SYNTHESIS

(JANUARY 29, 2024)

Submitted To:
MR. FEL S. DELOTA

Submitted By:
DAIREN CLAIRE J. LUMONGSOD
Organizational Strategy

An organizational strategy is like a roadmap created by the leadership team

of a business.
It plans how the business will use its resources (like inventory, time, and
funding) to support all its activities.
As a project manager, you can use this strategy to understand resource
needs and make better decisions for your project.

Why Organizational Strategy is important?

Organizational strategy is important for several reasons:

Better Resource Allocation:

An organizational strategy helps in efficiently allocating resources like time,

inventory, and funding. It allows businesses to prioritize and invest in areas
that align with their strategic goals, ensuring optimal resource utilization.

Setting Direction:

It provides a clear and unified direction for the entire company. With a
well-defined strategy, everyone in the organization understands the
overarching goals and works towards them, fostering cohesion and
alignment.

Simplified Decision-Making:

An organizational strategy simplifies decision-making processes. When

faced with choices, companies can refer to their strategy to make
decisions that align with their long-term objectives, preventing ad-hoc or
conflicting choices.

There are five types of Organizational Strategy:

1. Competitive Strategy

This strategy is about making your organization stand out in the market.
It involves studying competitors and identifying unique strengths or
advantages that set your organization apart.
The goal is to outperform competitors and attract customers, considering
factors like pricing, product differentiation, customer service, marketing,
and distribution channels.
 2. Corporate Strategy

It is the long-term plan for the entire organization.

It encompasses the overall direction and goals, including decisions about
mergers, acquisitions, diversification, and managing the portfolio of business
units or divisions.
The aim is to create synergy among different parts of the organization to
maximize overall performance and value.

3. Business Strategy

It focuses on how your organization will compete within a specific industry or

market segment.
It includes identifying the target market, understanding customer needs, and
developing plans to differentiate your products or services from competitors.
This strategy addresses decisions related to product development, market
positioning, pricing, distribution channels, and marketing strategies.

4. Functional Strategy

This type of strategy ensures that each department within the organization
aligns its activities with the broader organizational goals.
It involves coordinating the actions of various departments, such as
marketing, finance, operations, human resources, and technology, to
support the achievement of the organization's overall objectives.
This strategy aims to create a cohesive and efficient working environment.

5. Operating Strategy

This strategy deals with day-to-day operations and processes that support the
organization's objectives.
It includes decisions about production, supply chain management, resource
allocation, and performance measurement.
The focus is on optimizing efficiency, reducing costs, and improving
productivity through practices like lean management, quality control,
process streamlining, and adopting new technologies.

What is Project Selection?

Project selection refers to the process of selecting .

In an organization, many projects might be running simultaneously, and many
new projects are proposed on a daily basis.
So, the company and the project team must decide which project to start first
and which project can be delayed.
 Before a project is selected for execution, many aspects are considered, and
the project is evaluated.
The project that aligns with the organization’s business goals has the most
chances of being selected.

Criteria for Project Selection

For a project to be selected, it should satisfy the following criteria:

1. Alignment with Business Goals

Projects should contribute to the organization's overall business goals.

The chosen project should support and advance the organization's
objectives.

2. Resource Capability and Availability

Assess the resources required for a project.

Ensure that the necessary resources are available before selecting a
project.
If resources are insufficient, the project might be deferred or
reconsidered.

3. Risk Evaluation

Evaluate the risks associated with a project.

Assess whether risks are high or low.
Develop strategies to mitigate risks, or reconsider the project based on
risk levels.

4. Customer Satisfaction and Brand Loyalty

Consider how the project impacts customer satisfaction.

Evaluate how the project enhances or maintains brand loyalty.
Focus on delivering solutions that meet customer needs and improve the
organization's brand.

5. Data Availability

Ensure that all required data for the project is accessible.

Availability of project-related data is crucial for effective resource
utilization.
Avoid unnecessary delays by confirming data availability upfront.
6. Expected Revenue

Calculate the investment and expected revenue after project

completion.
Assess the project's potential impact on the organization's overall
revenue.
Consider the financial aspects to ensure the project aligns with the
organization's profit goals.

Example: Suppose a company is considering a project to develop and launch

a new software product. The project team estimates that the total investment,
including development costs, marketing, and other expenses, will be Php
500,000. They project that, upon successful completion, the new software will
generate annual sales revenue of 1.5 million.

Expected Revenue Calculation:

Total Investment: Php 500,000
Projected Annual Sales Revenue: Php 1,500,000

Formula:
Expected Revenue = Projected Annual Sales Revenue - Total Investment
Expected Revenue = Php 1,500,000 - Php 500,000
Expected Revenue = Php 1,000,000

In this example, the expected revenue from the project is Php 1,000,000. This
calculation helps the project managers and the organization assess whether
the project aligns with their financial goals and is worth pursuing.

Project Selection Process

I. Identifying Potential Projects

Make a list of all the project ideas the company has.

Provide a brief description for each project idea.

II. Comparing the Projects

Compare the projects against each other using a selection method.

List the benefits the organization aims to achieve and assign points to
each project based on how well it supports these benefits.

III. Analyzing the Findings:

Analyze the list of projects and their assigned points.

Choose the project that aligns best with the organization's goals or has
the highest points.
This selected project becomes the one to be executed.
 Who Does the Project Selection?

The project selection is typically done by the leaders of the organization.

Project managers often play a role in the process due to their
understanding of team capabilities.

References:

monday.com. (2022, September 9). Organizational strategies and keeping your

project on track. monday.com Blog. https://monday.com/blog/project-
management/organizational-strategy/

PPM Express. (August 2016). Project Selection. https://ppm.express/glossary/project-

selection