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Value of Robust Project Management Approach

Before the financial crisis of 2007 – 08 Project management was not so much popular. With the financial crisis, most companies recognized that they had to optimize their processes, efficiencies and maintain timeline and budget was also very critical for organizations' long term success. An economic Intelligence report established the fact that 80% of executives thought that having a project management competency helped them remain competitive during the recession(PMI, n.d.).

 

In a survey done by Mckinsey, 60% of executives have said that having a project management competency in the organization is among their top 3 priorities.

With globalization companies are operating in multiple geographies, teams are spread out in different geographies. And in this environment managing a project means managing output, managing timeline, stakeholders, and of course the budget. During an economic crisis when resources were scares, executives found out that sticking to project management principle, helped them better manage risk, cut cost and improved project outcomes.

For example after Intel invested in project management they drastically reduced project lengths, on-time project delivery, and improved relation with clients. The project management framework sets standards for deliverables, tracks communication and schedules, measures goals and milestones, conducts reviews, and controls quality. As a result, Intel delivered more projects every year successfully(PMI, n.d.).

As the company has grown from small to midsize now, it is more important to run things more efficiently. Planning and risk management would be great as part of the project management framework. So that the organization can analyze ROI before starting any project, plan accordingly. Identifying the risks for the project and plan to mitigate all those risks will help the project team to meet the goals and deadlines.

Regular review of implementation and quality control will make sure that we are on track. Stakeholder management and communication will keep the customers and internal stakeholders informed about progress. So that if a team hits any challenge we can get whatever help we require to move ahead. Meeting the timeline is always crucial for any project. That is not only to cut cost overrun but that has other perks too.

If projects are completed in the time that will definitely save the company money. But more importantly, as the team delivers projects on time, customers will trust the team better. That will help us win customer loyalty and long term clients.

Today agile scrum methodology is really getting popular because of the continues delivery model. Business defines the priorities, the team implements those and shows business progress. All the stakeholders are always in the loop. It is not like a waterfall, that client gets involved at the end, and there was a huge risk that the team would do something the client would not like.

Usually the project management framework would include the following –

Managing integration – controlling all components which is part of the project as a whole

      Managing scope – defining the scope for the project

Managing schedule – every project starts on time and ends on a predefined time, and managing that schedule is critical.

Managing costs- every project comes with a budget, as part of this the cost gets monitored

Managing quality – within the time and budget the project needs to meet certain goals and quality control makes sure that project objectives are being met with a certain standard.

Managing human resource – the teams implementing the project have to be managed too during the project life cycle

Managing communication – this is essentially stakeholder management, keeping them informed

Managing risks – this includes risk identification and planning, analyzing risks, risk mitigation plan and risk monitoring.

Managing procurement – this is where vendors and selected, equipment and other necessary resources are purchased.

Managing stakeholders – internal and external stakeholder identification, communication with them and managing them is a key component to achieve success.

 

These reasons and many other factors such as cost control, maintaining delivery schedule are why companies employ people with project management skills and this company should do it too (2020 projectmanagement.com , n.d.).

 

References –

A PMI´s (Project Management Institute) paper discussing the project management benefits: The Value of Project Management (http://www.pmi.org/Business-Solutions/~/media/PDF/Business-Solutions/Value%20of%20Project%20Management_FINAL.ashx).

Retrieved on 6/26/2019. Retrieved from https://2020projectmanagement.com/resources/general-interest-and-miscellaneous/10-reasons-why-project-management-matters

 


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