Strategic Alignment
Strategic alignment is the practice of ensuring that projects, programs, and portfolios are directly linked to and supportive of the organization's strategic goals and objectives.
Explanation
Strategic alignment means that every project an organization undertakes should clearly contribute to its overarching strategy. When alignment exists, resources flow to initiatives that advance the mission, and stakeholders can see the purpose behind each investment. When alignment is absent, organizations waste resources on projects that deliver outputs without meaningful business impact.
Alignment is typically assessed during project selection and validated throughout the project lifecycle. The business case, project charter, and benefits management plan all serve as vehicles for documenting and confirming strategic alignment. Portfolio reviews periodically reassess alignment as strategy evolves or market conditions change.
On the exam, strategic alignment often appears in questions about project selection, change requests, and project cancellation. A project that loses strategic alignment may be terminated even if it is on schedule and under budget, because it no longer serves the organization's goals.
Key Points
- •Validated during project selection and throughout the lifecycle
- •Documented in the business case, charter, and benefits management plan
- •Loss of strategic alignment can justify project termination
- •Portfolio reviews periodically reassess alignment
Exam Tip
A project can be canceled even if it is on time and under budget if it no longer aligns with organizational strategy. Strategic alignment trumps schedule and cost performance.
Frequently Asked Questions
Related Topics
Organizational Strategy
Organizational strategy is the long-term plan an organization follows to achieve its mission, vision, and goals, serving as the foundation for portfolio, program, and project selection decisions.
Business Value
Business value is the net quantifiable benefit derived from a business endeavor, encompassing tangible elements like revenue and market share, as well as intangible elements like brand recognition, public benefit, and strategic alignment.
Project Selection Methods
Project selection methods are the techniques organizations use to evaluate and choose which projects to pursue, including mathematical models (NPV, IRR, BCR) and comparative approaches (scoring models, peer review).
Value Delivery System
The value delivery system is the collection of strategic activities, portfolios, programs, projects, and operations that an organization uses to create, deliver, and sustain value for its stakeholders.
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Cost Performance Index (CPI) is an EVM efficiency metric that measures cost performance as the ratio of earned value to actual cost: CPI = EV / AC.
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Part of
Business Environment & Strategy
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