Posted by: kenwbudd | September 21, 2009

Project Management Adds Real Value and Cost Savings to Organisations

Project management is certainly not overhead. Project management, if implemented and performed in a structured and professional manner, adds real value by reducing waste, controlling costs and improving performance.

Good portfolio management will reduce waste by weeding out projects that should never be started. Often we start these projects and later cancel them after wasting effort and money.

Practicing good project management in the area of initiation, planning and execution will greatly increase the success rate and performance of your project execution. Resources will be better utilised and the team will be more communicative, motivated and organised.

This will reduce duplication of effort, control costs and ensure that risks, issues and dependencies are dealt with in an optimal and effective manner, maximising effort and minimising waste.

Performing proper project closure, and learning good lessons from our past successes (and occasional mistakes), will improve the performance and effectiveness of future projects.

Finally we need to monitor, review and control our projects. We learn in six sigma that you do not improve what you do not measure.

Taking metrics during each phase of your product development process is key to learning and improving your future performance. You can start taking these measurements at any time.

As you improve your implementation of project management you will also see an improvement in the performance of your projects. These project improvements will provide a ‘gearing’ effect and the same amount of effort as before, will create a greater momentum and more energy in the implementation of your projects. Simply by the introduction of good, strong project management methods.

With due regard for the creation of real value from dilligent effort, the Project Manager’s mantra follows Vaughan’s Equation: VO > EI (Value Out is greater than Effort In) You will find that strong project management follows this equation, very closely and will always be well worth your time and effort to implement.

Project management is certainly not overhead. I hesitate even to include the word in the same sentence to avoid establishing a subconscious association.

Project management, if implemented and performed, by a professional, in a structured and professional manner, adds real value by reducing waste, controlling costs and improving performance.

Project management provides better ROI, lower TCO and better TQC.
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