Importance of Project Management for Organizations - Term Paper Example

? Project Management PROJECT MANAGEMENT Projects can be defined as temporary undertakings in companies and organizations set to achieve certain goals within a specific amount of time. It also involves completing the task within specified budgetary allocations and fulfillment of the requirements. Initiation of projects occurs in order to implement changes that are needed. Project management is thus a vital methodology when carrying out desired changes like the reducing risk factors in an efficient and effective manner. Projects could exist in many forms including introduction and development of new services, introduction of an improved existing process, development of an information system, production of a new website for clients, and preparation of a response to a large tender. If projects are mismanaged, they may result in high rates of turnover, ineffectiveness, poor productivity and low morale. A project is a process with different phases that are collectively referred to as the project life cycle. Different from business activities such as maintenance and operations, projects involve uncertainty and risk because of their unique nature, their complexity, cost and time constraints, as well as limited resources. This paper seeks to discuss the various phases of project management and its importance for organizations. Phases of Project Life Cycle The project life cycle can be defined as a logical sequence of events meant to achieve the goals and objectives of the project. Despite the complexity or scope of any project, it goes via a series of phases in its lifetime. The first phase is known as the initiation phase, followed by the planning phase, then the execution phase, and finally the closure phase. 1. Initiation Phase In this phase, the project’s phase is defined, as well as the approach that will be taken in order to deliver on the desired output (Keller & Field, 2012). The project manager is elected in this phase, after which he selects other team members taking into consideration their experience and skill. In this phase, the most common methodologies used are project charter, project framework, business plan, justification of the business case, and review of the milestones. The needs and objectives of the project are identified in this phase, and an appropriate response to this is documented with recommended options as solutions in the business case (Keller & Field, 2012). A feasibility study is carried out in order to investigate if every option addresses the objectives of the project, with a final solution being recommended. Issues of justification and feasibility are addressed in this phase. On approval of the recommended solution, the project is initiated in order to deliver on the solutions that have been approved. The major deliverables, as well as the participating work teams, are identified. At this stage, the team begins to shape up, and the project manager then seeks approval to start on the planning phase. 2. Planning Phase Project management’s second phase is also the planning phase where the solution for the project is developed further while focusing on detail. The necessary steps needed to complete the objective set out by the project are then set out (Keller & Field, 2012). During this step, the team members identify all the activities, which should be executed. There is also identification of tasks within the project and the strategy to be used in their fulfillment. This process is synonymously known as scope management. A plan for the project is drawn up including the timeframes, dependencies, tasks and activities. A project manager is tasked with coordinating the budget via the provision of cost estimates for materials and labor. The budget that is drawn up is used control and monitor cost expenditures during the execution phase. On identifying the work, preparing the schedule and making an estimate of the cost, then the fundamental components of this phase are complete. This phase acts as the excellent time for identification and dealing with threats to the success of the project (Keller & Field, 2012). This is referred to as risk management, where potential problems with high risk are identified. Moreover, the actions meant to deal with these risks are stated, which are; reduce the risks’ impact or reduce the probability of occurrence. This phase is also vital in the identification of stakeholders and the establishment of communication plans describing required information and the method of delivery to keep them informed. It is vital that the manager documents a quality plan that provides control measures, assurance and quality targets along with a plan of acceptance that lists the criteria to be fulfilled in order to gain acceptance by customers. At this juncture, the project is well planned and is now ready for execution. 3. Execution and Controlling Phase The third phase of the project management cycle is the execution phase that puts into motion the project plan. It is vital to retain control, as well as communicate, as required during this phase. There is continuous monitoring of progress with appropriate adjustments being made and recorded as variants of the original plan (Keller & Field, 2012). A project manager spends most of his or her time coordinating this step. During the execution of the project, the team carries out the task and information on its progress being reported in regular meetings of the team. The manager utilizes this information in maintaining supervision over the operation of the project by comparing the results of the activities and the initial project plan, and taking corrective measures where required. The first action usually is to bring the project back on track, i.e. to the original plan. If this is not possible, the team needs to record the variations and publish them. Throughout the course of this phase, key stakeholders need to be kept in the loop regarding the progress of the project according to a pre-determined format and frequency (Keller & Field, 2012). The plan needs to be updated and published regularly and should emphasize the endpoint that is anticipated in terms of schedule, cost and the quality of the deliverables. Quality for the produced derivable is reviewed, thereafter measured against the criteria for acceptance. Once the deliverables are produced, and the client is receptive of the solution, then the project can enter the closure phase. 4. Closure During the closeout phase or the final closure, the emphasis is placed on releasing the finished deliverables to the client. It involves handing the project documentation over to the business, releasing project resources, terminating the contracts given to suppliers and communicating to the stakeholders regarding the closure of the project (Keller & Field, 2012). Finally, the project manager conducts a study into lessons learned, for example, examining what worked and what did not. This type of analysis aids in the transfer of wisdom gained from experience back to the organization funding the project, which should help project teams in the future. This phase does not require any special methodology or tools. Importance of Project Management for Organizations When an organization needs to undertake a project, project management implementation has proven to be an effective way of getting the tasks properly organized (Keller & Field, 2012). Project management allows organizations to complete projects with a correct sense of budget and time, coupled with a high standard of quality. Project management acts as an efficient way of starting a project, and thus, it gets the project under control and runs the project in the best and most orderly way possible. Project management is a proven way for companies to save valuable money and time, as well as ensure every attempt is a success. The importance of project management cannot be underestimated in today’s cutthroat competitive business. Meticulously managing of projects helps organizations to accomplish their aims and objectives with increased efficiency, as well as within the set timeframe. Project management is a defining concept in the success of an organization. It acts as a meter for the gauging of potential risks, as well as coming up with workable solutions meant to overcome these risks. Project management also allows an organization to manage the quality of its products and services. The close monitoring of the project ensures that each step is completed at the highest possible level of quality. Problems encountered can be easily corrected during these checkpoints because of the attention given to individual steps. Finally, project management helps an organization in cost management. Realistic budgets are set out before the commencement of the project to prepare the organization financially. Project management ensures that money is not wasted or lost. The system provides excellent execution of the organization’s spending and eliminates surprise expenses. Reference Keller, Laurie. & Field, Mike. (2012): Project management. London: International Thomson Business Press . Read More