The Importance of Project Management for Your Business

What is the importance of project management? Why do you need to take the initiative to hire project managers for your projects? What makes project management lucrative for businesses? These are the questions that you should consider as the world of business is shifting towards the approach of hiring individual project managers for different projects. According to the consultancy firm Bain & Company, by 2027 most work will be project-based. 

This further reinforces the importance of project management and how project management can impact businesses growth in real time. Good project management doesn’t just mean tasks, deadlines, and budgets but the impactful growth of the company and the employees. It serves so much more than the rather mundane tasks that most people think it does. 

This brings us back to the main question which is: Why is project management so important for a business?

What Does Management and Project Management Have Different in Comparison?

Ever heard that management is similar to success? Management has great benefits in daily life and in the corporate world. In simpler words, management means managing activities in a proper manner so that the set goal is achieved. For instance, if you want to accomplish multiple tasks in a week, you will have to do proper task management. 

Similarly, project management is to manage projects in a set timeline to achieve the desired goal. Statistically speaking only 2.5 percent of the companies complete 100 percent of their projects and the reason is that they don’t have proper project management in place to carry out these projects successfully.

Project management entails the breakdown of a particular project into smaller tasks that get assigned to fellow team members respectively. The completion of these tasks individually results in the collective achievement of the project goal. This ensures that the project is completed in time without getting into the hassle of one person doing it all. 

Acting on the Above

Accepting that project management is important for your business is one thing but actually implementing it is another. Most organizations believe in the relevance and importance of project management but don’t usually act on the belief. A whopping 97% of organizations believe that project management is critical to business performance and organizational success, according to a PWC study.

Following the suit, the same study revealed that 44% of project managers don’t use any commercially available task management software even when it’s proved to be a tremendously efficient performance booster. 

The thinking going on here is that when we can divide the tasks ourselves and monitor, why should we hire a project manager for the same task? Let’s talk about it in a while.

The reason behind this is to save the cost but what if hiring a project manager can actually result in increased productivity ultimately leading to an increase in revenue? If you’re struggling to make a decision, this article has found you at the right time. 

The Importance of Project Management for a Business

Simply put, strategic alignment is to put an organization's structure and resources in alignment with its strategy and objectives. 

This is important because the customers will have individualistic goals for their projects. Project alignment comes into play as it can align tasks in such a way that your own objectives and the customer's objectives for the particular project get accomplished. 

A project manager is key in this as he will ensure that the project completion results in the fulfillment of the strategic objectives of the organization.

Consistent Communication

Constant communication is important for the smooth management of a project. The unavailability of communication channels can hamper the performance of the team inadvertently affecting the project. However, not only poor interaction between teams can negatively affect the project, but also a lack of communication with clients, which is why it is recommended to use a client portal to be in touch with customers and keep them updated about the project.

Project managers are the torchbearers here as they should ensure that the whole team is following the guidelines and is not reluctant to communicate with each other. The team working as a team is the key to a successful project. 

Proper Allocation of Resources

Resources like budget, tools, and machinery are important for the project to get completed and delivered on time. Another aspect of the proper allocation of resources is team usage and availability of all members at all times. Planning beforehand will give you enough time to recruit new resources if need be without putting the project on hold. 

It will also ensure that tasks get completed at the lowest incurred cost possible.

Improved Productivity

Productivity is integral to project management. If you have proper resources in place, an efficient team with the right skills, and designated tasks then the productivity levels will be higher compared to an ill-prepared team. You have the chance to accomplish more in a short period of time and meet deadlines. 

Clarity in Objectives

Without a designated project manager, teams will be working on their own hence projects will lack focus and direction. There won’t be any clear objectives and the team will be on their own to figure out the chaos as to why they are doing what they are doing. 

Project management plays a key role in dividing projects into tasks and designating tasks among team members to complete projects on time.

Flexibility

With increased completed tasks on your profile, you will get new customers and ultimately increase revenues. This new stream of income will allow you to expand your team and cater to more customers and projects.

Risk Management

If you have everything properly planned out and have kept room for the situational “What ifs” then you can manage the situation at hand. It is important to consider these things beforehand and prepare to face such challenges along the way. You should be prepared to take on such situational challenges mentally and resourcefully, as outlined in your business risk management plan.

Quality Control

Projects have deadlines and the pressure is immense. Without a project manager who has the resources and the lead to executive management, the project will get underestimated and not be given the time and resources it needs to achieve the set objectives. 

Project managers ensure that the project gets all the resources at a time which is essential to the completion but it also does ensure that it is tested for quality at every stage. This allows teams to test the project for quality, applicability, and ROI. 

Customer Satisfaction

Customer satisfaction is ensured when a project follows a project management methodology such as Agile, Waterfall, Kanban boards, etc. The project manager along with his team delivers the project right on time and makes sure the deliverables fulfill all the quality requirements. This way customer satisfaction is optimum and clients are happy with your work which is a win-win situation for both parties.

Recommended: Importance of Internal Communication for Businesses

Conclusion

To conclude, it is not a cost-incurring step in an organization to hire project managers for projects because they will deliver and add to the revenue. The projects will get delivered on time and all the quality measures will be taken care of. The company will not have to run into chaos to meet project milestones and necessary deadlines. 

If you're in need of project management services, feel free to contact us at InvoZone to consult your development needs.

Frequently Asked Questions

What is the role of project management in business?

The role of project management in business is to effectively plan, organize, and execute projects to achieve specific goals and objectives within defined constraints such as time, budget, and resources. By applying project management principles and methodologies, businesses can improve project success rates, enhance productivity, and drive overall organizational growth and success.

What are the essential skills and qualities of a successful project manager?

The essential skills and qualities of a successful project manager include strong leadership, effective communication, excellent organization, strategic thinking, problem-solving abilities, adaptability, team management, risk management, time management, and a focus on delivering results.

What are the risks of not using project management practices in a project?

The risks of not using project management practices in a project are substantial. Without proper management, projects can suffer from poor coordination, missed deadlines, cost overruns, and overall chaos. There is lack of clear direction and accountability that can lead to confusion among team members and hinder progress.