Key Issues about Strategic Project Management - Coursework Example

Running Head: STRATEGIC PROJECT MANAGEMENT Strategic Project Management Introduction This essay discusses two key issues about strategic project management. The first one is about what strategic project management is and its importance. In relation to this, the key elements that define the concept of strategic project management are presented. Further, the importance of strategic project management, based within the context of organisations, is presented. The second issue is about the different factors that can either enhance or inhibit the successful implementation of projects. This forms the second part of the essay. In this regard, different factors that can either enhance or inhibit the success of contemporary projects within the context of strategic project management are discussed. Definition of strategic project management Strategic project management is a concept that is made up of two separate concepts, project management and strategic management. Therefore, in order to understand what strategic project management entails, it is important to consider its constituent parts: strategic management and project management. To start with, a project can be defined as a complex process which is characterised by having a specific objective, being implemented within a given time frame and having specific amounts of resources allocated for it (Dinsmore & Cabanis-Brewin, 2006, p. 2). Thus, a project is differentiated from other routine processes and activities by the fact that it has a specific scope, cost, objectives and time frame associated with it. On the other hand, strategic management is a concept that is used to define how organisations use their resources to achieve their mission, vision and objectives and to gain a competitive advantage (Larson, Honig, Gray, Dantin & Baccarini, 2014, p. 6). What this means is that under strategic management, organisations are able to identify opportunities in their environments and align their resources in such a manner that they achieve their objectives and remain highly competitive. Therefore, simply put, strategic project management is an approach that organisations can use to link the projects that are undertaken to the strategic objectives of the organisations. Hence, strategic project management refers to the practices and approaches that organisations can use to ensure that every project that is undertaken is linked to the strategic objectives of the organisations (Larson et al., 2014, p. 6). Therefore, the implementation of projects serves as a way by which organisations which are practising strategic project management achieve their strategic objectives over the course of time. Importance of strategic project management There are several ways in which strategic project management can be important to organisations. One of them is that it helps organisations to use their resources more effectively (Verzuh, 2003, p. 22). In practice, organisations are faced with the need to allocate limited resources to competing demands. However, using strategic project management, organisations are able to allocate their resources to projects that are aligned to their objectives. By doing so, organisations are able to use their resources more effectively to achieve their visions, missions and objectives. As well, strategic project management helps organisations to select the projects that are most important and by doing so, effectively manage risk. Aligning projects to the strategic objectives of an organisation usually means that several projects are managed through the project portfolio approach (Resch, 2011, p. 156). Under this approach, several projects are selected based on the level of their priority and the extent to which they fit into the strategic objectives of the organisation in question. Thus, using strategic project management, organisations are able to properly prioritise their projects and balance the project risk in such a manner that they are able to manage their overall risks effectively (Larson et al., 2014, p. 15). Additionally, strategic project management can help an organisation to respond to changes that occur in its external environment. In general, the use of strategic project management is based on the rationale that organisations are able to utilise their internal strengths to take advantage of opportunities that arise from constant changes in the external environment (Larson et al., 2014, p. 15). When an organisation is able to do this, it develops a competitive advantage over a period of time. Factors that affect successful implementation of projects One of the factors that can enhance the extent to which projects within the context of strategic project management are successfully implemented is leadership. In general, research indicates that the quality of managerial leadership is an important indicator of the extent to which projects are successfully implemented (Hyvari, 2006, p. 34). According to a study carried out by Belasi and Tukel (1996, cited in Hyvari, 2006, p. 35), when managers have values such as commitment, a good mastery of the requirements of the project and the ability to coordinate all the project activities, it is highly likely that the project they are managing will be successfully implemented. Similarly, Turner and Muller (2005, p. 49) observe that the personality traits of managers usually influence the overall manner in which such managers lead teams in the course of implementing projects. It is also observed that when leaders exhibit traits such as confidence, collaboration, commitment and good communication ability, they are able to successfully influence the implementation of projects since these traits can complement their technical expertise (Turner & Muller, 2005, p. 50). Therefore, from the foregoing, it is clear that good leadership is one of the main factors that can enhance the successful implementation of projects. This can be clearly seen particularly within the context of strategic project management where multiple projects involving different teams have to be implemented concurrently in order to ensure that the strategic objectives of the organisation are met. Another factor that may influence the successful implementation of projects within the context of strategic project management is the extent to which the projects in question are aligned to the strategic business objectives of the organisation. In theory, strategic project management is based on the need to link every project that is being undertaken within an organisation with the overall strategic objectives of the organisation (Larson et al., 2014, p. 14). The objectives of an organisation are usually embodied in the vision, mission and specific goals of the organisation. The essence of successful strategic project management is to ensure that these goals form the basis for deciding what project should be implemented and in what manner. Dyreyes (2008, p. 4) notes that the extent to which projects are linked to the vision and mission of an organisation is an important indicator of the likelihood of the being successfully implemented. In addition, Beleiu, Crisan and Nistor (2011, p. 65) observe that clarity of the goals of a project is one of the key factors that define the success of projects in general. Clarity of purpose is seen as one of the most critical success factors of projects, in addition to the use of technical skills, the leadership style of the managers and the overall culture of the organisation. Therefore, the extent to which the project is clearly aligned to the objectives of the organisation is an important factor that determines the successful implementation of projects within the context of strategic project management. Some of the factors that may inhibit the successful implementation of contemporary projects within the context of strategic project management are associated with the use of project portfolio, which is an essential aspect of strategic project management. There are several technical issues related to the practice of managing projects in the form of portfolios that may slow down the pace at which projects are implemented. For example, the top management executives who are charged with the responsibility of developing and implementing specific strategic projects may fail to reach a consensus with regard to strategy. Lack of strategic consensus among executives within an organisation usually results into a gap in the manner in which the projects of the organisation are implemented (Larson et al., 2014, p. 16). This is usually the case since the strategies that are developed by senior executives may not be fully implemented in the projects that are managed by functional or middle-level managers within an organisation. In addition to a gap arising from lack of consensus among executives, strategic project management may be hampered by organisational politics. Jowah (2014, p. 131) notes that all organisations are characterised by incessant struggle among individuals for control and power. This struggle usually affects the manner in which projects are implemented since different individuals with different interests will support specific projects to be included in a project portfolio. Conclusion Strategic project management refers to the approach that organisations use to manage projects in which the projects are aligned to the strategic objectives of the organisation. Under this approach, projects are used to help the organisation achieve its specific strategic objectives. By using this approach, organisations are able to manage the risks that are associated with projects more effectively, take advantage of opportunities in their environments and achieve a competitive advantage over the course of time. For organisations to succeed in implementing their projects under an environment of strategic project management, they have to ensure that the projects are properly aligned to their strategic objectives. In addition to this, the presence of sound and effective leadership works to help organisations to successfully implement their projects. On the other hand, successful implementation of projects under the environment of strategic project management can be hampered by organisational politics and lack of consensus among the executives. References Beleiu, I., Crisan, E., & Nistor, R. (2011). Main factors influencing project success. Interdisciplinary Management Research, 11, 59-72. Retrieved from http://www.efos.unios.hr/repec/osi/journl/PDF/InterdisciplinaryManagementResearchXI/IMR11a05.pdf Dinsmore, P. C., & Cabanis-Brewin, J. (2006). The AMA handbook of project management. New York: American Management Association. Dyreyes, J. (2008). Strategic project management: Aligning strategic business objectives with project management strategy. Retrieved from https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/7678/2008-dyreyes.pdf?sequence=1 Hyvari, I. (2006). Success of projects in different organizational contexts. Project Management Journal, 37(4), 31-41. Retrieved from http://www.csb.uncw.edu/people/rosenl/classes/OPS100/Success%20of%20Projects%20in%20Different%20Organizational%20conditions.pdf Jowah, L. E. (2014). Politics and project execution: How organizational politics impact the effectiveness of project managers-the government’s dilemma. Journal of Leadership and Management Studies, 130-144. Retrieved from http://digitalknowledge.cput.ac.za/jspui/bitstream/11189/1950/1/POLITICS%20AND%20PROJECT%20EXECUTION%20HOW.pdf Larson, E.W., Honig, B., Gray, C.F., Dantin, U., & Baccarini, D. (2014). Project management: The managerial process (Australian ed.). Sydney: McGraw Hill. Resch, M. (2011). Strategic project management transformation: Delivering maximum ROI & sustainable business value. Sydney: J. Ross Publishing. Turner, R., & Muller, R. (2005). The project manager’s leadership style as a success factor on projects: A literature review. Project Management Journal, 36(1), 49-61. Retrieved from, https://www.kth.se/polopoly_fs/1.217936!/Menu/general/column-content/attachment/Turner_M%C3%BCller_2005.pdf Verzuh, E. (2003). Project management is a strategic strength. In E. Verzuh (Ed), The portable MBA in project management (pp. 1-27). Hoboken: John Wiley & Sons. Read More