Leading Projects In

Organizations
SCS 1952

Session 1
Vision, Strategy and
Project Management
Course and Certificate Overview
Certificate in Project Management Fundamentals - Provides a comprehensive
overview of project management, preparing you to manage both large and
small-scale projects. It covers both the hard skills of cost and implementation
management and the crucial organizational management skills necessary for
long term success

The Foundations of Project Management (SCS 1860): Basic concepts and

functions of project management, and the project management framework
Project Implementation and Control (SCS 1937): In-depth issues involving the
successful implementation of planned projects
Leading Projects in Organizations (SCS 1952): Concepts, approaches and tools
covering relevant leadership and organizational aspects of project management

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Required Text

Leadership in Project
Management
Leading People and Projects to
Success, Second Edition
Authors: Arora and Baronikian

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A Walk through the Course Outline
Over the next 12 weeks, we will cover:

1. Vision, Strategy and Project Management

2. Organizational Culture
3. Organizational Structure and the Project Management Office
4. You as a Leader
5. Building a High Performance Team
6. Mid-Term Exam + Ethical Leadership
7. Stakeholder Management
8. Communication Management
9. Change Management
10. Success and Closure
11. Project Presentations
12. Final Exam

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Blackboard and Assessment
Blackboard is the Learning Breakdown
Management System being 20% Blackboard
used for course participation (quizzes and
User IDs and instructions group projects)
have been provided/to be 20% final group project
provided shortly
20% mid-term exam
Course material will be [session 6]
placed there and you can
40% final exam
print it off for a hard copy

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 Session 1

Vision, Strategy and Project Management

In real life, strategy is actually very

straightforward. You pick a general
direction and implement like hell.
- Jack Welch

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 Session Outline
1. Vision, Mission and Values!
2. Strategic Planning and the Balanced Scorecard
3. Portfolios, Programs and Projects enable a
successful strategy implementation
Learning Objectives
Define and outline key aspects of organizational Vision, Mission and Values
Understand how mission and vision provide context for strategic planning process
Differentiate the role of deliberate and emergent strategy
Explain the concepts of portfolio, program and project management and their
relationship to organizational strategy

*Please refer to the textbook for references and

sources for all information and exhibits
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Readings

Vision, Strategy and Project Management

Arora and Baronikian,
Leadership in Project Management, Second Edition
Chapter 1: Vision, Strategy and Project Management

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1. Vision, Mission and Values!

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Leadership and Organizational Context
Project leaders and projects operate within an
organizational context
Every organizations internal and external
circumstances define and drive its priorities,
resourcing and projects
Therefore, project leadership is impacted by
organizational vision, mission, values and strategy
This strategic context guides the organization in
selecting the right and most beneficial projects in
which to invest

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Key Indicators of Organizational Culture and
Environment

The Mission Statement what do they say they do, why they
do it, for whom, and how they do it
The Vision Statement where does the organization see itself
going if anywhere! It should know its pathway! Your vision
should project a compelling story about the future
The Values Statement the source or inspiration on which
behaviour is (should be) based

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Vision
The vision of an organization is simply a statement
about its desired future
It is a description of the organizations hopes and
dreams, answering the question:
What do we want for our future and what will success
look like?
It speaks to the what of the destination, not the
how of getting there
The vision can be and often is figurative rather than
literal

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Vision Statement

An organizations Vision Statement is a concise, aspirational

word picture of its future
A Vision Statement should serve as a source of inspiration for
a range of stakeholders, both internal and external
An organizations Vision Statement helps to focus energy and
mobilize resources toward a common and significant goal

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Example Vision Statements
Apple
An Apple on every desk
There wasnt and isnt an Apple on every desk
The vision can be figurative, rather than literal
NASA
To reach for new heights and reveal the unknown so that
what we do and learn will benefit all humankind
Wikimedia Foundation
Imagine a world in which every single human being can
freely share in the sum of all knowledge. Thats our
commitment.

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Mission
An organizations mission is very closely tied to its
vision
While the vision is about the future, the mission is
about the present and near-term
The mission of an organization answers the
questions:
Why do we exist?
What needs do we serve?
Who do we serve?
How are we different?

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Mission Statement
The Mission Statement briefly describes the
mission of an organization
It should also give some indication of how the
organization will achieve its vision
Coupled with an organizations Vision Statement,
the Mission Statement helps to motivate staff,
focus energy and mobilize resources toward a
common goal

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Example Mission Statements
Nike
To bring inspiration and innovation to every athlete* in the world.
*If you have a body, you are an athlete
United Way Toronto
To meet urgent human needs and improve social conditions by
mobilizing the communitys volunteer and financial resources in a
common cause of caring
Coca-Cola Promise
The Coca-Cola Company exists to benefit and refresh everyone it touches. The
basic proposition of our business is simple, solid, and timeless. When we bring
refreshment, value, joy and fun to our stakeholders, then we successfully
nurture and protect our brands, particularly Coca-Cola. That is the key to
fulfilling our ultimate obligation to provide consistently attractive returns to the
owners of our business.

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Values
The values of an organization are those shared
beliefs that are held to be most important to the
organization
Values are the answer to the question:
What are the essential beliefs that we share as an
organization?
Over time, the values of an organization become
a fundamental element
of its culture

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Values Statements

Values Statement are declarations of the central

values of the organization
They may reflect the key beliefs of the founders,
the history of the organization or the current
view of the organization
Typically, an organization describes its values in 4
7 short statements

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Values Statements
Example Our projects are known for:
1. On time and on budget completion.
2. Meeting or exceeding our customers quality expectations.
3. Full completion of the project as contracted.
4. Excellent communications.
Questions: Does your organization have a Values Statement? Do
you know what it is? Is it being fulfilled?

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Maple Leaf Foods Values Example
Maple Leaf Leaders will always:

Do what's right
Acting with integrity; treating people with respect
Be performance driven
Having an intense competitive edge; always challenging for better performance from
better people
Setting stretch targets; being accountable for results
Being fact based; objectively measuring progress and success
Encouraging the freedom to disagree
Recognizing and rewarding progress and performance
Have a bias for action
Maintaining the highest level of energy and urgency
Assuming the initiative
Accepting calculated risks, without fear of failure
Building mutually supportive teams, with decisive leadership
Hating bureaucracy; fostering a lean and agile organization
Continuously improve
Committing to continuously learn and teach
Embracing change as the only path to future opportunity

Source: http://www.mapleleaf.ca/working/OurValues.aspx 21
Project Team Values Statements

There can also be values determined at the level

of the project team
This is especially pertinent if a project team is
drawn from multiple organizations
The project team values will be most meaningful
and motivating if they emerge from the team
itself

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Example Project Team Values Statements
We will use this project as a foundation for the
future, both to help us reach our next level of growth
and to model the way for other significant initiatives
We will seek sustainability in all aspects of the design
and deployment of the project
We will act with the highest integrity,
professionalism and quality in all our interactions
We will share in and celebrate our project successes

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2. Strategic Planning and the
Balanced Scorecard

Strategy is about being different. Strategy

means deliberately choosing a different set of
activities to deliver a unique mix of value.
Michael Porter

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Organizational Context for Strategy and Projects
The vision, mission
and values
statements provide
the essential
context for the
development and
execution of
strategy

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Strategy
Strategy is important as it acts as the
organizational compass
The vision, mission and values of an organization
should remain relatively stable, while the
strategy of the organization is typically renewed
every 3 - 5 years

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Strategic Planning

Strategic planning is a disciplined process for making

key decisions and agreeing on actions that will
shape:
What an organization is
What it does
Why it does it
Strategic planning involves three essential steps:
1. Consider the current situation
2. Reflect on where we would like to be
3. Determine how best to get there

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Deliberate, Emergent and Realized Strategy
The planned or proactive
component of strategy is
called the Deliberate
Strategy
The organization may need to
react to events and adjust
strategy this is called the
Emergent Strategy
Some elements in the
deliberate strategy may need
to be abandoned over time
The Deliberate Strategy and
the Emergent Strategy, taken
together, constitute the
organizations Realized
Strategy

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Strategic Planning Techniques

Strategic planning can involve a variety of

techniques, including:
Visioning exercises, to develop a desired future state
SWOT Analysis (Strengths, Weaknesses, Opportunities,
Threats)
Market Analysis
Competitive Analysis and Benchmarking
Porters Five Forces Analysis
Gap Analysis
Ideation and innovation (for new products, services,
processes, etc.)

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What is the Balanced Scorecard?
The phrase Balanced Scorecard was coined in the early
1990s by Robert Kaplan and David Norton
The roots of this approach are deep, and include the
pioneering work at GE on performance measurement and
reporting
The Balanced Scorecard is a powerful strategic planning,
execution and performance management system
used to align business activities to
the vision and strategy of
the organization

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What is the Balanced Scorecard?
A framework to translate a
strategy into operational
reality
It extends the sole dominant
measure of the past and
present Finances and
balances it with consideration
for:
The Customer
Internal Business Processes
Learning and Growth
And it fits with project
management
A system that requires
development of effective
measurements in all four
perspectives.
Central to all four
perspectives of the BSC
are:
Mission what is our purpose
Values what is basic to how
we operate
Vision where do we want to
go and be in the future
Strategy how do we plan to
get there!
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Relating Strategy to the Balanced Scorecard
The Balanced Scorecard provides a framework to translate
strategy into operational reality
The four strategic perspectives, quadrants or themes are:
1. Financial
2. Internal Processes
3. Customers
4. Learning and Growth

Mission,
Vision and
Strategy

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The Four Perspectives.
1. Customer Perspective
Critical Questions -
1. Who are our target/key Customers?
2. What is our value proposition in serving
them?
3. What do our customers expect/demand
from us?
4. Do we know them well
The Measurements - How Do We Know if
We Are Succeeding?
1. Customer Satisfaction/Surveys
2. Customer Loyalty do they come back?
3. Market Share, Number of Customers.
4. Customer Loss, Retention, Acquisition
2. Internal Process Perspective
Critical Questions -
1. Are we constantly improving processes
that meet the present and future demands
of customers?
2. Are we operating at an optimal level of
efficiency?
The Measurements - How Do We Know if
We Are Succeeding?
1. How often do we bring in new, more
efficient, effective, systems, products, ideas
and do they work?
2. Regulatory and Social Measures are we
on top of and demonstrating these?
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The Four Perspectives.
3. Learning & Growth Perspective
1. Identify core competencies what we need in
our employees to attain constant success
both skills and attitude.
2. Personal Development Planning making sure
staff knows and shares strategic directions.
3. Measure Employee Training how much is
there and is it on target for present and new
needs, is it shared with others.
4. Employee Productivity does employee
development result in improved productivity
and performance over time.
4. Financial Perspective
Financial measures are a critical component
in all organizations profit or not-for-profit
Key Issues are:
1. Profitability or surpluses
2. Revenue growth
3. Higher output/productivity at consistent
cost
4. Optimum Asset Utilization
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Balanced Scorecard Framework
The Balanced Scorecard framework elaborates
strategy under each perspective through specific:
Objectives
Measures
Targets
Initiatives

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3. Portfolios, Programs and Projects Enable
a Successful Strategy Implementation

PMBOK defines a project as a temporary endeavor

undertaken to create a unique product, service, or result.
Projects can be large or small, relatively simple or highly
complex. They end when their objectives have been reached or
the project has been terminated
A group of related projects managed in a coordinated way to
obtain benefits and control not possible from managing them
individually is called a program. Programs may include other
elements of work outside of the scope of the discrete projects
A collection of programs and projects, that are grouped
together to facilitate effective management of that work and
meet strategic business objectives, is called a portfolio

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 Project Program Portfolio
Management Management Management
Support strategy
Provide
Deliver benefits by formulation and
deliverables by
Comparison of Purpose
executing a
network of tasks
executing a network
of projects
execution from an
investment
perspective
Key Aspects of Duration Temporary
Longer time-frames
compared to
Enduring process
with regular balancing
Project, Program Accomplishing
projects
Accomplishing
of investments
Adjusting the balance
Strategic specific of investments to
and Portfolio Alignment
means
specific
requirements and
requirements and
objectives, typically
increase probability of
achieving financial
objectives
Management Strategic
Projects address
on a grander scale
Programs fulfill
and other outcomes

functional or functional, business Portfolios accomplish

Accomplishment
business unit unit or enterprise enterprise strategies
means
strategies strategies

Meet broader
Meet defined
objectives of and Produce longer-term
Success metrics in terms of
generate benefits for value to investors and
defined by the triple
different shareholders
constraint
stakeholders

Risks are deviations

Risks are framed as from investor
Risk Risks are typically
opportunities and expectations managed
Management regarded as threats
threats through portfolio
balancing
Key Analysis and decision-
Management skills Leadership skills
Competencies making skills

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Strategic Objectives Influence Portfolio Criteria
An organizations strategic objectives
considerably influence portfolio criteria, decision-
making and performance indicators
Program and project intake, monitoring and the
success of the portfolio would be evaluated
based on a set of agreed-upon indicators
Effective strategic planning in an organization
leads to appropriate new projects, programs and
portfolios

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Relating Portfolios, Programs and Projects to
Strategies
An example of the
cascading of
organization vision and
mission through one or
more strategic
themes, to one or
more programs, and
then to a set of
projects
Strategic planning can
be extremely useful
for uncovering
innovative ideas and
approaches

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On-Strategy is the Fourth Dimension of the
Iron Triangle
Iron triangle refers to scope, cost (or
budget) and time (or schedule)
These traditional constraints or success
criteria should be extended to
incorporate strategic alignment or
being On-Strategy
It is even more important to be On-
Strategy than just On-Cost, On-Time
and On-Scope/On-Quality
A project which fully meets the triple
constraint, but has little or no strategic
value, is likely a lost investment
An important exception is a project
mandated by regulatory or
legislative requirements

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The Fourth Dimension
An On-Strategy project will have a larger impact on
the organization and yield a better return on
investment and human capital than one where the
connection is unclear
This fourth dimension facilitates:
Alignment of project objectives with strategy
Alignment of the organizations limited resources with
strategy
Strategic alignment should be a criterion within a
project scoring system, helping to filter and prioritize
projects

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Good, Bad and Naughty Projects
Good projects are those which are aligned well with the
organizational strategy
Bad projects are those which are not!
Naughty projects are marginal
Could be highly
dependent on the
influence of
the sponsor

Good [Planned] Good [Opportunistic] Naughty Bad

projects projects projects projects
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Naughty Projects
Naughty projects seldom accomplish business objectives
A project sponsored by a director that makes him/her
look good might not generate the right organizational
benefit
Such Director or pet projects may be based on a
hidden agenda
e.g. Promotion to VP, transfer to a new role, receiving a
large bonus, etc.
Projects of this nature squander resources, can create
unnecessary risks and may have high opportunity costs

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Chapter Summary
An organizations vision, mission and
values provide fundamental context for
project leaders
Effective strategic planning is vital for the
health of every organization
An organizations strategy provides the
compass, roadmap and rationale to help it
move from its current state to its desired
future state
The Balanced Scorecard is a powerful
strategic planning, execution and
performance management system

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