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Date
By Conrado Morlan
All organizations want to achieve and maintain competitive advantage. But when it comes to project management practices, not all organizations are doing what’s necessary to stand apart from competitors. Why? Some are stuck in a traditional mindset.
To elaborate: For years, organizations have looked for competitive advantage through a traditional project management approach that is operational in nature and includes strict controls focused on schedules, budgets and resources. The problem with this approach is that sometimes even when projects meet controls—i.e., they’re completed on time and within budget—organizations don’t achieve competitive advantage through the expected benefits.
On the other hand, some innovative organizations are opting to evolve from an operational to an organizational project management (OPM) approach. This approach conceives of projects strictly as a means to achieve business objectives defined through the organization’s strategy. These organizations have a project and program management mindset at their core. Because of that commitment, their projects meet original goals more often than the average organization.
The payoff is huge, according to PMI's 2015 Pulse of the Profession® report, which was released last month. High-performing organizations—those who view project management as strategy implementation, and support it— waste 13 times less money than their competitors.
Taking It to the Next Level
The results suggest that to successfully take the OPM route, organizations must be committed to creating a culture that views project management as a tool for attaining business objectives stemming from strategy.
They must aim for a project execution approach that is both controlled and agile, in order to adapt to potential strategy changes. To ensure successful project outcomes, organizations taking the OPM approach must also focus on talent management. They should look for project managers who not only have the requisite technical skills, but also can step into more strategic and leadership roles.
Organizations adopting OPM will use standardized project management practices. This process will be supported by an improved project governance process that will ensure projects are highly aligned to the strategy of the organization.
As organizations transition into OPM, they should implement a benefit realization training program that showcases examples of strong, focused project management practices that achieved intended strategic benefits. It helps to share these examples across the organization to reveal the effectiveness of strategic project alignment.
Is your organization in the process of taking its project management approach to the next level through OPM? If so, what changes have you experienced in terms of management and project expectations?
Posted
by
Conrado Morlan
on: March 02, 2015 11:15 PM |
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