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EuroProjex

Project and Programme Management


Session 1.3 Linking project strategy to
corporate strategy
Professor J Rodney Turner
Adjunct Professor
University of Technology Sydney
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Linking project strategy to


corporate strategy
Corporate strategy
Linking projects to strategy
Project strategy

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Strategic Management
Capability
Expectation

Context

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

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Managing
Change

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Strategic drift

Environmental change

Cumulative
change

Project

Project
Flux
Incremental change

Demise

Time
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Deliberate and emergent strategies

Unrealized
Strategy

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Emergent
Strategies
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Strategy lens

Johnson, Scholes and Whittington


strategy as design
strategy as experience
strategy as ideas

Mintzberg 5 Ps
strategy is a plan, (ahead, intended)
strategy is a pattern, (behind, realized)
strategy is a position, (below)
strategy is a perspective, (above)
strategy is a ploy, (manoeuvre to mislead)

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The ten schools of strategy


Schools of prescription
1.
Design school
2.
Planning school
3.
Positioning school
Schools of description
4.
Entrepreneurial school
5.
Cognitive school
6.
Learning school
7.
Power school
8.
Cultural school
9.
Environmental school
School of transformation
10. Configuration school
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Strategic Management
Capability
Expectation

Context

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

Managing
Change

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PESTLE Analysis
Political
Environmental
Environmental law
Waste disposal
Energy
Noise
NIMBYs

Legal
Competition law
Employment law
Health and safety
Product safety
Contract law
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Government stability
Taxation
Regulation
Social welfare
Foreign policy

The
Firm
Technological
Government spending
Industry focus
New discoveries
Technological transfer
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Obsolescence

Economic
Business cycles
GNP Trends
Interest rates
Unemployment
Disposable income

Socio-cultural
Demographics
Income distribution
Social mobility
Lifestyle changes
Education
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Five forces framework


Potential
entrants
Threat of
entry

Suppliers

Competitive
rivalry

Bargaining
power

Bargaining
power

Buyers

Threat of
substitutes

Substitutes
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Strategic Management
Capability
Expectation

Context

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

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Managing
Change

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Value chain
Firm Infrastructure
Human Resource Management
Technology Development
Procurement

Inbound
Outbound Marketing
Operations
Service
Logistics
Logistics and Sales

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SWOT
Opportunities
and Threats

The paradigm

Environmental
Forces

The strategy

Strengths and
Weaknesses

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Performance

Organizational
Capabilities

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Strategic Management
Capability
Expectation

Context

Relating to
Stakeholders

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

Managing
Change

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Strategic Management
Capability
Expectation

Context

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

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Managing
Change

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Ansoffs matrix

New

Development
Diversification
New segments Current capability
New territories
New capability
New uses
Beyond expectation

Markets
Old

Penetration
Consolidation
Market share

Development
Current capability
New capability
Beyond expectation

Old

New
Products

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Boston matrix

Hi

Stars
Cash neutral

Problem Children
Cash negative

Cash cows
Cash rich

Dogs
Cash neutral

Market
Growth
Lo

Lo
Hi
Market Share
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Strategy clock
Hi

4
Difference
5
Focused

3
Hybrid

Perceived
benefit of
product or
service

6
Increased
Price

2
Low Price

1
No Frills
8
Reduced
Benefit

Lo
Lo

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7
Reducing
Hybrid

Price
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Hi

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TOWS matrix

Threat (T)

TS Options
Use S
Avoid T

TW Options
Overcome W
Avoid T

SO Options
Exploit O
Use S

WO options
Exploit O
Overcome W

External
Opportunity (O)

Strength (S) Weakness (W)


Internal
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Linking project strategy to


corporate strategy
Corporate Strategy
Linking projects to strategy
Project strategy

EuroProjex

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rodneyturner@europrojex.co.uk

Strategic Management
Capability
Expectation

Context

Position

Corporate
Level

Organizing

Choices

Action

Business
Level

Enabling
Operational
Level

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Managing
Change

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Corporate strategy to project strategy


Corporate
Strategy
Context

Portfolio
Objectives
Portfolio
Strategy

Program
Objectives
Program
Strategy

Project
Objectives
Project
Strategy

Work area
Objectives
Work area
Strategy

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Project strategy
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Team
Objectives
Team
Strategy

Individual
Objectives
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Strategy to change
Internal and external business environment
PESTLE
Strategies, policies, initiatives and targets
Programmes
Projects and related activities
New and transformed business operations,
services and capability
Outcomes achieved and benefits realized

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Impact achieved with future growth


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business

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Practices and techniques for moving


corporate strategy to projects

Business models
Program and portfolio management
Business case
Project strategy
Processes and practices
Roles, responsibilities and accountabilities
Competencies and frameworks
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Strategic Projects

Product &
Market-related Projects
Project C

Project-specific principles

Project B

Project A

Interfacing

Project E

Product
Targets

Monitor
Company
General project alignment
Market
Objectives
EnterpriseOpportunities
Stakeholder
Create
Mission,
Management
Management
Product
Company
Vision
Prioritisation Portfolio
Operational
Goals

Project L

Risk
Analysis

Multi-disciplined
Teams

Project K

Operational
Projects

Project D

Strategic
Objectives
Organisational
Overview

Source
Resources

Strategic
Project
Planning

Project G

Team
Mobilisation

Logistics

Project J

Procurement

Project F

Project H

Project I

Capital
Expansion
Projects

Paul Dinsmore (1999) Winning in Business with Enterprise Project


Management, New York, AMACOM p. 34
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Three levels of process


Strategy
Design

Strategy
Implementation

Define
Program
0

Business
case

Execute
Program
0

Design
1

Strategy
Maintenance

Strategy
Review

Close
Program
0

Procurement
2

Execution
3

Closure
4

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Evolution of the business case


Drivers for
change
Programme
mandate
Programme
Brief

Aggregation

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Programme
business case

Inform

Sets scope
Project
and objectives
Project
business
case
Project
business
case
Project
business
case
business case
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Blueprint
Risks
Benefits
Resources
Plans

Alignment
Check
Monitoring
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Program and project business cases


Strategies, policies and initiatives
Continued
alignment

Defines required outcomes


Programme business case

Project
business case

Project
business case

Optimum mix of risks


benefits, costs, time

Project
business case

Project
business case

Changed or new business operations


Outcomes delivered here

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Corporate Strategy to
Project Strategy
Corporate strategy
Linking projects to strategy
Project strategy

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Seven forces of project management


Internal to Organisation

Definition
objectives
scope
technology
design
resourcing

Pressures

Sponsorship
benefit
finance
value
schedule
jrt/mcbp/feb06urgency

People
leadership
management
teamwork
influence
IR

Systems
planning
control
reporting
quality
risk

Project Drivers

Attitudes
commitment
motivation
support
right 1st time
shared vision

Resistance

Organization
roles
resources
type
contract
strategy

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to Organization

Context
political
economic
social
environment
legal rodneyturner@europrojex.co.uk

Project excellence model


Westerveld
Project Organization

Project Results
Appreciation
client

Policy & Strategy

Appreciation
projectpersonell

Environment
Leadership &

Project-

Project-

Team

management

results

Resources

Appreciation users

Appreciation
indirect parties
Appreciation
contract partners

Contracting

Feedback

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END of SESSION 1.3


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johnrodney.turner@polimi.it

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