The role of
strategic issues
in project
Management
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Table of Contents.
Introduction. ................................................................................................................................................ 3
Objectives…………………………………………………………………………………………………3
Definition of terms ...................................................................................................................................... 3
Strategy .................................................................................................................................................... 3
Strategic Issue.......................................................................................................................................... 3
Strategic issue management ................................................................................................................... 4
Project ...................................................................................................................................................... 5
Project Management ............................................................................................................................... 5
Evolution of strategic issues management - milestone ............................................................................. 5
Ways of identifying strategic Issues. ......................................................................................................... 6
Types of Strategic Issues. ........................................................................................................................... 9
External Issues ........................................................................................................................................ 9
Internal Issues ....................................................................................................................................... 10
Strategic Issues Management................................................................................................................... 10
Role of Strategic Issues in Project Management. ................................................................................... 11
Case studies................................................................................................................................................ 14
Tullow Oil ............................................................................................................................................... 14
Kenya Airways ........................................................................................................................................ 15
Conclusion ................................................................................................................................................. 17
References .................................................................................................................................................. 17
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Introduction.
Background to the Strategic Issues in Project Management
Project management is accomplished through the application and integration of the project
management process of initiating, planning, executing monitoring, controlling and closing the
project with respect to strategic issue-environmental factors Gitonga. B.A, page 225. To achieve
project objective at strategic level, implementing organization is required to scan the
environment with objective of establishing all the factors both internally and externally that if not
strategic focused will influence the project performance objectives negatively-present risk threat.
The environmental factors are categorized into two:
a. The external environmental factors
b. Internal environmental factors
Factors affecting project planning are the basis for strategic issues to be considered when
carrying out a strategic project planning and management.
Objectives
By the end of this session, you should be able to:
a. Explain the meaning of strategic issues and project management.
b. Describe evolution of strategic issues.
c. Explain the role of strategic issues in project management.
Definition of terms
Strategy
Derived from Greek word strategos, meaning general. In a military sense, planning and directing
battles is the responsibility of the general.
In organizational context, according to Allan Walter, strategy involves initiation of actions to
achieve immediate objective. Specific actions taken to offset actual or potential threat, enhance
opportunities. Linkage with the goal-setting process, formulation of objectives and selection of
specific actions required in the application of resources to achieve objectives.
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Richard Vancil defined the concept of strategy
“As a conceptualization, expressed or implied by the organization’s leader of (1) the
long-term objectives or purpose of the organization, (2) the broad constraints and
policies… that currently restrict the scope of the organization activities, and (3) the
current set of plans near-term goals that have been adopted in the expectation
contributing to the achievement of the organization’s objectives”.
Thompson et al observed that;
“Objectives are the ends and strategy is the means of achieving them. Strategy is the
pattern of actions managers employ to achieve strategic and financial performance
target”.
Strategic Issue
Gitonga BA defined Project strategic issues as;
Factors or conditions (events, development) which has a long term impact on a project
outcome by impacting negatively or positively on project strategies. These are factors
which affect what has to be done, how it has to be done on a project to win in a
competitive environment-factors influencing a project strategy”.
Strategic issue are categorized into two;
a. External Environmental Issues
These are conditions that lie outside the control of a project organization although they require to
be considered in planning to enhance predictability of risk. These conditions include;

Natural disaster

Fiscal and monetary policies issues

Social and political issue
b. Internal Environmental Factors
These factors which are within the organization and include;

Organization operational factors
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
Goals and performance parameters
Strategic issue management
This is the process by which a project manager can identify, evaluate and respond to events or
development which impact significantly on the project (Johnson 1983).
Project
A project is a one-time activity that produces a specific output and or outcome within defined
time, cost and scope. Characteristics of project include;

Temporary-definite beginning and end

Unique product, process, services or results

Progressive elaboration-input-output relationship

Target

Defined performance objective
Project Management
Project management is the planning, organizing and managing the effort to accomplish a
successful project.
Evolution of strategic issues management - milestone
 Organizations faces different events arising from external and internal organization
environment.
 Events influence might enhance or ruin project performance reputation.
 Strategic issue received strong influence from the concept of cognitive psychology,
strategic management and organization theory.
 In 1960s, 70s and 80s research scholars’ concepts provided new insights to the process of
strategic issues identification and its role in strategic planning.
 Scholars including Daft et al (1984), Hamrick et al (1984), Kiesleret al 1982 Miller et al
(1982), Ransonet al (1980) pointed out how project strategist deal with large volumes of
daily information and how this information finally shapes their decisions and actions
 End of 1990s due to rapid changing environment lead to further development resulting to
concept correlated with decision-making, firm’s behaviour, organization culture and
change.
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 Hittet al (2003) developed the concept of the external environment analysis-scanning,
monitoring, forecasting, assessing environmental changes
Below is as figurative summary of the evolution of strategic issues managementmilestone.
Role of Strategic Issues in Project Management
According with Gitonga BA, there are four main strategic issues that a successful Project
Manager must simultaneously manage. These include resources, time, money and scope. All
these elements are interrelated. Project has several phases and each phase may have unique
strategic issues that may encountered. Therefore, the role of strategic issues is a continuous and
cycling process and it include the following stages:
a. Scanning of issues
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b. Monitoring potential strategic issues
c. Analyzing issues perceived as important
d. Implementation of strategic issues
e. Analyzing performance based on updated mental map
Identification of Strategic Issues in a Project
Conducted as part of the overall strategic planning and include doing an environmental scanning
and or SWOT analysis.
Assessing and Analyzing of Strategic Issues
According to King et al, 2000, to assess an issue in order to classify its impact and whether
strategic or not, four critical aspects must be considered. The issue is considered in terms of its
strategic relevance. If an issue is relevant, project manager has two basic course of actions; live
with the issue’s impact or do something about the issue. Critical aspects to be considered
include:
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a. Actionability-practicality of the issue
b. Criticality-impact on the project outcome
c. Urgency-time period
d. Licensibility-gauge if the project is safe
Steps in Strategic Plan.
Updated mental models influence perception about issues, thus shaping the next cycle of issue
processing.
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Ways of identifying strategic Issues.
 Brainstorming in relation to projects’ vision and mission.
The project team members all have different roles and tasks in the project and each one can play
a key role in the identifying strategic issues that affect the Project Goals.
 Through Research
 Consultations with the stake holders
 Learning from past experiences and expert opinions
 Project Evaluations
 Assessment of the tasks and goals of a project
Types of Strategic Issues.
External Issues
These are the issues that arise from factors beyond one’s control e.g. Political Factors,
Environmental factors etc.
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Case Study:
Ukwala Supermarket burnt down in Kisumu during the post-election violence. According
to the post Standard newspaper Jan .02.2009 Mr. Hitesh was one of the investors, who
suffered the biggest losses during the post-election violence. His biggest store, one of two
in Kisumu, was looted and razed, while the other was broken into and destroyed by
looters. Ukwala Supermarket still stands out hollow, its walls sooty and dark and a grim
reminder of the violence that left more than 100 people dead and property worth billions
of shillings destroyed in the town. A year later, Kisumu has slowly started recovering
from the attack but bitter memories linger.
Internal Issues
They occur due to factors that are within the control of a project manager, they are as a
result of internal processes e.g. Funding i.e. Inadequate finances to run a project to
successful completion or withdrawal of stakeholders, Physical Resources i.e. human
resources, Physical location, equipment’s in use/software and systems etc.
Strategic Issues Management
Strategic issues management is a managerial function that helps corporations identify, analyze,
and respond to social and political concerns that can significantly affect them (Greening and
Gray, 1994; Nigh and Cochran, 1987). Due to the potential of issues management activities to
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influence organizational outcome variables, the function has received generous attention from
strategic management scholars, as evidenced by a steady stream of publications on the topic in
the Strategic Management Journal (Ansoff, 1980; Arcelus and Schaeffer, 1982; Dutton, Fahey,
and Narayanan, 1983; Smart and Vertinsky, 1984; Lenz and Engledow, 1986; Dutton and
Duncan, 1987; Dutton, Ashford, O’Neill, Hayes, and Wierba, 1997; Sharma and Vredenburg,
1998; Shaffer & Hillman, 2000; Hillman & Keim, 2001)
A useful technique to identify and manage strategic issues facing a project is to keep a running
tally of all issues that face the project then take time to have the project team discuss these issues
to see which ones are operational (Short term) and which are strategic (Long term). They can be
managed using the phased approach below.
Role of Strategic Issues in Project Management.
 Provides checks and balances for a given project to assess the success of a project.
o This helps in setting procedures that mitigate inaccuracies and improper
behaviours in project Management. It may also increase the cost and reduce the
cost of the project.
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 Quality control
Managing the issues ensures quality of whatever is being delivered, consistently hits the
mark. Also encourages competition.
 It improves the viability of programs and service delivery.
This helps the project manager understand more on the costs and the value associated
with the project.
 Strategic direction
Strategic issues show a strategic direction which helps in determination of a clear sense
of future direction and focus so as to set a road map towards success i.e. the Vision and
Mission.
 Scanning
Strategic issues help in scanning which brings about identification of potential threats
which can affect the project external and internal environment of a project. E.g. NCC
(External environment).
 Funding
Strategic issues increase the likelihood of stakeholder to fully participate in a project.
Moreover, they determine the value of budgets and how the finances are used in running
the project to realize its objectives.
 Motivation
Strategic Issues motivates financial agencies and employees because they have a clear
direction and way forward towards the goals of the project.
 Policy Formulation
Strategic issues assist in formulating policies of a given project in establishing objectives.
Normally, this spells the controls of the project as they are set out in the policies and
procedures governing the project processes.
 Risk Management & Mitigation
Strategic issues ensure risks are properly managed and mitigated against to avoid becoming
issues. They help to mitigate risks and to navigate through the turbulence created by
change in the business environment. E.g. The case of Telkom Kenya, which was
dominant in the telecommunication industry for quite some time before Safaricom came
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into existence. Due to them lagging behind and not being able to mitigate the risks
involved in their operation, Safaricom took over the market. This was because they were
able to manage the risks involved both internally and externally.
 Resource allocation and utilization
Strategic issues play a major role in optimizing resource allocation and utilization. This is
achieved by prioritizing the project’s critical path.
 To improve decision making and service delivery.
Through the information gathered from the environmental scanning the strategic issues,
solid decision making processes in projects are made so as to reduce, mitigate and
manage the issues.
 To reduce conflict and confusion of priorities
An example of confused priorities is resource allocation to the wrong tasks in a project.
Strategic issues give responsibilities to the various sections of the project. The project
stakeholders are able to concentrate on the critical path.
 To stimulate critical thinking and incremental learning among managers.
Strategic issues expose the managers to various challenges in their environment so that
throughout the project life cycle the managers are able to learn lessons, delegate duties
and identify the best practices to achieve the project’s objective.
 Code of Conduct
These issues give a clear code of conduct among the team members while carrying out
their tasks and lays out the ethics which all stakeholders involved uphold throughout the
project.
 To increase community participation and a sense of belonging in projects.
Once the strategic issues are identified, they help the liaison officer to mobilize the
community to participate in various projects so that they can take ownership and ensure
sustainability of these projects.
 Realistic planning
Strategic issues help in determining which issues are operational (short term) and which
are strategic.
 Helps the project team have a strategic alignment
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Strategic issues ensure what is delivered is right, and will deliver real value against the
business opportunities.
 Bring leadership and direction to projects
Enable every project team member know their role, how to act in managing the strategic
issues
 Encourages team work.
As information emanates from all the team members who are in the project the team feels
part and parcel of the project and thus running it as a team
Case studies
Tullow Oil
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Tullow Oil exploration and crude oil transport disrupted on several occasion as a result of standoff
between the company and the local community. The contract to explore the oil in Kenya is between
the government of Kenya and Tullow Oil Plc of Britain, the Turkana community is not
aforementioned in the formal contract as key players in the exploration contract. The land in which
the oil was found is our cultural heritage and we should part of the process, the leaders of the
community reiterate. The Turkana people are claiming that they were never consulted and
informed about the oil exploration and how they would benefit since the discovery and subsequent
production would be a direct boon to their socio-economics. Tullow Oil has entered into formal
talks with the government of Kenya and the local community to identify modalities to fend off the
animosity. The Government of Kenya will provide a solution to the problem to safeguard Tullow
Oil’s interests and its interests in the exploration efforts.
Strategic Issue- Stakeholders management-Failure to identify Turkana community and leaders as
key stakeholders.
Kenya Airways
The purpose of this study was to determine the strategic issues that affect airlines, a case study of
Kenya Airways. Specifically the study sought to: identify the strategic issues that affect Kenya
Airways, to analyze the challenges in addressing the strategic issues that affect the airline and to
identify the measures that can be put in place to mitigate these issues. A descriptive survey
research design was employed in this study. This approach is appropriate because it will help in
obtaining in-depth information on the management’s opinions on the strategic issues that affect
the airline. In order to ensure fair representation and generalization of the findings to the
population, stratified random sampling was used to select the sample elements from the selected
population elements. The primary data was collected through the use of structured questionnaires
were delivered personally to the respondents. Data analysis was accomplished through the use of
the Statistical Package for Social Sciences. The descriptive statistics technique was applied and
the data was presented in the form of figures, tables and charts. In accordance to the research
findings, it was concluded that there are strategic issues that affect the airline. In addition, it was
revealed that these strategic issues that is, competition, customers, cost and safety and security
were major strategic issues. Safety and security was considered as the main concern by a majority
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of the respondents. The study also concluded that indeed, challenges in addressing the strategic
issues that affected the airline were present. It was pointed out that restrictions in the airline service
markets together with the high value added tax on acquired aircrafts and lack of adequate
government support were the main obstacles to the airline in dealing with the strategic issues.
Regarding the third research objective on identifying the measures that can be put in place to
mitigate these strategic issues, the study revealed that indeed, there were. It was established that
measures such as; joining alliances, hedging of the fuel costs and obtaining the right type of
aircraft were indicated as some of the viable measures that can be used as successful measures
towards the mitigation of the strategic issues affecting the airline. The study recommended that
the appropriate strategies be applied by the airline to counter the various strategic issues affecting
the airline. In addition, it was recommended that the proper policies and practices, such as;
lobbying at parliament be implemented to ensure that any other challenges that may arise in the
future can be dealt with effectively.
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Conclusion
Strategic Issues determine success/ failure of a project. If effectively managed, the project
manager can realize the attainment of project goals and objectives.
By using the concept of strategic issues when managing projects, project managers can identify
and manage those factors and forces that can significantly affect an organization’s future tactics.
References
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