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 the economic crisis when resources were scares, executives found out that
sticking to project management principle, helped them better manage risk, cut
costs, 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 continuous
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 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 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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