project management

Topics: Project management, Strategic management, Strategic planning Pages: 24 (3908 words) Published: October 12, 2013
The Value of Project Management
Looking for a way to stay ahead of
the pack in today’s competitive and
chaotic global economy, companies
are turning to project management to
consistently deliver business results.
Disciplined project management
starts at the portfolio level, where the
strategic vision drives initial
investments and where value
measures are established. A fully
aligned project, program and portfolio
management strategy encompasses
the entire organization, dictating
project execution at every level and
aiming to deliver value at each step
along the way.
Project management is, in fact,
shorthand for project, program and
portfolio management. And more
companies are clearly seeing the
payoff from investing time, money
and resources to build organizational
project management expertise: lower
costs, greater efficiencies, improved
customer and stakeholder
satisfaction, and greater competitive
advantage.

organization-wide commitment to
project management leads to better
results and long-term business value.
“The delivery of business outcomes is realized through the success of projects, and in
essence that is the way that
project management strategies
drive organizational success,” says
Adrian McKnight, PMP, program
director at Suncorp-Metway Ltd., a
financial services firm in Brisbane,
Queensland, Australia.
A survey by consulting giant
McKinsey & Co. found that nearly 60
percent of senior executives said
building a strong project management discipline is a top-three priority for their companies
ii
as they look to the future.

Why Project Management
Matters

An Economist Intelligence report
showed that 80 percent of global
executives believed having project
management as a core competency helped them remain competitive i
during the recession.

Leading organizations across sectors
and geographic borders have been
steadily embracing project
management as a way to control
spending and improve project results.
When the recession began, this
practice became even more
important. Executives discovered that
adhering to project management
methods and strategies reduced
risks, cut costs and improved
success rates—all vital to surviving
the economic crisis.

And even as come executives see
the glimmers of a fragile recovery,
there is little doubt that a strong

More than half of the executives in
the Economist Intelligence Unit report
said following a project management

The economic downturn only
heightened that value.

practices became more important
since the recession began.
Compared to 2007, respondents
reported:
Investing more time in project
planning and due diligence (40
percent)
Conducting more frequent
project reviews to assess risks,
milestones and overall value
(37 percent)
Measuring quantitative and
qualitative project outcomes
more frequently (38 percent)
“Many companies admitted that the
economic crisis underscored their
project management shortcomings
and forced them to do better,” the
report says.
With little room for error and fewer
resources to rely on, project
management expertise and oversight
is helping organizations streamline
their delivery process, cut costs and
sidestep risks, enabling them to ride
out the recession and implement
stronger project management
practices for the future.
“Good project management
discipline stopped us from
spending money on projects that
fail,” says Ron Kasabian, general
manager at global IT giant Intel,
Folsom, California, USA.
Tighter budgets and fewer resources
mean less money for the innovative
projects that help move the company
forward. Getting the most out of those

“Resources are precious, and we’ve
got to be sure we are spending them
in the best and most efficient way
possible,” he says. “When project
failure rates decrease, Intel gets the
biggest benefit out of IT, which in turn
improves Intel’s ability to remain
competitive.”

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