What is Business Synergies Approach?

The systemic business synergies entrepreneurial approach is concerned with discovering possibilities for adding value to the organization, not with finding solutions within given constraints.

Though this approach is built on the old triple constraints of project management cost, duration, and outcome, it goes beyond these constraints to consider factors for developing business results.

  

 

 

Why Business Synergies Approach?

Change in the marketplace that is accelerating and occurs at increasingly random patterns today, increases the market risk and the necessity of having project managers make important decisions at the project level during its implementation. Constraints imposed earlier may become obsolete very fast, and there is no time to constantly check in with upper management before acting to keep up with changing conditions.

 

 

 

 

    

   

 

 

Entrepreneurial Approach

The entrepreneurial approach to project management requires you to manage the project as if it were an independent business venture. But you must also manage with the larger organizational system in mind. You need to understand how the elements of the project affect the business as a whole and how elements of the business influence the project.

This dynamic new approach to projects will serve you well whether your project is in a business, a non-profit organization, or a governmental agency.

 

 

Adding Value to the Organization

The business synergies approach is concerned with discovering possibilities for adding value to the organization, not with finding solutions within given constraints. This approach uses a framework for thinking about projects based on business concepts such as increasing economic value, or Economic Value Added (EVA). The use of economic value as a decision criterion indicates a change in the way project success is determined and points the way toward the future of project management. While the old criteria of meeting outcome, cost, and schedule constraints will still be important factors for measuring the project progress, they are augmented by business factors that are used to measure project success.

 

 

    

 

From Old Constraints to New Processes and Results

 

From

To

Outcome

Crafting for value addition to the organization in the dynamic marketplace

Duration (fixed deadline, schedule)

Timing the completion of product/service development for maximum cash flow

Cost (budget)

Investing to develop competitive advantage

     

 

 

New System of Success Measurement and Control

Entrepreneurial approach to project management that understands the dynamics of the marketplace and competition may require radical change in the project success measurement and control systems of most organizations. Business-oriented controls should focus on market performance, timing and investing for higher return rather than on meeting fixed specifications and constraints. They must resist the temptation to use operating-plan logic to manage new ventures... More