The Value of Project Management

What is Project Management?

PMI's PMBOK defines project management as the application of knowledge, skills, tools and techniques to project activities in order to meet the project requirements and defines a project as a temporary endeavor undertaken to create a unique product, service or result.

Looking at the definition of a project, you quickly realize that most businesses are always involved in some kind of a project. Anything that is not routine business, but has to be done, is a project.

However, surveys show that many businesses do not have a project management method in place.

Consequences of Not Having a Project Management Method in Place

Not having a project management method in place, results in projects being handled in an inefficient way, over schedule and over budget, while not meeting the requirements. Without project management your company ends up losing money.

 

The Value of Project Management

Having a project management method will result in bringing in projects closer to schedule and budget while meeting customer requirements. Less rework. Project management prevents loss of time and money. 

The value of project management is increased revenue!

 

 

 

 

References:

Selling Project Management

 

 

11 thoughts on “The Value of Project Management”

  1. @Ojendo, how are you? Thank you for your comment.
    What you are saying is completely true. Having a vehicle will not take you from A to B. You still have to drive it properly. Same with project management. Having a project management method is no guarantee for success. You still have to use it properly.
    That is the reason I offer free mentoring to go along with my consulting: Project managers still have to learn how to use their project management method.

  2. Project management guides the efforts to achieve project objectives. However, the efficiecy depends on how project management methodologies are implemented. It is like a steering of a vehicle, it hepls to dierct the tyres but the efficiency depends on how a driver controls the steering.

  3. Hubert, You are right Correct that Project Management does not guaranty the hundred percent success but will ensure that Impact (cost & time) will be minimize. Now coming to the Project Management methodology, Scoping and Risk assessment exercise is the key of Project Management success and my personal observation is most of the project managers / Champion ignore the importance of Scoping  and Risk Management exercise. Which will create problem in delivery stage and result in terms of cost / time overrun

  4. @David. Thank you for your inspirational comment. Project Management by law enforcement. We have a lot of homework to do. I know that in the USA there are some govermental ruling on the requirements of project management when working government projects. Interesting idea. Who knows what the (near) future holds for us.

  5. @NK, Noooow I see what you are saying: there are more benefits to project management than only increased revenue. A structured way of working can be very rewarding indeed. Great and educational comment.

  6. the use of project management methods demonstrates how organized, efficient and responsible an organization is. many organizations (such as banks) are organized but not responsible so that they can hide hidden financial gains. proper project management methods creates transparency which some organizations do not want.  following the global financial meltdown when banks embezzled short term funds while pretending to cover long term mortgage loans, it has now become imperative that proper project management methods be enforced by law and monitored by independent Government regulatory bodies.

  7. @Hubert. I agree that having a project management method in place is no guarantee for projects coming in under schedule and under budget. However, it is a pre-requisite for us to be able to effectively manage our projects and stay closer to the base line.

  8. Increased revenue is not only the result the project management will bring, it brings results in all four dimensions of the balanced scorecard (financial, customer, internal/process and L&G). Most of the organizations create strategies that are not only to achieve financial results but results in all areas of business. Project management helps in all areas not just the revenue or financials.

  9. Victor,

    I agree that not having a Project Management method in place will surely have the consequences you mentioned. But maybe you will agree that having a Project Management method in place does not necessarily means success. Project can still be over schedule and over budget.
    Regards, Hubert

  10. NK, Thank you for your comment. That is another way of looking at the value of project management. Again we see that all of your ways of looking at project mangement will result in increased revenue.

  11. Hi Victor, 
    There are three kinds of value that project management provides to the organizations;
    1. Execution – which can be described in terms of results, performance, project success , "on time and on budget"
    2. Integration – which can described in terms of alignment, communication, breaking down silos and agility
    3. Learning – which can be described in terms of change management, innovation and new product/service/capability/business process


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