Understanding the Importance of Strategic Alignment in Project Management
Recently, I was involved with a project that upon completion, it was identified by various stakeholders within the organization, that the project no longer aligned with the broader company’s strategic goals. Sure, the project was a success (in terms of meeting and satisfying the project-specific metrics), but the business objectives had shifted, and the project was no longer as relevant (at least not in its final form, and modifications were necessary).
It could certainly be argued that this was a failure by the Project Sponsor for not recognizing that the objectives were no longer aligned, and you would certainly have a valid argument. However I think a better solution, rather than relying on one or two individuals to align project goals with the company’s overall strategy, is to encourage wider participation of the overall strategic goals, particularly the Project Manager.
Here’s a few ideas why I think this is important and how Project Managers (and ultimately the Projects) can benefit from PM’s strategic planning participation.
Firstly, and most obviously, based on the example above:
Alignment with Organizational Goals
- Ensures Relevance: Having the PM involved in Strategic planning (or at the very least aware of Strategic planning outcomes) helps project managers align their projects with the broader organizational goals and objectives. This ensures that the project contributes to the company's objectives as well as its mission and vision.
- Secures Stakeholder Buy-In: Projects that align with organizational strategy are more likely to gain support from key stakeholders and leadership.
However, there are many other benefits to Project Managers being involved with and aligning with the Strategic Plan as the project is identified, planned and initiated.
Improved Resource Management
- Optimizes Allocation: Strategic planning allows project managers to allocate resources (time, budget, personnel) more effectively based on strategic priorities. This helps in optimizing the use of available resources.
- Prevents Overallocation: By understanding strategic priorities, project managers can avoid overallocation and misallocation of resources.
Enhanced Risk Management
- Identifies Risks Early: Strategic planning involves identifying potential risks and uncertainties that could impact the project’s alignment with organizational goals.
- Develops Mitigation Plans: By anticipating risks, project managers can develop strategies to mitigate them and ensure the project remains on track.
Clear Objectives and Milestones
- Defines Clear Goals: Strategic planning helps in setting clear and actionable objectives for the project, making it easier to measure progress and success. Additionally, the Project goals should align with the broader goals of the Strategic plan to ensure continued relevance.
- Facilitates Tracking: Well-defined objectives and milestones from a comprehensive strategic plan enable project managers to track progress and make necessary adjustments.
Effective Decision-Making
- Informed Choices: Strategic planning provides a framework for making informed decisions that are in line with the project's and organization's strategic goals.
- Prioritization: It helps in prioritizing tasks and activities that have the most significant impact on achieving strategic objectives.
Increased Efficiency and Effectiveness
- Streamlined Processes: With a strategic plan, project managers can streamline processes, eliminate redundancies, and enhance overall efficiency.
- Focused Efforts: Strategic planning ensures that project efforts are focused on activities that directly contribute to strategic goals.
Stakeholder Communication
- Aligns Expectations: Strategic planning helps in setting clear expectations with stakeholders, ensuring that everyone is on the same page regarding project goals and outcomes.
- Facilitates Reporting: It provides a basis for regular reporting and communication with stakeholders about project progress and alignment with strategic objectives.
Long-Term Success
- Sustainable Outcomes: Projects that are aligned with strategic goals are more likely to achieve sustainable success and deliver long-term value.
- Supports Growth: Strategic planning can help projects contribute to organizational growth and development by aligning with long-term strategic initiatives.
Adaptability to Change
- Responds to Market Changes: Strategic planning prepares project managers to adapt to changes in the market or organizational environment, ensuring that projects remain relevant.
- Adjusts to New Opportunities: It allows for flexibility in adjusting project goals and strategies in response to new opportunities or challenges.
Ensuring Strategic Alignment for Project Success
By including the Project Manager in Strategic Planning, you are helping to contribute to overall project success. I recognize this may not always be feasible, or even possible, but at a minimum, the Project manager needs to be kept abreast of any shifts or changes to company strategy and objectives to ensure their project remains relevant and contributes to the overall objectives.
Change is inevitable, and if/when the organization's Strategy changes, the PM is often in the best position to make informed decisions on how the project can adapt and/or shift to meet these changing needs of the company.
