Strategic project management

From CEOpedia | Management online

Strategic project management is a process of carefully selecting, defining, tracking, and controlling projects that support an organization's overall strategy and business objectives. It is a holistic approach to project management, which takes into account both short-term and long-term goals, and ensures that projects are undertaken in the most efficient and effective way. Strategic project management encompasses four key areas:

  • Strategic Planning: This is the process of setting organizational goals and objectives, and identifying the resources, capabilities, and plans needed to achieve them. It includes developing a project roadmap that outlines the steps needed to move the organization forward.
  • Project Management: This involves managing the day-to-day operations of the project, ensuring that tasks are completed on schedule and within budget. It also includes developing a project plan, which outlines the timeline, budget, and resources needed to complete the project.
  • Project Evaluation: This is the process of reviewing the progress of the project, assessing its progress against goals, and identifying areas for improvement. It also involves measuring the success of the project and assessing its impact on the organization.
  • Project Governance: This is the process of setting standards and policies for managing projects, and ensuring that they are implemented and followed.

Strategic project management is a comprehensive approach to managing projects and ensuring their success, by taking into account the organization's overall strategy and objectives. It requires careful planning and execution, as well as ongoing assessment and governance, to ensure that the projects are completed on time and within budget.

Example of Strategic project management

Strategic project management can be illustrated with an example. Suppose a company wants to develop a new product, and has identified the necessary resources, budget, and timeline. The company would first create a project roadmap, outlining the steps needed to develop the product. This would involve strategic planning to set objectives and determine resources, followed by project management to manage the day-to-day operations, and evaluate the progress of the project. Project governance would also be necessary to ensure that policies and standards are followed. By taking this holistic approach to project management, the company can ensure that the project is completed on time and within budget.

When to use Strategic project management

Strategic project management is best used when the project is of significant importance to the organization, such as when it involves a large budget, a large team, or a large number of stakeholders. It can also be used when the project requires a high level of coordination, such as when multiple teams are working together on a single project. Strategic project management is also useful for projects that need to be completed quickly, as it enables the team to plan and execute the project in an efficient and effective manner.

Steps of Strategic project management

Strategic project management involves a number of steps that must be followed in order to ensure successful project completion. These steps include:

  • Defining the project objectives: This involves setting the project goals and objectives and determining the resources, capabilities, and plans needed to reach them.
  • Developing a project roadmap: This is a document outlining the steps needed to move the organization forward. It should include a timeline, budget, and resources needed to complete the project.
  • Assigning roles and responsibilities: This involves determining who will be responsible for what tasks, and ensuring that everyone understands their roles and responsibilities.
  • Setting project standards and policies: This involves establishing standards and policies for managing the project and ensuring that they are implemented and followed.
  • Monitoring progress: This involves tracking the progress of the project and ensuring that tasks are completed on schedule and within budget.
  • Evaluating progress: This involves assessing the progress of the project and measuring its success against goals. It also involves identifying areas for improvement and assessing the impact of the project on the organization.

Advantages of Strategic project management

Strategic project management offers organizations several key advantages:

  • Increased Efficiency: Strategic project management helps to ensure that resources are used in the most efficient way, allowing organizations to maximize the return on their investment.
  • Increased Visibility: Strategic project management provides organizations with increased visibility into the progress of projects, allowing them to identify any potential problems before they become too large.
  • Improved Decision-Making: Strategic project management helps to ensure that decisions are based on accurate data and informed analysis.
  • Improved Communication: Strategic project management helps to ensure that all stakeholders, both internal and external, are kept informed of project progress and any changes.

Limitations of Strategic project management

Despite the many benefits of strategic project management, there are some limitations to be aware of. These include:

  • Time constraints: Strategic project management requires a significant amount of time and resources to plan and implement. This can be difficult for organizations with limited resources or tight timelines.
  • Complexity: Strategic project management can be complex and difficult to understand. This can be a challenge for organizations with limited expertise in project management.
  • Change management: Strategic project management requires organizations to be flexible and adaptive to changes in the environment. This can be difficult for organizations that are used to operating in a more static environment.

Other approaches related to Strategic project management

In addition to Strategic project management, there are a few other approaches related to project management. These include:

  • Agile Project Management: This is a process of developing and delivering software and other products incrementally and iteratively, with an emphasis on collaboration and flexibility. It is based on the Agile Manifesto, which emphasizes customer satisfaction, responding to change, and delivering value quickly.
  • Waterfall Project Management: This is a process of managing projects in which activities and tasks are completed sequentially. It is based on the Waterfall Model, which defines the phases of the project, such as requirements gathering, design, development, testing, and deployment.
  • Lean Project Management: This is a process of eliminating waste and inefficiencies in the project management process. It focuses on improving efficiency and reducing costs, while still delivering projects on time and within budget.


Strategic project management — recommended articles
Portfolio management processes — Portfolio of projects — Value creation process — Agile portfolio management — Program management office — Management system — Process maturity models — Project management theory — Life cycle approach

References

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