Investment Management Center of Expertise  

Delivering Strategy Through Investment In Projects

The Investment Committee determines strategy delivery by which projects it approves, and which projects it denies investment.

Yet...

Few organizations effectively measure each project’s exact strategic contribution in a detailed transparent and unarguable way. Instead they measure ‘strategic alignment’ at "tick the box level" - which can deliver some frightening results. Rarely do they have a mechanism to measure exactly which strategic imperatives each project will contribute to, how it will contribute, and how much it will contribute. Without this level of granular detail you are flying blind when managing your strategy’s execution.

This lack of measurement may explain why today the number of strategies that are not fully executed is around 70% — the same figure as 25 years ago.

Evaluate proposed projects on their strategic, operational and financial contributions

knowing that the bases and plans of each project have been thoroughly assessed and found to be wholly valid (a steps very rarely done) so that the primary question remaining is, “Is this the best use of our resources at this time?”

Prioritize project investments

early in the project without the expense of a business case, at the business case stage, and subsequently should the strategy or financial or operational imperatives change. At all times you know why each project exists, its total contribution and relative priority.

Eliminate the waste associated with projects

(which can be over 50% of the expenditure and value loss) by ensuring the business has made clear exactly what it wants to achieve through the definition of ‘desired business outcomes’. This may sound obvious but is rarely done; instead projects define ‘goals’ and ‘objectives’ and ‘deliverables’ or ‘capabilities’. These are ambiguous and are not used to drive the project to your desired business outcomes, benefits and value.

Shift the focus on projects from cost to value

by putting in place the tools, techniques and processes required to maximize, optimize and realize all of the business value from each and every project. Many of the required ‘value delivery’ processes are either missing or deficient and need to be upgraded to deliver the available value. NB Currently most projects miss, lose or destroy more value than they deliver — this is a massive opportunity.

Progressively increase the organization’s capability to successfully deliver projects and programs

by improving the strategic, business and value delivery processes – many of which are missing or deficient in most organizations. When the necessary processes are missing projects go over time, over budget and compromise the specification – sound familiar? You need to know what processes you need and whether they exist, are appropriate and are used effectively.