#5 A Guide To the Project Management - Business Value
A Guide To The Project Management-Relationship Between Project Management, Operations Management, and Organizational Strategy
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A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.
An organizational strategy is the sum of the actions a company intends to take to achieve long-term goals. Together, these actions make up a company's strategic plan. Strategic plans take at least a year to complete, requiring involvement from all company levels.
Mission and Vision
The organizational strategy must arise from a company's mission, which explains why a company is in business. Every activity in the company should seek to fill this purpose, the mission thus guiding all strategic decisions. A company's vision describes what the company will have achieved in fulfilling its mission. The vision follows the long-term goals of an organizational strategy.
Operations and Project Management
Changes in business operations may be the focus of a dedicated project—especially if there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross. Projects can intersect with operations at various points during the product life cycle, such as:
- When developing a new product, upgrading a product, or expanding outputs
- While improving operations or the product development process
- Until the end of the product life cycle. At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start. Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors.
Business value is a concept that is unique to each organization. Business value is defined as the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, fixtures, stockholder equity, and utility. Instances of immaterial components incorporate positive attitude, brand acknowledgment, open advantage, and trademarks. Contingent upon the association, business esteem extension can be short medium or long haul. The value may be created through the effective management of ongoing operations. However, through the effective use of portfolio, program, and project management, organizations will possess the ability to employ reliable, established processes to meet strategic objectives and obtain greater business value from their project investments. While not all organizations are business-driven, all organizations conduct business-related activities. Whether an organization is a government agency or a nonprofit organization, all organizations focus on attaining business value for their activities.
Successful business value realization begins with comprehensive strategic planning and management. Organizational strategy can be expressed through the organization’s mission and vision, including orientation to markets, competition, and other environmental factors. The effective organizational Technique provides defined directions for development and growth, in addition to performance metrics for success. In order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program, and project management techniques is essential.
Portfolio the board adjusts parts (tasks, projects, or activities) to the hierarchical system, composed into portfolios or sub-portfolios to improve extend or program destinations, conditions, costs, timetables, advantages, assets, and dangers. This enables associations to have a general perspective on how the key objectives are reflected in the portfolio, foundation suitable administration the executives, and approve human, budgetary, or material assets to be apportioned dependent on anticipated execution and advantages.
Using program management, organizations have the ability to align multiple projects for optimized or integrated costs, schedule, effort, and benefits. Program management focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired benefits. With project management, organizations have the ability to apply knowledge, processes, skills, and tools and techniques that enhance the likelihood of success over a wide range of projects. Project management focuses on the successful delivery of products, services, or results. Within programs and portfolios, projects are a means of achieving organizational strategy and objectives.
Associations can additionally encourage the arrangement of these portfolio, program, and undertaking the executive's exercises by fortifying hierarchical empowering influences, for example, basic, social, innovative, and human asset rehearses. By persistently directing portfolio key arrangement and enhancement, performing business sway investigations, what's more, creating powerful authoritative empowering influences, associations can accomplish effective changes inside the portfolio, the program, and venture spaces and achieve successful speculation the board and business esteem acknowledgment.