“Everyone has a plan: until they get punched in the face”
‘Why is project management important?’ is an interesting question that clients sometimes pose. They’ll ask: “Can’t we just brief the team doing the work and manage them ourselves? It’ll be loads cheaper.”
They wonder if they really need project management because on paper it looks like an unnecessary tax and overhead as project managers don’t really deliver anything and often get in the way of what they want the team to do! So, if all that’s true, why is project management important?
The truth is, running projects without good project management is a false economy. It’s often thought to be an unnecessary burden on the budget, and there’s no doubt it can be expensive – as much as 20% of the overall project budget. But can you afford to not have project management? Without it, what holds the team and client together? And without it, who is left to navigate through the ups and downs, clashes and catastrophes of projects?
Great project management means much more than keeping project management’s iron triangle in check, delivering on time, cost, and scope; it unites clients and teams, creates a vision for success and gets everyone on the same page of what’s needed to stay on track for success. When projects are managed properly, there’s a positive impact that reflect beyond delivery of ‘the stuff’.
Project management is important for several reasons:
Projects are naturally chaotic. The primary business function of project management is organizing & planning projects to tame this chaos.
It’s hard to think of any complex business endeavour that was ever achieved without organization & planning. Project management is the organization, planning and control of projects.
- Managing Risk
Any good project has plenty of risk. After all, the nature of business is taking risks. Risk is a fundamental part of business strategy. However, risk needs to be managed. Risk is that chance of a negative event or loss. Uncontrolled risk-taking ends in asset destruction and compliance issues. Project management identifies, manages and controls risk.
- Managing Quality
Quality is the value of what you produce. There’s not much sense producing something that has no value. Leaving quality to chance is analogous to producing something of random value. Project management identifies, manages and controls quality.
- Managing Integration
Projects don’t happen in a vacuum. They need to be integrated with business processes, systems and organizations. You can’t build a sales system that doesn’t integrate with your sales process and sales organization. It wouldn’t add much value. Integration is often key to project value. Project management identifies and manages integration.
Projects always happen in an environment in which nothing is constant except change. Projects are always a moving target. Managing change is a complex and daunting task. It’s not optional. Unless you can put your business universe on pause, change happens whether you manage it or not. Project management manages change.
Business initiatives typically encounter regular issues that must be managed to achieve objectives. Project management plays a critical role in identifying and clearing issues.
Projects generate knowledge — or at least they should. Scope represents a significant asset for most businesses. Left un-managed, Scope tends to quickly fade. Project management ensures that project scope is captured and managed.
- Learning from Failure
Projects fail. When they do, it’s important to learn from the process. Learning from failure is key to business innovation and quality improvement. Project management ensures that lessons are learned from project success and failure.
- Cost Management
Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget. The cost manager/quantity surveyor plays a pivotal role in the financial and Contract management of construction projects, although the exact nature of the service they provide depends on the project employer’s terms of engagement.
Adopting an iterative and incremental development approach is a fundamental change in working practices for the management team and everyone else involved in the project. Successful iterative and incremental development requires a progressive and adaptive approach to be taken to the management of the project and requires the whole team to embrace change and the continual improvement that this change will hopefully produce. In any change effort, it is essential to demonstrate the value of the change as soon as possible to overcome resistance and build support for the change. The only way that can be done is by achieving the desired technical and business results quickly and efficiently. The fastest way to reach these results is to introduce compatible project Management Consultants to increase the chances of on time and minimal cost delivery of project.