2.1 Relationship between Corporate and Project Strategies

Corporate strategy is a framework for articulating an organization's overall goals and objectives and the means that will be pursued to accomplish them. Project strategy, on the other hand, delineates the various external and internal factors that will affect project success and the processes and approaches that will be adopted to attain project objectives. From an organizational point of view, projects invariably evolve out of corporate strategies. The corporate strategy is typically cascaded through several strategic business units and is ultimately translated into a collection of portfolios of programs or projects. Given available resources, these projects then are the mechanisms through which the corporate initiatives are implemented (Jamieson and Morris, 2004, p. 177).

Corporate strategy implementation is frequently accomplished through several mission-critical projects. This implies focusing attention on several key areas. First, activities that need to be completed require allocating organizational resources which are often scarce with conflicting demands placed on them. Second, effective implementation of the corporate strategy through projects depends on the organizational structure and culture. Third, an effective project planning and control system must be in place to ensure activities are performed as planned. Fourth, motivating project participants is another vital area to ensure corporate strategy implementation success. Finally, prioritizing projects is required to determine the critical projects that need to be completed to accomplish corporate objectives. All of the five key areas listed above fall under the purview of project strategy. The value of a project within an organization must be understood in terms of its contribution to the strategic goals that have been set by the top management of that organization. If the project does not provide value, then it does not contribute towards achieving the strategic goals and it is unlikely that the project will survive. The link, therefore, between corporate strategy and project strategy is fundamental to achieving the overall corporate goals and objectives.