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Maintaining Project Alignment to Business Strategy

Published: November 23 2009, 08:40 AM
by Steve Romero

In my last blog post, I talked about the link between Business Strategy and project success. My post was inspired by a CIO Magazine online post that cited some good research, making it well worth the time http://bit.ly/2xi1zs.

I mentioned my frustration over the obviousness of the link between business strategy and potential project success. Though I admitted it might just be me, there was another aspect of the post with which I strongly disagree.

The article suggested the Project Manager is responsible for ensuring the project stays connected to the business strategy and does not "veer from its original intent." Yes, I want my PMs to understand (if not insist) on the connection between business strategy and the projects they manage. But asking them to ensure the connection is maintained is a tall order. I insist that the same Executive Steering Committee that approved the project has responsibility for the oversight and monitoring of project progress to ensure it maintains its alignment to business strategy - including changes in business strategy that occur during a project's progression.

In addition to the "Go/No-go" decision, and the seldom accomplished "Benefits Realization", the "Kill/Fix" oversight is an essential responsibility of the Executive Team chartered with project governance. I've mentioned it before, but it warrants repeating. This group's work continues beyond the project investment decision. Approved investments should be managed actively on a continuing basis and not considered just when approval is sought. This requires continued analysis of the portfolio, monitoring each investment for its relative contribution to enterprise strategy versus other portfolio investment. The team must continually answer the fundamental question: Is the investment decision still valid?

The validity of this investment is predicated on two dimensions:

  • Is the project performing below expectations? (schedule or cost overruns, benefit erosion)
  • Is the project still aligned to business strategy?

I don't think it is reasonable to assume or insist that the Project Manager has the insight necessary to ensure the project stays aligned with business strategy. In addition to the correct interpretation of this alignment, business strategy and associated business objectives constantly change. The Executive Steering Committee is far better positioned to know and apply business strategy understanding to determine if a project is still on-track to realize the goals of the strategy.

Who monitors project alignment to business strategy in your organization? If indeed it is the Project Manager, I would love to hear about your methods and how they are working.

But until I become aware of a rational and reasonable approach for the PM to accomplish aim, I will continue to look to the Executive Project and Portfolio Management (Project Governance) team to ensure projects stay aligned to business strategy.

Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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2 people have left comments:

Quite right. Project governance is a strength of the PRINCE2 method because it provides a very clear and consistent approach to governance roles and responsibilities. Though the method can be tailored to the circumstance, the principle is consistent: The Project Executive (sponsor), who chairs the project board and appoints the project manager, is solely accountable for ensuring the project remains aligned with the business strategy, or the programme's business case if the project is part of an overarching programme.

When a project is no longer justified nor viable, the Project Executive, not the Project Manager, is accountable for making the decision to kill it.

Posted by: Basil Wood | November 23, 2009 2:14 PM

Thanks for writing this. I really feel as though I know so much more about this than I did before. Your blog really brought some things to light that I never would have thought about before reading it. You should continue this, I’m sure most people would agree you’ve got a gift. Thanks for sharing…

Posted by: Business Plan | June 18, 2011 1:25 AM

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