: Latte Macchiato
• Market Focus or Segmentation
• Focus on a particular niche to best sell its products or services
• Example: Whole Foods organic segment market
18. Strategic Planning
• Sets overall vision for organization
Identifies key strategies to achieve vision
• Establishes critical measures to monitor progress
• Answers the questions
• Where are we today?
• Where do we want to be? (Vision)
• How do we get there?
• How do we monitor our progress?
19. 19
Where are we today?
Strengths Weaknesses
Opportunities Threats
SWOT
Identified through internal analysis
Identified through external analysis
20. How do we get there?
• Critical Success Factors
• Key Performance Indicators
• Barriers
22. Business Value*
• All organizations focus on attaining business value for
their activities
• Total value (both tangible and intangible) of organization
• Starts with comprehensive strategic planning and
management
• Use of reliable, established processes help attain greater
business value for project efforts
*Through the effective use of project, program, and portfolio management
disciplines, organizations will possess the ability to employ reliable,
established processes to meet enterprise objectives and obtain greater
business value from their investments
*These definitions are taken from the Glossary of the Project Management
Institute, The Project Management Body of Knowledge, (PMBOK® Guide)–
Fifth Edition, Project Management Institute, Inc. 2013
24. Business Case
• Provides business information to determine whether
or not project is worth required investment
• Written by requesting organization or business
analyst
• Business need and cost-benefit analysis are often
used to justify project, including numerous project
selection techniques
26. Key Definitions
Portfolio
*Projects, programs, sub-portfolios and operations managed
as a group to achieve strategic objectives
Program
*Group of related projects, subprograms and program
activities in a coordinated way to obtain benefits not available
from managing them individually
*These definitions are taken from the Glossary of the Project Management
Institute, The Project Management Body of Knowledge, (PMBOK® Guide) –
Fifth Edition, Project Management Institute, Inc. 2013.
27. Benefit Realization
• Clearly identified goals
• Properly planned route to reach them
• Milestones along the way to mark progress
• Criteria or defined targets against which to report
success
Projects Results Usage Benefits
Begin with the end in mind – Stephen Covey
29. Project Strategy
• Forms project framework
• Identifies business strategy focus
• Provides standards for managed project
• Defines your competitive advantage
30. 30
Project Strategic Framework
Business
Perspective
Business
Objective
Product/
Service
Competitive
Advantage &
Value
Success
Criteria
Project
Definition
Strategic Focus
of Project
Project
strategy
components
Reduce customer wait
time by 25% when there
are 5 or more customers
Develop mobile platform
software for baristas to
stand beside customers to
enter orders and accept
electronic payments,
Need a scanning device
Position baristas on customer
side of counter to take orders
Competitors don’t have this. Customers will love
the experience
Measure wait time to be reduced
by 25% and do a customer survey
Define requirements
for software
Develop software to
meet objectives
31. Project Charter
• Translates business goals into project objectives
• Documents business needs, goals & objectives and
initial customer requirements
• Created by project sponsor, PMO, portfolio steering
committee or initiator external to the project
organization
*Document issued by the project initiator or sponsor that
formally authorizes the existence of a project and provides the
project manager with the authority to apply organizational
resources to project activities
*These definitions are taken from the Glossary of the Project Management
Institute, The Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
Edition, Project Management Institute, Inc. 2013.
32. Project Charter Content
• Business goals, objectives and strategy
• Project purpose or justification
• Project objectives and related success criteria
• High-level requirements, project description and risks
• Summary milestone schedule and budget
• Stakeholder list
• Project approval requirements
• Assigned project manager, responsibility and authority
level
• Sponsor authorizing project charter
34. How do we monitor our progress?
• Monthly
• Did we do what we said we would do?
• Quarterly
• Are we making progress we expected to make?
• Annually
• Are we going in the right direction?
40. 40
Balanced Scorecard
Strategy Map Balanced Scorecard
Perspective Objective Measure Target
Financial • Profitability growth
• Revenue growth
• Cost reduction
• Market value
• Sale revenue
• Rent expense
• +15%
• +20%
• -5%
Customer • Higher retention
• Increased market share
• Number of
repeat
customers
• Number of new
customers
• 90%
• +10% per year
Internal • Time to market • Delivery time • Reduce by 50%
Learning
and
growth
• Develop competencies
• Align staff with strategy
• Competency
model
• Strategic
awareness
• 100%
• 100%
Fewer
stores
Profits
Higher
sales
New and existing
customers
Reduce
prices
On-time
delivery
Fast order processing
Employee alignment
41. Key Takeaways
• Understand importance of company’s vision, mission
and strategic objectives for a project
• Attaining business value through projects
• Identify elements of project’s strategy
• Alignment of project’s strategy with business
strategy, goals and objectives
• Communicate strategic alignment to stakeholders