Strategy Implementation and Project Management
Strategy Implementation and Project Management
43-50, 1998
Pergamon ~: 1997 ElsevierScienceLtd and IPMA. All rights reserved
Printed in Great Britain
0263-7863/98 $19.00 + 0 00
PIh S0263-7863(97)00016-1
To date, strategy implementation and project management have largely developed quite separ-
ately and independently. But there are many opportunities for cross-fertUisation which are cur-
rently under-exploited both in theory and in practice.
A number of tools from strategic management, value management and from organizational
change can he imported into project management to enrich traditional techniques considerably.
These tools are particularly powerful when applied to complex, multi-functional projects which
are entailed when attempting to turn business strategy into implementation. These tools can also
be imported into mainstream project management practice. ,© 1997 Elsevier Science Ltd and
IPMA
Over the past few years there has been increasing inter- process-based school of strategic management stresses
est in project management as a vehicle for strategy im- the primacy of:
plementation. This interest has resulted in significant • Incremental management (over and above bolder,
advances in: bigger strategies. 5
a) our understanding of how strategy can be • Cycles of deliberate and emergent change--as
more effectively implemented; opposed to linear strategy development. 6'7
b) our notion of what 'project management' can, • Implementation and strategic thinking as inseparable
and should, stand for. vs discrete phases of strategic analysis and strategic
action/
Dealing first with (a), it has been recognised for
many years that implementation is frequently the By blurring the boundaries between strategic analy-
graveyard of strategy.' But although implementation is sis and action we now see a much more central role
touched on by core texts on strategic management (for for project management in strategy implementation.
exampleZ), implementation rarely gains the prominence This is especially the case where we are dealing with
which it deserves. Arguably strategic management major cross-functional projects like TQM and Business
should achieve its very own 'paradigm shift '3 by mov- Process Re-engineering (BPR).
ing from a 90:10 concern with strategy formulation Increasingly, project management is being applied
relative to implementation to at least a 50:50 concern outsides its core domain of improving the "competitive
with each. hardware' of businesses to their 'competitive soft-
Turning next to (b) the role of project management, ware', 7 and to the process of implementing strategic
project management's core concern is to deliver a change, s Project management in the arena of strategy
implementation needs therefore to embrace a number
specific result in a particular time and at a particular
of more complex, interdependent and fluid factors in
cost. Traditional project management 4 focuses on deli-
order to be genuinely effective. Managers are, in many
verables (or 'outputs'), on scheduling and co-ordinat-
cases, only beginning to learn how to process change
ing tasks, and on mobilising resources. Principally,
issues effectively and to turn them into projects. This
traditional project management deals with 'hard' task-
article addresses how they can actively do this in a sys-
based business issues, as opposed to 'softer', less tangi-
tematic way.
ble factors, except perhaps for defining the role of pro-
In this article therefore I outline a number of im-
ject manager and the project team. plementation analysis tools which have been developed
The 'design' theory of strategic management pro- in the context of implementing strategic change. These
motes the notion of a neat strategic analysis-choice- tools provide a coherent and robust framework for
implementation process. However, the 'alternative' dealing with strategy implementation projects. But
they can also be applied to the more mundane, but no
*Tel. 01234 751122. less important field of operational projects. We illus-
43
Strategy implementation and project management: T Grundy
trate both with reference to examples, for instance mode. These phases of the strategy (and equally pro-
from Cellnet (a U K cellular telecommunications com- ject life-cycle) are characterised thus:
pany), Dowty Communications and Hewlett Packard
• Deliberate strategy: where the project has well-
(UK).
defined end goals and a clear and specific means of
To explore how strategy implementation processes
achieving these goals.
can inform project management (and vice versa) we
• Emergent strategy: where the project's end goals
examine the implementation framework: enriching pro-
(and intermediate goals) are necessarily fluid, and
ject management. This is explored as follows:
also where the means of achieving these goals can
• Project definition change in new and sometimes surprising ways.
• Project diagnosis • Submergent strategy: where the project is losing its
• Project planning and implementation way--its original goals now seem distant and unrea-
• Lessons and conclusion. lisable, and project activities are beginning to frag-
ment.
• Emergency strategy: where the project is truly frag-
menting into near-random actions and where the
The implementation framework: enriching project project as a whole appears to be overtaken by
management events.
Project definition • Detergent strategy: where the project is recognised
as off-course and by now being steered back onto its
Before we look at an overview of the implementation
original track, or onto a new track.
framework we should first examine the issue of project
definition. Not only is this rarely self-evident with oper- The 'strategy cycle' is not intended to be a determi-
ational projects but it is even harder to define for nistic series of phases destined to always go around
major strategy implementation projects. clockwise. Indeed, projects may alternate between
To begin with, these strategy-related projects may be deliberate/emergent modes as they are guided to (an
poorly scoped or time bounded. Paradoxically strategy often moving) target. But more frequently an emergent
implementation projects should actually be defined phase decays into submergent/emergency when the
with much more rigour than usually is the case. But at project goes wrong. Even then projects may continue
the same time there needs to be some latitude in terms to fly off-course rather than being grasped firmly once
of fluidity of scope and focus within the project defi- again in the 'detergent' mode.
nition. Strategic implementation projects need to be Next we take a look at the definition of projects,
refined and steered continually. In effect these projects particularly to map out their interdependencies with
need to be guided much more sensitively towards their other strategy implementation programmes. We should
target relative to the more traditional, 'fixed' notion of also at this stage be very explicit in defining the stra-
a project. (Here our mind-set should be moving from tegic objectives of projects. Where these are left fluid,
the Scud-missile type of project to the Cruise-missile.) or taken-for-granted, there is carte blanche to organiz-
Just as strategic management has had to come to ational confusion. Also, it becomes even harder to per-
terms with this greater fluidity and ambiguity so must form meaningful financial analysis of the project
project management. Indeed, the notions of "deliberate' within a business case--particularly of the anticipated
and 'emergent' strategy in strategic management can benefits. 8
be applied in an extended way to strategy implemen- Figure 2 now explores a decision path for deciding
t a t i o n - a n d to project management. 9 Not only do at what level to analyse the project. Where there are
these terms apply to project strategy but also to pro- many and complex interdependencies between the pro-
ject value--which can be partly deliberate, and partly ject and other projects, and where these interdependen-
emergent. cies are hard to cost/benefit analyse we should look at
Figure 1 displays an analytically useful (and man- the wider set of projects as our desired unit of analysis.
ager-friendly) approach to understanding project strat- This is sometimes called the 'strategic project set'.
egy. 7 Project strategy may start off as deliberate but Projects do often have value in virtue of their mem-
rapidly move through phases of being emergent, sub- bership of a group or set. This is sometimes likened to
mergent, 'emergency' and possibly even detergent a collector's set of scarce bone china: even to break
the milk jug will have a disproportionate effect on the
overall value of the set. Obviously when dealing with
~ SIMPLE
~ e r g e n t ~
' .'NO~
._I I W HATINTER- II
5"6;
EN~';~C,[E-S- t
co,,p,...I
~1-1[ TS
~kSSESS- I--I
1 ~
I BENEFIT/COSTS?I I I UNITIS
[ J n I STRATEGIC
NOI.~ PROJECT
I SET
Figure 1 The five forms of strategy Figure 2 What is the unit of analysis
44
Strategy implementation and project management." T Grundy
Drop
Refocus I Channel
Distribution
Resolve Channel "Push"
Channel Marketing
Conflict Re-train Strategy
Sales Force
Process Process
Simplification Automation
Reduce
Cost Base Reduce Just-in-time
Working Capital Systems
Reduce Focused
Manufacturing ~ Manufacturing
Sites Strategy
Figure 4 How-How analysis: strategy implementation at Skil Corporation (in the USA)
45
Strategy implementation and project management: T Grundy
46
Strategy implementation and project management: T Grundy
~ MEDIUM
Attdude
NEUTRAL
LOW
©
AGAINST
EASY DIFFICULT VERY DIFFICULT
LOW MEDIUM HIGH Implementation difficulty
Influence
Figure 9 Attractiveness/implementation difficulty (AID)
Figure 8 Stakeholder analysis--Dowty communications analysis
• Eighth, is the pattern of influence of stakeholders
sufficiently hostile for the project to warrant re-defi-
nition of the project? good deal of testing (a) of the net benefits (is it really
that attractive--would it be much harder than we cur-
An example of stakeholder analysis in use is con-
rently think?).
tained in Figure 8. This is again based on the position
Project C is relatively e a s y - - i t will probably end up
as assessed by internal managers of key stakeholders
being zapped unless it can be reformulated to make it
at Dowty Communications.
both a lot more attractive and easier.
Stakeholder analysis can invite as m a n y questions as
Project D presents the biggest dilemma of all.
it yields answers. These questions can be used by man-
Although it appears to be very attractive it is also very
agers to track potential positions of stakeholders (and
difficult to implement. Yet managers will tend to focus
their agendas) in specific meetings and chance conver-
on the attractiveness of the project rather than its
sations. Often a particular stakeholder may be difficult
actual difficulty. And that can occur even though they
to position. This may be because his/her agendas
have gone through the I M F and stakeholder analysis
might be complex. It is quite c o m m o n to find that it is
thoroughly.
only one specific blocker which has made a stake-
When piloting the A I D tool at Hewlett Packard this
holder into an influential antagonist.
happened on two occasions. Quite separately, two ' D '
Where there are very large numbers of stakeholders
type projects were identified and as managers spent
at play on a particular issue, this may invite simplifica-
more time analysing them, commitment to action
tion or even dissolution or re-formulation of the pro-
levels built up.
ject.
Although neither of the projects went a h e a d - - i n
their existing f o r m - - b o t h myself and the internal facil-
itator Stuart Reed, had to be relatively strong to con-
Attractiveness and implementation difficulty vince the teams that some further refinement was
N o w that we have led you through the three key tools necessary.
of implementation analysis, it only remains to look at Stuart Reed reflected at the time:
the trade-offs between attractiveness and difficulty.
I had gone through with them (the managers) both the
The three implementation tools tell us little, if any-
implementation forces and the stakeholders. Although
thing, about whether a particular strategic implemen-
it did seem to be an attractive project our two organiz-
tation project is beneficial. The tools are concerned
ational tools were telling us 'it is not going to happen'.
purely with the implementation process. Benefits are
I think because the managers were going through the
only relevant in terms of shaping implementation
analysis tools for the first time (and hadn't actually
forces insofar as they are perceived and shared by key
tried to implement the project) they hadn't quite re-
stakeholders in the organization. Only if that is the alised that it really wasn't going to happen.
case can they legitimately be introduced as enabling or
constraining forces.
It is perfectly possible, for instance, to find a strat-
egy implementation project which is attractive and Scenarios
which also has clear benefits, and yet where the im- Finally, we turn to the use of scenarios for steering im-
plementation difficulty is extremely great. plementation. Scenarios are:
Alternatively, a project may be relatively easily im-
• Internally consistent views of the future.
plemented, but not particularly attractive or beneficial.
• Which focus on discontinuity and change (not on
The attractiveness/implementation tool ('AID" grid)
continuity).
enables these trade-offs to be achieved. Pioneered in
• Which also involve exploring how the underlying
conjunction with Hewlett Packard, this tool enables a
systems in the business environment may generate
portfolio of possible projects to be prioritised. Figure 9
change.
illustrates a hypothetical case.
• Views of how the competitive players (existing and
Project A is seen as being both very attractive and
new) might behave.
relatively easy to implement. This project is non-con-
tentious and will probably be given the go ahead. Just as 'strategy' is frequently defined as a pattern in
Project B is somewhat more difficult. It is only med- a stream of (past and current) decisions, so a 'scenario'
ium-attractive and is difficult. Project B requires a is equally a pattern of future events and of the inter-
48
Strategy implementation and project management." T Grundy
action between customers, competitors and other key • Drive risk and (financial) sensitivity analysis--for
players both outside and inside the company. the business case.
Scenarios are not static and comprehensive views of • Ultimately, to decide whether or not to go ahead
the future. Scenarios are in many ways more like a with the project (perhaps it is simply too risky).
video film--they are of necessity selective but contain Figure 10 gives a live example of the uncertainty/im-
a dynamic storyline. Scenarios thus contain a series of portance grid. Here we see how at Cellnet certain
views (pictures) of the future. The scenario contains a assumptions underpinning its major business process
storyline which enables these pictures to hang together. re-engineering programme turned out to be consider-
The story can be run (again like a video film) for- ably more uncertain and important than had pre-
ward or, alternatively, backward. By replaying the viously been recognised.
story you can work backwards from a particular scen- Uncertainty/importance analysis thus provides a
ario to see what events might bring about a particular most valuable tool for Everyday Scenario Planning (or
outcome (or 'transitional events'). ESP). This should prove to be an indispensable ad-
Scenarios are not therefore an excuse to make broad dition to the project manager's arsenal.
or vague generalisations--as they are pictures they In order to prioritise strategic implementation pro-
have a clarity about them which will enable recog- jects it may also be advisable to prioritise their import-
nition. Managers need to know which world they are ance and urgency (see Figure 11. (This grid was
entering i n t o - - t h e resolution thus has to be sharp, not discovered spontaneously during change management
fuzzy. In AnsotVs terms, LI they are ways of picking up, work with ICI Colours during 1990. Interestingly, the
amplifying and interpreting weak signals in the en- Burton Group (Management Page, Financial Times,
vironment (external or internal). November 8 1995) also used a similar approach in its
Project-based scenarios, like all pictures, will thus massive store restructuring programme.
have a foreground and a background, some features of Naturally, the 'importance' and 'urgency' grid
central interest, and others which are more peripheral. invites the question of 'important to whom and why?'
To begin to construct a project-based scenario it is (hopefully to the business). It may also result in ques-
especially fruitful to explore the key assumptions tioning the degree of perceived urgency. Once again,
(explicit or implicit) which have been made in believing this grid can be linked in closely to stakeholder analy-
the project will be a success. This invites the use of the sis. Finally, importance and urgency analysis can be
'Uncertainty/Importance' matrix. Here some of the used to map separate projects and their interdependen-
critical assumptions are brainstormed. They are then cies pictorially--as a prelude to planning the critical
positioned in the four quadrants in the current cer- path(s) within a complex strategic change programme.
tainty/importance matrix. Then, where they are per-
ceived to be 'less important' managers can test why
they think this is the case. Equally, where the assump-
tion(s) is considered to be 'relatively certain', once Integrating the tools
again this can be challenged. It is possible to interrelate the various tools. For
Once this testing has been done, specific assumptions instance, stakeholder analysis can be used to generate
may emerge in the danger-zone or South-East of the assumptions about specific stakeholder positions in
grid. These can now be used to generate project-based order to provide input to the uncertainty/importance
scenarios where perhaps one or more assumptions are analysis. Also, IMF (implementation forces analysis)
not met to explore what might happen. This analysis can be used to dig down into the particular agenda of
can then be used to: a specific stakeholder--thus exposing factors enabling
• Generate contingency plans. vs constraining support for a project. Managers will
• Identify project 'hot spots' which need to be very no doubt find new ways of spontaneously combining
closely monitored. and applying the tools.
Figure 12 now shows how the various tools can be
integrated. Although it is not always necessary to use
them all (and certainly not all at once), it is impossible
Certain to have available the whole set for use at different
phases of any complex, strategy implementation pro-
ject.
\
%
I ID HIGH
4
Least x% Very
important important
IMPORTANCE
"5
Uncertain
LOW
Figure 10 Uncertainty/importance of assumptions--cellnet LOW URGENCY HIGH
BPR project
Figure 11 Prioritisations--tensions
49
Strategy implementation and project management." T Grundy
SCENARIOS
- Why Is It a problem/opportunity major organic, business development, acquisitions,
ROOTCAUSEFISHBONE
I business process re-engineering, structure and culture
- Key process I HOW
PROJECT [ - How change, quality management and continuous improve-
MANAGEMENT - Evolve strategy
ment projects. These techniques are particularly well
suited to cross-functional projects.
E ~ PUSHv PULL
STRATEGY It is hoped that writers in mainstream project man-
- Evolvestrategy
agement can carry these techniques forward--and also
to develop these further. Strategic management and
AID-ATFRACTIVEN --TO
IMPLEMENTATION - Express strategy and project management have very much a common
DIFFICULTY create VlSrOn
enemy overcoming the constraints posed by strategy
- Overall STAKEHOLDER F LD implementation.
evaluatton ANALYSIS - Overalldtfficulty
- Ascertain& & reshape plans
reshape agendas
References
Figure 12 T o o l s ~ h a t to use and when 1. Grundy, A. N., Implementing Strategw Change. Kogan Page,
1993.
2. Johnson and Scholes, Exploring Corporate Strategy. Prentice
Hall, 1989.
3. Kuhn, T. S, The Structure of Scwntil~e Revolutmns. Chicago
University Press, Chicago, 1962.
4. Turner, J R., The Handbook of Proleet-Ba,~ed Management.
McGraw Hdl, 1993.
/
PRIES~~ 5. Quinn, J. B., Strategies Jor Change Logwal hwrementalism.
Richard D Irwin, Illinois
6. Mmtzberg, H. and Westley, F. Cycles of orgamzational change.
Strategic Management Journal 13, 1992, 39 59.
7 Grundy, A. N , Breakthrough Strategw~ /or Growth. Pitman
Publishing, 1995.
8 Grundy, A. N., Corporate Strategy and Financial Decisions.
Kogan Page, 1992.
Figure 13 Strategy and projects the hierarchy 9. Mintzberg, H., The Rise attd Fall o/ Strategic Planning. Prentice
Hall, 1994.
10. Piercey, N Diagnosing and solving Implementation problems m
strategic planning. Journal o.["General Management 15(1), 1989
Lessons and conclusion 11. Ansoff, H. I. Managing Strategic Surprise by Response to
Weak Signals. Cah/'ornia Management Review XVIII(2), 1975,
Strategy implementation projects form an increasingly 21 331.
important and high profile application of project man- 12 McElroy, W., Strategic Change Through Project Management.
agement. McElroy ~z has previously highlighted a hier- APM, 1995.
archical model of aims-strategy-programmes projects
(Figure 13). What we have contributed to is the evol-
Dr TotO' Grundy ts Senior Lecturer
ution of strategic thinking at both the project level and m Strategic Management at
at the strategic project-set level. In due course a num- Crw~eld School o/ Management,
ber of strategic project-sets become these ~pro- and Director. Cambridge Corporate
grammes'. At this level major strategic projects often Development. He has ii'orked with
call for a somewhat different mix of tools to tra- BP, 1CI and KPMG, and ts author
oJ several books on strategy, finance
ditional project management. These tools can also be and change management, mchuhng
of major benefit to more tactical and everyday pro- Breakthrough Strategies [or Growth
jects. (Pitman, 1995).
We have therefore brought together a number of
tools and techniques from strategic management, value
management and from organizational change to comp-
lement existing project management techniques. This
toolkit can be applied to a variety of projects including
50