The role of project management in today’s economy
In today’s challenging economic environment, there is a need for the management in organizations to comprehend the key supportive and strategic roles that project management plays in the professional environment. According to the Project Management Institute (PMI), project management involves the use of knowledge, skills, and techniques on various projects so as to meet the project requirements (Thomas & Mullaly, 2007). Project management plays a key role in a wide range of organizations and industries globally including construction, manufacturing, information technology, software development, banking, engineering and telecommunication.
Leading organizations globally have employed project management as a means to regulate spending and enhance project results. As such, the senior management of various organizations have discovered that embracing project management strategies can play a critical role in minimizing risks, cutting costs and improving success rates, which are essential for the survival of organizations during economic crisis.
In addition, project management serves to increase the business value of organizations. In order to enhance maximum benefit and ensure strategic orientation across project portfolio, the majority of managers at various firms are establishing project management offices (PMOs).
Project management play a critical role in the establishment of a strategic value chain that provides organizations with a competitive edge over their competitors. Studies have shown that project management increases the ability of organizations to deliver higher quality projects and remain in the game.
Project management as a primary means of accomplishing work within organizations
Despite the global economic slowdown, many organizations are embracing the use of project management as the key means of accomplishing projects. This is due to the fact that project management contains a wide range of tools and techniques that impact positively on the bottom line of organizations and it assists organizations to maintains their outputs even with staff reduction.
Project management has also been found to be important for the implementation of comprehensive projects due to the wide scope of details and planning needed to bring the projects to fruition. The initiation of large-scale business projects requires maximum coordination in order to minimize the impact on ongoing production and sales. Therefore, the effective use of project management strategies is essential for completing large-scale projects on time, with minimal interruption to other businesses.
The role of projects, programs, and portfolios within organizational settings and their link with an organization’s strategic plan
Over the past decade, many organizations worldwide have been involved with linking projects, programs, and portfolio to their strategic plan so as to get the best outcome of their strategy implementation.
A project can be described as a process that consists of well-coordinated activities that have defined start and completion dates, undertaken so as to achieve objectives that conform to specific requirements such as cost, time and resources.
Portfolio is described as a collection of projects or programs that are clustered together so as to ensure their effective management to meet specific strategic business objectives.
Programs and portfolios are considered as structures necessary for grouping projects in organizations. Therefore, they form part of an organization’s strategic plan. Modern organizations are utilizing program management and portfolio management for project management. Portfolio management involves setting priorities based on the strategic plan of an organization and then determining the projects and programs to implement depending on what will provide the best value, the available resources and the level of risk involved. Project portfolio managers often look at an organization’s projects and carry out an evaluation to determine if they are being executed well, identify ways of improving the projects and whether the organization is getting the required benefits. Program management is concerned with ensuring that the right projects that meet the organization’s strategic plan are chosen and prioritized so as to achieve the expected business value.
How different organizational structures affect the way in which projects are executed
Organizational structure comprises of the way in which individual and team work are coordinated within an organization. Organizational structure can have a significant impact on project management. There are main types of organizational structures that affect project management including functional structure, matrix structure and projectized structure.
The implementation of organization structure such as the matrix structure provides project managers and functional managers with authority that facilitates effective division of labor, in addition to building a strong team culture. The seamless division of labor is essential for the execution of projects.
Studies have outlined the fact that organizational structures can enhance or hurt the success of projects. Organizational structure often consists of a chain of command, with the project manager being compelled by the chain of command to find the best individuals to complete project tasks (Joslin & Müller, 2015).
Moreover, organizational structures can have a significant impact on communication which is necessary for the successful completion of projects. In organizations that have structures that enhance interdepartmental communication, there is greater chance that projects will be successful. However, organizations that have poor communication links within their departments may not succeed.
How project management adapt within the differing organizational contexts
In order to adapt to the differing organizational contexts, project managers have to create project structures that are able to meet the diverse project needs at different stages of the project. This requires that the structure should not be too rigid or too lose because the main purpose of project management is to facilitate the interaction of individuals in order to achieve the objectives of the project within the specified constraints.
The benefit of studying project management through the lens of international standard
Compared to other fields such as strategic management and economics, project management is considered a young field of study, and as such, the input of international standards such as the Project Management Institute’s Body of Knowledge is essential. This is due to the fact that such international standards offer wide knowledge and deeper understanding of the pre-requisites, tools and techniques that are essential for project management.
Further, the study of project management through standards such as the Project Management Institute’s Body of Knowledge provides the skills and knowledge that is required to deliver well-defined and high-quality project solutions. The international standards provide the necessary skills and strategies to enable individuals move through the various phases of project life cycle.
The study of project management through international standards also provides a critical understanding of management as well as, project risk and quality, contracting, scheduling and procurement. As such, it enables individuals to create project management plans that can be applied to real-life situations.