What is strategic assessment in software project management

Strategy-focused organizations are better positioned to meet the challenges of a changing world and deliver customer and stakeholder value. This type of strategic management goes hand in hand with effective project management because as strategists map out a plan, project managers execute the plan successfully. For this handoff to be effective, executive strategy teams need capable Strategic Project Managers in the room so that lofty strategic aspirations can be grounded by the precision of competent project planning and execution.

Organizations that execute strategy with the discipline of a competent project manager are more successful at achieving goals because project managers help executive teams:. Strategic Initiatives are projects new or existing that are designed to help the organization achieve Strategic Objectives and have significant organization-wide impact.

They are managed formally like any other project, meaning they are explicitly defined in terms of owner, schedule, resources needed, action steps, progress, and expected results.

Some Strategic Initiatives are short-term taking only a few days to implement while others can take years to fully implement. It is imperative to ensure clarity in both Mission and Vision statements. Firstly, they are different things and serve different purposes. All too often they become mixed up, too long, use platitudes and jargon and are wholly uninspiring. Mission and vision statements should be powerful sign-posts that provide clear and succinct directions about the purpose and aspirations of a company or organisation.

The definitions of each are:. A Mission statement articulates the purpose of the company or organisation, why it exists, what it does and for whom. It should serve as an ongoing guide that articulates what the company or organisation is all about.

The mission should focus on the here and now. A Vision statement outlines the goals and aspirations for the future.

It creates a picture of a specific medium to long-term target and should be as a source of inspiration. What do we do and for who? What are our aspirations? The final stage of Step 1 Assessment is to define the company or organisation Core Values. These are the beliefs that form the basis for decision making and activities that occur in day to day situations.

The important thing is to:. Ensure each word has a description that makes it specific to the organisation 2. There are no conflicts in the words used. It is clear that profits are required to create growth, opportunity, job security and many other things. Having profitability as a core value is not a bad thing, provided it is tempered by other core values that explain why it is important. In conclusion, a strategic assessment should not be a lengthy process.

It will be revisited and refined over and over during the next steps of the strategic planning process. How will it interact with systems proposed for later development?

What effect will the new system have on the existing departmental and organization structure? Will, for example, a new sales order processing system overlap existing sales and stock control functions? What information will the system provide and at what levels in the organization? In what ways will it complement or enhance existing management information systems?

In what way will the proposed system affect manning levels and the existing employee skill base? What are the implications for the organization's overall policy on staff development? What, if any, will be the effect on customers' attitudes towards the organization? Will the adoption of, say, automated systems conflict with the objectives of providing a friendly service? Definition of Risk. A risk is a potential problem — it might happen and it might not Conceptual definition of risk.

Project risks. They threaten the project plan. If they become real, it is likely that the project schedule will slip and that costs will increase.

Technical risks. They threaten the quality and timeliness of the software to be produced If they become real, implementation may become difficult or impossible.

Business risks. They threaten the viability of the software to be built. If they become real, they jeopardize the project or the product Sub-categories of Business risks. Market risk — building an excellent product or system that no one really wants. Strategic risk — building a product that no longer fits into the overall business strategy for the company. Sales risk — building a product that the sales force doesn't understand how to sell.

Management risk — losing the support of senior management due to a change in focus or a change in people. Budget risk — losing budgetary or personnel commitment. Known risks. Those risks that can be uncovered after careful evaluation of the project plan, the business and technical environment in which the project is being developed, and other reliable information sources e. Predictable risks. Those risks that are extrapolated from past project experience e.

Unpredictable risks. Those risks that can and do occur, but are extremely difficult to identify in advance. Proactive Risk Strategies. Reactive risk strategies. The team then flies into action in an attempt to correct the problem rapidly fire fighting. Proactive risk strategies. Steps for Risk Management. Identify possible risks; recognize what can go wrong. Analyze each risk to estimate the probability that it will occur and the impact i.

Develop a contingency plan to manage those risks having high probability and high impact. Risk Identification. Risk identification is a systematic attempt to specify threats to the project plan. By identifying known and predictable risks, the project manager takes a first step toward avoiding them when possible and controlling them when necessary. Generic risks. Product-specific risks. Risk Item Checklist. Used as one way to identify risks. Focuses on known and predictable risks in specific subcategories see next slide.

Can be organized in several ways. Known and Predictable Risk Categories. Product size — risks associated with overall size of the software to be built. Business impact — risks associated with constraints imposed by management or the marketplace. Customer characteristics — risks associated with sophistication of the customer and the developer's ability to communicate with the customer in a timely manner. Process definition — risks associated with the degree to which the software process has been defined and is followed.

Development environment — risks associated with availability and quality of the tools to be used to build the project. Technology to be built — risks associated with complexity of the system to be built and the "newness" of the technology in the system. Staff size and experience — risks associated with overall technical and project experience of the software engineers who will do the work. Questionnaire on Project Risk.

Have top software and customer managers formally committed to support the project? Are requirements fully understood by the software engineering team and its customers? Have customers been involved fully in the definition of requirements? Do end-users have realistic expectations? Is the project scope stable? Does the software engineering team have the right mix of skills?

Are project requirements stable? Does the project team have experience with the technology to be implemented? Is the number of people on the project team adequate to do the job? Risk Components and Drivers. The project manager identifies the risk drivers that affect the following risk components. The impact of each risk driver on the risk component is divided into one of four impact levels.

Risk drivers can be assessed as impossible, improbable, probable, and frequent. Risk projection or estimation attempts to rate each risk in two ways. The project planner, managers, and technical staff perform four risk projection steps see next slide. The intent of these steps is to consider risks in a manner that leads to prioritization. Be prioritizing risks, the software team can allocate limited resources where they will have the most impact.