Project Management needs to sync with Organisational Strategy

Too frequently, projects are begun and completed with no regard to strategy, and vice versa, incorrect strategy can often generate projects that are not beneficial to the organization or the Customer.

What comes first – the project outcome, or the Organizational/Customer strategy that the project is supposed to support? Either way, the chances of project failure are greatly increased if there is little harmony between the two, and even if the project starts out in harmony, strategy or other environmental factors (including political motivation and ego) can soon lead to deviation from the organization aim. Add to this mix the rapid emergence of Program and Portfolio Management – which are much more closely aligned to strategy than Project Management per se.

In an organization whose success depends largely on successful execution of Projects, it is a fact that the careful selection of Projects is required to achieve its goals and objectives. Projects that deviate from the company’s vision and strategy should not be pursued. It is one of the first rules of good portfolio management – and good business.

Yet the ugly truth is that misfit projects that neither aligns with the goals of the business nor tap into the core competencies of the team are pursued. In addition, the project manager becomes the “Scapegoat” who everyone would then blame to for the failure of such projects.

Such projects have very low probability of success and minimal/no rewards. Customer and the Project team gets frustrated at the ever-revised deadlines and this leads to Fatigue. It is a lose-lose situation. Even if the project is delivered successfully – on time, on budget, good quality and all requirements met, it is still considered failure because it ultimately don’t contribute value to the business.

From implementing unwanted systems to developing new products that don’t fit with the Organization’s business strategy, the projects can burn piles of money and waste precious time if they are not terminated or reconfigured/recalibrated. Though they might make sense for a specific team or business division, they might not be right for the organization as a whole.

Business Impact:

Projects that deviate from Company’s vision and Strategy might create a huge impact on the business, thereby de-stabilizing the growth and slowing down the overall progress to meet the Business Strategy.

In Organization context, following functions might be impacted by such Projects.




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