Growth in organizations typically results from successful projects that generate new products, services, or procedures. Managers are increasingly concerned about getting better results from the projects under way in their organizations and in getting better cross-organizational cooperation. One of the most vocal complaints of project managers is that projects appear almost randomly. The projects seem unlinked to a coherent strategy, and people are unaware of the total number and scope of projects. As a result, people feel they are working at cross-purposes, on too many unneeded projects, and on too many projects generally. Selecting projects for their strategic emphasis helps resolve such feelings and is a corner anchor in putting together the pieces of a puzzle that create an environment for successful projects.

Every organization benefits by having a process for linking projects to strategy.  Developing cooperation across an organization requires that upper managers take a systems approach to projects.  That means they look at projects as a system of interrelated activities that combine to achieve a common goal. The common goal is to fulfill the overall strategy of the organization. Usually all projects draw from one resource pool, so they interrelate as they share the same resources. Thus the system of projects is itself a project, with the smaller projects being the activities that lead to the larger project (organizational) goal.

Any lack of upper-management teamwork reverberates throughout the organization. If upper managers do not model desired behaviors, there is little hope that the rest of the organization can do it for them. Any lack of upper-management cooperation will surely be reflected in the behavior of project teams, and there is little chance that project managers alone can resolve the problems that arise.

A council concept is one mechanism to establish a strategic direction for projects spanning organizational boundaries. A council may be permanent or temporary, assembled to solve strategic issues. As a result, a council will typically involve upper managers. Usually its role is to set directions, manage multiple projects or a set of projects, and aid in cross-organizational issue resolution.

One example from my experience was a cross-organizational council pulled together to resolve hundreds of technical issues logged against the issues for a new product line platform. Individual project teams were optimizing solutions to fit their objectives (organizational sub optimization). Meanwhile, the overall product line was at risk of getting out of control, hence impact on the product family would be enormous.

One project manager (a champion) took the initiative to convene an upper-manager council. The council accepted ownership to resolve the set of interrelated issues. People accepted membership on the council because they came to understand the strategic importance of the mission. The council authorized groups of engineers to study, propose, review, and accept solutions. It first established a set of priorities and constraints to guide the study groups. The council met at least once a month to review progress and make changes. When several issues bogged down, it authorized an escalation path to two managers who would listen to the arguments and make decisions. Because of the tremendous impact on time-to-market of projects dependent on the outcome, the council kept appropriate pressure on making progress. At the end of the resolution phase, it enthusiastically supported a celebration party for the hard work contributed by hundreds of engineers. They listened to recommendations from a retrospective analysis and took action on suggested improvements, applying them to subsequent projects that were initiated to resolve additional issues. Over time the process improved dramatically and led to reduced anxiety about the chaotic state of the product line.

This systematic approach illustrates the vast and important influence of upper-management teamwork on project success. Increasingly evident are companies who convene portfolio selection committees.  Myself and other consulting colleagues suggest that organizations begin by developing councils to work with project managers. These councils exercise leadership by articulating a vision, discussing it with the project managers, asking them their concerns about and needs for implementing the strategy, listening carefully to them, and showing them respect so they become engaged in the process. In this way upper managers and project managers develop the joint vision that is so necessary for implementation of strategy. The stage is then set to establish criteria to prioritize and then select projects that accomplish strategic goals.

What can you do if you are only in a position to watch this process…or lack thereof?  Take the initiative!  Ask questions such as,

• Why are we doing this project?
• What problem is this project solving?
• How was this project selected—process, criteria?
• What strategic goal does this project support?
• Are we fully prepared to resource this project?
• What constitutes project success?

 We have the ability to train upper managers, especially through our questions. Let us never fail to step up to this opportunity and responsibility.

Join Alfonso Bucero, myself, and other esteemed colleagues from around the world in Madrid, Spain on November 15-16, 2010 to address “Managing Portfolios in Turbulent Times.” See www.projectportfolioday.com for more information.

 Randy Englund, Englund Project Management Consultancy, www.englundpmc.com