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