Projects are essential to the success of any organization because they involve activities that result in new or changed products, services, environments, processes and organizations . Organizations have increasingly adopted project management as a key strategy to stay ahead in today's highly competitive business environment. Successfully implementing project management creates an organization that can easily meet the requirements of each project while quickly adapting to a dynamic, ever-changing environment, perhaps at the same time (Kerzner, 2010). Management considers the organization's resources, its competitive positioning, and its critical areas of strategic uncertainty. Gaddis (1997) argues that the idea that an organization can plan its way toward a known future is implausible and that the ability of people within a system to see failures is equally problematic. Good project management strategies allow work to be accomplished in less time, at lower cost, with fewer resources and without any sacrifice in quality (Kerzner, 2001). The notion of strategy has received increasing attention in the management literature. The strategy literature in this volume and the strategic management texts increasingly include all relevant documents. This article discusses how project management affects strategy and governance. It begins with an overview of the theoretical background, followed by a brief description of a relevant case study in the construction field. This is followed by an analysis and discussion of related literature. It then concludes with a detailed discussion.Literature reviewTo propose projects, organizations must have dynamic capabilities and a high level of knowledge and skills to be able...... middle of article.... ..iew, 75, 66. GADDIS, P. (1997) Strategy attacked. Long Range Planning, 30, 38-45.HAROLD KERZNER, PD (2010) Project Management: Best Practices: Achieving Global Excellence, Wiley.KERZNER, H. (2001) Using the Project Management Maturity Model: strategic planning for project management, John Wiley & Sons, Inc.PMI (2010) PMI ® Case Study: SAUDI ARAMCO HARADH GAS PROJECT accessed March 13, 2010 << http://www.pmi.org/PDF/Case_Saudi_Aramco .pdf >>.SNOWDEN, D. & BOONE, M. (2007) A leadership framework for decision making. Harvard Business Review, 85, 68.TEECE, D., PISANO, G. & SHUEN, A. (1997) Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509-533.WALKER, DHT, ARLT, M. & NORRIE, J. (2008) The role of business strategy in PM procurement. Procurement Systems: A Cross-Sector Project Management Perspective, 140- 176