Goals set, Strategy lost: Decoding Company Confusion

Before you read on, please consider the following assumptions made for strategic companies:

• They are guided by purpose.

• Their managers are credible strategists.

• Their success managers have capabilities to materialize the company’s strategy.

Assuming these points, it is a promising approach to utilize program management techniques to effectively translate the company’s strategic vision into actionable plans by multiple projects.

How can cohesive alignment and efficient attainment of the company’s strategic goals be ensured?

The widespread response: Multi Project Management

Multi Project Management (MPM) is the strategic orchestration of resources, prioritization of projects, and proactive risk management to efficiently deliver multiple initiatives in alignment considering the interdependencies.

Needless to say, MPM as a method has its justification if "coordination only" is requested, but there are some shortcomings when MPM has been used for transformational initiatives, such as:

• Fragmented Communication and Coordination

• Limited Strategic Alignment

• Resource Overallocation and Burnout

• Complexity Management Challenges

• Inadequate Risk Management

• Lack of Flexibility and Adaptability

• Insufficient Change Management Integration

• Measurement and Evaluation Challenges

Addressing these shortcomings requires a comprehensive approach that integrates MPM with strategic leadership, effective communication, and robust risk mitigation strategies tailored to the unique complexities of transformation initiatives within organizations.

Value-based Program Management (VBPM) fills the gap

Value-based program management focuses on delivering tangible business value and desired outcomes by strategically aligning projects and initiatives with overarching organizational goals. This approach emphasizes measuring success based on the achieved outcomes rather than just completing individual project tasks.

Here's a brief overview on how the most significant MPM shortcomings are to tackled by VBPM elements:

Lack of Strategic Alignment:

• VBPM ensures that projects and initiatives are directly aligned with the organization's strategic objectives.

Limited Focus on Business Value:

• By emphasizing the delivery of tangible business value and measurable outcomes, VBPM overcomes the tendency of traditional MPM to prioritize tasks and activities only.

Inadequate Measurement of Success:

• VBPM incorporates robust metrics and Key Performance Indicators (KPIs) to measure the success of projects and initiatives based on their contribution to achieving desired business outcomes.

Fragmented Communication and Coordination:

• VBPM fosters better communication and coordination among cross-functional teams and stakeholders to ensure alignment with overall business objectives.

By utilizing the different elements of the value-based approach in program management your organization’s transformation is more likely to succeed as well as your strategy is moreover widely understood throughout your organization.

Impulse To Go

Here are some important tools and methods to help you get a pragmatic start into Value-based Program Management:

• Value Stream Mapping to visualize the steps involved in delivering a product or service to the customer.

• Outcome Mapping to clarify intended project outcomes and the strategies for achieving them.

• Measurement Techniques such as Cost of Delay (CoD), Weighted Shortest Job First (WSJF), or Moscow Prioritization can help prioritize program initiatives based on their potential value delivery and alignment with strategic objectives.

• Benefits Realization Management (BRM) to ensure that programs and projects deliver measurable benefits to the organization.

By incorporating these techniques into your approach to VBPM, you can establish a pragmatic framework for prioritizing initiatives, delivering tangible value, and ensuring alignment with strategic objectives.

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*    MIT Sloan Review, No one knows your strategy, 2018

**  IPMA, The future of project management: Global Outlook, 2019

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Michael Philipzen