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Project Management

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Table of Contents

1 Introduction ............................................................................................................................. 3

2 Definition of Key Concepts ..................................................................................................... 3

2.1 Project and Project Management...................................................................................... 4

2.2 Strategy and Strategic Objective ...................................................................................... 4

3 Relationship between Project Management and Strategic Objectives .................................... 5

3.1 Promoting Effective Decision-Making in a Speedy Manner ........................................... 5

3.2 Resolving Problems Quickly............................................................................................ 6

3.3 Enhancing Consistency and Continuity of the Project ..................................................... 7

3.4 Improved Financial Management..................................................................................... 8

3.5 Leading to Improved Communication ............................................................................. 9

3.6 Encouraging Rapid Response to Market Opportunities ................................................. 10

4 Conclusion ............................................................................................................................. 10

References ..................................................................................................................................... 12
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1 Introduction

Different organizations embark in different journeys each with their own strategic

objectives. However, it is necessary for organizations to come up with ways and meeting their

objectives within the available resources. One important factor to consider is that in order to

execute a project successfully from the planning stage to the implementation stage and beyond, it

is necessary for the executives of an organization to have an oversight that is proactive and

effective. It is unfortunate that some organizations have their leaders assuming a reactive role

whereby they step in only after trouble checks in. Instead of engaging with a project when it is

on the verge of failure, Hickman (2005) advices that an organization should adopt some tools

synonymous with management in an effort to ensure that the organization operates successfully.

In addition to this, it is evident that organizations today are facing much obstacles that need to be

addressed directly, things like competition is inevitable considering the rapid changes and the

growth of the economy. In order to gain a competitive advantage in the tough business

environment, Gransberg et al. (2013) advices on the need for organizations to engage a

disciplined process of project management. However, it is necessary to ensure that the leader

selected has qualities like competence, effectiveness, good communication skills, problem-

solving and team-building skills, and integrity among other qualities. The aim for which this

business report is written is to provide a critical review and reflection on the rationale for which

organizations use project management to achieve strategic objectives.

2 Definition of Key Concepts

There are several key concepts that go hand in hand with project management. Given that

some of these concepts are used interchangeably, it is necessary to provide a definition in order
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to enhance the understanding of the reader. Some of the concepts to consider include project and

project management, strategy and strategic objective.

2.1 Project and Project Management

Given the frequency of their use in the world of business, it is easy to confuse these two

terminologies. It is evident that the increase in the rate of economic globalization has pushed

organizations to seek innovation in all aspects, with most organizations incorporating projects

into their daily business operations. A project in this case refers to a temporal undertaking that is

carried out with an aim of enabling the creation of a service or a product (PMBOK Guide, 2008).

Gray and Larson (2008) define a project as a one-time non-complex specification that has a time

and cost limit. Project management on the other hand refers to the process used by an

organization to plan and execute a project with a goal of attaining some results for the

organization. In order to achieve success, it is important for an organization to apply some tools

and techniques within a specified quality, time, and cost (Longman and Mullins, 2004).

2.2 Strategy and Strategic Objective

Other concepts that require attention in relation to business and project management are

strategy and strategic objective. A strategy is a concept used to refer to a policy or a plan of

action that an organization designs with the aim of achieving a particular overall goal. According

to Dess, Lumpkin, and Taylor (2005), a strategy refers to a plan that is set in order to allow an

organization to operate within the resources available. Strategic objective on the other hand

refers to a continuous process involving the planning, monitoring, analysing, and assessing that

which is needed for an organization to achieve the set goals and objectives (Anderson and

Merna, 2005).
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3 Relationship between Project Management and Strategic Objectives

Considering the fact that it is used widely, it is necessary to understand why

organizations use project management to achieve strategic objectives. For this particular report,

some of the reasons to discuss include promoting effective decision-making in a speedy manner,

encouraging rapid response to market opportunities, leading an improved communication across

functional groups, enhancing consistency and continuity of the project, resolving problems

quickly, and improving financial management.

3.1 Promoting Effective Decision-Making in a Speedy Manner

One reason that allows organizations to use project management to achieve strategic

objectives is to promote speedy and effective decision-making. Sharma, Mithas, and Kankanhalli

(2014) observe that one of the key factors to consider in pursuit of a successful organization is

proper decision-making. The success or failure of an organization largely depends on the type of

decisions made, and the rate at which these decisions are made. Given the competitive nature of

business in the contemporary world, it is important for an organization to have a project manager

who is efficient and effective in the key aspects of an organization like having to make speedy

decisions. According to Selart and Johansen (2011), there is more to the idea of making speedy

and effective decisions. It is necessary to ensure that the team in charge of a particular project

make decisions that are ethical, those that benefit the organizations. Kendra (2003) advices that

organizations can embrace some tools to assist them in make decisions in a wise, speedy, and

effective manner. Studies conducted reveal that organizations that operate successfully have

made a sacrifice and gotten decisive project manager, one that assists in streamlining the

decision-making process in an organization. Despite the difficulty that comes with decision-

making, some of the tools that would assist include a Decision Tree, Cost/Benefit Analysis, and a
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Pareto Analysis. According to Dey (2012), one of the parameters for the successful operation of

a business is to ensure that a project is completed on time and within the specified budget. For

this reason, he explains that the executives of an organization should consider employing the

services of a decisive project manager. Below is a diagram of how a Decision Tree may look

like.

Figure 1: Diagram of a Decision Tree

3.2 Resolving Problems Quickly

Another rationale for which organizations use project management to achieve strategic

objectives is that of being able to solve problems in a quick manner. Considering the fact that the

market place is flooded with organizations of the same nature, the executives of organizations

cannot afford to waste any time when it comes to solving problems. Crawford (2006) observes

that one of the basic and fundamental roles of project management is to assist the organizations I
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making quick decisions in relation to problem-solving. As stated earlier, one of the qualities of a

good project manager is that of solving problems quickly. According to MacIntyre (2006), there

are some organizations that tend to spend many resources in trying to resolve problems.

However, it takes a successful-minded organization to know that investing in project

management enhances the possibility for resolving problems quickly. There is a need to mention

that the team brought together to manage a project should have proper educational background,

with an experience in project management being an added advantage. Longman and Mullins

(2004) point out that it is necessary to have a proactive issues management process as it plays a

great role is assisting an organization to deal with issues as quickly as possible. This function of

project management is of great significance since the ability to solve problems quickly makes it

possible for the organizations to go ahead with the project to avoid disrupting other tasks.

3.3 Enhancing Consistency and Continuity of the Project

When organizations use project management to meet their strategic objectives, another

among the benefits they enjoy is that of enhancing the consistency and the continuity of a

project. Prabhakar (2008) observes that given the necessity of a project to act as a delivery

mechanism for organizations to meet their strategic objectives, it is important for project

managers and their teams of experts to work in a way that enhances the consistency and

continuity of a project. In terms of consistency, Sandler (2003) observes that an organizations

that spends their resources to invest in a disciplined process of project management can make use

of a project management framework in order to ensure that the projects undertaken run

consistently from the conception stage right to the completion and the follow-up of the

completed project. In as much as some projects fail to work due to lack of proper planning,

project management observes that bringing consistency into the picture means that the work at
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hand is halfway done. According to Van Der Merwe (2002), the use of a Project Management

Framework in organization gives projects a consistent approach, one that makes it easier for the

project team to have control in the entire process. There is also a need to mention the need to

have methods that monitor the consistency and the entire progress of the project. In conjunction

with consistency, incorporating project management into an organization also enhances the

chances for a project to attain continuity using the Project Management Framework that allows

different projects in a particular organization to follow the same selected approach. In as much as

different projects may have different demands and requirements, following a particular approach

makes room for continuity of the projects in an organization.

3.4 Improved Financial Management

When organizations agree to make an investment in project management in order to

achieve strategic objectives, one of the advantages for this is that it leads to improved financial

management. According to Kaufmann (2003), one of the objectives of an organization is to

achieve their set targets within the stipulated time and cost estimations, hence the need to

embrace the services provided by project management. One of the advantages for using project

management to achieve strategic objectives is that it improves on the financial management of

the organization. Kerzner (2003) points out that in order for an organization to have the projects

delivered on time and within the specified budget estimates, there is a need to have a project

manager and a project team that exercises integrity in all their undertakings. According to Cicmil

and Hodgson (2006), it is imperative to work towards completing a particular project without

having to add on to the cost and time that was initially agreed on. One of the fundamental things

to note is that the benefits of using project management to meet strategic objectives are

interrelated. This is evident that having a decisive project manager ensures an effective decision-
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making process, integrity allows him to allocate resources well without greed, hence the benefit

of improved financial management. Owing to the stiff competition facing organizations

currently, organizations cannot afford to squander their resources on projects that are bound to

fail. Instead, a disciplined project management team is able to deliver their desired results within

the specified budget and add on to the advantage of improved financial management.

3.5 Leading to Improved Communication

One of the key necessities for the successful completion of a project is that of effective

and efficient communication. By using project management to meet the strategic objectives, one

of the facilitators for this end result is that of improved communication. The role played by

communication in any field cannot be underestimated, and this is the case in project

management. According to Barney (2002), the stiff competition facing organizations means that

it is necessary for organizations to become innovative and to come up with strategies that will

allow them to remain afloat and relevant. One of these strategies is that of creating a plan for

communication. The role played by stakeholders of an organization and in a project cannot be

underestimated, and requires the attention that it deserves. Nasi (1995) emphasizes that it is

necessary for the organizations to go an extra mile in understanding the way different functional

groups or stakeholders reason, and this will allow them to know which communication plan to

use. According to Hussey (2007), it is a high time that organizations took their approaches of

running businesses a notch higher. It is paramount to ensure that stakeholders and other

functional groups are given updated information concerning the project from the initial stages of

the project right to the very completion and follow up of the project. This is necessary in order to

avoid the surprises that may come along the way supposing the project gets some issues along

the way. There is a need to ensure that the methods selected for communication are effective in
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order to ensure that each stakeholder or any other member of the functional group gets the

intended information.

3.6 Encouraging Rapid Response to Market Opportunities

Among rationale for which organizations use project management to meet strategic

objectives is that of encouraging rapid response to market opportunities. According to extensive

research conducted, organizations are facing many challenges in the form of competition and

unprecedented technological advancement. For this reason among others, it is necessary for the

organization to be a step ahead in terms of responding rapidly to market opportunities that arise

from time to time. According to Judgev and Mathur (2006), one of the ways that an organization

can be sure of delivering even in the case of a rapid change in the market place is by embracing

strategic management and studying the market in order to understand the needs of the people.

Young (2012) observes that that one of the benefits of embracing project management to achieve

strategic objectives is that it creates room for being more predictable in a way that the project

team is able to plan ahead and do a great job in terms of making estimations of the resources

required. In relation to the rapid response to market opportunities, Srivannaboon (2006) suggests

that one of the ways to stay ahead of the pack in this time and age is by having a proper strategy

that incorporates proper estimations and excellent allocation of resources. The necessity for an

organization to respond rapidly to market opportunities cannot be underestimated since one of

the benefits is enhancing customer satisfaction and gaining consumer loyalty.

4 Conclusion

In conclusion, it is there is evidence that project management and the achievement of strategic

objectives are interrelated, hence the need for organizations to adopt project management into
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their day-to-day operations. For the past few decades, organizations have been subjected to

competition and other obstacles hindering the successful operation of the organization. This has

left the organizations with no choice but to embrace project management. For the organization

that obey the call to embrace project management, they enjoy many benefits including the ability

to resolve problems quickly, enhanced communication, enhanced consistency and continuity of

the project, encouragement of rapid response to market opportunities, and the promotion of

speedy decision-making process among other benefits. For these, reasons, it is evident that

embracing project management assists in the achievement of strategic objectives.

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