ITMG624 W2: IT Projects Portfolio Management

1. What is Corporate Strategy - discuss

2. Discuss Strategic Framework

3. Discuss PMO and PMO structures for large Project Centric-Companies

This week has been a very informative week as we were asked to research what corporate strategies, strategic frameworks, and project management offices (PMOs) are. The readings provided this week, along with additional research through the campus library, I was able to grasp an understanding on the importance of these three areas.

1) What is corporate strategy?

Through my research, there have been numerous definitions that define what corporate strategy is and what its purpose is within that corporation. Many corporations may define their strategies in various ways as they differ in the objectives they must achieve to reach their goals, but there is one common area that all these strategies contain and that is the "destination towards which a business should move" (Sridharan, 2022). Corporate strategies are developed with the use of four key components that will assist any corporation. These four components are visioning, objective setting, resource allocation, and strategic tradeoffs.

Visioning - This component focuses on the understanding where the company sees itself in the next 3 to 5 years. This is also where corporations will establish their MVVs (missions, values, and vision) so that everyone in the corporation has a shared understanding on the direction of where the company is heading.

Objective Setting - This component focuses on the development of key objectives that the corporation need to complete to reach that end goal outlined in the strategy. Once these objectives are created, they need to be communicated clearly to all personnel to ensure that everyone is focused on what the priority tasks are and that there are no assumptions about the future of the company.

Resource Allocation - This component focuses on identifying those key resources that will assist in the success of the strategic goals outlined in the corporate strategy.

Strategic Tradeoffs - This component can be the most challenging one of them all for corporations. This component covers the risks that corporations may face and how they can mitigate those risks to ensure that with taking those risks, the corporation can expect reward in return. This is where risk management can assist determine if certain actions are worth the risk and if it will pay dividends for the corporation at the end.

2) Discuss Strategic Framework

Strategic frameworks, although slightly similar, differ from corporate strategies as frameworks "aim to demonstrate how a business or department plans to use projects and other initiatives to uphold the overall vision of stakeholders" (Indeed, 2021). The strategic framework is divided into six parts: vision, mission, time frame for completion, objectives, strategy, approach, and action plan.

A well developed strategic framework will ensure that members within the corporation are on track with meeting deadlines and completing assigned tasks. This will also ensure stakeholders, or investors, remain on board with the company and also provides the possibility of future stakeholders buying into the company.

3) Discuss PMO and PMO structures for large Project-Centric Companies

The roles and responsibilities of Project Management Offices (PMOs) is to maintain standardized procedures for all project management tasks within the corporation. These offices are created and designed to handle larger projects that a project manager is unable to do so as these projects become a bit more complex for one person to handle. For these offices to run smoothly, they must possess three key elements: people, process, and tools. According to the reading this week from Bonham, certain elements within each of these categories must be met to guarantee IT PMO success.

References:

Bonham, S. (2004). It project portfolio management. Artech House.

Indeed. (2021). What Is a Strategy Framework? Definition and Necessary Components. Accessed from https://www.indeed.com/career-advice/career-development/what-is-strategy-framework

Sridharan, M. (2022). Corporate Strategy: What is it and why develop one? Think Insights. Accessed from https://thinkinsights.net/strategy/corporate-strategy/