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Companies are looking for ways of delivering consistent business results in an increasingly competitive and unpredictable business environment. According to Richman (2011), project management and program management have emerged as one of the areas of adding value to businesses. Scheduling, staffing, budgeting, documentation, control, and risk management are all important parts of project management which determine the success of a project (Dinsmore & Cabanis-Brewin, 2011). Scheduling is important in reducing costs because it offers specific timeframes for the attainment of project or program deliverables. This ensures that processes do not overlap and stretch the budget. Staffing also adds value because it ensures proper allocation of human resource. Budgeting is important to the project because it ensures that all costs are considered and none is either overestimated or underestimated. Risk management is important in avoiding or reducing costs associated with processes which could potentially lead to loss.

According to Brown et al. (2011), projects that are large and complex have increased chance of failure thus the needs for project management. Project and program management ensures that the all requirements of the expansive stakeholder community involved in the project are included. Project management makes business sense in these complex multiyear projects through ensuring that turnover of key personnel is reduced, cost variance overtime is accounted for, and the phases are properly adjusted to avoid overlapping the long schedule. The organizations that use the principles of project management are able to cut costs thus increase their profit margin when delivering the final product to their clients.

According to Lewis (2007), project management creates business value as it pushes managers to dedicate more time to planning and due diligence. Through allocating more time and resources to project planning, organizations are able to identify the potential threats and opportunities in every phase. Managers who go through the project planning stage are also able to avoid legal pitfalls and exercise due diligence. Employing these principles helps these companies avoid future litigation costs and increase compliance with different regulatory structures.

In conclusion, organizations that adhere to project and program management principles and strategies are able to cut costs, increase chances of success, and reduce risks. Project management equips managers with skills which lay a cohesive and predictable blueprint for performance. This allows them to consider every eventuality and mitigate risks which are likely to come in different project phases. The value of project and program management is more pronounced when dealing with complex and large projects than small projects. Through cutting costs, companies that use project and program management are able to increase their profit margin.

 

References

Brown, C.V., DeHayes, D.W., Hoffer, J.A., Martin, W.E., &Perkins, W.C. (2011). Managing Information Technology (7th Ed.). Prentice Hall.

Dinsmore, P. C., &Cabanis-Brewin, J. (Eds.). (2011). The AMA Handbook of Project Management (3rd ed.). New York: American Management Association.

Lewis, J. P. (2007). Fundamentals of Project Management. New York: American Management Association.

Richman, L. (2011). Successful Project Management (3rd ed.). New York: American Management Association.