What is the importance of project management?

In the early stages of “modern” project management, the importance of project management was directly related to the nature of the projects, usually military projects. Some of these projects were conceived during the Cold War. Since the 1980s, project management has moved to a wider application in the private and public industries, especially in construction and engineering, even though some of the most powerful “tools” such as Earned Value Management were developed earlier, in the ’60s.

Today, the interest in project management eliminates the need to execute the companies’ projects quickly and efficiently. From this point of view, project management becomes the way to implement the business strategy, as described below. There is currently no business sector that cannot be improved, both at the strategic level and the operational level, by “modern” project management. But what is “modern” project management? The answer depends on the type of business sector and industry as well as the position / status of the company in the supply chain. For example, in construction the project management needs of a company operating as a specialized subcontractor are different from those of an international company working as a general contractor in an EPC environment. The subcontractor will likely receive from the client project management requirements; Therefore, small companies, working as a subcontractor, need flexibility in adapting their project management methods to the contractual requirements.

Similarly, organizations operating as project owners have different project management needs than EPC contractors. The employer must design the “organization” to manage the right project to carry out its capital plans.

Even the methodology is tailored to the industry sector (e.g. traditional versus agile project management in IT use).

Another factor is the “nature” of the business; H. Kerzner made a distinction between project-driven companies versus non-project-driven companies and this helps to understand the type and limitations of the project management system that should be implemented in the company. Project-driven organizations selling projects and project management is a unique capability in the market.

Finally, there are methodological frameworks, such as Total Cost Management, that can be applied to almost any business. In this framework, the company’s assets are managed through the projects, and hence the project management becomes strategic.

Originally Posted in Quora: https://qr.ae/pGxE6k

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