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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.
Two Approaches to Project Management
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Business
Administration focuses on finding solutions within given constraints (output, time, and budget); characterized by an early design freeze that creates a stable
target for the project; effective when duration of the project - or the time required to innovate
- is
shorter than the rate of change in the business environment.
-
Business Synergies focuses on adding value to the organization and
maximizing return on investment; does not lock down
design earlier than absolutely necessary not to miss a newly emerging
opportunity; effective for
managing innovation projects in the rapidly changing environment, where
change cycle is shorter than or equal to the duration of the project
New Mindset of the Upper Management
The parent organization should treat the project as and
internal start-up or a
spinout that, in a competitive environment, develops an outcome that
supports the overall organizational strategy and, in particular, the
corporate venture strategies,
and contributes to its
sustainable competitive advantage.
Organizations
should provide an enabling environment to empower the project manager to act
as a CEO and thus to contribute his best to the corporate strategy.
Apart
from providing the necessary funding, the organization should shield the
project manager from organizational restrictions, reward results, and
exercise minimal control.
Many of these organizations will need to change their
mindset, redefine their concept of organization and loose controls in order
to expand their capacity for speed. They should broaden their tolerance to
mistakes and encourage entrepreneurial approaches not only verbally, but
by creating conditions by which you can be an
entrepreneur.
Entrepreneurial Leader: 4 Specific Attributes
New Tasks of the Project Manager
Entrepreneurial management is
fundamentally different from corporate management that is focused
on delivering the annual operating plan.
you need to consider your project and your project outcome
lifecycle in a wider context of the overall organizational strategy. Unlike traditional project manager who has to meet static
constraints of project deadlines, budget, and outcome, you should act as an entrepreneur
and deal with
a dynamic business system. You should be able to manage for broader
economic and financial gain for the project and project outcome lifecycle,
thereby contributing increased shareholder value to your company.
To achieve that goal, you would require to have a
broader
understanding of the whole business and the way your project
supports the
overall strategy and fits into the dynamics of the business system. You
should also be prepared to fine-tune the project budget and the project as a
whole in response to market changes and competitor actions in order to react
timely to arising problems and
emerging opportunities.
10 Key Project Leader Skills
Managing Innovation Projects vs. Lifestyle Projects
Managing innovation requires specific
business systems approaches. "If you try to manage the uncertainty inherent in
innovation
with tools and thinking designed for the relative certainty of operations,
you'll run into trouble... You'll be continuously surprised as your
assumptions prove false."5
Innovation Project Management:
The Jazz of Innovation
The improvisation-driven model for
innovation project
management doesnt discard structure, just as there
is a clear structure to good jazz.
The Jazz of Innovation: 11 Practice Tips
In innovation, this structure is created
through
roadmaps, guiding principles,
business processes, systems and organizational
charts. Strategic-planning
and road-mapping processes cannot guarantee brilliant flashes of creative
insight, but they can prepare minds and increase the odds that such flashes
occur in real time. Thus structure, as chords do in jazz, serves as a basis
for improvisation,
experimentations,
discoveries and
value innovation...
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Radical Project
Management
 As radical innovation
projects are characterized by higher levels of uncertainties technical,
market, and organizational, patterns of their journey to the
marketplace are unlike those in incremental innovation projects...
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New System of Success Measurement
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.
Murphy's Law in Project Management
Firmness of delivery dates is
inversely proportional to the tightness of the schedule....
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