Imagine your organization is a mirror. In the beginning, when you are getting started, you can look in the mirror and see; you can connect and organize various aspects of the business, and it is manageable. As the organization grows, the mirror multiplies. There is addition of new mirrors of different sizes and shapes. Soon, it starts to get muddled with multiple mirrors and, you can't see clearly anymore. It appears that everyone seems to be working hard, but there is confusion. Execution does not mirror strategy, and there is no alignment between different parts. It makes sense to organize the mirror into more manageable divisions. You reorganize and break down the mirror with good intentions to better manage it. What do you think predictably happens?
On the surface, it looks like the resulting divisions and silos are well organized and working. But you don't realize that the organization is like a mirror, and as you divide and reorganize it, it is bound to crack and fracture in unpredictable ways. It is a broken mirror, and no matter how hard you try to bring it together, it is not going to look the same again. It causes organizational dysfunction, finger pointing, mixed priorities, and confusionâfar from the muchâneeded clarity and coherence in an increasingly complex world.
Does this sound familiar? This is far too pervasive in organizations, from startâups to incumbent companies and government organizations only with exponential complexity.
A 100âyearâold iconic company that has been a leader in its domain has enjoyed sustained growth and profitability. Over the years, they have excelled at fineâtuning supply chains and gaining efficiencies. But like many businesses, it is struggling to survive and reinvent itself as it faces declining revenues and disruption from digitization and related competition. Recently, it reorganized into three business units to become more customer focused. There are over 100 projects and initiatives across these business units, and some of them are redundant. Each of the business heads is busy reorganizing and ramping up their areas. What is a predictable outcome? Is this going to help bring the organization together and get focused to meet the challenge headâon? What if they put together an organization like a project management office (PMO) to review and prioritize projects at the enterprise level? The challenge is that they have had several PMOs over the years with marginal success. Some were perceived as the process police and others as bureaucratic overhead. How can the PMO reinvent itself and support strategy execution in a holistic way?
On the other end of the spectrum is the typically chaotic world of startâups. Too many priorities that keep changing. Disdain for process and governance. Decisions are made, but no one knows who made them or who is in charge. Products and offerings keep changing. Frequent reshuffling and reorganizing. It seems like people are working hard and putting in a lot of hours, but there is a disconnect between strategy and execution. Culture is pervasive with heroism and firefighting as they espouse flat structures and holocracy. Too much time and money are burned in the name of failing fast, speed and agility. How could we maintain the startâup spirit of innovation and agility with some structure and discipline?
âLook out the window, not in the mirror,â challenged legendary management consultant, educator, and author, Peter Drucker. As we look out the window and reflect the different organizations we have worked with over the past 17 years, crucial questions resound consistently: How can we connect the siloes and link the various execution activities with the overall strategy in a holistic way? How do we manage in a disruptive world that is constantly in flux? Are we stuck in traditional management approaches that don't work anymore? We are trying iterative, incremental, and agile approaches, but do not see the resultsâwhat do we do?
In the quest for better organization and management, many practices have continued to evolve over the past 150 yearsâfrom Fredrick Taylor's scientific principles of management to Six Sigma, to currentâday lean, agile, and hordes of variations in between. These practices have been applied with varying degrees of success depending on the organizational context, culture, and time frame. Some emphasize operational efficiencies and zoneâin on execution; others focus on strategy and business effectiveness, while others espouse governance and control. In the nineteenth century, management consisted of six functions, according to Henri Fayol, considered to be one of the founders of modern management: forecasting, planning, organizing, commanding, coordinating, and controlling. Toward the end of the twentieth century, business management came to consist of six separate branches: financial management, human resources, information technology, marketing, operations, and strategic management.
As organizations evolve in size, scale, and complexity, there is more and more separation between various elements. In particular, the chasm between strategy and execution grows to the point that it is hard for the people involved in executing projects to be able to connect to the strategy or be aware of the business purpose and alignment, while the people responsible for strategy blame execution for not achieving results and vice versa.
The questions that sparked this book are: What if we could decode the DNA of effective strategy execution? Just as DNA contains the genetic instructions used in the development and functioning of all known living organisms, is there a code or blueprint containing the elements of management and strategy execution? How could the strands of the DNA be used to connect strategy and execution in a holistic way? How can we develop the next generation of practical project management and PMOs practices that can complement and enhance contemporary approaches like lean and agile? Is there a way to design an organizational mosaic and connect disparate pieces that provide sustainable results and value holistically?
This book is designed to inquire into these questions to gain new perspectives on ageâold management challenges and illuminate better ways to organize, manage, and execute strategy.
The future of work is projectâbased, and more and more organizations are projectâbased. In this book we focus on how organizations can identify and develop the DNA elements to build a strategyâexecution platform with nextâgeneration project management and PMO capabilities. As we will demonstrate, decoding the DNA of strategy execution can be beneficial in any organizationâwhether it is an incumbent company, or a startup, or a nonâprojectâbased operational environment, the DNA of management is the same and can be applied as a foundational aspect alongside other approaches.
Many organizations have implemented varying degrees of project management practices and established PMOs to coordinate and monitor projects and strategic initiatives. PMOs have become a common fixture in organizations but are not necessarily perceived as a high value, breakthrough management idea. They are typically implemented in a limited way based on traditional management paradigms. According to multiple surveys, including an ongoing survey we have been conducting at the Projectize Group since 2005, the success rate has hovered in the 50 percent range over the past 12 years.