pmi lebanon conference workshop-initiating proftiable projects-saadi adra

Initiating Profitable ProjectsBusiness Acumen - Strategic Objective

PMI Lebanon ChapterHabtoor-Beirut / November 12, 2015

Saadi Adra, PhD c, PgMP, OPM3, PMP, RMP, SP, MPM, EVPManaging Partner CMCS Lebanon SAL

“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.

Outline

• Hypothetical Case Study

• Strategic Objectives

• Demand Generation Projects

• Hybrid (Internal/External) Projects

• Supply – Capacity Building Projects

• Portfolio Roadmap

• Reaping the Benefits


The content presents an overview on the different

reasons and objectives for initiating projects within an

organization. This includes revenue-generating projects

that participate in making profit, in addition to various

internal capacity and capability building projects. The

Focus is on how projects infiltrate the organization and

actually participate in achieving various organizational

objectives, ultimately generating profit.

Abstract


What is Business Acumen?

Business Acumen

LeadershipTechnical

PM


Organization Structure

BOD

Top Management

Administration

HR Finance IT

Business Development Operations

Contracts Quality ManufacturingTechnical / Services


Hypothetical Case Context

• 2016 hard year to do business

• High employee turnover

• To sustain is to lower prices


BOD Strategic Goals

• Preserve same revenue/profit by lowering prices

and enhancing quality, hence increasing sales

• Lowering prices requires manufacturing some

components rather than import

• Enhancing quality require better QMS and

retaining qualified staff


Supply and Demand Projects

Supply

Enhance quality, Capacity Building, Develop a better methodology,…

Hybrid

Open a new branch;

Invest in Supply of new office, staff,…

New branch prepares proposals

Demand

Prepare proposals to win new contracts

Revenue Generation

Consume Budgets

Revenue Generation

CapacityBuilding


BOD Strategic Objectives 2016

1. Sustain revenue/profit

2. Increase market share by 20%

3. Expand business in new country

4. Initiate new manufacturing facility

5. Attain EFQM accreditation

6. Develop Talent Management System for

employee retainage


Internal Vs External Investments







employee retainage

Supply

Hybrid

Demand


BOD Strategic Objectives 2016







employee retainage

Quality

HR

Business Develop

ment

Manufacturing


(1) Sustain Revenue/ProfitCHARTERING

Link to strategic objectives:

• Sustain Revenue/Profit (#1):

– Lowering prices

– Increasing market share by 20% (#2) – more sales

– New country (#3) – sales outlets

– Manufacturing (#4) to lower cost, increase profit

• External Projects – proposals generate revenue

• Partially dependent on #2, #3 and #4

• Pace: Strategic/Long-term


(1) Sustain Revenue/ProfitKey Stakeholders

BOD

Top Management

Administration

HR Finance IT



Clients

Support

PM

Internal Stakeholders

External Stakeholders


(2) Increase market share by 20%CHARTERING


• Increase market share (#2):

– Lowering prices

– New country (#3) – expand sales outlets

– Earn EFQM Quality (#5) – increase trust

– Retain staff (#6)


• Partially dependent on #3, #5 and #6

• Pace: Strategic/mid-term


(2) Increase market share by 20%Key Stakeholders

BOD

Top Management

Administration

HR Finance IT



New Clients

Support

PM



Existing Clients


(3) Expand business in new country CHARTERING


• Expand Business (#3):

– EFQM (#5)

• Internal Project – open new office


• Fully dependent on #5

• Pace: Strategic/short-term


(3) Expand business in new countryKey Stakeholders

BOD

Top Management

Administration

HR Finance IT



New Clients

Support

PM




(4) Initiate new manufacturing facilityCHARTERING


• Build new Manufacturing Facility (#4)

• Internal Project – overhead

• Pace: Strategic Capital Investment/Long-lead

Item


(4) Initiate new manufacturing facilityKey Stakeholders

BOD

Top Management

Administration

HR Finance IT



EPC Contractor

Support

PM




(5) Attain EFQM accreditationCHARTERING


• Attain EFQM (#5) to facilitate expansion in new

country (#3) as entry requirement and help

increase market share (#2) by providing better

quality to clients.


• Pre-requisite to #2 and #3

• Pace: Fast/Urgent


(5) Attain EFQM accreditationKey Stakeholders

BOD

Top Management

Administration

HR Finance IT



External Consultant

Accreditation Body

Support

PM




(6) Develop Talent Management SystemCHARTERING


• Develop Talent Management (#5) to retain qualified

resources and build the capacity of more resources to:

– Aid expansion in new country (#3)

– Help increase market share (#2)

– Aid in setting up new manufacturing facility (#4)

– Support earning EFQM (#5)


• Pre-requisite to #2, #3, #4, #5

• Pace: Fast/Urgent


(6) Talent ManagementKey Stakeholders

BOD

Top Management

Administration

HR Finance IT



Support

PM




Roadmap

Sustain revenue/

profit1

Market Share up

20%2

Open Business in New

Country3

Manufacturing

Facility4

EFQM

5

Talent Manage

ment

6


Resource / Capacity Dimension

• HR is Project Manager for Talent Initiative

• HR is required to offer support for each one of

the 5 other projects

• How does business acumen help HR in

prioritizing resources, especially when there is –

and there will always be – shortage on qualified

resources?


Conclusions

• Supply project are pre-requisite to Demand

projects in some cases

• Any Operational Manager can be a project

manager if he learns the discipline.

• Analyzing strategic objectives helps show how

smallest project (EFQM) can have impact on all

other projects.


Business Acumen

Without this Portfolio exercise – where

project charters are made – how would each

PM know the strategic alignment, business

insight and priority of his project?

Business Acumen helps the organization

initiate profitable projects


Thank you for your participation

28

Eng. Saadi Adra, PhDc, PfMP, PgMP, PMP, PMI-RMP,

PMI-SP, OPM3 Professional, EVP

Managing Partner, CMCS Lebanon SAL

+961 3 338 254 / +961 1 345 111

[email protected]

http://lb.linkedin.com/in/saadi

http://www.cmcslebanon.com

PMI-RCP / PMO Professional Consulting Services

PMI-REP /

mailto:[email protected]

mailto:[email protected]

http://lb.linkedin.com/in/saadi

http://www.cmcslebanon.com/

pmi lebanon conference workshop-initiating proftiable projects-saadi adra

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