MGT 3920 Chapter Notes - Chapter 2: Strategic Planning, Balanced Scorecard
Project management – Chapter 2
STRATEGY
Issue of sustainable opetitie adatage…
Under pressure to improve productivity, quality, and speed, managers have
embraced various tools (benchmarking, scorecards, reengineering, etc., etc.)
However, these are easily imitated by competitors and can lead to a loss of
competitive position by someone leaner or who can execute faster.
STRATEGY VS. OPERATIONAL EFFECTIVENESS
The essence of strategy is choosing a unique and valuable position rooted in systems of
activities that are much more difficult to imitate.
Maagig fit aross all of a opay’s atiities ehaes oth opetitie adatage
and sustainability.
However, managers often focus on individual components of success such as core
competencies or critical resources.
PROJECT MGT AND STRATEGY
Making trade-offs among activities is critical to the sustainability of a strategy.
PM allos orgaizatios to etter selet projets that etter aage those trade-offs.
On the downside the poor strategic efforts may have stalled out the success of project
management in organizations.
Strategic planning involves determining long-term objectives by analyzing the strengths
and weaknesses of an organization, studying opportunities and threats in the business
environment, predicting future trends, and projecting the need for new products and
services
Strategic planning provides important information to help organizations identify and
then select potential projects
ALIGNING PROJECTS WITH BUSINESS STRATEGY
Most organizations cannot undertake most of the potential projects identified because
of resource limitations and other constraints.
A orgaizatio’s oerall usiess strategy should guide the projet seletio proess
and management of those projects.
Planning challenges are inherent in any strategic approach such as:
Empire building
Poor Business Case
Shift in the Competitive or External Environment.
PROJECTS AND STRATEGY
Mistakes caused by not understanding the role of projects in accomplishing strategy:
Focusing on problems or solutions with low strategic priority.
Focusing on the immediate customer rather than the whole market place and
value chain.
find more resources at oneclass.com
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Document Summary
Under pressure to improve productivity, quality, and speed, managers have embraced various tools (benchmarking, scorecards, reengineering, etc. , etc. ) However, these are easily imitated by competitors and can lead to a loss of competitive position by someone leaner or who can execute faster. The essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to imitate. However, managers often focus on individual components of success such as core competencies or critical resources. Making trade-offs among activities is critical to the sustainability of a strategy. Pm allo(cid:449)s orga(cid:374)izatio(cid:374)s to (cid:271)etter sele(cid:272)t (cid:862)proje(cid:272)ts(cid:863) that (cid:271)etter (cid:373)a(cid:374)age those trade-offs. On the downside the poor strategic efforts may have stalled out the success of project management in organizations. Strategic planning involves determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends, and projecting the need for new products and services.
