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1、From Experience: Linking Projects to StrategyRandall L. Englund and Robert J. GrahamAddress correspondence to Randy Englund, 228 Channing Road, Burlingame, CA 94010, englundr. This article is posted on web site An article published by the Journal of Product Innovation Management 1999;16:52-64, an in
2、ternational publication of the Product Development & Management Association, 1999 Elsevier Science Inc. All rights reserved. 655 Avenue of the Americas, NY 10010.Author BiographiesRANDALL L. ENGLUNDRandy Englund, co-author of Creating an Environment for Successful Projects (Jossey-Bass Publishers, 1
3、997), is a project manager at Hewlett-Packard Company (HP) in Palo Alto, California USA. He is a member of the Project Management Initiative team that provides corporate-wide leadership for the continuous improvement of project management across the company. Randy joined HP in 1978 and has been a me
4、mber of the Project Management Initiative since 1991. He develops and facilitates workshops, trains intact teams, and provides consulting on project management practices to product and process developers in HP businesses.Randy was a program manager in computer systems and personal computer product d
5、evelopment, in systems marketing, and in manufacturing. He led teams to bring complex development systems to market; develop a hardware system product life cycle; resolve computer system architectural issues; and identify, document, and apply best practices. He was a session keynote speaker at the W
6、orld Congress on Project Management, a speaker at PDMA International Conferences, and invited to speak at many other professional conferences. Prior to HP, Randy spent 10 years with General Electric Company in field service engineering.Randy has a BS in Electrical Engineering from the University of
7、California at Santa Barbara and an MBA in Management from San Francisco State University. He is a member of the Project Management Institute (PMI) and formerly on the Board of Directors for the Product Development and Management Association (PDMA). DR. ROBERT J. GRAHAM, PMPBob Graham is currently an
8、 independent management consultant in the areas of project management and organizational change and a senior associate with the Strategic Management Group. Previously he was a senior staff member of The Management and Behavioral Sciences Center at The Wharton School, University of Pennsylvania. Whil
9、e at Wharton he taught in the MBA and Ph.D. programs and was also a part of the Wharton Effective Executive program teaching Project Management to practicing executives. Bob has held Visiting Professor positions at both the University of Bath, in England, and the University of the German Armed Force
10、s in Munich, Germany. Bob continues as Adjunct Professor at both the University of Pennsylvania and as a part of the Project Management Unit at Henley Management College in England. His previous book is entitled Project Management as if People Mattered. His latest book, co-authored with Randy Englun
11、d, is entitled Creating an Environment for Successful Projects: The Quest to Manage Project Management.Bob has a BS in Systems Analysis from Miami University, as well as an MBA and Ph.D. in Operations Research from the University of Cincinnati. He was also a Post-Doctoral Fellow at The Wharton Schoo
12、l. In addition, he has an MS in Cultural Anthropology from the University of Pennsylvania. He earned Project Management Professional (PMP) certification from the Project Management Institute.Abstract:There is a dramatic rise in the use of project management as organizations shift to provide customer
13、 driven results and systems solutions. Some implementations of project management have been successful, while others are spectacular failures. A common occurrence in many organizations is too many projects being attempted by too few people with no apparent link to strategy or organizational goals. R
14、esearch and experience indicate that the support of upper management is critical to project success. This article reviews actions that upper managers can take to create an environment for more successful projects in their organizations. Specifically, the authors discuss practices for upper manager t
15、eamwork and offer a complete model for selecting projects that support a strategic emphasis. The article includes experiences from within Hewlett-Packard Company. 1999 Elsevier Science Inc.Growth in organizations typically results from successful projects that generate new products, services, or pro
16、cedures. Managers are increasingly concerned about getting better results from the projects under way in their organizations and in getting better cross-organizational cooperation. One of the most vocal complaints of project managers is that projects appear almost randomly. The projects seem unlinke
17、d to a coherent strategy, and people are unaware of the total number and scope of projects. As a result, people feel they are working at cross-purposes, on too many unneeded projects, and on too many projects generally. Selecting projects for their strategic emphasis helps resolve such feelings and
18、is a corner anchor in putting together the pieces of a puzzle that create an environment for successful projects 6.This article covers a series of steps for linking projects to strategy. These steps constitute a process that can be applied to any endeavor. Included throughout are suggestions for act
19、ion as well as guidelines to navigate many pitfalls along the path. Process tools help illustrate ways to prioritize projects. The lessons learned are from consulting with many firms over a long time period and from personal experiences in applying the lessons within Hewlett-Packard Company (HP), a
20、$40 billion plus company where two thirds of its revenue derives from products introduced within the past two years.The Importance of Upper Management TeamworkDeveloping cooperation across an organization requires that upper managers take a systems approach to projects. That means they look at proje
21、cts as a system of interrelated activities that combine to achieve a common goal. The common goal is to fulfill the overall strategy of the organization. Usually all projects draw from one resource pool, so they interrelate as they share the same resources. Thus the system of projects is itself a pr
22、oject, with the smaller projects being the activities that lead to the larger project (organizational) goal.Any lack of upper-management teamwork reverberates throughout the organization. If upper managers do not model desired behaviors, there is little hope that the rest of the organization can do
23、it for them. Any lack of upper-management cooperation will surely be reflected in the behavior of project teams, and there is little chance that project managers alone can resolve the problems that arise.A council concept is one mechanism used at Hewlett-Packard (HP) to establish a strategic directi
24、on for projects spanning organizational boundaries. A council may be permanent or temporary, assembled to solve strategic issues. As a result, a council will typically involve upper managers. Usually its role is to set directions, manage multiple projects or a set of projects, and aid in cross-organ
25、izational issue resolution. Several of these council-like activities become evident through the examples in this article.One example at HP was a cross-organizational council pulled together to resolve input/output (I/O) architectural issues for a new line of computer systems. A computer architecture
26、 is the underlying structure that directs hardware to implement software commands. The processor architecture was solid, but portions of the I/O were vague, broken, or undefined. Hundreds of technical issues were logged against the architecture. Individual project teams were optimizing solutions to
27、fit their objectives (organizational suboptimization). Meanwhile, the overall architecture was at risk of getting out of control. Since this architecture provided the structure for a new platform of minicomputer products, impact on the product family would be enormous.One project manager (a champion
28、) took the initiative to convene an upper-manager council. The council accepted ownership to resolve the set of interrelated issues. People accepted membership on the council because they came to understand the strategic importance of the mission. The council authorized groups of engineers to study,
29、 propose, review, and accept solutions. It first established a set of priorities and constraints to guide the study groups. The council met at least once a month to review progress and make changes. When several issues bogged down, it authorized an escalation path to two managers who would listen to
30、 the arguments and make decisions. Because of the tremendous impact on time-to-market of projects dependent on the outcome, the council kept appropriate pressure on making progress. At the end of the resolution phase, it enthusiastically supported a celebration party for the hard work contributed by
31、 hundreds of engineers. They listened to recommendations from a retrospective analysis and took action on suggested improvements, applying them to subsequent projects that were initiated to resolve additional issues. Over time the process improved dramatically and led to reduced anxiety about the ch
32、aotic state of the architecture.This systematic approach illustrates the vast and important influence of upper-management teamwork on project success. Increasingly evident are companies who convene portfolio selection committees. We suggest that organizations begin by developing councils to work wit
33、h project managers and to implement strategy. These councils exercise leadership by articulating a vision, discussing it with the project managers, asking them their concerns about and needs for implementing the strategy, listening carefully to them, and showing them respect so they become engaged i
34、n the process. In this way upper managers and project managers develop the joint vision that is so necessary for implementation of strategy.Process for Project Selection and PrioritizationOnce the upper management team is established, they can follow a process to select sets of projects that achieve
35、 organizational goals. They are then ideally positioned to implement consistent priorities across all departments. Figure 1 represents a mental model of a way to structure this process. Outputs from the four steps interrelate in a true systems approach. This model comes from experience in researchin
36、g and applying a thorough approach to all the issues encountered in a complex organization. It is both simple in concept and complex in richness. The authors use the model both as an educational tool and to facilitate management teams through the process. Figure 1 goes hereWhat the Organization Shou
37、ld Do and How to Know When You Are Doing ItFirst, identify who is leading the process and who should be on the management team. More time spent here putting together a “mission impossible” team pays dividends later by getting up-front involvement of the people who will be affected by the decisions t
38、hat will be made. Take care not to overlook any key-but-not-so-visible players who later may speak up and jeopardize the plan. This team may consist solely of upper managers or may include project managers, a general manager, and possibly a customer. Include representation of those who can best addr
39、ess the key opportunities and risks facing the organization. Ideally they control the resources and are empowered to make decisions on all projects. The leader needs to get explicit commitment from all these people to participate actively in the process and to use the resulting plan when making rela
40、ted decisions. Be aware that behavioral issues become super urgent. This process hits close to home and may have a severe impact on projects that people care personally about. Uncertainty and doubt get created if management does not tread carefully and pay attention to people concerns.The team begin
41、s by listing all projects proposed and under way in the organization. Many times this step is a revelation in itself. A usual reaction is, “I didnt realize we had so many projects going on.” The intent is to survey the field of work and begin the organizing effort, so avoid going into detailed discu
42、ssion about specific projects at this point.The team clarifies or develops the goals expected from projects. Be careful not to get constrained through considering only current capabilities. Many teams get sidetracked by statements such as “We dont know how to do that,” effectively curtailing discuss
43、ion on whether the organization ought to pursue the goal and develop or acquire the capability. Rather, the discussions at this stage center around organizational purpose, vision, and mission. This is a crucial step that determines if the rest of the project selection process can be successful. In t
44、he authors experience, those organizations with clear, convincing, and compelling visions about what they should be doing move ahead rapidly. Any lack of understanding or commitment to the vision by any member of the team leads to frustration, wheel-spinning, and eventual disintegration of the whole
45、 process. This pattern is so prevalent that clarity of the goal or strategy is applied as a filter before agreeing to facilitate teams through the process.Organize the projects into categories that will later make it easier to facilitate a decision-making process. Wheelwright and Clark 14 suggest us
46、ing grids where the axes are the extent of product change and the extent of process change. Some organizations use market segments. The benefit to this effort is that seeing all projects and possible projects on a continuum allows checking for completeness, gaps, opportunities, and compliance with s
47、trategy. This might also be a good time to encourage “out-of-the-box” thinking about new ways to organize the work. Use creative discussion sessions to capture ideas about core competences, competitive advantage, and the like to determine a set of categories most effective for the organization. For
48、example, the categories might be: Evolutionary or derivativesustaining, incremental, enhancing Platformnext generation, highly leveraged Revolutionary or breakthroughnew core product, process, or businessFigure 2 goes hereThe actual products in Figure 2 were introduced to the market over time in the
49、 alphabetical order and positioning shown. Although the figure represents a retrospective view, it illustrates a successful strategy of sequencing projects and products. There is a balanced mix of breakthrough products, such as A, followed by enhancements, B through E, before moving on to new platforms, F through H, and eventually developing a new architecture and product family with L. At the tim
