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What is Business Synergies
Approach?
The
systemic business
synergies
entrepreneurial
approach is concerned with discovering possibilities for adding value to the
organization, not with finding solutions within given constraints.
Though
this approach is built on the old triple constraints of project management –
cost, duration, and outcome, – it goes beyond these constraints to consider
factors for developing
business results. |
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Why Business Synergies
Approach?
Change in the marketplace that is accelerating
and occurs at increasingly random patterns today, increases the market
risk
and the necessity of having
project managers make important decisions at the
project level during its implementation. Constraints imposed earlier may
become obsolete very fast, and there is no time to constantly check in with
upper management before acting to keep up with changing conditions. |
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Entrepreneurial Approach
The
entrepreneurial approach to project
management requires you to manage the project as if it were an independent
business venture. But you must also manage with the larger organizational
system in mind. You need to understand how the elements of the project
affect the
business as a whole and how elements of the business influence
the project.
This dynamic new approach to projects will serve
you well whether your project is in a business, a non-profit organization,
or a governmental agency. |
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Adding
Value to the Organization
The
business
synergies
approach is concerned with discovering possibilities for adding value to the
organization, not with finding solutions within given constraints. This
approach uses a framework for thinking about projects based on business
concepts such as increasing
economic value, or Economic Value Added (EVA).
The use of economic value as a
decision criterion indicates a change in the way project success is
determined and points the way toward the future of project management. While
the old criteria of meeting outcome, cost, and schedule constraints will
still be important factors for measuring the project progress, they are
augmented by business factors that are used to measure project success. |
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From Old Constraints to
New Processes and Results |
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From |
To |
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Outcome |
Crafting for
value addition to the organization in the dynamic marketplace |
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Duration (fixed
deadline, schedule) |
Timing the completion
of product/service development for maximum cash flow |
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Cost (budget) |
Investing to develop
competitive advantage |
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New System of Success
Measurement and Control
Entrepreneurial approach to project management that understands the
dynamics of the marketplace and competition may require radical change in
the project success measurement and control systems of most organizations.
Business-oriented controls should focus on market performance, timing and
investing for higher return rather than on meeting fixed specifications and
constraints. They must resist the temptation to use
operating-plan logic to
manage new ventures...
More |
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