Strategic and business management skills involve the ability to see the high-level overview of the organization and

effectively negotiate and implement decisions and actions that support strategic alignment and innovation.

This ability may include a working knowledge of other functions such as finance, marketing, and operations.

Strategic and business management skills may also include developing and applying pertinent product and industry expertise.

This business knowledge is also known as domain knowledge.

Project managers should be knowledgeable enough about the business to be able to:  

  • * Explain to others the essential business aspects of a project;  

  • * Work with the project sponsor, team, and subject matter experts to develop an appropriate project delivery strategy; and  

  • * Implement that strategy in a way that maximizes the business value of the project.  

In order to make the best decisions regarding the successful delivery of their projects, project managers should seek out and

consider the expertise of the operational managers who run the business in their organization. These managers should know

the work performed in their organization and how project plans will affect that work. The more the project manager is

able to know about the project's subject matter, the better.

At a minimum, the project manager should be knowledgeable enough to explain to others the following aspects of the organization:  

  • * Strategy;  

  • * Mission; Goals and objectives;  

  • * Products and services;  

  • * Operations (e.g., location, type, technology);  

  • * The market and the market condition, such as customers, state of the market

  • (i.e., growing or shrinking), and time-to-market factors, etc.; and  

  • * Competition (e.g., what, who, position in the market place) 

The project manager should apply the following knowledge and information about the organization to the project to ensure alignment:  

  • * Strategy,  

  • * Mission, Goals and objectives,  

  • * Priority,  

  • * Tactics, and  

  • * Products or services (e.g., deliverables).  

Strategic and business skills help the project manager to determine which business factors should be considered for their project.

The project manager determines how these business and strategic factors could affect the project while

understanding the interrelationship between the project and the organization.

These factors include but are not limited to:  

  • * Risks and issues,  

  • * Financial implications,  

  • * Cost versus benefits analysis (e.g., net present value, return on investment), including the various options considered,  

  • * Business value,  

  • * Benefits realization expectations and strategies, and 

  • *  Scope, budget, schedule, and quality.  

Through the application of this business knowledge, a project manager has the ability to make

the appropriate decisions and recommendations for a project.

As conditions change, the project manager should be continuously working with the project sponsor

to keep the business and the project strategies aligned.