Transforming Project Management summary

In the world of business, you can’t get very far without a plan. Whether you’re applying for loans, making cash-flow forecasts, or just sketching out your latest ideas, making plans for the future is always an essential step.

That’s why so many businesses engage in strategic planning – a process that involves taking stock of where the firm is right now, where it should be in the future, and what steps it needs to take in the meantime to make that happen.

In theory, it’s vital to plan ahead like this. But in practice, strategic planning is often done wrong. Your firm might schedule regular strategic-planning meetings – but unless you’re planning in the right way, you’re wasting your time.

The key message here is: Make sure your strategic planning focuses on the right things.

Done properly, strategic planning has three key elements. The first consists of assessing the current environment, by weighing up the state of the firm and the world around it. One common way of doing this is by completing a SWOT analysis: a breakdown of the business’s main strengths, weaknesses, opportunities, and threats.

Interpret these categories broadly. For example, changes in social values or government regulations can pose serious threats, which matter just as much as the dangers posed by competitors. In the same way, not all strengths are obvious – having a dedicated and loyal workforce can be as important as attracting investors.

The second aspect of proper strategic planning is establishing a baseline. This is simple: in short, select one important figure that represents your firm’s current performance. That might be total revenue or net annual profit. It might be your firm’s error rate. What’s important is that you choose a metric that operates as a vital sign that indicates the health of the company.

The third and final step is crucial because it sets the course for the business’s trajectory in the future: after noting your baseline, you need to set a benchmark.

Your benchmark is your aim. If your current unit cost of production is 10 percent higher than your main competitor’s, then make matching its figure – or even beating it – your benchmark for the year.

Once a benchmark has been set, a project manager can help break down the process of accomplishing it into several separate, manageable projects.