Implementing Strategy through Projects at Blue Cross$/$Blue Shield

Since strategic plans are usually developed at the executive level, implementation by middle level managers is often a problem due to poor understanding of the organization's capabilities and top management's expectations. However, bottom$$up development of departmental goals and future plans invariably lacks the vision of the overall market and competitive environment. At Blue Cross$/$Blue Shield $($BC$/$BS$)$ of Louisiana, this problem was avoided by closely tying project management tools to the organizational strategy. The resulting system provided a set of checks and balances for both BC$/$BS executives and project managers.

Overseeing the system is a newly created Corporate Project Administration Group $($CPAG$)$ that helps senior management to translate their strategic goals and objectives into project management performance, budget, and schedule targets. These may include new product development, upgrading information systems, or implementing facility$$automation systems. CPAG also works with the project teams to develop their plans, monitoring activities and reports so they dovetail with the strategic intentions.

The primary benefits of the system have been that it allows

senior management to select any corporate initiative and determine its status;

PMs to report progress in a relevant, systematic, timely manner;

all officers, directors, and managers to view the corporate initiatives in terms of the overall strategic plan; and

senior management to plan, track, and adjust strategy through use of financial project data captured by the system.

Questions

$1.$ Do you think that all projects will be monitored by the CPAG or just the strategic projects? Give reasons for your answer based on wha you have read.

$2.$ Will all tactical projects be terminated in the future? If so why would they? If not, where could these be handled or tracked?

$3.$ Do you think the CPAG will substantially improve the achievement of BC$/$BS$\text{'}$s strategic goals? Why or Why not?