Added Value of Project Management: The Business Perspective

Project management provides many benefits for businesses that use it. The present business era, marked by intense competition, requires companies not only to deliver successful projects but to be able to replicate them to reduce costs.

While many industrial sectors use and acknowledge the need for a structured approach to projects, others, like the ones in the IT world, still struggle with this concept. This is one of the main reasons why only 9% of big organisations finish projects within the expected time frame and budget.

In such an environment, the use of project management tools aids companies to achieve their business and operational goals efficiently.

But why? Why is project management a key factor? Is it all about managing the team and planning activities? Of course not!

Let’s review together ways project management creates value. What is that extra something your company gets from applying the project management strategy?

Efficiency

Project management streamlines the processes within the organisation, which reduces the wastage of resources dedicated to the project and eliminates redundancies. It also increases integration and communication between different departments within the company. All this helps coordinate the organisation to achieve timely delivery of project deliverables, which reduces costs, minimises the stress in the whole organisation and increases the customer satisfaction.

Cost Management

Another way project management creates value for the company is through cost control. Project budgets explode easily. To avoid this, we must keep the upper hand on both internal (mainly the time we spend on the project) and external (what suppliers will bill us) costs.

costsWe must do what we can to deliver the project, but this does not mean that each and every action needs to be taken. Project Managers are there to keep track of what is being done and of the needed investments. Most of the time, extra costs need to be directly authorised, or the request for extra costs needs to be escalated. Having the global view of the situation, and project goals and priorities, Project Managers are best suited to obtain the required authorization for extra resources and evaluate the requests for additional spending.

This allows the stakeholders to have a clear overview of the status quo and costs forecast, resource planning and possible revenues.

Best Practices

Project management is a proactive approach. It adds value to the organisation by ensuring the expected quality of the project deliverables, be it goods or services.

The constant monitoring of quality and processes enables the organisation to become more flexible. Project Managers are in an optimal position to spot flaws in their organisations which allows them to define best practices and suggest process improvements. As a result, the organisation can keep the business processes aligned with the latest industry and market needs.

By constantly surveilling the quality, we can ensure a smooth change. This will result in a more comprehensive way of appealing to the people involved, reducing the degree of resistance to change.

Deadlines

Time is one of the most valuable resources for any organisation. By using project management process, the organisation can plan every step of the project, enabling the organisation to complete projects promptly. This becomes essential when members of one team are working on different projects at the same time or when various projects affect the same group of employees.

Long delays and constant rescheduling are the leading causes of failure in change management. They also generate a considerable amount of costs and stress in the organisation. Keeping deadlines in check and correctly communicating reasons for rescheduling will augment the credibility of the project and those delivering it.

Team Building

TBusinesshe use of project management integrates learning and information resources of the organisation. This adds value to the organisation by developing dynamic and enterprise-wide training platform. Project management plays a significant role in enhancing employees skills and productivity. Skilful and productive employees make an efficient organisation.

Project management process requires a collective effort to make a project successful. Project Managers should focus on developing team interaction and communication. Improved teamwork often translates into a more successful project and a more productive environment. Better teamwork means better employee relations and healthier work environment.

Decision Making

Once a possible risk or a crisis is identified, two things become essential: efficient communication toward all the actors and quick response. Project Managers are expected to identify risk factors and handle the crisis. In both cases, once the issue has been identified, decisions must be swiftly taken to avoid or limit the damages.

When it comes to making a decision, we may face one of the most time-consuming activities in the organisation. Having a decision structure in place (Board+Project Manager) will guarantee us not only a clear factual approach but also the involvement of all needed stakeholders.

Replicability

Having a customised approach to every project is quite inefficient, which is why many organisations try to have a more generic, serial approach to conducting projects. In this sense, the real problem is not to deliver a project on time, within the budget and of the expected quality, but to anticipate costs, resources and quality over time and with changing resources. In a nutshell, we should aim to deliver projects in a standardised, streamlined way to optimise efficiency.

Project management is the ideal remedy to this predicament because it uses techniques developed not only to provide a single project but to optimise the project management approach itself over time based on the characteristics of the organisation sector and precious know-how gathered through practice.

The main goal is to anticipate what is needed to deliver a particular solution or product. Over time, this will reduce the dependence of the organisation of named resources shifting roles.

There is much more to project management than just planning and managing. It will trigger cost reduction or, when this is not possible, a clear and timely justification of costs. Also, it will reduce stress in the organisation by reducing the impact of new working tools. Last but not the least, a structured, standardised approach will provide a more efficient and professional process that will enhance the professionality of the whole organisation.

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