Importance of Project Management


Mar 13th, 2015

Project management is increasingly becoming way of doing business, as many organisations are operating through undertaking only projects. It seems that future holds more significance for project management methodology as projects are rapidly wide spreading and firms are adopting this strategy according to it.
Below I will outline few points to make you understand the increasing significance of project management in today’s business world.
Product Life Cycle Limitation:
Not long ago, probably three to four decades, a product could have life cycle for 10 years. One company could have a competitive edge in attaining market share over other competitors due to a certain product or services for years. Nevertheless, now product life cycle is limited to only couple of years, thus the life cycle is short. Companies need to constantly creates new and better products/services to retain their market share or else they would be wiped out. For example, Nokia was a successful mobile company, particularly in Asia, but did not able to do introduce competitive smartphones in their product line, thus nearly wiped out and then bought by another company. Therefore, corporations require speed to be competitive in marketplace. It is achieved through multi-disciplinary teams in a project management methodology.
Increased Complexity:
Projects are becoming complex due to growing demand for multi-purpose products. For example, mobiles phone technology have revolutionised the industry and now we not only use our mobiles to receive and give calls or text message, they are mini PCs. The laptops are not shrinking in the form of notebooks and tablets. The customers look for materials used, appearance, specifications, so on and so forth. Thus, products are getting complex to create and it require cross-functional experts to integrate different technologies to create one unit. Project management is the discipline that encourages this approach to achieve required objectives.
Holistic Approach:
The complex multidisciplinary global issues of our planet require holistic approach. Organisation cannot think about making only profits anymore. Problems such as global warming, carbon emissions and climate change a global response as it is threating to rural and urban areas alike. The awareness to achieve sustainability and preserving our environment forced corporations to think and act sustainably. Companies take their responsibility now and revised their approach to do business. Project management approach takes into account all necessary factors to achieve desired objective.
In last decade, many corporates undergone downsizing or something it is termed as right sizing to reorganise their structure. Due to downsizing and cheap available work force in Asia, significant work are contracted to them or outsourced. Therefore, strong management is required to manage team members in project office as well as constantly remain engaged with people in outsourced organisation(s). It require project manager to carry out these functions.
Client Oriented Business:
One good thing happened over the course of time is client oriented business approach. Customer’s satisfaction is of supreme importance to organisation now to create loyal customers and thus retain market shares. Now customer do not only way high quality products in cheapest possible prose they also want customised products. This makes competitions fierce and squeezes profit margins. The situation requires that organisations work closely with clients to satisfy their needs.
Earlier, iron triangle-on time, within budget and with require specifications-was regarded as success criteria. It is still widely assumed success criteria, however, customer satisfactions is formatting iron triangle into a pyramid. If a project does not satisfy a customer’s need, even if it is delivered on time, within budget and required specifications/quality, then it won’t be considered as success. Contrary to it, if a project is delivered late and/or over budget but customer like it then it would be mentioned as successful project, such as, Sydney Opera House, which was over budget and late then actually scheduled but now it’s a popular tourist destination.
Resource Allocation:
As many organisation are working primarily on projects, thus at any given time they are running numerous projects in parallel. Projects require resources to be completed. Therefore, there will be instances when two different projects require same resources. It requires resource allocation to increase productivity. Project management provides this tool to increase productivity by efficiently utilising scare resources to achieve required objectives.
Risk Management:
Risk management is of utmost significance in delivering successful projects. It is a proactive approach rather than reactive to mitigate any circumstances that can be potentially hurdle in achieving desired outcome. Project management provide a tool called risk log to keep an eye on associated risks and manage them.
In summary, in global competitive marketplace, to stay on top of the game or being competitive, a good project management is essential. Change and ingenuity is inevitable in today’s business. Project management equip business with an array of tools in their arsenal to develop products with speed, innovation and improvement that will bring value to customer’s experience.

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