Initiative management is probably my favourite part of the 8. It’s the point where resources are added to the magic strategy formula, where organisational performance meets individual performance and where strategy translates into practice or remains on paper forever. But it’s also the place where strategy is lost the most.
Here are some interesting facts and figures from research from Palladium, McKinsey and the performance factory:
- Companies spend billions every year on the ‘wrong’ projects.
- Less than 50 percent of all projects are truly aligned to a company’s strategy.
- Only one in seven projects add value beyond ‘staying even’, in that they strengthen the company’s competitive position, differentiate the product offer or create unique capabilities.
- Companies that align initiatives to strategic objectives can achieve up to 20 percent savings.
- Companies that actively manage their initiative portfolio can add up to 30 percent more value.
- Almost 40 percent of all managers believe that the strategic initiatives in their company are staffed with the wrong people.
How well are you managing projects and programmes in your company?
