Project Management

The project management story - Strategy

The first step in managing your projects is to determine objectives and to choose which project to work on.

Project Objective

It all begins with a goal - an objective. Every step you take, professional or personal, needs to take you closer to your goal. What escapes me is that businesses start projects start without a vision. If you take away just one thing from this post, here it is: all programs & projects you undertake must further your organization’s strategy. Ask yourself this question before you even begin chartering the project: What am I going to achieve after completing this project? How does this project further my strategic goals?

You are wasting resources if you do not have a goal. If you are planning a trip to the grocery store - do you create a list? Or do you just wander along the aisles not knowing what to shop for? What do you do when you travel on vacation? Do you not determine a destination - arrange for transportation, stay, and activities?

Usually you undertake projects to: increase revenue or cut costs either directly or indirectly. So what is your objective. This is the first and the most important step in project & program management.

Return on investment

Resources are scarce. Project management principles identify three main constraints: time, money and human resources. None of these are available in abundance. So how will you prioritize one project program over the other. The answer lies in your business strategy.

Your projects shortlist must ensure you attain your business objectives. Projects that have a high payoff in helping you attain your business goals must be high on the list. The way to measure payoff is Return on investment. Every project has a cost. The benefits of undertaking a project must exceed the estimated costs.

For example, if the estimated project costs are $250,000, you must be ensure that the benefits upon completion exceed that amount. It is not sufficient to just break even. Again this depends on the industry you are in. Benefits can be intangibles and so can the costs. We’ll get into details on financial analysis later.

Stakeholder buy-in

You need all stakeholders to be on your side once the project is charted and work begins. The last thing you need is to sell your project to stakeholders you have not consulted. This typically happens in large infrastructure projects. The project team may not have involved a certain section of stakeholders. Examples include environmental groups, certain sections of the community. Imagine going back to the drawing board after spending a bunch of money once you have started the project work. Not good - identify and speak to all stakeholders to get their buy-in.

Project Decision

To summarize, the decision to undertake a project must be taken only after:
1. You are clear about the project or program objectives; the objectives must further the strategic objectives of the business.
2. You develop a business case for undertaking the project or program; i.e. the benefits must outweigh the costs
3. You are clear on the project or program deliverables, and
4. You have stakeholder buy-in

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