cinaptus technology consulting strategic alignment lecture 2

CINAPTUSTechnology Consulting

Strategic Alignment

Lecture 2

8/24/2004 2


Overview

• Strategic Management– Organizational mission– Objectives– Implementation

• Portfolio Management– Governance– Balanced Scorecard

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Organizational Mission

• Strategic Management– “You Are Here”; Destination and Plan– How the organization plans to compete with

available resources in current and anticipated environments

• Process Steps– Define and redefine organizational mission– Set long-range goals and objectives– Analyze and formulate strategies– Implement strategies through projects

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SMART Objectives

• Specific– Be unambiguous

• Measurable– Establish objective metrics

• Assignable– Identify accountability

• Realistic• Time-bound

– Identify the finish line

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Strategic Projects

• Projects are how strategies are realized

• Implementation Issues– Multiple dimensions of shared resources– Prioritization– Formal and informal coordination– Authority and accountability– Communication– System support

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Portfolio Management

• Organizations take on multiple parallel projects to most effectively use resources

• Someone must manage the big picture– Priorities are dynamic– Resource demands and availabilities are

very dynamic– Organizations must keep employees

engaged– Portfolio management system support

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Threats to Portfolios

• Lack of consistent approval system• Lack of centralization (authority / prioritization)• Lack of downward communication• Turf battles• Insufficient budgeting of employees• Insufficient respect for the strategic plan• Inconsistent application of selection criteria• Lack of management backbone (NO / pets)• Insufficient analysis of new project impact• Unpredictable support that must get done

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Governance

• Project Classification– “Must Do” vs. Operational vs. Strategic

• Selection Criteria– Payback: Investment recovery time– Net Present Value: Return over time– Others: Alignment, resource availability,

technical risk, etc.

• Formal Proposal Process

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Project Proposals

• Proposals capture relevant information– Brief description (incl. category and timing)– Risks– Selection criteria ratings

• Initial assessment screening– Criteria weighting gives objective score

• Formal Approval Process– Signing authority based on total cost

• Approved projects are prioritized

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Balanced Scorecard

• Portfolio projects must be managed including re-assessing priorities

• System must be flexible to allow for “incoming” projects

• A Balanced Scorecard tracks and reports progress toward the strategic vision– Market Share, Customer Satisfaction, etc.– Scorecard values feed back into prioritization– Feedback is critical to integrity

cinaptus technology consulting strategic alignment lecture 2

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