Alignment Of Business Strategy And Project Management

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Literature Review: Alignment of Business Strategy and Project Management


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Literature Review: Alignment of Business Strategy and Project Management
Projects are primary components of business organizations. Previous studies have indicated that majority of the projects fail because of time and budget constraints. Others fail because they are according to the needs and requirements of the customer. However, project’s success does not merely depends on meeting the customer expectations, time and budget objectives. This demonstrates that additional dimensions are present that influence projects and their succession rate. Dimensions such as business goals
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Literature suggests that the project failure increases by 30 percent if there is misalignment between projects and their business strategy(Artto & Dietrich, 2004). Internal factors such as strong communication, management support, project manager participation in business development strategy and project manager leadership are directly related to project management and business strategy. Winter & Szczpanek (2008) identified the factor that influenced the alignment of project management and business strategy. Their study revealed that the “weak point” is the main problem that occurs from developing the strategy to the project. This is because “ point has always been exposed”. Strategic objectives, regardless of whether they involve global strategy, business strategy, or strategy of a strategic business unit, are translated into project objectives and furthermore, into an overall project start-up process” (Winter & Szczpanek, 2008).

In study conducted by Aubr, Hobbs & Thuillier (2007), disparity existed between business strategy and project plan. They identified it as project strategy, which projects failed to identify. According to Freeman, (2010), business strategy and project management were not aligned as the project plan had not been aligned with the business strategy. Because of misalignment, the business strategy is not clear and therefore, the project manager initiates the project without considering the business strategy. In recent times,
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