Chapter 2: Organization Strategy And Project Selection ✓ Solved

60 Chapter 2 Organization Strategy Andproject Selectionlar38865 Ch02

Identify the core assignment prompt: Analyze the case of Hector Gaming Company (HGC), pinpoint the major problem, its symptoms, and the underlying cause. Develop a detailed action plan to address the problem, with specific examples from HGC. Use relevant concepts from Chapter 2 on Organization Strategy and Project Selection from the textbook "Project Management: The Managerial Process" by Larson and Gray.

Sample Paper For Above instruction

Introduction

The rapidly growing environment of Hector Gaming Company (HGC) exemplifies the challenges faced by dynamic organizations in aligning their strategic objectives with effective project management. As the firm expands, it encounters operational dilemmas, resource conflicts, and strategic misalignments that threaten sustainable growth. This paper aims to identify the major problem confronting HGC, explore its symptoms and root causes, and propose a comprehensive action plan to resolve these issues, rooted in project management principles and strategic alignment concepts.

Identification of the Major Problem

The primary issue facing HGC is a lack of strategic coherence in project selection and resource allocation, resulting in operational inefficiencies and potential strategic drift. Although there is a clear vision and enthusiastic staff committed to growth and innovation, the organization struggles with prioritizing projects that align with its core objectives. The failure to consistently link project decisions to strategic goals leads to resource conflicts, project delays, and budget overruns, thereby impeding the company's growth trajectory and competitive position.

This misalignment can be summarized as an organizational drift from its strategic vision due to ineffective project prioritization and resource management, which is critical in a high-growth, project-driven environment such as HGC.

Symptoms of the Problem

Several observable symptoms highlight the underlying issues at HGC. Firstly, project conflicts are commonplace, with project managers believing their initiatives are most critical, creating internal competition for limited resources. This situation leads to project delays and over-budget executions, as projects are unintentionally prioritized based on subjective judgments rather than strategic importance.

Secondly, the emergence of unaligned projects, such as the international business game, which do not fit the company’s vision or market niche, illustrates poor project selection practices. This results in wasted resources and dilutes organizational focus. Additionally, increased conflict among top management and internal disagreements reflect deteriorating organizational cohesion.

Thirdly, the surge in organizational activities—such as the oncoming influx of new employees and expanded product lines—further strains existing resource management systems, which are not designed to handle rapid growth. This escalating operational complexity amplifies inefficiencies and risks of strategic misalignment.

Root Cause of the Problem

The underlying cause of these symptoms is the absence of a structured project selection and prioritization process aligned with the organization's strategic objectives. Despite having a strategic plan developed with top management, the implementation phase suffers from inadequate communication, unclear resource allocation criteria, and lack of systematic evaluation of projects’ strategic value.

Furthermore, the absence of a formal project portfolio management (PPM) system creates a situation where projects are initiated and pursued based on individual preferences or immediate opportunities rather than a comprehensive strategic framework. This deficiency results in inefficient resource utilization, conflicting project priorities, and inconsistent focus on strategic goals—all of which threaten HGC’s future growth and competitive edge.

Action Plan to Address the Problem

To combat these issues, a structured, strategic project portfolio management approach is essential. The action plan involves several integrated steps:

1. Establish a Clear Project Selection Framework: Develop standardized criteria aligned with HGC's strategic goals, such as market expansion, innovation, and core competencies. For example, prioritize projects that directly contribute to market penetration in targeted segments, like educational gaming for children.

2. Implement a Project Portfolio Management System: Use tools and techniques—such as scoring models or weighted criteria assessments—to systematically evaluate and select projects. This will ensure transparency and objective decision-making and allow management to compare projects based on strategic alignment, resource needs, and potential returns.

3. Define Resource Allocation Policies: Formalize processes for resource distribution based on project priority rankings, ensuring high-priority projects receive appropriate funding, personnel, and time. For example, allocate dedicated R&D resources to projects that align with long-term innovation goals.

4. Enhance Communication and Stakeholder Engagement: Regularly communicate project priorities and resource plans across the organization to foster alignment and reduce conflicts. Conduct strategic review meetings involving project managers, department heads, and top executives.

5. Introduce Performance Monitoring and Feedback Loops: Establish KPIs and control mechanisms to monitor project progress, evaluate strategic contributions, and make adjustments as necessary. For example, track project milestones relative to strategic objectives and resource utilization.

6. Capacity Building and Training: Provide training on strategic project management and portfolio prioritization to empower managers and staff to make informed decisions aligned with corporate strategy.

7. Pilot and Refine the System: Initiate a pilot phase with select projects, gather feedback, and improve the processes before organization-wide implementation.

Examples related to HGC include:

- Prioritizing development of core educational gaming products over experimental or unrelated projects like international business games.

- Assigning resources to high-growth initiatives, such as marketing efforts for new product lines, based on a project scoring system.

- Establishing a project review committee to align project proposals with strategic objectives before approval.

Conclusion

HGC’s core challenge lies in aligning project selection and resource allocation with its strategic vision amid rapid growth and increasing organizational complexity. By adopting a structured project portfolio management process, establishing clear selection criteria, and improving communication channels, the company can ensure that projects directly contribute to its strategic goals. Such an approach will enhance operational efficiency, foster organizational cohesion, and sustain competitive advantage in the educational gaming industry.

References

• Larson, E., & Gray, C. (2018). Project Management: The Managerial Process (8th ed.). McGraw-Hill Education.
• Meredith, J. R., & Mantel, S. J. (2014). Project Management: A Managerial Approach (9th ed.). Wiley.
• Millett, S., & Hickman, M. (2017). Strategic Project Portfolio Management. Harvard Business Review.
• Schwaber, K., & Beedle, M. (2002). Agile Software Development with Scrum. Prentice Hall.
• Thiry, M. (2015). Project Portfolio Management: Methods and Cases. CRC Press.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
• Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business Review Press.
• Güney, A., Yılmaz, İ., & Güngör, M. (2015). Prioritization Methods for Project Selection. Journal of Business & Economics.
• Taylor, J., & Young, J. (2016). The Strategic Management of Projects. Routledge.
• O AGM. (2018). Effective Resource Allocation in Project Management. International Journal of Project Management.