Assess project compliance objectives against organizational strategic objectives

Project compliance is an imperative aspect of managing projects, particularly in the contemporary business environment where regulatory standards and legal requirements are increasingly becoming stringent. For an organization to fulfill its strategic objectives, project compliance objectives need to align well with these organizational goals. In the context of PMI Risk Management Professional (PMI-RMP) examination, an understanding of this alignment is necessary.

To ensure projects are in compliance with both internal protocols and external regulations, it is critical to assess whether project objectives and the overall organizational strategy goals are aligned. This ensures that the project will contribute towards the ultimate strategic goals of the organization and not against them.

Assessing Project Compliance Objectives

Project compliance objectives are specific to each project and largely depend on the business sector, size of the project, complexity, and location. However, the fundamental focus is to ensure that the delivery of the project is within the organization’s rules and regulations, industrial norms, and legal requirements.

This encompasses aspects such as:

• Regulatory Compliance: Adherence to laws, regulations, guidelines, and specifications relevant to the project’s business processes.
• Ethical Compliance: Ensuring the project works within the moral boundaries set by the organization and the society at large.
• Quality Compliance: Aligning with the standards and quality norms specified by the organization or regulatory bodies.
• Risk Management Compliance: Conforming to the laid down procedures and approaches towards risk management in the organization.

Aligning with Organizational Strategic Objectives

An organization’s strategic objectives can span across various dimensions. This could include profit maximization, market share expansion, penetration into new markets, customer satisfaction, or building a robust organizational structure. Projects undertaken by the organization should contribute to some or all of these objectives directly or indirectly.

For instance, if an organization’s strategic intention is to expand its market share, the projects should be aligned to this by focusing on development of innovative products, cost reduction, quality enhancement or any other factor which will help seize a bigger market share.

Assessing Compliance Objectives Against Strategic Objectives

A key role of a project management professional, especially one equipped with PMI-RMP certification, is to ensure that project compliance objectives align well with organizational strategic objectives.

For example, a project focusing on building a new product for a target market. Regulations specific to the market would be a part of project compliance objectives. Now, if the firm’s strategic objective is to beat competitors by being the first mover, the project should be managed not only to comply with the regulations but also to ensure a timeliness which gives a competitive advantage.

Similarly, in a different scenario where the firm’s strategic objective is to be the best quality provider, the project compliance objectives need to consider regulations pertaining to quality standards and make sure that these standards align and potentially exceed the industry norms.

Conclusion

In conclusion, achieving strategic objectives of an organization is contingent upon how well project compliance objectives align with them. Achieving compliance in projects is not just adhering to the law, but it is about aligning these requirements with the broader organizational goals. The PMI-RMP examination demands a comprehensive understanding of this alignment, making it an integral part of project management and risk management.

Practice Test

True or False: Compliance objectives and strategic objectives are essentially the same thing.

• True
• False

Answer: False

Explanation: While they are both objectives, compliance objectives are designed to ensure that a project is following external and internal regulations, while strategic objectives are focused on achieving the mission and vision of the organization.

Which of the following would not be a project compliance objective?

• A. Ensuring the project is on budget
• B. Adhering to internal company policies
• C. Following industry-specific regulations
• D. Achieving the overall mission of the organization

Answer: D. Achieving the overall mission of the organization

Explanation: The overall mission of the organization would fall under a strategic objective, not a compliance objective.

True or False: All compliance objectives must be met for a project to be considered successful.

• True
• False

Answer: True

Explanation: Compliance objectives ensure that the project is following all necessary regulations and procedures. Failure to meet these objectives could lead to serious legal and financial consequences.

If a project’s compliance objectives conflict with the organization’s strategic objectives, what should a PMI-RMP do?

• A. Alter the strategic objectives
• B. Overlook the compliance objectives
• C. Try to find a balance between both sets of objectives
• D. None of the above

Answer: C. Try to find a balance between both sets of objectives

Explanation: It is crucial for a PMI-RMP to ensure that a project meets both its compliance objectives and the organization’s strategic objectives. This often involves finding a balance between the two, rather than disregarding one set of objectives.

True or False: Once a compliance objective has been set, it cannot be changed.

• True
• False

Answer: False

Explanation: While it is essential to stick to compliance objectives, they can be modified if required, but it must be done in a controlled manner and should not breach any rules or regulations.

A part of project compliance objectives include:

• A. Going beyond the project budget if it helps achieve the project goals
• B. Modifying the project schedule as needed
• C. Following industry-specific regulations
• D. Only following internal company policies

Answer: C. Following industry-specific regulations

Explanation: Compliance objectives involve adhering to both external rules such as industry regulations and internal company policies.

True or False: Compliance objectives purely concern financial matters.

• True
• False

Answer: False

Explanation: While financial compliance is a part of it, compliance objectives span a range of areas including legal, ethical, and industry-specific considerations.

The fundamental reason for assessing project compliance objectives against organizational strategic objectives is:

• A. To ensure the project is legally and ethically sound
• B. To ensure alignment and contribute to the organization’s strategy execution
• C. To solely focus on budget management
• D. None of the above

Answer: B. To ensure alignment and contribute to the organization’s strategy execution

Explanation: Assessment helps ensure that the project not only follows compliance but also aligns with the organization’s vision, mission, and strategic objectives.

True or False: Strategic objectives are always more important than compliance objectives.

• True
• False

Answer: False

Explanation: Both strategic and compliance objectives are important in their own right and are critical for the success of a project.

Which of the following is a potential consequence of not aligning compliance objectives with strategic objectives?

• A. Legal issues
• B. Financial penalties
• C. Internal discord/conflict
• D. All of the above

Answer: D. All of the above

Explanation: Legal issues, financial penalties, and internal conflict might arise if the project is not adhering to compliance norms while trying to achieve strategic objectives.

Interview Questions

What are project compliance objectives?

Project compliance objectives are specific goals set during project planning that focus on ensuring the project complies with legal requirements, regulations, and organizational policies. These objectives may include things like meeting regulatory standards, adhering to industry best practices, and maintaining internal organizational policy guidelines.

How do organizational strategic objectives relate to project compliance objectives?

Organizational strategic objectives set the overall direction for the organization. Any project initiated by the organization, including its compliance objectives, should align with these strategic objectives to ensure all organizational activities contribute towards achieving the strategic goals of the organization.

What PMI tools are used to assess project compliance against strategic objectives?

PMI makes use of a variety of tools and techniques for this purpose. Some include SWOT analysis, PESTLE analysis, force field analysis, risk breakdown structure (RBS), project risk management plan, and compliance audits among others.

In the context of PMI-RMP, what does compliance mean?

Compliance refers to the project’s adherence to the laws, regulations, and organizational policies that are applicable to the industry or the specific project being executed.

What is a SWOT analysis?

SWOT analysis is a strategic planning tool that helps a project manager identify the project’s Strengths, Weaknesses, Opportunities, and Threats. When used in a compliance context, it can help the project team understand the project’s capacity to meet compliance objectives.

Why is a Risk Breakdown Structure (RBS) important in assessing compliance objectives?

An RBS is an effective way to illustrate and categorize potential risks that may affect a project’s compliance objectives. By breaking down these risks, the project team can put measures in place to address these risks and increase the chances of meeting the compliance objectives.

How does a compliance audit assist with assessing a project’s compliance objectives?

A compliance audit is a comprehensive review of an organization’s adherence to regulatory guidelines. It assesses the project’s adherence to the compliance objectives and identifies any risk areas where the project might not meet these objectives.

How can a non-compliance risk impact the strategic objectives of an organization?

Non-compliance risks could lead to legal penalties, reputational damage, and could disrupt business operations. These impacts could hinder the achievement of the organization’s strategic objectives.

What is the role of PMI-RMP in the compliance of project objectives to strategic objectives?

A PMI-RMP professional is responsible for identifying and assessing project risks, mitigating threats, and capitalizing on opportunities. They ensure that all elements of the project, including compliance objectives, align with and contribute to the strategic objectives of the organization.

How can PMI-RMP help achieve project compliance objectives?

A PMI-RMP professional can help by creating a risk management plan which identifies potential threats to the project’s compliance and outlines strategies to mitigate them. Also, through regular audits, reviewing compliance policies, and continuous monitoring of project activities, the PMI-RMP can ensure that the project adheres to its compliance objectives.

How can an organization ensure that its project compliance objectives align with its strategic objectives?

This can be ensured through proper project planning which integrates the strategic objectives of the organization into the project plans. The project manager, preferably a PMI-RMP, plays a crucial role in coordinating this alignment. Regular checks, reviews, and audits also help in ensuring alignment.