Project Management
What is project management?
Leading organizations recognize that project management is a key tool enabling them to respond
to an ever-changing business environment. Companies and organizations that utilize project management
to increase their flexibility and agility outperform their less adaptable competitors.
Project Management as a Core Competency
Leading companies worldwide are re-shaping their business models to reflect the fact that
non-repetitive projects are key drivers of revenue. Many are outsourcing day-to-day functions
in order to focus on innovation and new ideas.
Some companies have gone so far as to become more like project coordinators than producers of
goods or services. The "business-as-usual" bits of their operations have been outsourced,
leaving them free to design and orchestrate new ideas. Nike, for instance, does not make shoes
any more; it manages footwear projects. Coca-Cola, which hands most of the bottling and marketing
of its drinks to others, is little more than a collection of projects, run by people it
calls "orchestrators." Germany's BMW treats each new car "platform," which
is the basis of new vehicle ranges, as a separate project. Meanwhile Capital One, a fast-growing
American financial-services group, has a special team to handle its M&A "projects." For
all these firms, project management has become an important competitive tool. Some of them call
it a core competence.
— The Economist print edition
June 9, 2005 |
Project Management Components
Professional project management consists of five inter-related processes:
Initiate: A need is identified and potential solutions are evaluated. Success metrics
are defined. Plan: Develop strategy to deliver results. What has to happen? Who will do it? How? When?
How much will it cost? Execute: Implement the solution by executing the plan. Control: Are we on target? If not, what should be done? Should the plan be changed? Close: Measure results against success metrics defined in initiation phase. Evaluate what
was done well and what should be improved. Identify any additional opportunities.
Throughout the lifecycle of a project, professional project managers focus on scope management, cost
and time management, quality management, and risk management to ensure that projects deliver the expected
results on time and within budget. In addition, the human resource and team dynamic aspects of people
management are critical to project success.
Project Management Benefits
Many projects fail to meet objectives and many more are plagued by cost over-runs and delays.
In 2004 only 29% of IT projects "succeeded" (down from 34% in 2002)
Cost over-runs averaged 56% of original budgets
On average, projects took 84% more time than originally scheduled.
— The Standish Group
2004 Quarterly Research Reports |
In order to overcome the odds, leading organizations utilize project management principles and practices.
How can professional project management help your organization avoid project failures? Project management
emphasizes planning to ensure that execution is focused and smooth. Dedicated project management resources
ensure that progress on your critical project is constantly evaluated in terms of scope, costs, and benefits.
And when the project is complete, project management experts provide a thorough assessment so that lessons
learned are absorbed by your organization for future initiatives.
|
|
