Project Management

Chapter 3 : Strategy and Project Management

The Role of Strategy in Project Management

The Strategy Process

Organizational Strategy
Aggregate Project Plan
Project Strategy
Project Activities

Resolving Trade- Off Decisions

Deploying Strategy

Stakeholder Marketing

Managing Client Satisfaction

Chapter Summary

Projects are an important part of the firm's strategy and strategy is again important for a project to be a success. Firms collect and process information related to competitors, organizational capabilities and capacity, customer requirements, suppliers capabilities, etc. to formulate a strategy. The strategy process is done in four steps: organizational strategy, aggregate project plan, project strategy and project activities.

Top management prepares the organizational strategy on the basis of competitive analysis and organizational requirements. Aggregated project plan considers the capabilities and capacities of the firm and aims at maintaining a balanced portfolio of projects. The management uses the 'strategy map' as tool to choose a project that is in line with organizational goals.

Project strategy analyzes the performance versus conformance criterion for the key elements: cost, time and quality. The project manager studies the prioritized customer requirements with the help of the QFD diagram. He also analyzes the trade-off among cost, time and quality. The project strategy is executed in several steps by setting interim objectives, with the help of the Policy Deployment Table helps the project manager should also take into consideration the perceptions and expectations of the stakeholders to ensure client satisfaction.

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