PROJECT MANAGEMENT AT A GLACE
ing those things right. Strategic execution results from executing the right set of strategic projects in the right way. The only path to executing strategy is through project portfolio management. Project portfolio management is always on, whether executives recognize it or not. Everywhere in the organization, people must take thousands of small project investment decisions everyday. If the company’s leaders fail to engage actively in strategic portfolio management, the small but critical daily portfolio management decisions are delegated to the lowest level of the organization. Without clear leadership, individuals will use other decision rules in choosing what to work on: first in, first out, most politically correct, wild guess etc. Portfolio management still takes place, but it is not necessarily aligned with strategy, and it occurs at the wrong level of the organization. PSE MAGAZINE • 14
Many executives fail to understand how crucial is to determine the degree of alignment between investments and strategy. All one needs do is look at the project portfolio to see whether the project work of the organization is aligned with the strategy. Whatever the cause, competent and well-meaning executives routinely fail to integrate and align the work of the organization with the strategic vision of the organization.
THE HIDDEN LANGUAGE BARRIER
There is no way for senior management to accomplish a strategic transformation without getting deeply engaged in project management. In some cases, particularly for new strategies, the senior executives themselves must become the project leaders. Unfortunately, most executives have not yet learned the language of project management. Even leaders who emphasize the importance of
strategic action invariably fail to take the next step by recognizing that the most important actions that serve to execute strategy are the projects that will bring the organization from its current state to its desired future state. I do not claim that this is a new idea. However, in my experience, what has been missing is a systematic framework within which to apply decades of important contributions on the subject. The essence of strategy is in the activities – choosing to perform activities differently or to perform differently than rivals. Otherwise, a strategy is nothing more than a marketing slogan that will not withstand competition. I believe execution is a process. It is not the result of a single decision; it is the result of a series of integrated decisions over time. This helps explain why sound execution equals competitive advantage. The hidden language barri-