PM 2 Vorlesung 2

Almost all companies and industries carry out projects

Projects play a major role in the creation of value for a company

Often a large number of projects are carried out simultaneously

Companies typically do not lack good visions or ideas but the corresponding competence to realize them through successful projects.

-> The key to project success is often not (only) in the hands of the project managers and their teams, but above all in the hands of senior management.

The management of complex project landscapes becomes a core competence of project-oriented companies

(A): the science of the art of using political, economic, psychological and military forces of one or more nations to achieve maximum support in actions taken in war or peace

(B): the science or art of military commanding to strike the enemy in combat under advantageous conditions

(A): a conscientious plan or method: a clever list

(B): the art of designing plans or a list to achieve a goal

an adaption or a complex of adaptions (behaviour, change or structure) that serves or appears to have an important function in achieving evolutionary success

Corporate Strategy can be defined as “...the pattern of major objectives, purposes or goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be ...” Andrews (1971)

„[Strategic Management is the] Process of assessing ‚what we are‘ and deciding and implementing‚ what we intend to be‘ and how we are going to be there. Strategy describes how an organization intends to compete with the resources available in the existing and perceived future environment.“ Gray & Larson (2003)

Strategic management is an approach to address business opportunities and challenges by formulating and implementing strategies to achieve optimal alignment (“fit”) between the organization, its environment and the fulfilment of its goals.

A good strategy brings

(1) the strengths and weaknesses of the company,

(2) the opportunities and risks of the environment,

(3) the objectives and values of the management and

(4) to harmonise the expectations of the environment in the company and thus enable companies to maintain their position in the competition. Porter (1980)

Plan

Ploy

Pattern

Position

Perspective

A strategy can be a plan that describes a procedure or provides guidelines for controlling a particular situation

A strategy can be a specific and dynamic maneuver to eliminate competition

A strategy can be a pattern for the company’s actions and behaviour

A strategy can be the position of the company within its organisation and in the environment (e.g. competitive position, competitive advantage, product characteristics)

A strategy can mean the perspective within the organisation. Strategies are defined abstractly by certain individuals. These vision are then communicated company-wide.

Entrepreneurial guiding idea that formulates statements on a future to be aspired to.

• Creates identity and meaning

• Inspires and motivates

• Long-term, little complex,abstract

Purpose and object of the current entrepreneurial activity.

• Feasible, precise and clear

• Mid- to long-term, medium complexity

A bundle of decisions, measures and behaviours aimed at maintaining a competitive advantage in the long term.

• Highly complex

• Mid- to long-term focus

• Low abstraction

Long-term (> 5 years)

Mid-term (1-5 years)

Short-term (< 1 year)

A master plan

Few subplans

Many subplans

Low degree of detail, core problems

Medium degree of detail

High degree of detail, detail problems

Poorly defined problems, e.g. planning of production sites or sales markets

Well defined problems, e.g. investment or product program planning

Very well defined problems, e.g. capacity planning

By projects

Strategic planning and management of projects, programmes and activities