Strategic Project and Business Management
Strategic Project and Business Management
ID UM56375BPR65381
1. Introduction ............................................................................................................... 3
2. Basics concepts ........................................................................................................ 4
2.1. Project ................................................................................................................ 4
2.2. Strategy .............................................................................................................. 5
2.3. Strategic Project ................................................................................................. 5
3. Organizational policies and procedure...................................................................... 6
3.1. Policy and procedures manual ........................................................................... 6
4. Organizational culture and styles .............................................................................. 7
4.1. Organizational culture ........................................................................................ 7
4.2. Typology of cultural types .................................................................................. 8
5. Project and Company Management ......................................................................... 9
5.1. Different types of Projects .................................................................................. 9
6. Organizational change projects .............................................................................. 11
6.1. Preparing the organization for change ............................................................. 12
6.2. Developing your people change management plan ......................................... 13
7. Project feasibility and profitability study .................................................................. 13
7.1. Common factors ............................................................................................... 14
8. Areas of expertise in project management ............................................................. 18
8.1. Application knowledge; standards & regulations .............................................. 18
8.2. Understanding the Project Environment ........................................................... 18
8.3. Management Knowledge and Skills ................................................................. 19
8.4. Interpersonal Skills ........................................................................................... 19
9. Organizational structures in projects....................................................................... 19
9.1. Effective Organization and Communications.................................................... 20
9.2. Organization Charts ......................................................................................... 20
10. Conclusion and recommendations ...................................................................... 21
11. Bibliography......................................................................................................... 23
1. Introduction
This assignment is regarding the courses of the curriculum designed for the Master
Program of Project Management course in school of business & Economics at Atlantic
International University.
The objective of the assignment is to bring knowledge about the STRATEGIC PROJECT
AND BUSINESS MANAGEMENT. In this course, the following aspects will be addressed
in detail:
• Company policy;
• Organizational culture and styles;
• Project and company management;
• Organizational change projects;
• Project feasibility and profitability study;
• Areas of expertise in project management;
• Organizational structures in projects.
All these aspects will be discussed just to link them in the project management
environment and see how they can them affect the achievement of the project objectives.
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2. Basics concepts
This topic is just to give the concepts of expressions that will be approached during the
realization of this assignment such as the following:
2.1. Project
According to Johnson, William H. A., Parente, Diane H. (2013, p.5), there are many
definitions of the project as described bellow:
• The entire process required to produce a new product, new plant, new system, or
other specified results.
• A narrowly defined activity which is planned for a finite duration with a specific goal
to be achieved.
• Project management deals with a one-time effort to achieve a focused objective.
• Projects...vary in scale and complexity from small improvements to products to
large capital investments. The common use of the word “project” for all of them is
logical because everyone is: an investment of resources for an objective; a cause
of irreversible change.
• ...Simply a cluster of activities that is relatively separate and clear cut. Building a
plant, designing a new package, soliciting gifts of $500,000 for a men’s dormitory
are examples. A project typically has a distinct mission and a clear termination
point.
In accordance to the definitions above, we can say that a project consists of a concrete
and organized effort motivated by a perceived opportunity when facing a problem, a need,
a desire or a source of discomfort. It seeks the realization of a unique and innovative
deliverable, such as a product, a service, a process, or in some cases, a scientific
research. Each project has a beginning and an end, and as such is considered a closed
dynamic system. It is developed along the 4 Ps of project management: Plan, Processes,
People, and Power. It is bound by the triple constraints that are calendar, costs and norms
of quality, each of which can be determined and measured objectively along the project
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lifecycle. Each project produces some level of formal documentation, the deliverable(s),
and some impacts, which can be positive and/or negative.
2.2. Strategy
Johnson, William H. A., Parente, Diane H. (2013, p.6) line the concept of strategy as the
following:
• Corporate strategy is the pattern of decisions in a company that determines and
reveals its objectives, purposes, or goals, produces the principal policies and plans
for achieving those goals, and defines the range of business the company is to
pursue, the kind of economic and human organization it is or intends to be, and
the nature of the economic and non-economic contribution it intends to make to its
shareholders, employees, customers, and communities.
• Competitive strategy is about being different. It means deliberately choosing a
different set of activities to deliver a unique mix of value.
• The framework which guides those choices that determine the nature and direction
of an organization.
• Strategy is the direction and scope of an organization over the long term, which
achieves advantage for the organization through its configuration of resources
within a challenging environment, to meet the needs of markets and to fulfil
stakeholder expectations.
• A strategy is the pattern or plan that integrates an organization’s major goals,
policies, and action sequences into a cohesive whole. A well-formulated strategy
helps to marshal and allocate an organization’s resources into a unique and viable
posture based upon its relative internal competencies and shortcomings,
anticipated changes in the environment, and contingent moves by intelligent
opponents.
• Strategy is the coherent logic in the stream of decisions made by a firm.
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major goals, policies, and action sequences into a cohesive whole. This project is
containing a long-term plan (in Mozambique not less than five years and it can be defined
as program).
Policies and procedures are designed to influence and determine all major decisions and
actions, and all activities take place within the boundaries set by them. Procedures are
the specific methods employed to express policies in action in day-to-day operations of
the organization. Together, policies and procedures ensure that a point of view held by
the governing body of an organization is translated into steps that result in an outcome
compatible with that view.
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4. Organizational culture and styles
4.1. Organizational culture
As referred by Schein, Edgar H. (2010). culture as a concept is thus an abstraction. If an
abstract concept is to be useful to our thinking it should be observable yet increase our
understanding of a set of events that are otherwise mysterious or not well understood.
From this point of view, the author argues that we must avoid the superficial models of
culture and build on the deeper more complex anthropological models. Those models
refer to a wide range of observable events and underlying forces, as shown in the
following list.
• Observed behavioural regularities: when people interact, the language they use,
the customs and traditional that involve, and the rituals they employ in a wide
variety of situations.
• Group norms, espoused values, formal philosophy, rules of the game, climate and
embedded skill;
• Habits of thinking, the mental models, and/or linguistic paradigms;
• Shared meanings, root metaphors or integrating symbols;
• Formal ritual and celebrations.
In accordance with these we can say that Organizational culture encompasses values
and behaviours that "contribute to the unique social and psychological environment of a
business. The organizational culture influences the way people interact, the context within
which knowledge is created, the resistance they will have towards certain changes, and
ultimately the way they share (or the way they do not share) knowledge. Organizational
culture represents the collective values, beliefs and principles of organizational members
and is a product of factors such as history, product, market, technology, strategy, type of
employees, management style, and national culture; culture includes the organization's
vision, values, norms, systems, symbols, language, assumptions, environment, location,
beliefs and habits.
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4.2. Typology of cultural types1
Many factors can contribute to the type of culture which is observed in large organizations
and large institutions. The list ranges from depictions of relative strength to political and
national issues. Some of them is being described below:
• Strong and weak types of organizational culture - A strong culture is that people
clearly understand and can articulate. A weak culture is one that employees have
difficulty defining, understanding, or explaining. Strong culture is said to exist
where staff respond to stimulus because of their alignment to organizational
values. In such environments, strong cultures help firms operate like well-oiled
machines, engaging in outstanding execution with only minor adjustments to
existing procedures as needed. Conversely, there is weak culture where there is
little alignment with organizational values, and control must be exercised through
extensive procedures and bureaucracy.
• Healthy organizational culture - Healthy companies are able to deal with
employees concerns about the well-being of the organization internally, before the
employees would even feel they needed to raise the issues externally.
• Bullying culture type - is seen to be prevalent in organizations where employees
and managers feel that they have the support, or at least implicitly the blessing, of
senior managers to carry on their abusive and bullying behaviour. Furthermore,
new managers will quickly come to view this form of behaviour as acceptable and
normal if they see others get away with it and are even rewarded for it.
• Personal culture - Organizational culture is taught to the person as culture is
taught by his/her parents thus changing and modelling his/her personal culture.
Indeed, employees and people applying for a job are advised to match their
"personality to a company's culture" and fit to it. Some researchers even suggested
and have made case studies research on personality changing.
1
https://en.wikipedia.org/wiki/Organizational_culture, consulted on 20th February 2019
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5. Project and Company Management
Lock, D. (2012, p.1). Mentioned that Project management is the management discipline
that plans, organizes and controls people, money and cash so that projects are completed
successfully in spite of all the risks. This process begins before any resource is
committed, and must continue until work is finished. The aim of the project manager is for
the outcome to satisfy the project investor and all the other stakeholders. That means
finishing the project on time, within budget and delighting everyone.
For very large industrial projects the funding and resources needed can be too great for
one contractor to risk or even find. The organization and communications are therefore
likely to be complicated by the participation of many different specialists and contractors,
possibly with the main players acting together through a consortium or joint venture
company established specially for the project.
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Manufacturing projects result in a piece of mechanical or electronic equipment, a
machine, ship, aircraft, land vehicle, or some other product or item of specially designed
hardware. Manufacturing projects usually happen in a laboratory, factory or other home-
based environment, where the company can provide a good environment in which to do
and manage most of the work. More difficult is the case of a complex product that is
developed and manufactured by a consortium of companies, sometimes with members
based in different countries.
Not all projects are conducted for profit or other benefits. Most not-for-profit organizations,
including national and local government departments, professional associations, charities
and disaster relief agencies conduct projects that fall into this category of management
projects.
Type 4 Projects: Projects for Pure scientific research (high risk, often high investment,
may be no precise objective, outcome unpredictable)
Pure scientific research projects (not to be confused with research and development
projects) are truly a special case. They occasionally result in dramatically profitable
discoveries. On the other hand, they can consume vast amounts of money over many
years, yet yield no practical or economic result. Research projects carry the highest risk
because they attempt to extend the boundaries of current human knowledge. The project
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objectives are usually difficult or impossible to define and there may be no awareness of
the possible outcome. Therefore, pure research projects are not usually amenable to the
project management methods that can used for other projects. Some form of control must,
however, be attempted. Money and other resources cannot be spent recklessly without
any form of monitoring or restraint. Budgets have to be set in line with available funding.
According to Abudi, G. (2017, p. 182) for the success of organizational change must be
considered the following:
• It is a project that must be managed as any other project;
• It requires significant planning up front to ensure a successful end result
(acceptance and adoption of the change);
• It requires engaging employees in the change early on and through-out the project,
as well as checking in after go-live;
• The project needs a change manager who understands that:
o Change is a process;
o Every individual experience change differently;
o Change management tasks must be focused on where individuals currently
are in their perceptions about the change;
o People are the most important component of ensuring change initiative
success.
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6.1. Preparing the organization for change
From a strategic project management perspective, it is essential to ensure understanding
of the why, what, where, when, and how of the change. This is not different from how an
organization manages any other initiative that is launched. The information gathered
during discussions around change, as well as the why, what, where, when, and how of
the change should be delineated in a project charter.
If the project charter (Step 1) is approved, Step 2 is to review the checklist. This checklist
would be customized for each organization depending upon risk factors and other
concerns around change initiatives. If the checklist still indicates that the change initiative
is worth moving forward, Step 3 is to share the vision for the change via numerous
communication channels. The sharing of the vision is a primary part of the initial
communication introducing the change to the employees throughout the organization.
Sharing the vision also helps to make sure that everyone understands the why of the
change.
From here, Step 4 focuses on beginning to evaluate readiness and acceptance of the
change by the employees. This could be accomplished through facilitating focus group
meetings, one-on-one conversations, or even via an online survey. The more time that
the organizational leadership can spend to engage employees in change before officially
starting the change project, the more likely that the change project will be successfully
implemented.
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6.2. Developing your people change management plan
The plan that shares the process for managing changes requested to the project should
include information that ties back to the people change management plan, should that
requested change further impact a particular stakeholder group.
The purpose of the people change management plan is to outline at a high level who is
involved and what methods will be used to engage stakeholders in the change. When
developing the change management plan, consider the goal of ensuring that stakeholders
will understand:
• The vision for the change initiative and the business goals of the change initiative;
• The value of the change initiative to stakeholders (beyond business value);
• Activities or tasks associated with implementing the change initiative;
• Training and other documentation or job aids that will be provided to ensure
adoption;
• The ongoing progress and check-in points (consider check-in points as the
opportunity to get feedback on the change from the stakeholders);
• Points of contact for reaching out to the individuals responsible (e.g., Stakeholder
Support Committee, change leader, change manager) for leading people through
change.
The five frames of analysis are: The frame of definition; the frame of contextual risks; the
frame of potentiality; the parametric frame; the frame of dominant and contingency
strategies.
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The four Ps are traditionally defined as Plan, Processes, People, and Power. The risks
are considered to be external to the project (e.g., weather conditions) and are divided in
eight categories: (Plan) financial and organizational (e.g., government structure for a
private project); (Processes) environmental and technological; (People) marketing and
sociocultural; and (Power) legal and political. POVs are Points of Vulnerability: they differ
from risks in the sense that they are internal to the project and can be controlled or else
eliminated.
The constraints are the standard constraints of calendar, costs and norms of quality that
can each be objectively determined and measured along the entire project lifecycle.
Depending on projects, portions of the study may suffice to produce a feasibility study;
smaller projects, for example, may not require an exhaustive environmental assessment.
Method of production - the selection among a number of methods to produce the same
commodity should be undertaken first. Factors that make one method being preferred to
other method in projects may be the following: (i) availability of inputs or raw materials
and their quality and prices, (ii) availability of markets for outputs of each method and the
expected prices for these outputs, (iii) various efficiency factors such as the expected
increase in one additional unit of input or output.
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Production technique - after we determine the appropriate method of production of a
commodity, it is necessary to look for the optimal technique to produce this commodity.
Project requirements - once the method of production and its technique are determined,
technical people have to determine the project´s requirements during the investment and
operating periods. These include:
• Determination of tools and equipment needed for the project such as drinkers and
feeders or pumps or pipes.
• Determination of project´s requirements of constructions such as buildings,
storage, and roads in addition to internal designs for these requirements.
• Determination of project´s requirements of skilled and unskilled labour and
managerial and financial labour.
• Determination of construction period concerning the costs of designs and
consultations and the costs of constructions and other tools.
• Determination of minimum storage of inputs, cash money to cope with operating
and contingency costs.
Project location - the most important factors that determine the selection of project
location are the following:
• Availability of land (proper acreage and reasonable costs).
• The impact of the project on the environment and the approval of the concerned
institutions for license.
• The costs of transporting inputs and outputs to the project's location (i.e., the
distance from the markets).
• Availability of various services related to the project such as availability of
extension services or veterinary or water or electricity or good roads
Legal feasibility - it determines whether the proposed system conflicts with legal
requirements, e.g., a data processing system must comply with the local data protection
regulations and if the proposed venture is acceptable in accordance to the laws of the
land.
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Operational feasibility study - operational feasibility is the measure of how well a
proposed system solves the problems, and takes advantage of the opportunities identified
during scope definition and how it satisfies the requirements identified in the requirements
analysis phase of system development.
The operational feasibility assessment focuses on the degree to which the proposed
development project fits in with the existing business environment and objectives with
regard to development schedule, delivery date, corporate culture and existing business
processes.
To ensure success, desired operational outcomes must be imparted during design and
development. These include such design-dependent parameters as reliability,
maintainability, supportability, usability, producibility, disposability, sustainability,
affordability and others. These parameters are required to be considered at the early
stages of design if desired operational behaviours are to be realised. A system design
and development requires appropriate and timely application of engineering and
management efforts to meet the previously mentioned parameters. A system may serve
its intended purpose most effectively when its technical and operating characteristics are
engineered into the design. Therefore, operational feasibility is a critical aspect of systems
engineering that needs to be an integral part of the early design phases.
Time feasibility - a time feasibility study will take into account the period in which the
project is going to take up to its completion. A project will fail if it takes too long to be
completed before it is useful. Typically, this means estimating how long the system will
take to develop, and if it can be completed in a given time period using some methods
like payback period. Time feasibility is a measure of how reasonable the project timetable
is. Given our technical expertise, are the project deadlines reasonable? Some projects
are initiated with specific deadlines. It is necessary to determine whether the deadlines
are mandatory or desirable.
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Resource feasibility - describe how much time is available to build the new system,
when it can be built, whether it interferes with normal business operations, type and
amount of resources required, dependencies, and developmental procedures with
company revenue prospectus.
Financial feasibility - in case of a new project, financial viability can be judged on the
following parameters:
• Total estimated cost of the project
• Financing of the project in terms of its capital structure, debt to equity ratio and
promoter's share of total cost
• Existing investment by the promoter in any other business
• Projected cash flow and profitability
• The financial viability of a project should provide the following information:
• Full details of the assets to be financed and how liquid those assets are.
• Rate of conversion to cash-liquidity (i.e., how easily the various assets can be
converted to cash).
• Project's funding potential and repayment terms.
• Sensitivity in the repayments capability to the following factors: (i) mild slowing of
sales, (ii) acute reduction/slowing of sales, (iii) small increase in cost, (iv) large
increase in cost, (v) adverse economic conditions.
Market research studies - this is one of the most important sections of the feasibility
study as it examines the marketability of the product or services and convinces readers
that there is a potential market for the product or services. If a significant market for the
product or services cannot be established, then there is no project.
Typically, market studies will assess the potential sales of the product, absorption and
market capture rates and the project's timing. The feasibility study outputs the feasibility
study report, a report detailing the evaluation criteria, the study findings, and the
recommendations.
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8. Areas of expertise in project management
In order for you as the project manager to manage the competing project constraints and
to manage the project as a whole, there are some areas of expertise that you should bring
onto the project team. They are the application area of knowledge; standards and
regulations in your industry, understanding the project environment, and you must have
general management knowledge and interpersonal skills. It should be noted that the
industry expertise is not in a certain field but the expertise in order to run the project. So,
while knowledge of the type of industry is important you will have a project team
supporting you in this endeavour. For example, if you are managing a project that is
building an oil platform, you would not be expected to have a detailed understanding of
the engineering since your team will have mechanical and civil engineers who will provide
the appropriate expertise, however, it would definitely help if you understand this type of
work.
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have an international project team that is distributed throughout the world in five different
countries.
There is more to project management than just getting the work done. Inherent to the
process of project management are the general management skills that allow the project
manager to complete the project with some level of efficiency and control. In some
respects, managing a project is similar to running a business: there are risk and rewards,
finance and accounting activities, human resource issues, time management, stress
management, and a purpose for the project to exist. General management skills are
needed in just about every project.
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are essential for efficient organization and describes possible organization options,
together with their advantages and disadvantages as below described.
Organigrams with all their deficiencies and potential for causing individual discontent (by
not being included directly in the structure) are the best, indeed the only, practicable way
of depicting an organizational structure. They are a form of communication.
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10. Conclusion and recommendations
In all companies and organizations just to make possible there mission or to make
successful there business management they use to design projects and it may be in
accordance with many aspects available in its company or organizations. Many
operational projects are being implemented to make possible what is defined in a long-
term project called Strategic Project.
So, when the company or organization intend to implement some project will have to take
in account the principles, rules, and guidelines formulated or adopted by the organization
to reach its long-term goals and its culture.
Before and during the implementation of the projects in organization, will need to pay
attention in behaviour aspects. This means that must have a project that will take care of
organizational change.
Even more, the project feasibility and profitability study is required to examines in detail
the five frames (frame of definition; the frame of contextual risks; the frame of potentiality;
the parametric frame; the frame of dominant and contingency strategies) of analysis of a
given project. This will help the company to define the appropriate structure of the
implementation of the project available in whole organization.
Taking in account these aspects, I see that the development projects that are
implemented although are not-profit institution are not giving all the potential advantages
to the organization and the main problem is the change process.
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We implement a capacity building projects but after three or four years of the project we
go back to the last dynamic because the organizational change plan does not exist neither
implemented.
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11. Bibliography
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