I am often surprised at the perception of project management as held by people who may either not be experienced or qualified in the field. Often than not, I get the impression that project management is incorrectly equated to individual projects, or to some of its well-known tools like project schedules, Gantt Charts, and a network diagram etc.
There is also that temptation to inaccurately use the following concepts interchangeably i.e., project schedule and project management plan. Project managers are also guilty of this one.
This post is dedicated to explaining what is meant by project management and set out its strategic implications for organisations seeking strategy execution, value creation and preservation.
I want to expound on the following topics, which I think will help make the point clearly:
- Relationship between projects and corporate strategies
- Project management universe
- Management of individual projects
- Relationship between projects within a project programme
- Relationship between projects, sub-projects, and project portfolio
- Project Management and demand for sustainable business practices
- Risk management at project portfolio level
Organisational Strategy and Projects
With all these misconceptions, what then is project management, you may ask?
Before getting into the detail of what is meant by project management, let me first look at why there should be consensus on the need for projects in organisations.
Typically, it is expected that organisations should have a corporate strategy and other strategies at different levels, which will drive them towards their goal.
Corporate strategies may be focused on growing revenue, gaining market share, or whatever else the organisation's goal articulates. To achieve that focus, different programmes and project initiatives will have to be pursued.
Truly, programmes and projects are the only credible means towards strategy realisation.
This is not to say that the Business-as-Usual (BAU) activities that accompany project initiatives are not important. The truth is each's contribution is different.
Professor Carl Marnewick writes extensively about this point in his book "Realizing Strategy Through Projects: The Executive's Guide".
Joy Gumz also articulates this point in a more simple and direct way, she says
"Operations keep the lights on, strategy provides a light at the end of the tunnel, but project management is the train engine that moves the organization forward."
Change is inherently a consequence of strategy implementation. Therefore, the main reason organisations should lean towards projects for corporate strategy implementation, is the big change that comes with it, and the need to manage that change without undue disruption.
Project Management Universe
Let us now get into a nuanced discussion about what is really meant by project management.
What is worse than a poorly implemented project? You may have guessed it right; the correct answer is two-fold:(a)implementing projects which should otherwise be done together, separately, and
(b)implementing wrong and/or unnecessary projects.
The first prize for organisations is to be assured that they are investing their finite resources in the best possible projects. Almost exclusively, the best projects are those which enable the achievement of the organisation's strategy and improve the value of the company.
These projects do the best use of human and financial resources, yield the best Return on Invest (ROI), and have the best risk benefit profile.
Thus far, I have only just introduced a topic which is concerned with strategic considerations by the executive.
Let us now talk about the three spheres of project management in which answers to the question asked earlier resides.
The three spheres are project portfolio management, project programme management, and project management.
But I want to continue this discussion by starting at the end, with the third sphere, project management, the coalface delivery!
Project Management
Take note that, project management definitions excludes both programme and portfolio management.
The focus of project management is on how to apply the acquired body of knowledge, techniques, tools, and skills to project related activities to achieve the stated project objectives (PMI). Project management is concerned with that individual project, and it assumes that the project is right, immaculately timed, and adequately synchronized with other projects. A piece in a symphony orchestra!
Project Programme Management
There is a reason why we mention that one of the assumptions made at project level is that the project is adequately synchronized with other related projects.
At programme management level, the concern is whether the cluster of projects is poised to deliver business benefits. It is important to note that although a programme must comprise of projects, not all activities therein may necessarily form part of the scope of constituent projects.
Lastly, not all projects qualify to form part of a programme but must form part of a project portfolio.
Organising projects in a programme helps in identifying interdependencies amongst them. These interdependencies may include those caused by shared human resources, the need to sequence project outputs to realize identified benefits, optimized project governance, and related risks, etc.
Project Portfolio Management
Whereas programme management incorporates business benefits, portfolio management sets its eyes on strategic objectives as per the corporate strategy. Through project portfolio management, the organisation can ascertain that it is implementing the right projects at the right time, with the best use of its finite resources to create value for its stakeholders.
Let me turn to the two topics which are becoming more important to project portfolio management, starting with sustainability in project management:
Project Management and demand for Sustainable Business Practices
Accepting that projects enable corporate strategies and that they can be used to effectively respond to stakeholder demands puts the onus on practitioners to contribute to sustainable development. Today practitioners must place sustainability at the front and center of project management. We have a duty to ensure that for e.g., inputs use in our projects are sourced sustainably.
Funding institutions are already looking into this. Big projects funding applications are prone to be rejected, if they cannot demonstrate their leaning towards sustainable development.
Risk Management at Project Portfolio Level
For several reasons including that by their nature as change initiatives, and costs attached to them, projects, programmes, and portfolio presents a significant risk exposure for organisations. Risk management activities should be performed at all the three levels.
When performing risk management activities in field of project management, you are required to be aware of at least two considerations
- (a)the objectives of either that project, programme, or portfolio, and
- (b)how each relates with the other.
This approach ensures that we are focused on how best we can create and preserve the value sought.
An important take away from a risk management perspective when dealing with all three levels or spheres of project management is to avoid simply aggregating individual project risks into either programme or portfolio risks. That approach will not enable your risk management effort to be directed at the relevant opportunities and threats, given the sphere you are dealing with.
In the end
Project management in its complete sense should be a strategic consideration for organisation who care about corporate strategy realisation. Greater awareness is required to ensure that project management is not confined to the tools and techniques I referred above.
As practitioners we should invest time and effort to ensure that aspirants and executives alike are aware of the issues I have discussed, including various instruments such as the ISO 21500 standard, project, programme, and portfolio management standards which are essential to effective project management.
Project management is bigger than a Gantt chat or a network diagram!