Benefits of Linking Business Strategy to Project Management

Appreciation of Strategic Significance of Project Management in Business

Appreciation of strategic significance of project management in business is accelerating fast. Kaiser, El Arbi, and Ahlemann (2015) note that the cause of this acceleration might be a firm belief among managers that associating project management with business strategies can considerably improve the attainment of corporate goals. Kaiser, Arbi, and Ahlemann (2015) concur with Leonidou et al. (2015) that business organisations need to align their strategies with project management which influence the achievement of the organisational goals and strategies. However, studies that focus on the benefits of linking project management with business strategies and how to attain the alignment is scanty hence many firms are still not sure whether or not to link their project management with business strategies. This paper discusses the benefits of linking business strategy to project management.

Business Strategy and its Importance

Business strategy refers to the working plan of a business organization to achieve its vision through prioritization of its objectives, favourably competing in the market and optimizing its financial performance to work in tandem with its business model (Leonidou et a. 2015). According to Leonidou et al. (2015), a strategy offers the practical approach by which the business organization distinguishes itself in the market from potential competitors and the methods it uses to earn revenues and margins respectively.

Project Management and its Objectives

On the another hand, project management is knowledge application, methods, tools, processes and the technical expertise to achieve the specific objectives of the project (Kerzner and Kerzner 2017). It is imperative to note that project management involves initiating an objective, planning, execution, controlling and closure of a set objectives within a specified timeframe (Kerzner and Kerzner 2017).

The Benefits of Linking Business Strategy with Project Management

Project management is tailored at achieving all the specified goals of the project within a given period of time. There are various benefits of linking business strategy with project management. First thing, project management continues to get a strategic importance among established organizations due to its specificity in setting project objectives and the timeframe within which set objectives to have to be achieved (Kerzner and Kerzner 2017). Kaiser, El Arbi, and Ahlemann (2015, p.126 ) maintain that the significant growth in linking project management to business organisations might be attributed to the fact that once the project management is aligned with the business strategy, it enhances faster achievement of the organisational goals, strategies, and performance.

Building Blocks for Achieving Business Strategies

Kaiser, El Arbi, and Ahlemann (2015, p.126 ) assert that project management forms the building blocks for the achievement of business strategies in the contemporary business world. Further study by Serra and Kunc (2015, p.54) indicate that the success of a business is high if based on project management since the principles of project management calls for a timely review of the set objectives and give room for making changes where necessary.

Prioritization and Alignment of Strategies

Notably, business organisations might have several sets of strategies. Project management helps the organisation to split the strategies into both short and long-term strategies (Serra et al., 2015, p.55). In the past business, organisations have been on record for conducting many projects without a clearly established link between the set objectives and the strategy (Serra et al., 2015, p.55). The absence of a clear link in executing business strategies is likely to lead to frustrations, randomized and pointless decision making among businesses managers.

Guiding Project Selection and Change Management

Project management also serves as a guide to business organizations prioritize the selection of specific projects in line with their established strategic path (Petro and Gardiner, 2015, p. 1717). This is important since it helps the managers to identify, understand, and recognise the different purposes that each project is tailored to achieve (Petro and Gardiner, 2015, p. 1717). The approach ensures that they are able to create an enabling environment that will oversee a smooth transition of the business into accepting the strategic changes that a respective project manager will recommend.

Heartbeat Reviews for Effective Strategy Implementation

Additionally, it is worth noting that business organisations have to be specific and focused on achieving the set business strategies so as to put with the stiff competition from their competitors and adjust accordingly to the dynamic market trends. Business organisations enjoy the benefit of "heartbeat reviews" upon the integration of business strategies with project management policies (Mir and Pinnington, 2014, pp. 202). In a research study conducted by Mir and Pinnington (2014), they maintain that heartbeat reviews is a project portfolio that can be used in the management and administration of business strategies. Mir and Pinnington (2014, p. 204) concur by arguing that instead of making independent reviews on each and every project, heartbeat reviews are vital in assessing the overall projects portfolio over a specific period of time until its completion against the business strategy.

Development of Talent, Skills, and Professional Growth

Mir and Pinnington (2014, p. 205) further note that the periodic heartbeat reviews are significant since project managers are able to adjust the specific project in accordance with the business strategies. Importantly, heartbeat reviews save time and are cost-effective because project managers will no longer have to sit down and independently review each project in relation to the business strategies (Mir and Pinnington, 2014, p. 205). In addition, project managers are able to make changes to the project before it is fully completed unlike making such significant changes to the same project when it has already been accomplished. In turn, this will become expensive for business organisations.

Challenges in Linking Business Strategy with Project Management

Linking business strategies with project management also facilitate the development of talents, skills and ensure the professional growth of employees (Cooke, Saini, and Wang, 2014, p. 226). The business organisation will have to hire employees with exquisite and special talents and skills to work for them. In return, the employees while working on different projects, they develop special talent and skills hence promoting their professional growth. It is important to note that business organisations that have talented and skilled workforce always maintain a good market command as well as remaining competitive despite the dynamic market trends. According to Cooke, Saini, and Wang (2014, p. 226), a talented and skilled workforce will come up with innovative ideas that will spur the growth of the business organization. Employees with special talent and exceptional skills enhance quality.

Conclusion

However, the process of linking business strategy with project management is not easy. First thing, cases of poor communication which affects value accomplishment of projects, engaging both internal and external consumers might lead to confusion (Cooke, Saini, and Wang 2014, p. 226). The culture and tradition of the business organization, as well as the organizational structure, may affect linking of project management with business strategies.

In a nutshell, different business organizations have different strategies that enable them to remain competitive in the market. Imperatively, business organisations integrate project management in their strategies so as to accelerate the achievement of organizational goals and performance.

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