Aligning Projects with Organizational Strategy | Episode 385

Summary

In this interview, Jay discusses the critical role of project managers in aligning projects with corporate strategy. He highlights how project managers can use tools like strategy maps and stage gates to ensure ongoing strategic alignment throughout a project's lifecycle. Emphasizing proactive communication, Jay encourages project managers to educate themselves on organizational strategy, engage with stakeholders, and keep teams informed on the 'why' behind their work. With the rise of agile practices, understanding strategy is increasingly vital for project success and driving long-term value for organizations.

Takeaways

• 😀 Strategic alignment in project management is crucial to ensure that projects contribute to overall organizational goals.
• 😀 Stage gates are used to evaluate strategic alignment at each phase of a project, ensuring it continues to meet corporate objectives.
• 😀 The six elements of project alignment are: project strategy, organization, processes, tools, metrics, and culture.
• 😀 If strategic misalignment is identified at any point, project managers must decide whether to correct it or proceed with the risk.
• 😀 Clear communication of strategy is essential for project managers to help their teams understand why they are working on specific tasks.
• 😀 Project managers need to proactively educate themselves on the organization's strategy and business objectives to ensure proper alignment.
• 😀 Misalignment can lead to resource diversion and inefficiency, so it's critical to have conversations about strategic alignment regularly.
• 😀 Project managers play a key role in strategy execution, bridging the gap between high-level strategy and project-level activities.
• 😀 There is a growing trend within the project management industry toward emphasizing the importance of aligning projects with organizational strategy.
• 😀 Agile methodologies stress the importance of team members understanding the 'why' behind their tasks to improve the quality of their work.
• 😀 Project managers should seek out resources within the organization, such as sponsors or strategy teams, to better understand the company’s strategic direction.

Q & A

What is the concept of 'stage gates' in project management?

Stage gates are checkpoints in a project where the project manager must demonstrate that the project is still aligned with the overall corporate strategy. These checkpoints occur before each phase begins and ensure the project is on track with its strategic objectives.

What are the six elements a project manager must align with the corporate strategy at each stage gate?

The six elements include project strategy, project organization, project processes, project tools, project metrics, and project culture. These elements ensure that the project remains strategically aligned at every stage.

What happens if there is a misalignment before a stage gate?

If misalignment occurs before a stage gate, the project manager must either accept the risk and proceed, try to fix the misalignment, or reassess the project’s strategy and execution plans. This decision depends on the nature of the misalignment and the project’s objectives.

How does strategic alignment impact a project team's work?

When a project team understands the strategic objectives of the project, they can make smarter decisions, recognize potential issues early, and ensure their efforts are focused on tasks that benefit the organization, avoiding wasted resources and off-track work.

Why is strategic communication important for project managers?

Strategic communication ensures that both the project manager and the team understand the organization's strategic goals. This shared understanding allows the team to align their efforts with the overall business strategy, leading to more effective decision-making and project outcomes.

What role do project managers play in the strategic execution of an organization?

Project managers play a critical role in executing strategy by aligning projects with organizational goals and ensuring that information flows upwards for better strategic decision-making. They are integral to the success of strategic management by ensuring that projects align with and contribute to long-term goals.

How do Agile methodologies contribute to strategic alignment in project management?

Agile methodologies emphasize the importance of individuals and interactions, with a focus on understanding the 'why' behind tasks. This allows team members, like developers, to better contribute to the overall strategy, as they can see how their work fits into larger organizational goals, improving both outcomes and efficiency.

What is the first step a project manager should take to ensure their project aligns with organizational strategy?

The first step is for the project manager to proactively learn about the organization’s strategy. This involves having conversations with key stakeholders, such as sponsors or strategy teams, to understand how the strategy is formulated and communicated within the organization.

How can a project manager educate themselves about an organization’s strategy without taking formal courses?

A project manager can educate themselves by initiating conversations with key individuals within the organization, such as sponsors, program managers, or strategy officers. Asking questions about the strategy's formulation, objectives, and impact will help them understand the strategic environment and align their project accordingly.

What potential consequences can occur if project managers don't align their projects with the organizational strategy?

If project managers fail to align their projects with organizational strategy, the project may divert resources toward activities that are not aligned with business goals. This can lead to wasted effort, inefficiencies, and potentially harmful outcomes for the organization’s long-term success.