Executing corporate strategy often relies on a portfolio of projects. The alignment of the executive team to the corporate strategy and the strategic priorities is crucial for the success of each project within the portfolio. Misalignment at the top can lead to inefficiencies and failures, impacting not only the projects but the entire organization.
At a recent Project Management Institute (PMI) Global Executive Council gathering in Nashville, aligning projects with corporate strategic goals was a key topic. (More on their thought leadership can be found at Reframing Project Success | PMI Blog). The PMI discussion emphasized that the project management profession is accountable not only for delivering projects effectively but also for delivering the right projects. Strategic alignment with company goals and executive priorities is a prerequisite for this accountability.
Delivering the Right Projects
It is clear that selecting the right projects is just as important as executing them well. Therefore, it is essential to distinguish between project success and project management success. While the latter focuses on delivering projects on time and within budget, true project success is achieved when projects meet the strategic objectives of the organization, delivering value greater than the effort and expense (per the PMI definition).
How many times have you been involved with projects that successfully deliver new systems or processes meant to add considerable value, only to see them collecting dust a short time later?
One major pitfall is the “set and forget” mentality. Businesses evolve rapidly, and what was relevant at the start of a project may change midway through. An example of this was a vaccine project we supported in early 2020. The team we were involved with was working on a novel way to create a flu vaccine when the world suddenly changed. The project pivoted and a new virus instantly became the target for the first mRNA vaccine.
It is crucial to continually evaluate the value proposition, business case, and charter of any project. This ongoing assessment ensures that projects remain aligned with the current business environment and strategic goals.
Dynamic Markets Require Dynamic Alignment
I’ve previously written about the importance of executive alignment and the challenges of maintaining it, especially in a dynamic business climate with long project durations. These challenges include misaligned incentives, behind-the-scenes sponsorship of pet projects, and not choosing to say “no,” ultimately spreading resources too thin. Executives must ensure that their alignment cascades down to the projects in flight. This is typically achieved through regular portfolio reviews, which are recommended for companies of all sizes, not just those with mature and formal structures.
Effective communication is the foundation of executive alignment. Clear, consistent, and transparent communication ensures that all executives are on the same page regarding strategic priorities and project goals. Regular meetings, updates, and feedback loops are essential to maintain this alignment. When communication channels are open and robust, it becomes easier to identify and address misalignments early, preventing them from escalating into larger issues.
IPM’s own executive research on alignment has provided clear feedback: The downstream impacts of misalignment are significant. Failed projects and organizational inefficiencies are common outcomes. According to preliminary results of our survey, 97 percent of respondents believe that executive alignment is important when undertaking strategic initiatives. The most common negative impacts of misalignment include delayed projects, vague or confusing strategic plans, and a loss of faith and morale among employees. Signs of misalignment often manifest as missed sales targets, slow decision-making, and a lack of cross-functional collaboration.
In Conclusion
Executive alignment is not a one-time task but a continuous process that requires vigilance and commitment. Regular evaluations, transparent communication, and a willingness to adapt are essential to maintaining alignment and ensuring strategy execution success. As we navigate the complexities of project management, let’s remember that our ultimate goal is to deliver value to our organizations by transforming strategy into reality.
As executives, we need to be better sponsors and stewards of the strategic portfolio to set up our project teams and our organization for success.
November 25, 2024
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