Projects are critical to the success of any organization as they involve the activities that result in new or changed products, services, environments, processes and organizations. Organizations have increasingly embraced project management as a key strategy for staying ahead in today’s highly competitive business environment.
Successful implementation of project management creates an organization that can readily meet the demands of each project and yet adapt quickly to a constantly changing dynamic environment, perhaps at the same time (Kerzner, 2010).
Management considers the organization’s resources, its competitive positioning and its critical areas of strategic uncertainty. Gaddis ...view middle of the document...
This section will describe some of those strategies.
Walker et al. (2008) provided a summary of the 10 strategic management schools, which draw heavily from the text by Mintzberg, Ahlstrand and Lampel (1998). These strategies have been classified into three groups: prescriptive, descriptive and configurative.
Prescriptive strategy is concerned with how strategy should take place rather than how it actually takes place. Descriptive strategy schools describe how strategy actually takes place and the last school, configuration strategy, views strategy as a process of configuration and transformation. The table below gives a brief summary of the concept of each school (Walker et al., 2008).
Prescriptive strategic schools Design School Things can and should be ordered and aligned.
Planning School SWOT, PERT/PDM, PRINCE2
Positioning School There is a place for everything; find gaps to fill and fill them.
Descriptive strategic schools Entrepreneurial school, How the reflexive and adaptable person/organisation develops and pursues a vision
Cognitive strategy school How decision-making processes define strategy
Learning school How learning concepts dominate strategy
Power school, How power influences strategy
Cultural school How culture influences strategy
Environmental school How various environments (external, internal etc.) influence strategy
Configuration strategy school Configuration strategy Strategy as a process of configuration and transformation
Teece, Pisano and Shuen addressed dynamic capabilities. The dynamic capabilities approach is closely related to the resource-based theories of firms that have developed in recent years. In fact, scholars such as Teece et al. (1997) have focused attention on the organizational processes, using the term ‘dynamic capabilities’, by which firms obtain, integrate, and reconfigure resources in order to change their businesses (Teece et al., 1997).
In their discussion of the topic ‘Dynamic capacities and strategic management’, ‘dynamic’ is defined as ‘the capacity to renew competencies so as to achieve congruence with the changing business environment', whilst ‘the term "capabilities" emphasizes the key role of strategic management in appropriately adapting, integrating and reconfiguring internal and external organizational skills, resources, and functional competencies to match the requirement of changing environment’.
The firm's competitive advantage is highly dynamic, requiring continuous innovative reconfiguration for resource mobilization, taking into consideration its path dependence and market position.
The dynamic capability approach to strategy (Teece et al., 1997) shows that successful innovative firms in the global marketplace have been demonstrating timely responsiveness to market changes, along with the management capability to effectively coordinate and redeploy internal and competencies.
Teece et al. (1997) have distinguished a specific set...