Research On The Paradigm Of Strategy Implementation Based On Project Portfolio Management

In order to solve the problem"how to translate business strategy into projects", this paper initiates a new paradigm based on the theory of project portfolio management.The paper proves the hypothesis that there are two kinds of company actually exist in the real society by empirical research of questionnaire and principle components analysis. One is named as project-based company; the other is product-based company. They are mainly different in business operations and organizational structure. Moreover, their distinctive characters are concluded by comparing the scores of 15 independent variables.The auther summarizes 6 main paradigms of strategy implementation by literature search. They are balanced scorecard, road maps (by Wharton business school), execution theory, blue ocean strategy, organization dynamic model, and Anthony-Ansoff-Andrews paradigm (3A Paradigm). Furthermore, by comparing their contributions and limitations, the auther indicates these pradigms are limited in guiding the strategy implementation for project-based company. So, it is necessary to build a new paradigm.In addition, the paper researches on the key success factors to locate the emphases of the new paradigm. By conducting questionnaire and one-way ANOVA, 15 KSFs are founded in three levels of single project, multiple projects, and project-strategy connection. The following case study on a representative project-based company shows that the success of strategy implementation greatly depends on two factors. One is taking full use of project portfolio management to categorize, evaluate and select projects. The other is adding a new"project strategy"level into the traditional strategy hierarchy which results in a new four-level hierarchy making up of"Corporate strategy-business strategy-function strategy-project strategy".Lastly, the paper brings up the paradigm of strategy implementation based on the theory of project portfolio management. It consists of four interrelated phases, i.e.,"Object, portfolio, decision, and action". The main contents include five aspects, that is"Categoriaze, evaluate, select, priotize, and optimize"projects.