Business Services - Project Management
What is a project management?
Project management can be thought of as the collection of management tools and procedures that have been tailored to maximise the success of a project.
Common reasons for project failure
- Cancellation - one out of every three projects get scrapped before they finish.
- Cost - approximately 50% of projects will overrun the original cost estimates by over 150%.
- Time - work is completed but you find that it took twice as long as orginally anticipated.
- Functionality - work is completed but the final delivery only includes 50% of what was expected.
How can project management help?
Lets take a quick look at some typical project issues and see how the various aspects of project management can help resolve things.
Lack of user input
Consult with the customer / sponsor of the project at the outset, document what will be done in a terms of reference for the project and get them to sign it off.
Lack of support from above
Prove to your senior managers that the project will be of benefit by writing up a business case. Ensure you get senior management buy-in by allowing them to have input into project plans; get them to formally approve the work by signing off project plans.
Requirements change
By consulting with the customer / sponsor at the outset you should have agreement on what it to be delivered before you start. All subsequent changes to this must be reviewed, approved and plans (including budgets and timescales) adjusted accordingly.
Objectives are unclear
The project terms of reference must include the business objectives, a description of the project and the work to be undertaken. Major work tasks should be listed as should each deliverable.
Lack of resources
Use a plan and work/resource register to understand your resource needs. Do not start work until you have the required resources. Take into account holidays, sickness, work required for non-project duties etc.
Expectations are unrealistic
Use a plan to make sure the client understands deliverables and timescales before you start. Break the work up into realistic stages. You will benefit from spelling out what will be done and getting agreement before starting.
Going into new areas
If you are going into new areas then rather than dive straight into a major and potentially costly project undertake a feasibility study. If the feasibility study is favourable then a small pilot project can be run to prove the overall concept.
Project Management - How do I benefit?
| Benefit | Percentage Improvement - All | Percentage Improvement - IT |
|---|---|---|
| Return on investment | 27% | 28% |
| Customer satisfaction | 18% | 38% |
| Time to market | 25% | 37% |
| Projects completed | 50% | 22% |
| Budget performance | 30% | 33% |
| Schedule performance | 34% | 32% |
| Requirements performance | 39% | 32% |
| Reduced project risk | 24% | 36% |
| Fewer process errors | 31% | 24% |
| Less defects | 42% | 23% |
| Fewer scope changes | 34% | 38% |
| Employee satisfaction | 40% | 33% |
| Employee productivity | 75% | 13% |
| Employee motivation | 32% | 13% |
The table above is from a survey of 65 organisations conducted in 2002.
If a project manager uses 5% of the project's time for management, how much time would it take for one of your staff with little or no experience? It's highly likely that its going to take longer and will be more costly.
Having experience of projects and knowing how to avoid problems increases the chance of success. What would the cost be to your company / organisation if the project came in 25%, 50% , 100% or 150% late or over budget?
Next Steps
All of our work is on a project basis and makes best use of project management techniques and principles. If you are short on time or resources then you can consider Altiss as a partner to undertake project management for you.
Project management - contact us to-day to see how we can help you.