Aligning Capability with Strategy: Categorizing Projects to do the Right Projects and to do Them Right

Abstract

Organizations that undertake many projects need to identify the types undertaken, and use labels to name them. These labels are attributes that form the basis of a project categorization system. There are two reasons why organizations need to categorize projects. The first is to develop and assign appropriate competencies to undertake projects successfully (do them right). The second is to prioritize projects within an investment portfolio to maximize return on investment (do the right projects). Prior research into project classification, the methodology adopted, and the model developed is described. Two major components of a project classification system, the purposes for classifying projects and the attributes used to classify them, are identified; as well as that attributes can be grouped into larger classes. There are also more complex, multidimensional systems for categorizing projects. Finally, how an organization can implement a categorization system is described. This research of project categorization was funded by the Project Management Institute.

Keywords

project categorization strategic alignment capability specialization attributes complex systems

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