Download - Strategic Project Management Alex S. Brown, PMP Mitsui Sumitomo Insurance (MSIG USA) Session ADV09
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Strategic Project Management
Alex S. Brown, PMP
Mitsui Sumitomo Insurance (MSIG USA)
Session ADV09
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What is a Project Nightmare?
• Over budget?
• Late delivery?
• Poor quality?
• Even worse: on-time, on-budget, great quality, but delivering something your organization does not need
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Case Study
• Mitsui Sumitomo Insurance Group USA– 400-person subsidiary of MSI Japan– Property & Casualty insurer, mostly
commercial– Largest book is the US risks of Japanese
companies
• One-person Strategic Planning Office
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Session Overview
• What is strategic planning at MSIG USA?
• How does project management complement strategic planning?
• How do senior executives participate in projects and strategy at MSIG USA?
• What project management trends support strategic planning?
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What is “Strategic Planning”?
• Definition debated for years among academics and business leaders
• Typically a one- to five-year plan at MSIG USA– What projects to launch, what to continue– Align with medium- and long-term business
plans from USA and Tokyo
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Key Concepts for MSIG USA
• Executive Steering Committee– Was an actual committee in the past– Changed to become the President and CEO– Approve changes, provide executive oversight
• The Strategic Plan– By definition, a collection of projects– Projects are essential to strategy at MSIG
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What is the Strategic Plan?
• A collection of 15 to 25 active projects, plus more planned for the future
• Monitored by a Strategic Planning Office
• Authorized by top management
• Cross-departmental impact
• Relevant to medium- and long-term plans
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Strategic Planning Office
• Combination of a corporate planning function and a PMO
• “Project Portfolio Administration” function
• Mentor all project managers
• Audit and monitor budgets, schedules, results
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Partial Organization Chart
CEO
Office of the CEO President
SPO and othersUnderwriting, CIO,Ops, Finance, others
Internal Audit
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How Project Management Complements Strategic Planning
• Strategic Planning provides ideas
• Project Management achieves results
• Projects drive strategic changes
• Feedback loop for continuous change
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Strategic Planning – Ideas
• Projects are based on ideas and objectives
• Strategic planning creates them– SWOT (Strengths Weaknesses Opportunities
Threats)– Competitive Analysis and other studies– Market share goals– Vision statements
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Project Management Achieves Results
• How to execute strategy?
• Project management provides a robust way to execute change
• Assign project manager, defining accountability and responsibility
• Avoid creating strategy that is never realized or even attempted
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Project Results Drive Change
• Each project advances one or more strategic goal
• Some projects investigate an issue, creating new strategic goals at the end
• Some projects fail, but all are relevant
• Failure often uncovers key information
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Continuous Feedback Loop
Ideas
Projects
Strategy
Change
Staff Feedback and Ideas
Organizational Plan Updates
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Events that Join Strategy and Projects
• Project start-up
• Project closure
• Budget and resource authorization
• Resource conflicts and priorities
• Organizational crisis and strategic change
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Project Start-Up
• Most strategic moment of a project is right when it is authorized
• Strategy helps answer, “Why should we do this?” or “What is the goal?”
• PM helps you climb the ladder, strategy helps make sure it is on the right wall
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Project Closure
• A time to gather new ideas
• Teams see unsolved problems and issues
• At MSIG these ideas become new project proposals
• Ensure that good ideas are not lost
• A gift to the strategic planner
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Budget and Resource Authorization
• Projects constantly fight for resources and funding
• Tying projects to strategy allows PMs to explain their need in strategic terms
• Examining all project resource requests in terms of strategy helps eliminate “pet projects”
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Project Prioritization
• Often project conflicts arise, requiring a decision
• Organizational strategy can provide a more relevant way to score and rank projects
• Strategic planners are accustomed to scoring systems to set priorities, and can help design an appropriate system
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Crisis and Strategic Change
• Any crisis or critical event causes project uncertainty
• Strategic planners face uncertainty as well
• These times call for coordination– Practical, tactical ideas from project managers– Industry trends and top-down perspectives from
strategists
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Involving Senior Management
• Tie project management to something they must do
• Decision making
• Training
• Constant reinforcement
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Project Management Tied to Strategy
• At MSIG USA, medium- and long-term plans were required by Tokyo
• Project management easy to support as a way to implement these plans
• Project practices have become an ordinary way of doing business for executives
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Decision Making
• At MSIG USA, projects have become a way for executives to see progress more clearly
• Each status report is a chance to provide input
• Provided a formal, documented decision-making process
• Easier for senior managers to control
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Project Management Training
• Over 10% of the staff, including senior management, was trained in project management
• Many managers accepted roles as project managers or sponsors
• Middle and senior management reinforce training by using the terms regularly
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Constant Reinforcement
• Projects appear everywhere now– Company intranet– Bimonthly reports to senior management and
staff
• Continuing education for project managers
• Projects are now normal business
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Trends in Project Management Related to Strategy
• Project Management Maturity Models
• Standards and Books
• PMI Goals and Marketing
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Project Management Maturity Models
• An explosion of models
• Hard to measure process maturity without organizational strategy
• OPM3: “Transform Strategy into Results”
• Executive-level focus of these models encouraging project managers and strategists to meet and talk
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Portfolio Management Standards and Books
• How long can we focus on “selection”?
• Strategy encourages “start up” and “creation”
• Design new projects to fill voids in the portfolio
• Do not just select projects from a fixed list
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Many Books “Selection-Focused”
• Standard for Portfolio Management (PMI)– “priority” & “select” appear 70 times– “new component” appears 10 times
• New books account for the creation of the project and organizational strategy– Heerkens, The Business-Savvy Project Manager
– Dinsmore & Cooke-Davies, The Right Projects Done Right!
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PMI Goals and Marketing• PMI is promoting project management at
the executive level– “Worldwide, organizations will embrace, value
and utilize project management and attribute their success to it.”
– “Making project management indispensable for business results.”
• Achievable in partnership with strategists
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Summary
• MSIG USA made “project management” inseparable from “strategic planning”
• Reinforced from start-up to closure
• Strategic planning and project management support and reinforce each other
• Industry trends support integrating them
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Challenge: Link Strategy to Project Management at Your Organization
• How could the MSIG USA example help?
• What can you change? Whose help do you need?
• Are your projects already strategically aligned? If not, why not?
• PMI has set a vision for all of us – achieve it in your organization!
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Contact Information• Alex S. Brown, PMP
Mitsui Sumitomo Ins. (MSIG USA)
• Phone 908-229-0202
• Email [email protected] or [email protected]
• Session ADV09
• Website http://www.alexsbrown.com