The content presents an overview on the different reasons and objectives for initiating projects within an organization. This includes revenue-generating projects that participate in making profit, in addition to various internal capacity and capability building projects. The Focus is on how projects infiltrate the organization and actually participate in achieving various organizational objectives, ultimately generating profit.

1. Initiating Profitable Projects
Business Acumen - Strategic Objective
PMI Lebanon Chapter
Habtoor-Beirut / November 12, 2015
Saadi Adra, PhD c, PgMP, OPM3, PMP, RMP, SP, MPM, EVP
Managing Partner CMCS Lebanon SAL

2. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Outline
• Hypothetical Case Study
• Strategic Objectives
• Demand Generation Projects
• Hybrid (Internal/External) Projects
• Supply – Capacity Building Projects
• Portfolio Roadmap
• Reaping the Benefits

3. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
The content presents an overview on the different
reasons and objectives for initiating projects within an
organization. This includes revenue-generating projects
that participate in making profit, in addition to various
internal capacity and capability building projects. The
Focus is on how projects infiltrate the organization and
actually participate in achieving various organizational
objectives, ultimately generating profit.
Abstract

4. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
What is Business Acumen?
Business
Acumen
Leadership
Technical
PM

5. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Organization Structure
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services

6. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Hypothetical Case Context
• 2016 hard year to do business
• High employee turnover
• To sustain is to lower prices

7. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
BOD Strategic Goals
• Preserve same revenue/profit by lowering prices
and enhancing quality, hence increasing sales
• Lowering prices requires manufacturing some
components rather than import
• Enhancing quality require better QMS and
retaining qualified staff

8. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Supply and Demand Projects
Supply
Enhance quality,
Capacity Building,
Develop a better
methodology,…
Hybrid
Open a new branch;
Invest in Supply of
new office, staff,…
New branch prepares
proposals
Demand
Prepare proposals
to win new
contracts
Revenue
Generation
Consume
Budgets
Revenue
Generation
Capacity
Building

9. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
BOD Strategic Objectives 2016
1. Sustain revenue/profit
2. Increase market share by 20%
3. Expand business in new country
4. Initiate new manufacturing facility
5. Attain EFQM accreditation
6. Develop Talent Management System for
employee retainage

10. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Internal Vs External Investments
1. Sustain revenue/profit
2. Increase market share by 20%
3. Expand business in new country
4. Initiate new manufacturing facility
5. Attain EFQM accreditation
6. Develop Talent Management System for
employee retainage
Supply
Hybrid
Demand

11. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
BOD Strategic Objectives 2016
1. Sustain revenue/profit
2. Increase market share by 20%
3. Expand business in new country
4. Initiate new manufacturing facility
5. Attain EFQM accreditation
6. Develop Talent Management System for
employee retainage
Quality
HR
Business
Develop
ment
Manufact
uring

12. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(1) Sustain Revenue/Profit
CHARTERING
Link to strategic objectives:
• Sustain Revenue/Profit (#1):
– Lowering prices
– Increasing market share by 20% (#2) – more sales
– New country (#3) – sales outlets
– Manufacturing (#4) to lower cost, increase profit
• External Projects – proposals generate revenue
• Partially dependent on #2, #3 and #4
• Pace: Strategic/Long-term

13. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(1) Sustain Revenue/Profit
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
Clients
Support
PM
Internal
Stakeholders
External
Stakeholders

14. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(2) Increase market share by 20%
CHARTERING
Link to strategic objectives:
• Increase market share (#2):
– Lowering prices
– New country (#3) – expand sales outlets
– Earn EFQM Quality (#5) – increase trust
– Retain staff (#6)
• External Projects – proposals generate revenue
• Partially dependent on #3, #5 and #6
• Pace: Strategic/mid-term

15. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(2) Increase market share by 20%
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
New Clients
Support
PM
Internal
Stakeholders
External
Stakeholders
Existing
Clients

16. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(3) Expand business in new country
CHARTERING
Link to strategic objectives:
• Expand Business (#3):
– EFQM (#5)
• Internal Project – open new office
• External Projects – proposals generate revenue
• Fully dependent on #5
• Pace: Strategic/short-term

17. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(3) Expand business in new country
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
New Clients
Support
PM
Internal
Stakeholders
External
Stakeholders

18. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(4) Initiate new manufacturing facility
CHARTERING
Link to strategic objectives:
• Build new Manufacturing Facility (#4)
• Internal Project – overhead
• Pace: Strategic Capital Investment/Long-lead
Item

19. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(4) Initiate new manufacturing facility
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
EPC
Contractor
Support
PM
Internal
Stakeholders
External
Stakeholders

20. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(5) Attain EFQM accreditation
CHARTERING
Link to strategic objectives:
• Attain EFQM (#5) to facilitate expansion in new
country (#3) as entry requirement and help
increase market share (#2) by providing better
quality to clients.
• Internal Project – overhead
• Pre-requisite to #2 and #3
• Pace: Fast/Urgent

21. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(5) Attain EFQM accreditation
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
External
Consultant
Accreditation
Body
Support
PM
Internal
Stakeholders
External
Stakeholders

22. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(6) Develop Talent Management System
CHARTERING
Link to strategic objectives:
• Develop Talent Management (#5) to retain qualified
resources and build the capacity of more resources to:
– Aid expansion in new country (#3)
– Help increase market share (#2)
– Aid in setting up new manufacturing facility (#4)
– Support earning EFQM (#5)
• Internal Project – overhead
• Pre-requisite to #2, #3, #4, #5
• Pace: Fast/Urgent

23. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
(6) Talent Management
Key Stakeholders
BOD
Top
Management
Administration
HR Finance IT
Business
Development Operations
Contracts Quality Manufacturing
Technical /
Services
Support
PM
Internal
Stakeholders
External
Stakeholders

24. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Roadmap
Sustain
revenue/
profit
1
Market
Share up
20%
2
Open
Business
in New
Country
3
Manufac
turing
Facility
4
EFQM
5
Talent
Manage
ment
6

25. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Resource / Capacity Dimension
• HR is Project Manager for Talent Initiative
• HR is required to offer support for each one of
the 5 other projects
• How does business acumen help HR in
prioritizing resources, especially when there is –
and there will always be – shortage on qualified
resources?

26. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Conclusions
• Supply project are pre-requisite to Demand
projects in some cases
• Any Operational Manager can be a project
manager if he learns the discipline.
• Analyzing strategic objectives helps show how
smallest project (EFQM) can have impact on all
other projects.

27. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Business Acumen
Without this Portfolio exercise – where
project charters are made – how would each
PM know the strategic alignment, business
insight and priority of his project?
Business Acumen helps the organization
initiate profitable projects

28. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Thank you for your participation
28
Eng. Saadi Adra, PhDc, PfMP, PgMP, PMP, PMI-RMP,
PMI-SP, OPM3 Professional, EVP
Managing Partner, CMCS Lebanon SAL
+961 3 338 254 / +961 1 345 111
saadi.adra@cmcs-mena.com
http://lb.linkedin.com/in/saadi
http://www.cmcslebanon.com
PMI-RCP / PMO Professional Consulting Services
PMI-REP /