Project management and it's importance

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the project management processes identified for the project. Project management enables organizations to execute projects effectively and efficiently. Using project management processes, tools, and techniques puts in place a sound foundation for organizations to achieve their goals and objectives.

Effective project management helps individuals, groups, and public and private organizations to:

• Meet business objectives;
• Satisfy stakeholder expectations;
• Be more predictable;
• Increase chances of success;
• Deliver the right products at the right time;
• Resolve problems and issues;
• Respond to risks in a timely manner;
• Optimize the use of organizational resources;
• Identify, recover, or terminate failing projects;
• Manage constraints (e.g., scope, quality, schedule, costs, resources);
• Balance the influence of constraints on the project (e.g., increased scope may increase cost or schedule); and
• Manage change in a better manner.

Poorly managed projects or the absence of project management may result in:

• Missed deadlines,
• Cost overruns,
• Poor quality,
• Rework,
• Uncontrolled expansion of the project,
• Loss of reputation for the organization,
• Unsatisfied stakeholders, and
• Failure in achieving the objectives for which the project was undertaken.

Projects are a key way to create value and benefits in organizations. In today’s business environment, organizational leaders need to be able to manage with tighter budgets, shorter timelines, scarcity of resources, and rapidly changing technology. The business environment is dynamic with an accelerating rate of change. To remain competitive in the world economy, companies are embracing project management to consistently deliver business value.

Effective and efficient project management should be considered a strategic competency within organizations. It enables organizations to:

• Tie project results to business goals,
• Compete more effectively in their markets,
• Sustain the organization, and
• Respond to the impact of business environment changes on projects by appropriately adjusting project management plans.

This is end of today's post, in the next post we shall discuss about relationship of project, program, portfolio and operations management.