Choosing the Right Projects: A Key to Achieving the Organization’s Strategic Plan
Choosing the right projects is a strategic lever for any organization aiming to optimize resources and maximize impact. By implementing continuous evaluation and review methods, companies can not only achieve their goals more effectively but also position themselves with agility to face future challenges. A project management office is an excellent way to establish these best practices.
In an environment where resources are limited and priorities shift quickly, organizations must carefully select their projects. A thoughtful selection of projects aligned with the strategic plan not only maximizes the contribution of each initiative to overall goals but also ensures efficient resource allocation. This article explores the essential steps for choosing and managing priority projects to support the company’s strategy.
1. Defining Strategic Alignment in Project Management
The first step towards effective project selection is understanding strategic alignment. This means that each selected project should meet the organization’s primary objectives, whether growth, innovation, profitability, or sustainability. A project that doesn’t align with these priorities risks diluting overall efforts, adding costs and work without added value.
Setting strategic priorities requires clear communication at all levels so that each project manager knows where to focus their efforts. Leaders can use planning tools like a strategy map, which helps visualize key objectives and the initiatives needed to achieve them. Each prioritized project should be linked to an initiative on the strategy map.
2. Methods for Identifying Priority Projects
Once strategic priorities are defined, selecting the most relevant projects is essential to ensure optimal ROI and avoid scattered efforts. The following diagram illustrates how prioritization and project selection integrate with project office activities.
To choose the most relevant projects, several methods can filter and rank projects according to their potential contribution to company objectives, feasibility, and associated risk. These tools help inform decisions and establish a clear priority roadmap.
A. The Strategic Impact Matrix
The strategic impact matrix is a powerful visual method for assessing projects along two axes: their potential impact on strategic objectives and operational feasibility. By positioning each project in the matrix, it becomes easy to distinguish those with high impact and high feasibility, considered ideal candidates. Conversely, projects with low impact or feasibility can be delayed or eliminated. This matrix, divided into four quadrants, prioritizes projects based on available resources and organizational needs. ‘Quick wins,’ for example, require few resources and have immediate impact, while ‘major strategic projects’ require significant investment but strongly contribute to the company’s long-term vision.
Example of a strategic impact matrix: In this example, Eficio enriched the impact matrix by showing the number of people potentially impacted by each project in bubble size.
B. Project Scoring
Project scoring is a quantitative method that assigns a score to each project based on weighted criteria, such as ROI, alignment with strategic objectives, urgency, and necessary resources. This method standardizes evaluation and enables objective project comparison. By setting thresholds for each criterion, the company can prioritize projects more precisely.
One advantage of project scoring is that it promotes collaborative and documented decision-making, as each criterion is evaluated transparently. This encourages stakeholder buy-in and enables strategic choices to be justified with concrete data rather than subjective impressions.
C. Value-Added Analysis
Value-added analysis focuses on each project’s unique contribution. It assesses each project’s ability to create value for the company, whether by increasing revenue, improving efficiency, or strengthening market position. Using a value-added approach allows the organization to target projects with tangible effects on its overall performance.
This method also encourages teams to identify and assess indirect project benefits, such as learning effects or synergies with other initiatives. A project with high-value return can then be prioritized, even if it presents technical challenges, as long as the potential gain justifies the investment.
D. Risk and Feasibility Assessment
Risk and feasibility assessment is a necessary complement to prevent projects, although strategic, from endangering operations or consuming more resources than anticipated. By analyzing potential risks, such as technical constraints, change resistance, and internal dependencies, the company can establish mitigation plans and avoid surprises that might delay priority initiatives. Considering project feasibility alongside strategic importance ensures smoother execution. It also allows contingency planning for high-risk projects while keeping a steady focus on priorities.
E. Stakeholder Involvement in the Selection Process
Involving stakeholders is crucial to validate project choices. Engaging them in the selection process ensures better understanding and greater commitment to decisions. Stakeholders, whether internal or external, bring diverse perspectives that enrich project evaluation and help anticipate needs or potential resistance.
Collaborative scoring workshops or feedback sessions can be organized to gather their insights, ensuring that selected projects meet end-user and management expectations and are feasible within the company’s framework.
3. Optimizing Resources Based on Priorities
In a context of limited resources, it is crucial to allocate these resources optimally to priority projects. This means assigning budgets, time, and skills according to the strategic value of projects. A flexible plan is essential for adjusting allocations when unexpected events occur.
This proactive resource management reduces bottlenecks where certain projects are delayed due to capacity constraints. Additionally, by maximizing resource alignment with priority projects, the company enhances operational efficiency and its ability to achieve its objectives.
4. Review Mechanisms and Priority Adjustments
Strategic priorities evolve. Therefore, it’s essential to regularly reassess projects to ensure they continue to meet the organization’s goals. Periodic portfolio reviews verify project alignment and adjust priorities if needed.
This process, known as ‘realignment,’ keeps the strategy on track while remaining flexible to changes. In some cases, projects may be suspended or stopped if their relevance decreases relative to updated goals, freeing resources for higher-value initiatives.
5. Success Indicators for Effective Strategic Alignment
Finally, it is important to measure the effectiveness of strategic alignment through performance indicators. KPIs (Key Performance Indicators) such as contribution rate to objectives, project cycle time, and profitability help assess whether the chosen projects truly contribute to company outcomes.
Rigorous tracking of projected versus realized benefits allows for refining the project selection process for future initiatives. These data, analyzed periodically, provide valuable feedback that guides decisions and strengthens the effectiveness of the project portfolio.
In conclusion, choosing the right projects is a strategic lever for any organization aiming to optimize resources and maximize impact. By implementing continuous evaluation and review methods, companies can not only achieve their goals more effectively but also position themselves with agility to face future challenges.
Learn more about our project management office (PMO) implementation services to ensure project success.