When managers face an opportunity, or they see a problem that is preventing the achievement of the business objectives, they know that something must be done immediately. The actions required, most of the time, are executed in the form of projects. One thing is certain, companies that work with a large amount of projects are in constant innovation, with products and processes updated according to market requirements. For Projects to be well executed, good management is required. We will present in this article 5 reasons to manage projects in your company.
But what is Project management, after all?
The main feature of a project is the short duration time and the delivery of something unique. It will always cater to a specific situation or a distinguished interested public. A lecture, for example, is a project, because the public, in each edition, will be different and, although the subject may be the same, it will never be performed in the same way.
Project Management is the application of techniques so that the objectives outlined are achieved in an orderly manner. The actions are performed by attending a previous schedule so that the start and end deadlines are respected and the result is theclosest to the intended, both for the company and for the end customer. Working with projects is fundamental for all businesses, especially those that depend on innovation to cope with the oscillations of the sector in which they operate.
In addition to ensuring a good Execution, there are other reasons for doing project management in a company.
Reduction of Costs
One of the main reasons for doing project management is the management of costs so that the budget destined is very well harnessed. TThe expenditures for the realization of the project are estimated in the planning phase and, through control documents, are managed throughout the execution of the project so that the financial resources are very well harnded. Cost management within project management does not mean the need to stay within what has been estimated; If it is necessary to exceed the costs of the project, provided that the results are compensated, the manager will have full power over that decision.
The cost management process in project management takes four steps:
Cost Planning Step
Survey of all the resources needed to carry out the project: employees, equipment, materials and estimated time of duration. This survey should be detailed and thorough, taking into account, in addition to the resources, the required quantity.
Cost Estimation step
Knowing, as accurately as possible, the necessary resources, is calculated the expenditures for the realization of the project. AndSSA step defines the feasibility of the project by showing, on paper, the estimated values for its realization.
In the previous step, a Estimate, at this stage it is possible to improve the investment in the project Mainly regarding the use of third party resources. It’s in this Step that will be accurately know the investment necessary for achieving the of the project.
Cost Control Step
It is the monitoring of actual expenditures during the execution of the project. Often a budget resource needs a fit or change due to an improvement. In this case the expense may be different from what was budgeted, both for more and less. In cost control everything must be very well documented as it will serve as a learning basis for future projects.
Optimization Of time
In project management, the When you receive the timeline management name. Right than measuring or controlling the time spent, is to define the activities of the Project, the sequence of achievement, the availability of resources at the time Correct and logically track and control the execution time of each Activity. Optimizing time is one more reason for companies to make Use of project management.
Control of Risks
Project management gives companies also greater control over the risks inherent to the business. These events affect a project negatively (threats) or positive (opportunities) and project management practices allow a better conduct of responses for both cases. Andhere are too known risks, which can be identified still in the planning stage, and the unknown risks that can occur at any time and requires an agile response from the company. The identification of known risks and the agile response to unknown risks can only be done by companies using the project management tools.
Increased team Engagement
A company produces better results when it has a motivated and engaged team. The project management, due to the fact that all actions are well planned and documented, gives much more security to the employees in carrying out their activities, committing themselves more to the objectives and goals of the business.
Increased customer satisfaction
It can be said that, more than one reason, this is the consequence when doing project management. Adding all the reasons before the company can deliver solutions to customers at a fairer price because of cost control, with greater agility due to the optimization of production time and offering a quick response to a specific demand. Companies that practice project management have much more satisfied customers.