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While I strive for accuracy, this isn’t the ultimate PMO, Portfolio, Program, or Project Management encyclopedia. My goal is to record some of my learning and share it publicly, by no means does this work replace official sources or communicate fully implemented system I developed. Much of the work I develop are maintained in-house and exclusively used for client work. I consistently reference, read, watch and attend PMI related content to maintain my PMP PDUs, so if you are looking for resources stop by the pmi.org website and use of course use Google / Youtube or any site that will enhance your learning.

A Guide to Success: Doing the ‘Right Projects’ to Doing the ‘Projects Right’

By George J. Raymond

Are we focusing on the right things?

In today’s dynamic business landscape, simply completing individual projects on time and within budget is no longer sufficient. Organizations must ensure that their projects align with strategic objectives and contribute to long-term success. 

To better align project management with corporate strategy, organizations must employ two approaches: Doing the ‘Right Projects’ and Doing the ‘Projects Right’.

Balancing portfolios to meet corporate goals and ensuring the capability to apply the right skills and resources to project delivery are key components of successful project management aligned with governance principles. To better facilitate the alignment of project management capability with corporate strategy, organizations must employ two approaches:

  • Doing the ‘right projects’ – balancing portfolios to meet corporate goals and also with the confines of the capacity of the organization to absorb additional change
  • Doing the ‘projects right’ – ensuring they have the capability to apply the right skills and other resources to the successful delivery of the project objectives. Doing ‘projects right’ will be enhanced through implementation of standard processes to support project delivery consistently – ‘doing projects right, time after time’,

Why Comfort Can Be the Enemy of Winning: Strategy vs Planning

In the realm of organizational management, the terms “strategy” and “planning” are often used interchangeably, yet they represent distinct concepts that play vital roles in guiding an organization’s trajectory. Unfortunately, ‘Strategic Planning’ is not ‘strategy’. While strategy encompasses the overarching direction and objectives, planning focuses on the detailed steps and tactics to achieve those objectives. Understanding the differences between strategy and planning is crucial for effective decision-making and resource allocation.

Roger Martin, a renowned business strategist, argues that many companies get stuck in the comfortable world of planning, neglecting the crucial first step: Strategy. Here’s how Martin differentiates strategy and planning, and why prioritizing strategy can be the key to achieving sustainable success:

Comfort is not your friend, especially in business 

‘Strategic plans’ often look similar: a lofty vision, a laundry list of initiatives, and financial projections. While they may be detailed, their plans lack true strategic thinking.

Strategy: the Uncomfortable Choice

Strategy, according to Martin, is about defining “what playing field we should be on and why.” It’s about identifying a unique position in the market that gives you a clear advantage. This position is rooted in a strong theory backed by logic, not just wishful thinking.

Planning: The Comfort Zone

Planning, on the other hand, feels familiar and comforting. It’s about laying out the steps to achieve a specific goal. Here, you’re essentially playing the role of the customer, outlining what you need to do to be successful. Strong planning is essential. It’s the execution engine that brings a sound strategy to life.

  • Focus on affordability, not selectivity: Plans prioritize initiatives that fit the budget, not those that create a competitive advantage.
  • Limited commitment: Management only truly commits to the first year, with later years being more aspirational than strategic.
  • Planning vs. Strategy: Planning doesn’t challenge assumptions or consider trade-offs. It’s about execution, not choosing the right course.

 

 

Key Points About Strategy & Planning

Key points about Strategy

  • Vision and Direction: Strategy sets the long-term vision and competitive positioning.
  • Adaptation to Change: A robust strategy anticipates and responds to external changes.
  • Resource Allocation: Strategy involves allocating resources to initiatives that align with the organization’s strategic objectives.
  • Competitive Advantage: Effective strategy seeks to establish and sustain a competitive advantage by leveraging strengths and exploiting opportunities while mitigating weaknesses and threats.
  • Leadership and Alignment: Strategy requires strong leadership and ensures alignment across all levels of the organization, fostering cohesive efforts toward common goals.

Key points about Planning 

  • Detailed Execution Roadmap: Planning translates strategic objectives into actionable steps, outlining timelines, budgets, and resource requirements for implementation.
  • Risk Management: Planning identifies potential risks and creates risk response to minimize impact on project outcomes.
  • Coordination and Collaboration: Planning involves coordinating efforts among different teams or departments, ensuring seamless execution of activities and effective communication channels.
  • Measurement and Evaluation: Planning establishes metrics and key performance indicators (KPIs) to track progress and evaluate the success of initiatives against predefined objectives.
  • Flexibility and Adaptability: Effective planning allows for flexibility to adjust strategies and tactics in response to changing circumstances or unforeseen challenges.

Relevance to Project and Portfolio Management

In project and portfolio management, strategy provides the overarching framework, guiding project selection and execution. 

Portfolio management aligns projects with strategic objectives, ensuring that resources are allocated to initiatives that contribute most effectively to the desired outcomes. Keeping in mind, as previously stated strategy communicates “what playing field we should be on and why.” Project management, on the other hand, involves the detailed planning, execution, and monitoring of individual projects to deliver specific deliverables on time and within budget.

Successful project and portfolio management requires a delicate balance between strategic vision and tactical execution. While strategy provides the guiding principles and direction, planning translates those principles into actionable steps and ensures their effective implementation. By integrating strategic thinking with meticulous planning, organizations can enhance their project and portfolio management capabilities, driving sustainable growth and competitive advantage in an ever-evolving business landscape.

Portfolio management plays a crucial role. 

What is Portfolio Management?

Portfolio management is the art of selecting, prioritizing, and overseeing a collection of projects to achieve organizational objectives. If you are familiar with Objectives and Key Results (OKR), you understand objectives are not measurable which aligns nicely with Strategy. Portfolio Management ensures that the right projects are chosen, resources are allocated effectively, and the overall portfolio delivers the desired outcomes.

There are several key benefits to implementing portfolio management:

  • Strategic Alignment: Portfolio management guarantees projects are aligned with the organization’s strategic vision. Resources are then channeled towards initiatives that have the greatest impact on achieving those goals.
  • Resource Optimization: Limited resources are a constant challenge. Portfolio management helps to ensure that resources (financial, human, technological) are allocated effectively across projects to maximize return on investment.
  • Increased Project Success Rates: By prioritizing projects based on strategic fit, and allocating resources efficiently, portfolio management contributes to a higher rate of project success.
  • Reduced Risk: Portfolio management allows for the identification and mitigation of risks that could potentially impact multiple projects within the portfolio.
  • Improved Communication & Collaboration: Portfolio management fosters better communication and collaboration across project teams, departments, and the organization as a whole.
  • Enhanced Organizational Agility: By continuously evaluating and adjusting the portfolio, organizations can become more adaptable to changing market conditions and strategic priorities.

After reading the PMI Standards for Portfolio Management, I put together a WBS style document to organize my thinking and learning. In addition, I put together a few slides where I documented my notes.

 

References & Resources

Roger Martin, Harvard Business Review, A Plan is Not a Strategy.
https://hbr.org/2014/01/the-big-lie-of-strategic-planning

PMI Standards for Portfolio Management, 4th Edition
https://www.pmi.org/

Resources I created, Downloads

Created and authored by George J. Raymond, inspired by many educational resources, books, certifications earned, and project management experiences. Website designed, planned, and created by nextgenray.com.