The Affect of Project Management on Strategy and Governance

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Projects are critical to the success of any organization as they involve the activities that result in new or changed products, services, environments, processes and organizations. Organizations have increasingly embraced project management as a key strategy for staying ahead in today’s highly competitive business environment.

Successful implementation of project management creates an organization that can readily meet the demands of each project and yet adapt quickly to a constantly changing dynamic environment, perhaps at the same time (Kerzner, 2010).

Management considers the organization’s resources, its competitive positioning and its critical areas of strategic uncertainty. Gaddis (1997) says that the idea that an organisation can plan its way to a known future is implausible and the ability of people within a system to see failures is equally problematic.

Good project management strategies allow work to be accomplished in less time, at lower cost, with fewer resources and without any sacrifice in quality (Kerzner, 2001).

The idea of strategy has received increasing attention in the management literature. The literature on strategy in the present volume and strategic management texts have become more and more to include all relevant materials.

This paper discusses how project management affects strategy and governance. It begins with a highlight of the theoretical background, which is followed by a brief description of a relevant case study from the construction field. Next is an analysis and discussion of related literature. It then concludes with a detailed discussion.

Literature review

In providing projects, organizations must have dynamic capabilities and a high level of knowledge and competence to be able ...

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...iew, 75, 66.

GADDIS, P. (1997) Strategy under attack. Long Range Planning, 30, 38-45.

HAROLD KERZNER, P. D. (2010) Project Management: Best Practices: Achieving Global Excellence, Wiley.

KERZNER, H. (2001) Using the project management maturity model: strategic planning for project management, John Wiley & Sons, Inc.

PMI (2010) PMI ® Case study: SAUDI ARAMCO HARADH GAS PROJECT viewed on 13th March 2010 << http://www.pmi.org/PDF/Case_Saudi_Aramco.pdf >>.

SNOWDEN, D. & BOONE, M. (2007) A leader's framework for decision making. Harvard Business Review, 85, 68.

TEECE, D., PISANO, G. & SHUEN, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18, 509-533.

WALKER, D. H. T., ARLT, M. & NORRIE, J. (2008) The role of business strategy in PM procurement. Procurement systems: a cross-industry project management perspective, 140- 176

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