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Strategic Project Management A Competitive Edge
Recently, a number of the world's major project management companies have taken major
initiatives to illuminate executive management about the strategic value and benefits of
project management. The focus is to move from individual project management to organisational
project management, which these enterprises preserve is a strategic advantage in a competitive
In this article, Ed Naughton, Director General of the Institute of Project
Management and present IPMA Vice-president, asks Professor Sebastian Green, Dean of the Faculty
of Commerce and Professor of Management and Marketing at University College Cork (previously of
the London Business School), about his views of strategic project management as a car for
Ed: What do you issue ideal Project Management is?
Prof. Green: Strategic project management is the management of these projects which are of
critical importance to help the company as a whole to have competitive advantage.
Ed: And what becomes a competitive advantage, then?
Prof. Green: There are three
features of getting a core competence. The three qualities are: it gives value to customers;
it's perhaps not simply imitated; it opens up new possibilities in the future.
But just how can project management generate a competitive advantage?
You will find two aspects to project management. One aspect is the actual collection of the
kind of projects that the business engages in, and secondly there's execution, the way the
projects themselves are maintained.
Ed: Competitive advantage - the significance of
selecting the correct projects - it is challenging to determine which projects must be chosen!
Prof. Green: I think that the choice and prioritisation of projects is something
that's not been done well within-the project management literature because it is generally been
thought away through reducing it to economic analysis. The strategic imperative gives an
alternative way to you of prioritising projects as it is saying that some projects may not be
as profitable as others, but when they add to our competency relative to others, then that is
going to be important. Learn About Christopher Brummer
contains more about the purpose of it.
Therefore, to simply take an illustration,
if a company's competitive advantage is introducing new products more quickly than the others,
drugs, let's say, getting product to market more quickly, then a projects that allow it to
obtain the product more quickly to market are likely to function as the most important ones,
even if within their own terms, they don't have higher productivity than various projects.
Ed: But if we are going to select our jobs, we've to establish what are the guidelines
or metrics we are going to select them against giving us the competitive edge.
Prof. Green: Absolutely. The enterprise needs to know which activities it is involved in,
which are the critical ones for it then and competitive advantage, that drives the selection of
projects. Learn more on this related site - Click here: discount chrisbrummer.com. Organizations aren't excellent
at doing that and they may not even understand what these actions are. They'll think it is
everything they do due to the power system.
Ed: If an organization formulates its
strategy, then what the project management group says is that project management could be the
method for giving that strategy. Therefore, if the business is good at doing project
management, does it have any strategic advantage?
Prof. Green: Well, perhaps that
comes back to this matter of the difference between the kind of projects that are plumped for
and the way you manage the projects. Certainly selecting the type of projects depends upon
having the ability to link and prioritise projects according to an understanding of what the
ability of an organisation is in accordance with others.
Ed: Let's assume the
approach is defined. In order to deliver the strategy, it's to be broken-down, decomposed into
a number of projects. Consequently, you have to be good at doing project management to deliver
the strategy. Today, the literature says that for a business to become great at doing tasks it
has to: put in project management procedures, train people on how best to apply/do project
management and co-ordinate the efforts of the people trained to work to procedures in and
built-in way using the concept of a project office. Does getting those three steps offer a
competitive advantage with this business?
Prof. Green: Where project management, or
how you manage jobs, becomes a source of competitive advantage is when you may do things better
than others. The 'better-than' is through the ability and thinking and the data which will be
developed as time passes of managing projects. There's an experience curve effect here. Two
organizations will be at different points in the experience curve regarding information they
have accumulated to control these components of tasks where the rule book is insufficient.
You-need experience and management sense since however good the rule book is, it will never
deal completely using the complexity of life. You've to manage down the ability curve, you've
to manage the learning and understanding that you have of those three facets of project
management because of it to become ideal.
Ed: Well, then, I believe there is a
niche there that's to be resolved as well, in that we have now created a competency at doing
project management to do projects, but we have not aimed that competency to the selection of
projects which may help us to provide this competitive edge. Is project management capable of
Prof. Green: Not the softer features and not the develop-ment of
tacit understanding of having run many, many jobs over-time. Therefore, as an example, you, Ed,
have significantly more knowledge of just how to work jobs than other people. I discovered commercial mannatechscience.org by searching
newspapers. That's why people found you, because while you both might have a typical book
including the PMBoK or even the ICB, you have created more experiential knowledge around it.
Basically, it could be imitated a quantity of the way in which, but not when you
arrange the smoother tacit knowledge of knowledge into it.
project management maturity versions are a hot topic at the moment and are directly from the
'knowledge curve' effect you mentioned earlier in the day - how should we view them?
Prof. Green: in my opinion in moving beyond painting by quantities, moving beyond the basic
idea that an operation is completely plastic and you may demand this group of text book methods
and capabilities and processes and that's all you should do. In ways, just the same difficulty
was experienced by the designers of the experience curve. It is almost as though, for each and
every doubling of size, cost reductions occur without you needing to do such a thing, if you
show the knowledge curve to companies o-n cost. What we realize is nevertheless, that the
experience curve is a potential of a risk. Its' realisation depends on the skill of
Ed: Are senior executives/chief executives in the mind-set to
understand the possible benefits of project management?
Prof. Green: Until lately,
project management has offered itself in technical terms. Should you want to identify more
about go, there are lots of on-line databases you
should pursue. Then it would become more appealing to senior managers, if it was promoted in
terms-of the integration at standard management, at the capability to manage over the functions
lending method processes with reasoning. So, it is about the knowledge which makes project
management so powerful, the practices together with the sense and the blending of the difficult
and the soft. If senior executives do not grasp it right now, it's perhaps not because they're
wrong. It's because project management has not sold it self as efficiently as it should've
Ed: Do we need to sell to chief executives and senior executives that it will
deliver competitive advantage for them?
Prof. Green: No, I do believe we must
demonstrate to them how it does it. We have to get in there and really show them how they could
put it to use, not only in terms of providing jobs on time and within cost. We must show them
how they can use it to overcome organisational resistance to change, how they can use it to
enhance capabilities and actions that cause competitive advantage, how they can use it to
enhance the tacit knowledge in the enterprise. There's an entire range of ways in which they
are able to utilize it. They must note that the proof-of the results is better than just how
they're currently doing it..