Strategic Alignment – The Weak Link In Project Management PMI Study


Strategic Project Management

The Project Management Institute released the pulse of the industry report in February 2014 which highlights the need for better strategic alignment in project, program and portfolio management. Though majority of the organizations acknowledge the importance only a very small percentage of the organizations surveyed acknowledge that their project management is aligned with strategy. I have summarized the report and added my discussion on how will help address this issue.

The Chasm:

It was revealed that a wide chasm exists in strategy formulation and its day to day implementation. Only 9% of the organizations said they are good at implementing strategy. Strategy is implemented invariably through projects. This poor performance leads to over 10% increase in project costs due to inefficiencies in implementation. A summary of the findings is listed below;

  • High performance organizations completed 89% of the projects successfully. While low performers only complete 36% of the projects successfully.
  • Projects aligned to strategy have 71% rate of successful completion while those that are not aligned have 46% rate of successful completion.
  • Aligning projects with strategic objectives has the greatest potential to add value to an organization
  • On average 3 out of 5 projects are not aligned to strategy.
  • Organizations that are highly agile, nimble and able to respond quickly to changing market dynamics complete more of their strategic initiatives successfully than slower, less agile organizations (69 percent versus 45 percent).
  • But only 15 percent of organizations report high organizational agility.
  • High performance organizations focus more on agility and strategic alignment.
  • High performance organizations succeed through a focus on people, processes and outcomes.

PMI concludes that focusing on these three areas leads to increased success of both projects and strategic initiatives. Organizations can potentially save more than 10% in project expenses and mitigate the cost of low performance.


The study summarized the following key factors in organizational success in project management and see how addresses these;

  • Project day to day activities should be aligned to strategic objectives.

Entroids automates strategic alignment of all project activities with a patent pending methodology.

  • Focus on people
    • Provide proper training, and ensure qualified high performing PMO.

Entroids measures team member effectiveness in execution. It helps you Pin point who your A-players are, and also helps you provide focused help where required.

  • Focus on Process
    • Establish standard work procedures. Process maturity leads to success
    • Change Management – C-Level sponsor and involvement in project for strategic alignment.

Entroids provides a structured framework to be agile and lean. Agile is have the ability to adjust to changes in strategic needs across day to day activities. And Lean is to eliminate waste by automatic linkage of activities to strategic needs. The tight link of the daily activities to strategic objectives enables to automatically communicate changes and quickly adjust daily activities.

  • Focus on Outcomes
    • Quantify, measure and communicate the expected results of the project.

Link to the study : Click here!

Entroids provides simple visual dashboards to communicate all aspects of project execution. Measure team execution effectiveness and individual team member performance. Pin point which strategic needs are getting momentum and which need more attention.

Here’s a bit more about the “Entroids Way”

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