Lately, several the world’s leading project management organisations have taken key initiatives to enlighten executive management in regards to the strategic value and benefits of project management. The concentrate would be to move from person project management to organisational project management, which these organisations preserve is really a strategic advantage inside a competitive economic climate.
Within this Darren Sproles Jersey post, Ed Naughton, Director Common in the Institute of Project Management and present IPMA Vice President, asks Professor Sebastian Green, Dean of the Faculty of Commerce and Professor of Management and Marketing and advertising at University College Cork (formerly with the London Company School), about his views of strategic project management as a car for competitive benefit.
Ed: What do you factor strategic Project Management is?
Prof. Green: Strategic project management could be the management of those projects which are of critical importance to allow the organisation as a complete to possess competitive advantage.
Ed: And what defines a competitive benefit, then?
Prof. Green: You’ll find three attributes of having a core competence. The three attributes are: it adds worth to clients; it really is not simply imitated; it opens up new possibilities in the future.
Ed: But how can project management yield a competitive benefit?
Prof. Green: There are two aspects to project management. One particular aspect is the actual selection of the kind of projects that the organisation engages in, and secondly there is certainly implementation, how the projects themselves are managed.
Ed: Competitive advantage – the value of picking the correct projects – it is not straightforward to define which projects should be selected!
Prof. Green: I think that the choice and prioritisation of projects is a thing that hasn’t been carried out effectively within the project management literature because it is essentially been assumed away by way of reducing it to monetary analysis. The strategic imperative provides you a diverse way of prioritising projects since it is saying that some projects could not be as profitable as other individuals, but if they add to our competency relative to other people, then that is going to be crucial.
So, to take an instance, if a company’s competitive benefit is introducing new items more rapidly than other people, pharmaceuticals, let’s say, obtaining product to market place more quickly, then the projects that allow it to get the product much more Darren Sproles Jersey rapidly to marketplace are going to become the most important ones, even when in their own terms, they do not have larger profitability than other sorts of projects.
Ed: But if we’re going to select our projects, we have to define what are the parameters or metrics we’re going to choose them against that give us the competitive benefit.
Prof. Green: Absolutely. The organisation requirements to understand which activities it truly is engaged in, which are the crucial ones for it competitive benefit after which, that drives the choice of projects. Organisations aren’t quite good at carrying out that and they may not even know what those activities are. They’ll feel it is almost everything they do because of the energy program.
Ed: If an organization formulates its approach, then what the project management community says is that project management may be the medium for delivering that method. So as a result, in the event the organisation is great at performing project management, does it have any strategic benefit?
Prof. Green: Effectively, I suppose that comes back to this concern in the difference between the kind of projects that happen to be chosen and also the way you manage the projects. Certainly selecting the type of projects is dependent upon getting in a position to link and prioritise projects based on an understanding of what the capability of an organisation is relative to other people.
Ed: Let us assume that the technique is set. As a way to deliver the technique, it has to become broken down, decomposed into a series of projects. Consequently, you’ll want to be very good at carrying out project management to deliver the technique. Now, the literature says that for an organisation to become excellent at performing projects it has to: place in project management procedures, train men and women on the way to apply/do project management and co-ordinate the efforts in the individuals trained to function to procedures in and integrated way employing the notion of a project office. Does taking these three measures deliver a competitive advantage for this organisation?
Prof. Green: Exactly where project management, or how you handle projects, becomes a supply of competitive benefit is whenever you can do items far better than others. The ‘better than’ is by way of the experience and judgement and the knowledge which is constructed up more than time of managing projects. There is an experience curve effect right here. Two organisations will probably be at diverse points in the knowledge curve as for the understanding Darren Sproles Jersey they have constructed as much as handle these bits of projects exactly where the rule book is inadequate. You’ll need management judgement and encounter since however excellent the rule book is, it’ll in no way deal fully together with the complexity of life. You’ve got to manage down the expertise curve, you’ve to handle the mastering and information that you have of these 3 elements of project management for it to become strategic.
Ed: Effectively, then, I assume there’s a gap there that has to become addressed also, in that we’ve now created a competency at performing project management to perform projects, but we have not aligned that competency towards the selection of projects which will support us to offer this competitive benefit. Is project management capable of being imitated?
Prof. Green: Not the softer elements and not the development of tacit understanding of obtaining run numerous, numerous projects over time. So, as an example, you, Ed, have a lot more expertise of how you can run projects than other individuals. That is why folks came to you, since while you each might have a regular book for example the PMBoK or the ICB, you’ve got developed far more experiential knowledge around it.
In essence, it can be imitated a certain quantity with the way, but not if you align the softer tacit understanding of expertise into it.
Ed: Organisational project management maturity models are a hot subject at the moment and are closely linked to the ‘experience curve’ effect you mentioned earlier – how must we view them?
Prof. Green: I believe in moving beyond painting by numbers, moving beyond the simplistic notion that an organisation is entirely plastic and you can impose this set of procedures and capabilities and text book protocols and that’s all you have to do. Within a way, exactly the same difficulty was knowledgeable by the developers of the knowledge curve. Should you show companies the expertise curve on price, it’s practically as though, for every single doubling of volume, expense reductions happen with no you having to do anything. What we know is though, that the knowledge curve is a possible of a possibility. Its’ realisation depends upon the skill of managers.
Ed: Are senior executives/chief executives within the mindset to appreciate the prospective advantages of project management?
Prof. Green: Till lately, project management has promoted itself in technical terms. If it was promoted when it comes to the integration at general management, in the capacity to handle across the functions lending technique procedures with judgement, then it could be a lot more eye-catching to senior managers. So, it is about the blending from the difficult and also the soft, the methods together with the judgement and the experience that tends to make project management so powerful. If senior managers don’t embrace it at the moment, it is not simply because they are incorrect. It’s due to the fact project management hasn’t marketed itself as efficiently as it should’ve carried out.
Ed: Do we must sell to senior executives and chief executives that it’ll deliver competitive advantage to them?
Prof. Green: No, I feel we must show them how it does it. We need to go in there and really show them how they could use it, not just with regards to delivering projects on time and within price. We should demonstrate to them how they are able to use it to overcome organisational resistance to adjust, how they are able to use it to boost capabilities and activities that lead to competitive benefit, how they can use it to improve the tacit understanding inside the organisation. There is a complete range of techniques in which they could use it. They must see that the proof with the outcome is much better than the way they are at present carrying out it.