PROJECT MANAGER ESSENTIALS
ORGANISATIONAL STRATEGY
What is Strategy?
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Projects are generally the medium of implementing strategies for organisations. Hence, as Project managers, having knowledge of how strategy affects organisations is imperative. As seen in the Project Selection, many projects have strategic objectives - environmental needs, market demands, technological advance or retaining brand reputation. Below is a snapshot of knowledge that can be used to get familiar with Business Strategy.
INDUSTRY ANALYSIS
Michael Porter's 5-force model can be used to analyse the industry and the environment around. This is crucial when taking strategic decisions to start projects in a certain industry. It lays emphasis on understanding the bargaining power of various powers in the environment.
Competitive Advantage & Strategy
(Faughey, 2015)
INTERNAL ANALYSIS OF THE FIRM
To internally analyse the firm, it is important to understand the key success factors. A careful appraisal of resources is the next step . The type of resources can be tangible or intangible.
To attain the competitive advantage, the resources have to be:
1. Valuable
2. Rare
3. Inimitable
4. Non Substitutable.
Porter's Value chain is another instrument which can aid internal analysis.
AMBIDEXTERITY IN A FIRM
Demand growth and creation and diffusion of knowledge are the two driving factors of industry life cycle.The industry evolves over time and the innovation rate is shortening the industry lifecycle.In order to survive, organisations need to be more ambidextrous in nature.
An Ambidextrous organisation is one which is exploiting existing resources and exploring new resources at the same time. This also contributes to way the organisations deal with change.
There are two kinds of ambidexterity that have been defined below (Birkinshaw & Gibson,2004 ):
Some strategic change management process that help organisations survive may include-
1. Creating perception of crisis.
2. Establishing Stretch Targets.
3. Reorganization
4. Dynamic Capabilities
5. Multiple Scenario Analysis.