Key Benefits of Project Management for Business

Learn how effective project management can help achieve project goals, control scope, manage budgets, and mitigate risks to meet business objectives and enable competitive advantage.

Top 5 Benefits of Effective Project Management for Business

A global organization for the profession of project management, Project Management Institute (PMI)® defines project management as “the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.” Project management is industry agnostic and used around the world in organizations of all sizes.

For a business to reap the benefits of project management applied reliably to every project, there should be a project manager to lead the project team. PMI defines a project manager as “the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.”

A project manager with the advantage of training in verified project management methodologies and the associated resources, tools, and software can more consistently deliver successful projects. When applied well, project management helps a business realize many benefits including but not limited to the following:

1. Goals achieved with greater efficiency.
2. Scope controlled and scoop creep minimized.
3. Budget and schedule managed to fit project plan parameters.
4. Risk and resource control mechanisms are leveraged to keep work on track.
5. Stakeholder and customer satisfaction secured.

There is not a single project management software or tool that will guarantee a successful project. However, a project manager who has the support of the business to apply proven project management methodologies does increase the probability of successful project outcomes.

Project Management Benefit | Achieve Project Goals

Project management’s structure, including the interactive cycles of Agile project management and the gated phases of traditional project management, enables the project manager to accurately plan, execute, and monitor project work to better meet business goals.

When the project manager collaborates with stakeholders to define the project as part of the application of effective project management, the project manager can make timely and data-informed decisions to guide the project team’s efforts throughout the project to known goals.

How a project manager will define project phases or the project life cycle varies depending on the use of traditional or adaptive project management approaches. However, in any setting, project management can help bring structure to the work so that roles and responsibilities are positioned to best realize the defined goals. Furthermore, Project management can help the project manager and team identify issues up front and along the way that could prevent the project goals from happening via timely adjustments to keep work on track.

A project manager can use the structure and consistency of applied project management to track progress against goals and apply risk management so that the goals are more likely to be reached as planned.  

Project Management Benefit | Scope Control

Every project has scope, that is, the guidelines for the tasks and budget to stay within the project’s boundaries. The scope must be defined early because otherwise, the project will exceed all resources and fail to meet requirements or produce the desired outcomes. In an environment without stated limits (no defined scope), costs and time have no defined stopping point. The project manager is responsible for monitoring the project’s progress to ensure that only work within the defined scope is executed.

Poor scope control increases the likelihood of project timeline delays and budget overages. A Project Manager who can apply scope control techniques can better prevent “scope creep,” the gradual expansion of work and expenses triggered by uncontrolled changes.

The proactive nature of scope control practiced by project managers trained in formal project management is one way a business can ensure projects remain aligned with approved requirements.

Project Management Benefit | Budget and Schedule Management

If the budget and schedule are not defined at the project’s start, the Project Manager cannot track progress, make adjustments to keep the work on budget or on time, or allocate resources effectively. A project without a schedule also means that the Project Manager will not be able to inform the stakeholders and customers if the project will be completed on time or is at risk for being late.

In contrast, with project management software used correctly (meaning validated project information is entered into it), a project manager can effectively forecast budget shortfalls and take corrective action to prevent them. Additionally, a proven project management process coupled with project management software enables the project manager to set achievable delivery dates and milestones throughout the project.

That old saying, “time is money” is proven true via the benefits of project management to budget and schedule management.

Project Management Benefit | Risk and Resource Control

The deliberate and detailed planning that comes from the application of project management methodologies increases the chance of process success as it reduces the negative impact of risks. Project Management frameworks help the project team and project manager better understand from the earliest days of the project what is needed to achieve the business goals and, with that, what the potential risks are that would prevent that goal from being realized.

With ongoing monitoring of the project work, which is best achieved via a proven project management process, the project manager can adjust resources to adapt to changes while keeping work connected to the project plan. Without project management frameworks or risk management, there is a greater likelihood of project resources being underused, unavailable at the needed time, or the wrong resource for the project requirements.

Project management is a means by which risk is managed to prevent problems and maximize opportunities because of the upfront planning and ongoing monitoring of work. Project management is a powerful way to accurately plan resources for the type, amount, and timing.

Project Management Benefit | Stakeholder and Customer Satisfaction

If stakeholders and customers do not use or benefit from the final deliverable, the project can not be considered a success. That dreaded moment of a client saying, “This isn’t what I wanted,” can be prevented with well-executed project management methodologies in place from the start. That strong beginning includes project planning, of course. It also must consist of accurate, timely, and continuous communication.

Communication is among the most critical skills for project managers across all industries. Project Management methodologies of all types are only effective when there is reliable and timely communication throughout the project. For project management to bring benefits, communication must not limited to project status reports (important though they are!). Clear communication must be present as soon as the idea of what may later be the project emerges and remain a constant for the entire project duration.

Stakeholder and customer satisfaction begins with a mutual agreement and approval of the project goals, scope, and success. The project manager should be in ongoing contact with the stakeholders and customers (or the representative of the customer group) to provide updates on progress, changes, challenges, and risks.

A well-managed project has stakeholders and customers who are engaged at all points of the project and see how their requirements are being addressed throughout the project.

Conclusion

Adopting effective project management practices can lead to successful project completion and contribute to overall business success. When the project manager understands how project management guides work, the business can enjoy the benefits such as:

• Achieving Project Goals:
  • Focus on completing project objectives
  • Align project results with business goals
• Realizing Scope Control
  • Ensure only work within the defined scope is executed
  • Avoid scope creep and distractions
• Maintaining Budget and Schedule Management
  • Maintain deadlines and control costs
  • Effectively use resources
• Using Risk and Resource Control
  • Identify and mitigate risks early
  • Manage resources efficiently to meet objectives
• Gaining Stakeholder and Customer Satisfaction
  • Communicate progress clearly
  • Meet stakeholder and customer expectations

A project’s outcome is shaped by more than the project management tool used to manage it; it is shaped by how the project manager applies the selected project management structure to the overall work. With formal training, a Project Manager can effectively apply one of the proven Project management approaches to better ensure the investment of resources, time, and budget will result in the desired project outcomes. Thinking of either the traditional (linear) or adaptive (iterative) approach as a project management tool that the project manager can adapt to best meet the needs of the business can better ensure every project will become a project success.