The Coordination Mechanism Of General Contraction Project Portfolio Management And Enterprise Strategy

As a new concept of enterprise management reform, Management by Project advocates managing all business and management activities in a target-style under the guidance of its strategy, which objectively requires to integrate the project management and strategic management, in order to achieve an mutual support between the "enterprise strategic management by project" and "multi-project management under guidance of the strategy". Project portfolio management is an important way of multi-projects management, the coordination between it and enterprise strategy is becoming the key to a successful enterprise project management reform, not only helpful to improve the strategic of multi-project management in the organization-level, but also promote the effective implementation of enterprise strategy from the project management mechanisms aspect.Engineering general contractor is a typical project-oriented enterprises, which faced with the difficult problem of improving the effectiveness of strategic management and managing a number of projects in a non-dominant status, to achieve a dynamic coordination of project portfolio management and enterprise strategy is the root of solving these two problems overall. Project portfolio management plays a transitional key role in enterprise project management system, using it reasonably can reduce the risk of project bidding and contracting decisions and monitor all projects dynamically, what is more to forming a resources optimization allocation mechanism based on the project priorities. In practice, managers through strategic level system make strategy playing a role of orientation, planning. For the general contractor enterprise, general contracting project is an important carrier of its strategy implementation. Therefore, the coordination of project portfolio management and enterprise strategic include two aspects: first, the matching problem of projects and strategy; second, the complementary effect and synergy effect which formed on the basis of strategic guidance and project portfolio management cycle support role. Enterprise strategic level system, project bidding and contracting decision-making process, project portfolio management process, etic, which are five main factors influent the coordination of project portfolio management and enterprise strategy.Starting from the four main included factors, the author developed a series of effective mechanisms to promote these coordination:First of all, introduced in a project level strategy to enterprise strategic system and put forward a new mechanism of formatting enterprise strategy. Secondly, constructed a enterprise project portfolio management mechanism based on "the integration of strategic management and portfolio management" and established an enterprise project portfolio management process which refers to as the "SCOCE" model. Furthermore, according to the requirement of these coordination, the author designed a mixed new frame enterprise organization structure which consisted of enterprise headquarters, strategic division, a regional level and career ministry-level project management office and discussed its operation mechanism from the overall. Then, put forward the project portfolio bidding and contracting decision-making mechanism which based on the strategic decomposition and focused on the project bidding priority evaluation which is a key link of the process. And so, on the basis of integrating the AHP and GRAP, a comprehensive evaluation method was fund to evaluate the projects bidding priorities. In the end, the author confirmed the implementation of coordination mechanism which this paper established in enterprise project management reform by the case of CITIC and demonstrated the use of project bidding priority evaluation method by a calculative example.The coordination of project portfolio management and enterprise strategy is affected by multiple internal and external factors. Through the theoretical analysis and case anatomy, this paper put forward a series mechanism to promote their coordination, with the hope to do something for improving enterprise project management strategic and the effectiveness of the implementation of enterprise strategy.