Leading Projects In Organizations

SCS 1952

Session 1

Vision, Strategy and

Project Management

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Instructor Haig Baronikian, Ph.D., PMP, P.Eng. [haig@efuel.ca]

President and Senior Consultant at eFuel Partners Inc [www.efuel.ca]

Telecom/IT, eHealth, eLearning fields

Education

Ph.D. – Industrial Engineering – University of Toronto

M.Ed. – University of Toronto/OISE

M.Eng. – Electrical Engineering – McGill University

B.A.Sc. – Systems Design Engineering – University of Waterloo

Professional Experience

18 years at Bell Canada – Leadership roles in corporate strategy, research, marketing, systems integration, customer systems engineering, software development

12 years as management consultant, project leader, innovation instigator, educator (developing/delivering training) and speaker

Co-author of textbook, Leadership in Project Management: Leading People and Projects to Success [www.YouAsaLeader.com]

Certificate in Project Management Fundamentals - Provides a comprehensive overview of project management, preparing you to manage both large and small-scale projects. It covers both the “hard” skills of cost and implementation management and the crucial organizational management skills necessary for long term success

– The Foundations of Project Management (SCS 1860): Basic concepts and functions of project management, and the project management framework

– Project Implementation and Control (SCS 1937): In-depth issues involving the successful implementation of planned projects

– Leading Projects in Organizations (SCS 1952): Concepts, approaches and tools covering relevant leadership and organizational aspects of project management

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Course and Certificate Overview

• Leadership in Project Management – Leading People and Projects to Success, Second Edition

– Authors: Arora and Baronikian

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Required Text

Over the next 12 weeks, we will cover:

1. Vision, Strategy and Project Management

2. Organizational Culture

3. Organizational Structure + Project Management Maturity and the Project Management Office

4. You as a Leader

5. Building a High Performance Team

6. Mid-Term Exam + Ethical Leadership

7. Stakeholder Management

8. Communication Management

9. Change Management

10. Success and Closure +

Project Presentations

11. Project Presentations

12. Final Exam

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A Walk through the Course Outline

• Quizzes 10%

• Group Work 30%

• Mid-Term Exam 20%

• Final Exam 40%

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Assessment

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Session 1

Vision, Strategy and Project Management

“In real life, strategy is actually very straightforward. You pick a general direction and implement like hell.”

- Jack Welch

Session Outline

1. Vision, Mission and Values!

2. Strategic Planning and the Balanced Scorecard

3. Portfolios, Programs and Projects enable a successful strategy implementation

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*Please refer to the textbook for references and

sources for all information and exhibits

Learning Objectives

• Define and outline key aspects of organizational:

– Vision

– Mission

– Values

• Understand how mission, vision and values provide context for strategy and the strategic planning process

• Differentiate the role of deliberate and emergent strategy

• Explain the concepts of portfolio, program and project management and their relationship to organizational strategy

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Readings

• Vision, Strategy and Project Management…

– Arora and Baronikian, Leadership in Project Management, Second Edition Chapter 1: Vision, Strategy and Project Management

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1. Vision, Mission and Values!

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Leadership and Organizational Context

• Project leaders and projects operate within an organizational context

• Every organization’s internal and external circumstances define and drive its priorities, resourcing and projects

• Therefore, project leadership is impacted by organizational vision, mission, values and strategy

• This strategic context guides the organization in selecting the right and most beneficial projects in which to invest

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• The Mission Statement – what do they say they do, why they do it, for whom, and how they do it

• The Vision Statement – where does the organization see itself going – if anywhere! It should know its pathway! Your vision should project a compelling story about the future

• The Values Statement – the source or inspiration on which behaviour is (should be) based

Key ‘Indicators’ of Organizational Culture and Environment

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Vision

• The vision of an organization is simply a statement about its desired future

• It is a description of the organization’s hopes and dreams, answering the question:

– What do we want for our future and what will success look like?

• It speaks to the ‘what’ of the destination, not the ‘how’ of getting there

• The vision can be and often is figurative rather than literal

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Vision Statement

• An organization’s Vision Statement is a concise, aspirational word picture of its future

• A Vision Statement should serve as a source of inspiration for a range of stakeholders, both internal and external

• An organization’s Vision Statement helps to focus energy and mobilize resources toward a common and significant goal

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Example Vision Statements

• Apple

“An Apple on every desk”

– There wasn’t and isn’t an Apple on every desk

– The vision can be figurative, rather than literal

• NASA

– To reach for new heights and reveal the unknown so that what we do and learn will benefit all humankind

• Wikimedia Foundation

– Imagine a world in which every single human being can freely share in the sum of all knowledge. That’s our commitment.

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Mission

• An organization’s mission is very closely tied to its vision

• While the vision is about the future, the mission is about the present and near-term

• The mission of an organization answers the questions:

– Why do we exist?

– What needs do we serve?

– Who do we serve?

– How are we different?

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Mission Statement

• The Mission Statement briefly describes the mission of an organization

• It should also give some indication of how the organization will achieve its vision

• Coupled with an organization’s Vision Statement, the Mission Statement helps to motivate staff, focus energy and mobilize resources toward a common goal

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Example Mission Statements

• Nike – To bring inspiration and innovation to every athlete* in the world.

*If you have a body, you are an athlete

• United Way Toronto – To meet urgent human needs and improve social conditions by

mobilizing the community’s volunteer and financial resources in a common cause of caring

• “Coca-Cola Promise” – The Coca-Cola Company exists to benefit and refresh everyone it touches. The

basic proposition of our business is simple, solid, and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.

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Values

• The values of an organization are those shared beliefs that are held to be most important to the organization

• Values are the answer to the question:

– What are the essential beliefs that we share as an organization?

• Over time, the values of an organization become a fundamental element of its culture

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Values Statements

• Values Statements are declarations of the central values of the organization

• They may reflect the key beliefs of the founders, the history of the organization or the current view of the organization

• Typically, an organization describes its values in 4 – 7 short statements

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Values Statements

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• Example – Our projects are known for:

1. “On time and on budget completion.”

2. “Meeting or exceeding our customer’s quality expectations.”

3. “Full completion of the project as contracted.”

4. “Excellent communications.”

• Questions: Does your organization have a Values Statement? Do you know what it is? Is it being fulfilled?

Maple Leaf Leaders will always: Do what's right • Acting with integrity; treating people with respect Be performance driven • Having an intense competitive edge; always challenging for better performance from

better people • Setting stretch targets; being accountable for results • Being fact based; objectively measuring progress and success • Encouraging the freedom to disagree • Recognizing and rewarding progress and performance Have a bias for action • Maintaining the highest level of energy and urgency • Assuming the initiative • Accepting calculated risks, without fear of failure • Building mutually supportive teams, with decisive leadership • Hating bureaucracy; fostering a lean and agile organization Continuously improve • Committing to continuously learn and teach • Embracing change as the only path to future opportunity

Maple Leaf Foods – Values Example

Source: http://www.mapleleaf.ca/working/OurValues.aspx 23

Project Team Values Statements

• There can also be values determined at the level of the project team

• This is especially pertinent if a project team is drawn from multiple organizations

• The project team values will be most meaningful and motivating if they emerge from the team itself

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Example Project Team Values Statements

• We will use this project as a foundation for the future, both to help us reach our next level of growth and to model the way for other significant initiatives

• We will seek sustainability in all aspects of the design and deployment of the project

• We will act with the highest integrity, professionalism and quality in all our interactions

• We will share in and celebrate our project successes

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• Take a few minutes and prepare your own:

1. Mission Statement

2. Vision Statement

3. Values Statements

… as these apply to you as a professional

Some Practice. . .

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1. Are they concise, but complete?

2. Is there something special about them?

3. Would they be clear to a colleague, client or other stakeholder?

4. Would they be inspiring?

Review Your Statements . . .

Share these with a trusted colleague and

get feedback.

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2. Strategic Planning and the Balanced Scorecard

“Strategy is about being different. Strategy means deliberately choosing a different set of activities to deliver a unique mix of value.”

Michael Porter

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Organizational Context for Strategy and Projects

• The vision, mission and values statements provide the essential context for the development and execution of strategy

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Organizational Resources

Vision

Mission

Organizational Strategy and Objectives

Operations

Planning and

Management

Portfolio

Planning and

Management

Management of

Ongoing

Operations

Management of

Projects

Strategy

• Strategy is important as it acts as the organizational compass

• The vision, mission and values of an organization should remain relatively stable, while the strategy of the organization is typically renewed every 3 - 5 years

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Strategic Planning

• Strategic planning is a disciplined process for making key decisions and agreeing on actions that will shape: – What an organization is

– What it does

– Why it does it

• Strategic planning involves three essential steps: 1. Consider the current situation

2. Reflect on where we would like to be

3. Determine how best to get there

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Deliberate, Emergent and Realized Strategy

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• The planned or proactive component of strategy is called the ‘Deliberate Strategy’

• The organization may need to react to events and adjust strategy – this is called the ‘Emergent Strategy’

• Some elements in the deliberate strategy may need to be abandoned over time

• The Deliberate Strategy and the Emergent Strategy, taken together, within changing circumstances and the reality of execution, constitute the organization’s ‘Realized Strategy’

Strategic Planning Techniques

• Strategic planning can involve a variety of techniques, including: – Visioning exercises, to develop a desired future state

– SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

– Market Analysis

– Competitive Analysis and Benchmarking

– Porter’s Five Forces Analysis

– Gap Analysis

– Ideation and innovation (for new products, services, processes, etc.)

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What is the Balanced Scorecard?

• The phrase ‘Balanced Scorecard’ was coined in the early 1990s by Robert Kaplan and David Norton

• The roots of this approach are deep, and include the pioneering work at GE on performance measurement and reporting

• The Balanced Scorecard is a powerful strategic planning, execution and performance management system used to align business activities to the vision and strategy of the organization

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A framework to translate a strategy into operational reality… • It extends the sole dominant

measure of the past and present – Finances – and balances it with consideration for:

• The Customer

• Internal Business Processes

• Learning and Growth

… And it fits with project management

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What is the Balanced Scorecard?

• A system that requires development of effective measurements in all four perspectives.

Central to all four perspectives of the BSC are:

• Mission – what is our purpose

• Values – what is basic to how we operate

• Vision – where do we want to go – and be in the future

• Strategy – how do we plan to get there!

Relating Strategy to the Balanced Scorecard

• The Balanced Scorecard provides a framework to translate strategy into operational reality

• The four strategic perspectives, quadrants or themes are: 1. Financial

2. Internal Processes

3. Customers

4. Learning and Growth

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Mission,

Vision and

Strategy

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The Four Perspectives….

1. Customer Perspective

Critical Questions -

1. Who are our target/key Customers?

2. What is our value proposition in serving them?

3. What do our customers expect/demand from us?

4. Do we know them well

The Measurements - How Do We Know if We Are Succeeding?

1. Customer Satisfaction/Surveys

2. Customer Loyalty – do they come back?

3. Market Share, Number of Customers.

4. Customer Loss, Retention, Acquisition

2. Internal Process Perspective

Critical Questions -

1. Are we constantly improving processes that meet the present and future demands of customers?

2. Are we operating at an optimal level of efficiency?

The Measurements - How Do We Know if We Are Succeeding?

1. How often do we bring in new, more efficient, effective, systems, products, ideas and do they work?

2. Regulatory and Social Measures – are we on top of and demonstrating these?

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The Four Perspectives….

3. Learning & Growth Perspective

1. Identify core competencies – what we need in our employees to attain constant success – both skills and attitude.

2. Personal Development Planning – making sure staff knows and shares strategic directions.

3. Measure Employee Training – how much is there and is it on target for present and new needs, is it shared with others.

4. Employee Productivity – does employee development result in improved productivity and performance over time.

4. Financial Perspective

Financial measures are a critical component in all organizations – profit or not-for-profit

Key Issues are:

1. Profitability or surpluses

2. Revenue growth

3. Higher output/productivity at consistent cost

4. Optimum Asset Utilization

Balanced Scorecard Framework

• The Balanced Scorecard framework elaborates strategy under each perspective through specific: – Objectives

– Measures

– Targets

– Initiatives

• Programs or projects

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3. Portfolios, Programs and Projects Enable a Successful Strategy Implementation

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PMBOK defines a project as “a temporary endeavor

undertaken to create a unique product, service, or result”.

Projects can be large or small, relatively simple or highly

complex. They end when their objectives have been reached or

the project has been terminated

A group of related projects managed in a coordinated way to

obtain benefits and control not possible from managing them

individually is called a program. Programs may include other

elements of work outside of the scope of the discrete projects

A collection of programs and projects, that are grouped

together to facilitate effective management of that work and

meet strategic business objectives, is called a portfolio

Comparison of Key Aspects of Project, Program and Portfolio Management

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Project

Management Program

Management Portfolio

Management

Purpose

Provide deliverables by executing a network of tasks

Deliver benefits by executing a network of projects

Support strategy formulation and execution from an investment perspective

Duration Temporary Longer time-frames compared to projects

Enduring process with regular balancing of investments

Strategic Alignment means…

Accomplishing specific requirements and objectives

Accomplishing specific requirements and objectives, typically on a grander scale

Adjusting the balance of investments to increase probability of achieving financial and other outcomes

Strategic Accomplishment

means…

Projects address functional or business unit strategies

Programs fulfill functional, business unit or enterprise strategies

Portfolios accomplish enterprise strategies

Success defined by…

Meet defined metrics in terms of the triple constraint

Meet broader objectives of and generate benefits for different stakeholders

Produce longer-term value to investors and shareholders

Risk Management

Risks are typically regarded as threats

Risks are framed as opportunities and threats

Risks are deviations from investor expectations managed through portfolio balancing

Key Competencies

Management skills Leadership skills Analysis and decision-making skills

Strategic Objectives Influence Portfolio Criteria

• An organization’s strategic objectives considerably influence portfolio criteria, decision-making and performance indicators

• Program and project intake, monitoring and the success of the portfolio would be evaluated based on a set of agreed-upon indicators

• Effective strategic planning in an organization leads to appropriate new projects, programs and portfolios

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Relating Portfolios, Programs and Projects to Strategies

• An example of the cascading of organization vision and mission through one or more ‘strategic themes’, to one or more programs, and then to a set of projects

• Strategic planning can be extremely useful for uncovering innovative ideas and approaches

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‘On-Strategy’ is the Fourth Dimension of the ‘Iron Triangle’

• ‘Iron triangle’ refers to scope, cost (or budget) and time (or schedule)

• These traditional constraints or success criteria should be extended to incorporate strategic alignment – or being ‘On-Strategy’

• It is even more important to be ‘On-Strategy’ than just ‘On-Cost’, ‘On-Time’ and ‘On-Scope/On-Quality’

• A project which fully meets the triple constraint, but has little or no strategic value, is likely a lost investment – An important exception is a project

mandated by regulatory or legislative requirements

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The Fourth Dimension

• An ‘On-Strategy’ project will have a larger impact on the organization and yield a better return on investment and human capital than one where the connection is unclear

• This fourth dimension facilitates: – Alignment of project objectives with strategy – Alignment of the organization’s limited resources with

strategy

• Strategic alignment should be a criterion within a project scoring system, helping to filter and prioritize projects

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Good, Bad and Naughty Projects

• ‘Good projects’ are those which are aligned well with the organizational strategy

• ‘Bad projects’ are those which are not!

• ‘Naughty projects’ are marginal – Could be highly

dependent on the influence of the sponsor

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Good [Planned] Good [Opportunistic] ‘Naughty’ Bad

projects projects projects projects

Naughty Projects

• Naughty projects seldom accomplish business objectives

• A project sponsored by a director that makes him/her look good might not generate the right organizational benefit

• Such ‘Director’ or ‘pet’ projects may be based on a hidden agenda – e.g. Promotion to VP, transfer to a new role, receiving a

large bonus, etc.

• Projects of this nature squander resources, can create unnecessary risks and may have high opportunity costs

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Chapter Summary

• An organization’s vision, mission and values provide fundamental context for project leaders

• Effective strategic planning is vital for the health of every organization

• An organization’s strategy provides the compass, roadmap and rationale to help it move from its current state to its desired future state

• The Balanced Scorecard is a powerful strategic planning, execution and performance management system

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Activity

• Review the case study in Activity 4 at the back of Chapter 1 on strategic alignment

• Consider: What was the central issue? How was it addressed? What were the outcomes? What implications might there be for project selection and for the project leader?

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Next…

• Read Chapter 1 in text

• Check out ‘Additional Resources’ on Blackboard

• Check out review questions and other resources at the back of the chapter

• Consider contributing resources for sharing on Blackboard with your colleagues

– Send article, video, link, etc to the instructor for review

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