Managing of Initial Stage of Strategic Projects

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LITERATURE REVIEW1

Introduction1

What is Strategic Project?1

Importance of Strategic Projects for Organization4

Project Life Cycle (phases) and role of Project management in each phase9

Importance of Managing Initiation Phase15

Importance of managing execution Phase20

What is a Successful Strategic Project Management30

What is a failed strategic project management?35

Selection of right strategic project44

Evaluating right budget for strategic project48

Writing the effective scope of work52

Bidding process55

Writing the contract61

Effect of project Initiation Phase on project success64

Conclusion65

LITERATURE REVIEW

 

Introduction

According to Wessels (2007), the adoption of the strategic project management is referred to select, support and manage multiple projects that provide the chance to the companies for moving ahead by returning maximum value and keeping the organization vibrant in the present market for the purpose of shareholders. The strategic project management and its execution delivers companies with the necessities i.e. the intelligence of business for the purpose of identifying and terminating the particular projects that are having low priority and not associated with the strategy of business, so that projects based on misalignment can be able to stop further costing expenditure in money for organizations, its resources and customers. With business level strategic plans, the strategic project management is mainly based on the aligning project's methodology (Stanleigh, 2006, p.01-04).

What is Strategic Project?

Strategic project can be defined as a project which is important and critical to maintain and open future business opportunity for a company. Strategic projects are aimed at providing organizational success these projects are long term projects and can influence the main business functions of the company (Van Der Merwe, 2002, p.401-411).

Where the project is a part of a wider business sense, it should be evaluated as an essential part of the strategic program. Managers should make sure that comprehensive plans for achieving goals and people responsible for delivering them are in place. Proper and necessary financial assessment benchmarks should be set. Close attention should be paid to the parts that reflect a clear benefit and solution if those parts are followed and worked on.

During the entire cycle of the project a competitor attack can affect the whole project, so in strategic projects the all functions of the business such as IT, Human Resource and Finance wing; have to collaborate and remain flexible to counter and coup up with any attack from the competitors (Project Management Institute, 2004). Project managers are required to clearly communicate the policy to help the workers to collect, store, and use information to achieve and support the business objectives and to keep information save for future prospects (Morris, 1994, p.32).

Understanding Strategic Project

Some organizations are superior at tactical projects, such as introducing a new product, constructing new or renovating old buildings, such projects are single goal based projects and have only one operational goal and these projects do not require contributions from most of the employees of the company as such goals can be achieved by a dedicated working team. Key Considerations for such projects is to complete the project on time within the available resources and budget (Morris and Pinto, ...