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Strategic Management in Project Management

In: Business and Management

Submitted By CKK1
Words 716
Pages 3
Introduction
A Project is any undertaking that has definite, final objectives representing specified values to be used in the satisfaction of some service or need. The reason why companies undertake projects is because they come up with strategic intent, achieve better results and increase its competitive advantage.
Project Success
In the past projects success was measured using the “triple constraint”, delivering the project on time, within budget and to specification. Contemporary management of projects has shifted to being measured strategically. Consequently, the evaluation of the success of projects has also changed to incorporate parameters beyond the “triple constraint”.
This led to project success being measured in four dimensions according to Shenhar
1. Dimension 1- Efficiency; measure of whether the project was completed on time and within budget.
2. Dimension 2- Impact on the customer; ensuring that the specifications were met and required service/production is delivered while adhering to good quality.
3. Dimension 3-Impact on business; an analysis of return on investment, return on equity, increase in profits and other revenues to the business after project implementation.
4. Dimension 4- Building for the future; what new developments or positive opportunities were brought about by the project e.g. new market line or infrastructure.
Using these four dimensions there are 2 types of projects.
1. External customer projects aimed to create products and services for external customers with a goal of creating a competitive advantage; providing revenue, cash flow and profits.
2. Internal customer projects create business value for the firm through increased cost efficiency, enhanced productivity and faster response time.

Project Frameworks
These offer insight in defining the elements of project strategy. These strategies are as below:
1.

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