Blue spider project
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C H A P T E R
2
Strategic Management and Project Selection
More and more, the accomplishment of important tasks and goals in organizations today is being achieved through the use of projects. The phrases we hear and read about daily at our work and in conversations with our colleagues, such as “management by projects” and “project management maturity,” reflect this increasing trend in our society. The almost explosively rapid adoption of such a powerful tool as project management to help organizations achieve their goals and objectives is certainly awesome. As noted by one set of scholars (Clelland and King, 1983, p. 155), however, it is also undoubtedly true with the rapid adoption of this new managerial approach that:
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•
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there are many projects that fall outside the organization’s stated mission; there are many projects being conducted that are completely unrelated to the strategy and goals of the organization; and there are many projects with funding levels that are excessive relative to their expected benefits.
In addition to the growth in the number of organizations adopting project management, there is also an accelerating growth in the number of multiple, simultaneously ongoing, and often interrelated projects in organizations—particularly construction, consulting, auditing, systems development, maintenance, and matrixed organizations. Thus, the issue naturally arises as to how one manages all these projects. Are they all really projects? (It has been suggested that perhaps up to 80 percent of all “projects” are not actually projects at all, since they do not include the three project requirements for objectives, budget, and due date.) Should we be undertaking all of them? Of those we should implement, what should be their priorities?
It is not unusual these days for organizations to be wrestling with hundreds of new projects. With so many ongoing projects it becomes difficult
C H A P T E R
2
Strategic Management and Project Selection
More and more, the accomplishment of important tasks and goals in organizations today is being achieved through the use of projects. The phrases we hear and read about daily at our work and in conversations with our colleagues, such as “management by projects” and “project management maturity,” reflect this increasing trend in our society. The almost explosively rapid adoption of such a powerful tool as project management to help organizations achieve their goals and objectives is certainly awesome. As noted by one set of scholars (Clelland and King, 1983, p. 155), however, it is also undoubtedly true with the rapid adoption of this new managerial approach that:
•
•
•
there are many projects that fall outside the organization’s stated mission; there are many projects being conducted that are completely unrelated to the strategy and goals of the organization; and there are many projects with funding levels that are excessive relative to their expected benefits.
In addition to the growth in the number of organizations adopting project management, there is also an accelerating growth in the number of multiple, simultaneously ongoing, and often interrelated projects in organizations—particularly construction, consulting, auditing, systems development, maintenance, and matrixed organizations. Thus, the issue naturally arises as to how one manages all these projects. Are they all really projects? (It has been suggested that perhaps up to 80 percent of all “projects” are not actually projects at all, since they do not include the three project requirements for objectives, budget, and due date.) Should we be undertaking all of them? Of those we should implement, what should be their priorities?
It is not unusual these days for organizations to be wrestling with hundreds of new projects. With so many ongoing projects it becomes difficult