7 Reasons Why Project Management is so Valuable to Organizations
Sometimes companies wonder if they need project management because it looks like an unnecessary overhead expense on their books. Often times we even get asked what project managers even do? Since they don't necessarily deliver anything, people assume it's not necessary.
Let's debunk that. The truth is, completing projects without excellent project management doesn't exist. We will be the first to tell you that project management can be expensive and can be as much as 20% of a project budget. It's essential to think of the opportunity cost - and the main question is, can you afford not to use project management?
If you don't use Project Management, how does the project team work together cohesively? How do you ensure deadlines are met? Are you sure that your quality standards are met?
A PwC study of over 10,640 projects found that 2.5% of companies successfully completed 100% of their projects. The rest either failed to meet specific scope requirements or missed the planned budget or deadlines. In terms of projects that utilized Project Managers, in 2018, nearly 70% of projects met their original goals or business intent, while almost 60% of projects were completed within the original budget.
Here are 7 reasons why Project Management is so valuable:
1. Strategic Alignment
Project management is vital because it ensures that what the organization sets out to accomplish matches the end result and delivers real value. A Project Manager's role is to align the project with the organization's strategic goals. Project management is essential because it ensures the project fits well within the broader context of the organization's strategic frameworks. A Project Manager can manage implementation so that goals are completed through practical application.
Effective Project Management provides leadership not only within the project but beyond. The leadership that comes with project management becomes a central governing point for any aspect of the project that anyone involved can leverage. This is vital for any project, especially when there are several stakeholders. Without proper guidance, the project is like driving a car without a steering wheel - it's bound to fail without adequate direction, control or purpose. A Project Manager provides a vision, motivation, advice, guidance, sets boundaries, and solves problems - inspiring all involved.
3. Clear Focus & Objectives
Project Management ensures a proper plan gets implemented correctly and that the results ultimately align with the organization's objectives. It provides a clear focus for the project and that the goals are understood by all involved. Without this, you will find teams are lost and are left to work without briefs or proper methodologies. Thus there is a lack of understanding and poor results.
4. Make Better Business Decisions
Timely and accurate information is key to good decisions. Fast and proactive decisions can make or break your project. Your Project Manager can ensure decisions are informed and timely.
5. Quality Control
Proper planning ensures quality output, and Project Management can provide this.
According to a survey, 44% of businesses that hired a Project Manager said that it improved the quality of the final product or service, while 38% said it improved customer satisfaction.
Since projects run in phases, the output quality can be assessed at each phase gate, and corrective action can occur.
6. Save time and money
When using the proper Project Management methods, the project manager or team will map out the project journey regarding budget and deadlines. When you take this approach, it can be detected well in advance and corrected if any task goes wrong. When you take this approach, it enables better allocation of resources and avoids delays and project overspend.
7. The way we work is changing
Remote work is increasing & being able to increase visibility and centralizing data is key. The use of digital tools is more important now than ever, as it's more difficult to 'go over and ask.' We have to start embracing technology if we are going to work remotely, so our teams have the right tools to work with and will be able to deliver what we expect. Some managers find managing remote teams a challenge, but hiring a Project Manager that works remotely can fill this gap.
Another consideration in the Project Management debate is, do you have the right Project Manager to champion your projects? Optimize Management Group is a highly experienced and dedicated Project Management organization that works remotely and ensures your projects get delivered on time, within budget, and within scope. We are also a hoot to work with! :)