Strategic Project Management

This is an excerpt of a paper I wrote while working on my MBA. To read the entire article, download the PDF titled “Strategic Project Management.”

Strategic Project Management (SPM) (also called Enterprise Project Management by some) has been defined by Callahan & Brooks (2004) as

“the use of the appropriate project management knowledge, skills, tools and techniques in the context of the companies goals and objectives so that the project deliverables will contribute to company value in a way that can be measured” (Callahan & Brooks, 2004, p. 23).

They further describe SPM as

“a process that takes into account a company’s way of doing business, allowing for the possibility of a significant payoff with fewer risks” (Callahan & Brooks, p. 30).

The above definitions are good, but they do not convey the most important aspect of SPM, which is the fact that senior leadership needs to be involved in selecting, defining and prioritizing which projects are undertaken within the organization. Because of this, the following definition does a much better job of accurately defining SPM:

Strategic Project Management consists of selecting, managing and measuring project outcomes to ensure optimal value for an organization. All projects undertaken by an organization must meet a set of criteria setup by the organizations’ leadership to ensure alignment with the strategic vision of the organization.

Strategic Project Management is really nothing more than picking the right projects for the organization to ensure optimal returns. This sounds very simple and straightforward, but research shows that there are many organizations that have overlooked the important fact of aligning projects with corporate strategy.

References:
Callahan, K., & Brooks, L. (2004). Essentials of strategic project management. Hoboken, NJ: John Wiley & Sons.

[tags] Strategic Project Management, Project Management, Consulting, Project Portfolio Management [/tags]

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  • http://www.johncow.com John Cow

    I absolutely love the information you are sharing!

    Great job!

    John Cow’s last blog post is: Behind the Scenes of a Madd Cow – Crazy I Tell You

  • http://ericbrown.com Eric D. Brown

    @John Cow: Thanks!

  • http://thegroovychick.com Sharon

    I'll tell you that I have experienced first hand when projects don't line up with corporate strategy…then, all of a sudden, everyone is looking around at each other trying to figure out what happened! Talk about lost revenue, and productivity.

    Sharon's Recent post…Best Types Of Aerobic Exercise For Fat Loss

  • Tapiwa Matizha

    informative, thank you!

  • http://intensedebate.com/people/ericbrown Eric D. Brown

    You are correct. I've seen it happen so many times…an organization puts a lot of effort (and money) into completing a project only to realize that they were working on the 'wrong' project.

    Thanks for your comment and insight Sharon!