Articles

Finding Value in Project Management

by Brian Kemper and Erna Serezlic

Project Management (PM) has been around for a good spell now, but why does anyone care about it? Isn’t it just a way to get things done? But if a team seems to be getting things done, and they’re doing it the way I told them to and want them to, then why should I spend time learning and implementing completely new ways of doing things? Should I help my employees learn project management standards? I know my business, I know what my company needs to do to make money-bring in more money than it spends. Right? Maybe- 

To achieve results based on an established strategy an organization should certainly consider investing in building project management competencies within its ranks and perhaps even in a Project Management Office (PMO). According to Ajay Malhan at the global real estate firm Jones Lang LaSalle, “Project management gives you the structured process that’s required to deliver measurable results,” (The Economist Intelligence Unit, 2009). This structured process and the accompanying tools enable the senior organizational vision to be carried out in a way that translates to the envisioned success.

One company in Australia, Suncorp-Metway Ltd. (Financial Services sector), adopted project management to deliver improved business value. “The CEO and executive team view projects as core to delivering the organization’s strategy. The goal of every project is to deliver business benefit, and the project activity is focused on delivering that value as quickly as possible,” (PMI, 2010).  A Program Director at the company, upon review of a project’s results, noted that the project, “delivered improved customer satisfaction by creating a more user-friendly process, significantly reduced the cost for handling claims and enabled the company to better leverage its service repair network,” (PMI,2010). This example illustrate the ability of project management competencies to bring valuable return on investment.

PMOs, have become essential to many organizations over the past few decades. Dedicated project management support provides significant benefits as projects become complex and teams become distributed. Research shows that implementing a PMO increases project success rates, productivity, and alignment with business objectives.  Here are a few ways PMOs can help generate profits for an organization: 

• Improve project delivery - A PMO can help teams execute projects more efficiently and effectively by standardizing processes and providing templates, training, and tools, reducing waste and saving money. Effective project delivery also gets products and services to market faster.
• Prioritize the suitable projects - A PMO can provide data to help executive leadership make better decisions on which projects to greenlight based on factors like ROI, resources required, and strategic alignment. Ensuring limited funds are allocated to projects with the highest returns.
• Optimize resource utilization - A PMO has visibility across all projects and can identify overallocated resources and skill gaps. Better resource planning prevents bottlenecks and the need to staff up for skills, reducing labor costs.
• Reduce project risks - A PMO reduces the chances of budget/timeline overruns and projects failing outright by ensuring proper scoping, planning, and risk management practices are followed. Fewer failed projects preserve funds.
• Encourage standardization - Standard processes and templates drive efficiency by eliminating redundant efforts. Shared code libraries also promote reuse and prevent "reinventing the wheel." This streamlines work and reduces costs.
• Enhance visibility - Dashboards and reporting provided by a PMO give leadership clear visibility into how projects progress and resources are used. Aids in data-driven decision-making.
• Develop competencies - A PMO can provide training and mentoring to improve team capabilities over time. Building competencies internally prevents the need to hire outside help.

Therefore, organizations that want better results should invest in strengthening project management competencies within their teams. “Project management is hard and organisations often struggle to get it right. Success means a thousand activities have to go as planned, but failure can be due to just one critical oversight,” (Economist Intelligence Unit, 2009). Just as with any other skill set, project management requires nurturing and development. Implementing organizational change and facilitating large scale projects will never be quick and easy but focused efforts on improvement in the right areas will always be worth it and will facilitate steady improvement. 

The practice of project management isn’t isolated to a PMO or project teams either. “Organizations must actively work to shape mature project management practices and integrate it across all levels of the organization. Unless everyone in the company believes in the value of project management, the organization won’t be able to achieve its project goals,” (PMI, 2010). Any organization working with projects would do well to help promulgate increased understanding of project management principles and standards. “Using project management processes, tools, and techniques puts in place a sound foundation for organizations to achieve their goals and objectives” (PMI, 2017). 

What are your goals? A significant project or shift in the way a company does business often comes with significant risk. Certified project managers have experience and training in different strategies contributing to project success. Therefore, investing in employee learning and development within project management competencies brings a robust tool kit of leadership, innovation, communication, and decision-making skills. In conclusion, an effective PMO generates profits by driving efficiency, reducing waste, enabling informed decisions, and building internal capabilities. The cost savings and performance improvements usually outweigh the investment required to run a PMO. 

Works Cited

• A Guide to the Project Management Body of Knowledge. 6th ed., Project Management Institute, 2017. p. 11.
• Aubry, M., & Hobbs, B. (2011). A fresh look at the contribution of project management to organizational performance. Project Management Journal, 42(1), 3-16.
• Closing the gap the link between Project Management Excellence and long ... (n.d.-a). https://graphics.eiu.com/upload/eb/Oracle_Project_Man_WEBr1.pdf
• Five ways to boost your and your PMO’s value - Project Management Institute. (n.d.). https://www.pmi.org/learning/library/project-management-office-value-advancement-1472
• Hurt, M., & Thomas, J. L. (2009). Building value through sustainable project management offices. Project Management Journal, 40(1), 55-72.
• The Value of Project Management. White Paper. Project Management Institute, 2010, p. 5-6.