Return On Invested Capital, or ROIC, is a common metric used as an input for developing strategy, selecting projects, and measuring project, program, and business performance. This post explores the definition of ROIC, how to compute it, and its usefulness in strategy and project management. Return On Invested Capital Definition Return on Invested capital can … Read more
Michael Porter, top Harvard Business School Professor and one of the most well-known long time strategy experts in the world, spoke at the PMO Symposium by the Project Management Institute (PMI) a few years ago. You can watch the one-hour video here: Michael Porter on Aligning Strategy and Project Management. This post explores the key … Read more
Problems can sometimes be exceedingly messy, things can get painfully complicated, and communication across stakeholders can seem almost impossible. Logic tree diagrams can be a practical, invaluable, and deceivingly easy tool to help in these situations! This post explores what logic tree diagrams are, the various types of diagrams, and where they can be useful … Read more
This post lays out a simple way to identify the highest priority – or highest value – solutions to problems. It then extends that simple model from prioritizing solutions to prioritizing strategies and projects. The best tools are usually the simplest, and that is the case with this simple prioritization matrix! A Simple Prioritization Matrix … Read more
The BCG Growth Share Matrix is a simple but powerful conceptual framework for businesses, large and small. It is still very much applicable today, and well worth mastering for strategic portfolio managers, project portfolio managers, program managers, and project managers. This post provides an introduction to the BCG Growth Share Matrix Diagram, digs into the … Read more
The Advantage Matrix is an old Boston Consulting Group classic strategic framework. Despite changes in industry structure, the competitive environment, and the impact of technology since it was originally conceived, it still has applicability as a framework and as a thought tool. History and Basics of the BCG Advantage Matrix The BCG Advantage Matrix, also … Read more
Stable industries require a well-defined, largely predictive approach to managing projects. Less stable environments, by contrast, require a more adaptive approach – to both strategy and project management. This post explores an old rule in strategy for stable industries, the Rule of Three and Four. It looks at the impact it has, when it applies … Read more
The idea of the Experience Curve has been around for over 50 years. While businesses, organizations, and markets have evolved, the Experience Curve concept survives and can be very useful for informing decisions, shaping strategy, and guiding implementation. The post explores the origins of the Experience Curve, important nuances to consider, and how it can … Read more
Economies of scope broaden rather than narrow the focus of an organization. It’s like choosing to be a generalist rather than a specialist. While this may seem to apply more to commercial organizations, it does apply to just about any type of organization. This post seeks to define economies of scope which, like economies of … Read more
Gap analysis is something that we do naturally when we identify that we want vs what we have. On an organizational level, this natural process requires a more proactive approach that is much more formal, disciplined, and detailed. This post examines what gap analysis is, where it is applied, and its challenges and benefits. Basic … Read more