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Boston Consulting Group and Project Management Institute (2013), Strategic Initiative Management – The PMO Imperative

– There are only 2 (two) things are certain a) greater uncertainty and b) an accelerated pace of change

– Globalization and Digitizations rushes the pace of business – Customers are more empowered than ever before – Two speed economy a)rapid growth in emerging markets and

b) slowing growth in develop markets

The Economist Intelligence Units and PMI (2013), Why good strategies fails : Lessons for the C-Suite. Key findings:

– Senior executives recognise the importance of strategy implementation, but a majority admit that their companies fall shorts

– C-Suite executives are often missing in action – Rather than micromanaging, C-Suite executives should identify and

focus on the key initiatives and projects that are strategically relevant. – A majority of companies either lack the skills or fails to deploy the

personnel needed for strategy implementation – Success results from working at implementation in a variety of ways, but

financial rewards justify the efforts

Roland Berger – Strategic Consultants (2013), Best practices in new product development

– Increasing global competition in all major markets (more new products from new competitor)

– Shorter and shorter product lifecycle – High failure rates in many industries (up to 60% of new

products/innovation flop) – Early cost determination : up to 80% of product related

costs determined already in product development

“... The problem with poor performance typically is not with planning (making the strategic plan) but with doing (implementing the strategy). Making strategy work is more difficult than strategy making. Sound plans flounder or die because of lack of execution know-how. *) Taken from a book with the title “Making Strategy Work” authored by Lawrence G. Hrebiniak, an Emeritus Professor in Strategic Management in Wharton School of Business, University of Pennsylvania

Some obstacles arise from the condition or demands of the executions are (Hrebiniak, 2013) : 1. The need to get many more people involved in

execution than were involved in planning 2. The longer time frames associated with the process

of strategy implementation and the rsultant probability that competitive forces or conditions will change over time

3. The existence of many factors or variables that can affect execution results or success and the need to handle them effectively to achieve desired outcomes

Resource planning

Schedule and risks

Risks

Vision and Mission

Business roadmap

Business Strategy

Strategic Alternatives

What and where your organization want to be (long term)

What and where your organization want to be (short term)

What needs to be achieved in this short term goal

How to achieve this short term goal

• A primary goal for every business organization • Formulated in business strategy (sales growth,

revenue growth, market share growth etc.) • Business strategies sometimes translated into

strategic initiatives

• Are strategic initiatives unique?

• Are strategic initiatives temporary? Do they have specific start date and finish date?

• Do strategic initiatives require progressive elaboration and collaboration?

• Clear objective of business initiatives

• Clear ownership • Clear (time and cost

based) deliverables • Clear definition in how

we measure the success

• Clear requirement in how the initiatives will be achieved

Translation from business initiaves to project plan is

required

• Project Management

• Programme Management

• Project Portfolio Management

Project : delivering the (specific) output Program : delivering the (specific) outcome/benefit (business strategy goal) Portfolio : selection of key strategic project/program that support business strategy goal

Boost sales

New product New Campaign Optimizing Distribution

Channel

Project 3

Project 1

Program A

Project 2

Business Strategy

Portfolio Planning

Program Management

Project Management

Operations

Strategic implementation

Benefits

Deliverables

Resources

Source : Levin (2013), Program Management, A Life Cycle Approach, Taylor & Francis Group

Source : Levin (2013), Program Management, A Life Cycle Approach, Taylor & Francis Group

• Setting up a new way of working using project, program and portfolio management approach

• Leverage the stakeholder competences • Business process alignment • Process automation • Quantify and measure it!