Running Head: PROJECT MANAGEMENT 1

The Role of Project Management in Today’s Economy

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The Role of Project Management in Today’s Economy

Projects and programs are of significant importance in all organizations whether

governmental or industrial. Projects and programs are the main means of accomplishing

maximum profits. Programs are also the means by which new products are developed and

introduced to the market. Meredith (2019) states that project management is the use of tools,

skills, knowledge as well as techniques to the project activities in order to achieve the project

requirements. Different organizations have different projects. Project management is, therefore,

necessary for the execution of the projects. Improvements in project management have been

done over the years as technology advances.

Role of project management

The main role of project management is to ensure that all projects objectives are met.

Project management takes the leadership role and ensures that each project in an organization

succeeds (Mir and Pinnington, 2014). Project management defines the work requirements,

establishes the working extent, allocates the required resources, plans the work execution and

monitors its progress as well as adjusting any deviations from the project objectives.

Importance of project management

In every organization, project management is necessary as it ensures that the delivery of

projects is right and is done in a timely manner (Meredith, 2019). Some companies use

functional managers to coordinate projects informally. For the companies that use a formalized

project management approach, the outcome is usually better compared to the informal approach.

There are a number of advantages in using the formal project management approach. Modern

project management approach significantly increases the probability of projects success in an

organization.
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The approach ensures that the projects produce the expected results within the allocated

time and budget. Therefore, the approach maximizes an organizations achievement.

Project management also ensures that every project is achievable. Project commitment is only

done when there is certainty that the goals set are reachable. Project management ensures that the

project cost and scheduled targets can be reached.

Project management also ensures that the projects, programs as well as the portfolios are

defined, understood and well executed (Mir and Pinnington, 2014). Project objectives require

proper planning and monitoring. In order for this to happen, project management is crucial.

Project management ensures that the project responsibilities are met.

Project management also ensures that there is a commitment to the project. Project teams

from different departments in an organization work together to ensure that targets are reached.

Allocation of duties is necessary for every project. Project management, therefore, ensures that

every project team has clear roles and responsibilities.

The link between the 3Ps

All of the projects in a program are connected to each other. A collection of work is

called a portfolio. A portfolio is made up of programs, projects, and sub-portfolios. The three are

a means to plan and manage organizations projects. Sometimes, however, the projects may not

be related. Multiple projects make up a program. Programs and projects make a portfolio. The

subgroups are allocated different roles. The Organizational Project Management connects the

three together and helps the organization move towards its goals. In every organization, there are

some aspects that are controlled at a higher level like cultural differences practices relating to

human resource (Kloppenborg, and Laning, 2012). Such aspects help the projects, programs, and

portfolio run smoothly.

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Organizations have an entity that helps in the management of portfolios, programs, and

projects. The entity is called the Project Management Office. In an organization, the Project

Management Office is responsible for setting up guidelines, processes, and standards that

manage the portfolios, projects, and programs. The Project Management Office also helps in

resource sharing, skills and knowledge across all the projects in the organization.

Effect of project management

Organization in every company is crucial for project success. The company’s structure,

however, influences the process of project management. The organizational structure of a

company can determine the level of project management. The structure can determine the

decision maker in the project, how communication is done as well as the work progress of the

project.

Projects that exist within one functional division have no challenges. Projects that cut

across different functional divisions are full of challenges. Such projects are hard to manage

since the overall project manager does not have direct authority in the functional divisions

(Meredith, 2019). The project manager, therefore, relies on the support and the cooperation of

other functional managers so as to meet the goals of the projects. Dependence can bring

complications during project execution. Authority is centralized in a projectized organization.

Since the communication lines in such an organization are moved from the functional divisions

to the mainstream, they are shortened. Centralization of authority and shortening of

communications improve decision making in a company during project execution.

Project management helps project teams develop a strong sense of belonging. This, in

turn, creates a significant level of commitment from the team members. The projectized
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organization can develop and retain levels of expertise, skills, and knowledge in certain areas.

This is due to the teams’ involvement in the projects over a long duration of time.

The projected organizations are designed in a way that eases the way projects are run and

managed. On the other hand, organizations that are not projectized find it hard to run and execute

projects. It is, therefore, the duty of the project manager to discover and understand possible

project management pitfalls and the impact they have on the projects (Meredith, 2019). This will

help in resolving the project challenges. In such a structure, there needs to be clear

communication, effective conflict resolution strategies as well as team building initiatives.

There are different frameworks in project management. The two main frameworks are

waterfall and agile. The two are different and each has its own pros and cons. Agile is known for

its flexibility in development while the waterfall is rigid. Both frameworks have different

approaches to testing and quality. Waterfall requirements are usually stated at the beginning of

the project and can be changed as the project progresses.

Agile pros

There are numerous pros of using an agile framework. They include;

Some of the best practices that are found in the development environments are usually influenced

by an agile framework. The developers' output is reviewed during the early stages of a project as

well as during project development. This, therefore, reduces the project's risks.

Agile requires constant communication within the involved parties in a project. It ensures that

there is open communication between the developers and the consumers. This, therefore, pays

major dividends when communication is effective.

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Agile also helps in reducing the spaces that usually exist in a project team. The spaces always

damage the projects. Agile helps teams work together effectively (Kloppenborg, and Laning,

2012).

Waterfall pros

For the projects that are well managed, waterfall reassures the success of a project in the

earlier stages of the project.

In the waterfall, the team members need not share a location. However, there should be close

management since it can be a risk.

The waterfall framework is best suited for large scale analysis or design. Waterfall helps adjust

to changes in a project and ensures no risks are created during the change (Kloppenborg, and

Laning, 2012).

Conclusion

A significant number of organizations have realized the importance of project

management. Project management has increased the success of projects compared to the

informal approach. Organizations that had not adopted project management like healthcare have

found that with project management, achievement of goals and cost reduction is doable. Project

management causes strategic planning and ensures that projects are run smoothly.
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References

Kloppenborg, T. and Laning, L. (2012). Strategic leadership of portfolio and project

management. [New York, N.Y.]: Business Expert Press.

Meredith, J. (2019). Project Management. New York: Wiley.

Mir, F. and Pinnington, A. (2014). Exploring the value of project management: Linking Project

Management Performance and Project Success. International Journal of Project

Management, 32(2), pp.202-217.