Welcome to Project Management Questions!

You can ask any question on Project Management and you can rest assured that real Project Managers will answer your shortly!

Project objectives vs business objectives

+1
vote
What are the differences between project objectives and business objectives? And should the project manager care about business objectives when managing his project?
asked 10 years ago by anonymous

1 Answer

0
votes
Project objectives are not the same as business objectives. Project objectives are project specific (high level) deliverables that the project is expected to achieve. An example of a project objective would be "Create an accounting module that will be used in the Project Management Software". Project objectives are clear and concise, and as mentioned here ( http://www.projectmanagementquestions.com/77/an-example-of-a-project-objective ) , they do not represent abstract concepts.

As for business objectives, they consists of the high level objectives of the whole business. For example, increase sales by 20% by the end of the year, decrease employee turnover rate by 5% in 5 years, make a net profit of $5 million in July. You can view business objectives as targets the business wants to achieve withing a specific period or at a specific point in time.

Now how do project objectives relate to business objectives? Project objectives must be aligned, at all times, with the business objectives (for example, you don't want a project that will cost the company millions on the short term and starts paying for itself after 10 years, while, at the same time, you want to achieve record profitability this year). It is the job of the Program Manager (or the Project Portfolio Manager) to ensure alignment between any project's objectives and the business objectives of the organization.

Note: Both business objectives and project objectives must be SMART (Specific, Measurable, Achievable/Agreed, Realistic, Time bound).
answered 10 years ago by FastProjectManager (10,100 points)

Related questions

+1
vote
2
answers
0
votes
0
answers
0
votes
1
answer
0
votes
0
answers
© 2010 - 2012 Project Management Questions - All Rights Reserved