In: Operations Management
(a) We see that GBI is also considering initiating other projects. New projects will require GBI to re-examine its pursuit of strategic objectives via best practices in organizational project management.
(b) Discuss a framework that may be used to ensure the above mentioned systems align to GBI’s strategic objectives.
Answer: It is very important to understand the project feasibility and selecting the project which would be the best fit for the organization's strategic objectives over the other projects. The following framework can be used to find the project suitability and its strategic fit for the organization:
a. Economic Impact: It is measured on some standards like Internal rate of return, Return on capital employed, and a payback period of the project. Economic impact helps in the determination of the economic value of the different projects which are under the evaluation for the strategic fit. if the project fits with the economic objectives of the organization then it would be considered as strategically fit. This factor can be given a score to each of the projects under evaluation based on its payback period or the economic fit.
b. Competitive advantage: Each of the projects need to be evaluated for its competitive advantage and how does the project will help in improving the competitive position in the market. based on the level of improvement each of the projects would give a competitive advantage in the market can be given a score.
c. Strategic fit: It indicates the level of fit of the project objectives and how does it support or complements the corporate objectives as well as business objectives. Each of the projects can be given a score based on its strategic fit.
d. Competitive & Other Risk associated with the project: This helps in the assessment of each project for its risk associated and the kind of competitive damage it may do if the project does not meet its objectives. based on the level of risk each project can be given a score.
After scoring each of the projects a final score can be created for all the projects and then the best project decision can be made.