What is project management? Effective project management

Allows you to eliminate any delays or deviations during project implementation by assigning a critical path, establishing the number of resources to complete the work.

The formation of schedules is carried out taking into account resource availability. There may be an increase in completion time, but the likelihood of missing milestone dates will likely be reduced.

The methodology is based on creating key critical tasks, maintaining their deadlines, and the final date of project completion. Logical connections are built between critical works, taking into account possible limitations of reserve or other funds. The unlimited nature of the latter makes the calculated parameters similar to PERT.

In case of insufficient resources, near-critical work processes should be established. They often move parallel to the key chain, with short deadlines. Such development scenarios, without proper attention, can turn into crises. It is also necessary to establish a critical chain by establishing relationships between milestones.

The use of this methodology has become quite widely used in the construction industry. The main characteristic of this system of control and coordination of project work is a clearly defined project route, formed by the longest work processes. The critical path sets the deadline for the entire project as a whole. By establishing the most important tasks, it is possible to determine completion dates, evaluate the main stages and project results and milestones. Moreover, having calculated the duration and planned all the main work, it is worth looking at the correctness of the schedule based on logic. Gantt charts are primarily highlighted in red, signaling the importance of milestones and individual activities.

Any deviation from the scheduled dates for work on the full-critical path leads to an increase in the duration of further work operations. If you need to reduce the overall duration of the project, you need to reduce critical tasks.

This methodology facilitates daily comparisons between planned and actual parameters.

Planning stages when using the critical path:

– goals, limitations;

– the period of time required for the production process;

– construction of a network graphic image;

– formation of a diagrammatic description.

Project management methods with macro-event modeling are aimed at identifying and predicting hazards. Carrying out a design analysis using the Monte Carlo technique and an event chain plan in the form of a diagram allows us to establish the possibility of certain hazards and the level of their influence on the design implementation.

A visual representation of the relationships between surrounding phenomena and design work contributes to the formation of a plan that fully reflects reality.

XP project management methods involve close and partnership relationships with stakeholders, frequent releases, and demonstrates the special features of small development cycles. In the course of implementing these management principles in practice, groups concentrate on partnership and the effectiveness of their activities, the formation of elementary codes to obtain the desired quality, avoiding exhaustion and negative results. The project does not have a clearly defined final mission. The goal is determined as the project progresses. A comparison can be made with a guided missile. First stage: It has been launched, it still doesn’t know where it will fly and what trajectory to choose. The most important thing is to launch. The target for this projectile is selected during flight. Second stage: the direction of the missile is coordinated and priorities are gradually outlined. There can be many stages of adjustment. The principle applies not only to programming, but also to many Russian projects.

The key goal is a process aimed at producing a slow and constant flow of results over a long period of work in order to visually display them and identify problematic issues in production. Understanding the causes of downtime and lost time can quickly improve productivity.

The methodology faces a special task, which consists in the formation of high-level values and the organization of a high-quality approach to implementation while minimizing all resources.

The method aims to reduce waste, eliminate so-called bottlenecks, focus on customer value and continuously improve the production process.

The use of Lean will significantly reduce costs, quickly complete work on schedule, and achieve the necessary results with minimal participation from both internal and external employees.

A significant improvement in the production method of organizing actions is facilitated by combining the effectiveness of the Lean methodology with 6 Sigma. Having established ways to carry out the project in reality, project team members eliminate waste and concentrate on creating an unsurpassed result (ultimate customer value).

The methodology ensures that any project is justified and aimed at creating special value. Planning begins by clearly establishing consumer desires, the benefits received and correctly assessing costs and resources.

Combining planning with sustainability of activities from an environmental perspective. Reducing energy costs, rational use of costs while minimizing the impact of the enterprise on the external environment. PRISM is ideal for those who want to take the green road.

Ensures that the project is focused on strict adherence to the organization's mission. Before launching a project, it is mandatory to check for compliance with all strategic plans of the organization.

If the results are negative, the company’s strategic vision and goals are adjusted. Such methods of project management have proven themselves well in the implementation of projects in the field of reorganization and administration in the company.

The primary aspect in the implementation of the methodology is given to productivity, cooperation and concentration, which allows you to achieve high quality results in a short period of time, quickly adapting to changes.

Work in a group occurs in so-called spurts, due to which maximum efficiency is achieved. You can also quickly test a new iteration, instantly fixing errors.

Increased product quality and improved production performance while reducing errors and deficiencies. “6 Sigma” indicates that more than 99% of the manufactured product is free from defects. When reviewing general work operations, it is likely that possible improvements or adjustments will be identified before deficiencies occur.

The principle of project management according to the cascade planning model involves dividing the work process into several sequential tasks with specific tasks; the end of one (or chain) of tasks is usually the achieved milestone or key event of the project. Participants perform tasks in a regulated sequence; before starting a new task, they complete the previous one. Detailed planning talks about detailed schedule and budget size. Types of schedules used in project management using the cascade methodology - calendar and network project schedules (Gantt charts)

Project management methods have positive and negative sides; the choice of method and application depend on the client’s expectations, the type and content of the project.

Involving consulting firms in the process often significantly increases the chances of successful project implementation.

See also a comparison of waterfall and agile planning methods

Effective project management depends largely on many factors. These include:

1. Clearly set goals. Starting with the philosophy of the project (or its mission). Commitment of the project team to the stated goals.

2. Competent project manager. A competent, communicative leader with the necessary technical and administrative experience.

3. Support from senior managers. All stakeholders should be aware of and feel this support.

4. Competent project team members. The success of the project is ensured by a competent and trained group of performers.

5. Sufficient resource provision. Financial, human, material and other resources in sufficient quantities.

6. Adequate information support. Availability of information necessary for the implementation of the project about its goals, status, changes, organizational conditions and customer needs.

7. Control mechanisms. Mechanisms for managing ongoing events and identifying deviations from the plan.

8. Feedback. All project stakeholders should have the opportunity to study the state of affairs and make appropriate suggestions and adjustments.

9. Responsiveness to clients. All potential users of the project receive information about the status of the project.

10. Mechanisms for searching and correcting deviations. A system of measures to find problems and eliminate their causes.

11. Constancy of the composition of project participants. The personnel component of the project for the entire period of its implementation should remain constant to the maximum extent possible. Frequent changes of personnel can lead to dispersion of the experience accumulated by the group.

Effective project management can never happen autonomously. The success of a project always requires input and coordination on the part of investors seeking profit opportunities in an ever-changing market situation.

Ensuring free communication provides feedback to the project team and motivates it. This increases the likelihood that the overall project will be completed on time, within budget, and with its objectives fully achieved. That is, we are talking about the effectiveness of the project.

In many organizations, project management is handled by individuals who are not trained in formal project management techniques. By providing them with this knowledge, planners will be able to set goals more clearly and receive feedback. Just as computers once did, now the Internet and new interaction technologies are changing the way work is done. These technologies make it easier for us to set project goals and group planning, especially with those who have different work environments.

Although group work is important at all stages of project planning, technology is particularly effective in managing timelines, project communication risks, delivery, quality and project integration processes.

“Effective project management is the integration of planning information systems with management procedures and organizational structure. However, purchasing successful software does not equate to successful implementation of project management in an organization. It is the quality of the system implementation that makes the difference between a “good” and a “bad” package.

Project implementation experience shows that consistent application of modern project management methodology allows saving up to 20% of the funds allocated for project implementation. In this case, the actual management costs do not exceed a few percent of the total project cost.

Today, in order to succeed in competition, it is necessary to ensure an optimal combination of streamlined business processes in management structures with dynamic and result-oriented project approaches.

Criteria for project success can also be identified. The St. Gallen Institute and the International Institute for Learning Organizations and Innovation (ILOI) in Munich recently discussed successful and unsuccessful projects with more than 500 employees from 111 companies in Germany, Austria, and Switzerland and explored the criteria for success.”

As a result, it turned out that the reasons for failures are less of an industrial-economic or technical nature, and are largely related to the culture of entrepreneurship, communication and information processes in the enterprise.

The following criteria were derived that distinguish successful projects from unsuccessful ones by the following parameters:

· General readiness for change (determined in the general focus of the team on learning, transformation and improvement of activities);

· A culture of conflict (free exchange of information and opinions, as well as openness to criticism);

· Personal responsibility of employees for the results of their work (the more authority each individual has, the sooner he is ready to take responsibility, and the greater his personal initiative and motivation);

· A culture of trust (trusting relationships, a pleasant climate of openness, sincerity and honesty in communicating with each other in a team increases the likelihood of project success);

· Lack of hierarchy (in a team, the role of hierarchy should be minimized, which is necessary to increase the motivation and creativity of employees);

· Communication and information culture (intensive information exchange and open communications, i.e. a high degree of transparency, mean good cooperation and the basis for the development of innovation).

At the present stage of development, project management is recognized as the most effective business management tool. The number of problems (energy, environmental, resource, social) is constantly growing, and they can only be solved with the use of innovative technologies and management solutions. Organizing work according to specific plans is characteristic of most foreign companies and is increasingly being implemented in Russia, and not only in business, but also in government agencies.

To answer the question of what project management is, it is necessary to understand the distinctive features of project implementation from other methods of activity. It is characterized by the following features:

Focus on specific results. All actions performed during the implementation of an idea are interconnected and aimed at achieving a predetermined goal. It is completeness that is important; if some processes are carried out without a tangible result, then this is not a project.
Limited available resources. As a rule, any initiative is implemented taking into account available resources, primarily financial, human and time. An exact or approximate deadline for the completion of all work is always established, as well as an estimate and implementation schedule are drawn up.
Uniqueness. This means that it is intended to release a product for the first time or introduce a new service.

Design is the process of drawing up and developing an undertaking from the emergence of a concept to its implementation in reality. To bring an idea to life, a plan is drawn up, which represents a scenario for all subsequent actions, broken down by time periods and processes carried out. Processes can be carried out either in parallel, independently of each other, or in close interconnection. Innovative developments require in-depth knowledge in various spheres of human activity: economics, construction, finance, working with people. The implementation of an idea always entails certain changes, and in order to manage them efficiently, a person with specific knowledge is appointed - a project manager.

We can say that project management is a professional human activity, the essence of which is to use the most modern knowledge, methods, tools, technologies to influence people in order to achieve the required result. Traditional operational management is not able to quickly change and integrate into rapidly developing and changing environmental conditions.

Project management is carried out based on the stages of the life cycle of an undertaking:

Initiation(preliminary assessment of deadlines, required resources, setting tasks and risk analysis).
Planning(search for an investor, calculation of the budget, targets, risks and action schedule).
Implementation(monitoring the implementation of the plan and achieving intermediate results, phased financing, making necessary changes to the plan).
Closing(assessing the degree of completion of assigned tasks, time spent, profitability of the plan, working on mistakes).

The use of project management in international practice is a tool for implementing innovative ideas and a highly effective management technology in unstable and uncertain systems that are rapidly developing and changing. This primarily applies to tax, legislative, and resource systems. Using such a management system, it is possible to resolve complex problems of a production, scientific and social nature.

Some company managers use Project management in certain areas of their activities that require the promotion of new technologies and products, or with their help they solve individual applied problems with a creative component. A kind of “enterprise within an enterprise” is created, which does not have a negative impact on the main production tasks. In addition, a classic example of this approach is the production of large complex products (aerospace, shipbuilding, military-industrial complex).

However, there are also so-called project-oriented companies, the way of existence of which is precisely unique activities over a certain period of time, aimed at the final result. Their distinctive features are:

strategic approach;
teamwork;
self-organization;
openness in communications;
outward orientation.

Project management arose and initially developed in highly specialized industries. However, after just a few decades, constantly developing and proving its effectiveness, it covered various areas of business. Its influence is especially noticeable in such areas as:

IT sector and new software development;
development of new types of industrial products and their implementation;
reconstruction and construction;
carrying out design, research and scientific work.

In both the corporate sector and government, plans are often organized into portfolios or programs. Several interrelated initiatives aimed at achieving one common result can be combined into a program. For example, a program to improve the provision of medical care to citizens may include projects to improve the training of medical personnel, modernize and develop new standards of treatment and produce modern effective medicines for certain diseases. If we are talking about a portfolio, then it is assumed that there are initiatives of different directions; they are united only by a single source of financing.

In specialized literature, you can sometimes see differences in the understanding of the terms “Project management” and “project management”. This is due to a different approach to basic concepts, type of design and other factors. According to ISO 9000, a project is a process, while according to ICB IMPA, it is an action or effort. Accordingly, in this matter, management is often understood as a certain professional culture and activity in social systems, and management is the influence on the implementation of certain processes. However, in most sources these concepts are recognized as identical, adjusted for the specifics of market relations.

Main functions of project management

Project management is a synthetic discipline that combines both professional and specialized knowledge. The latter illustrate the features of the area to which the undertaking belongs (construction, ecology, research, education). However, the study and analysis of the patterns inherent in implemented ideas from different areas of human activity is of great importance.

Traditional project management functions include:

goal setting (formation of a plan, its initiation and development of a concept);
planning (creation of a clear structure and sequence of processes, relationships between them, scheduling of work, contracts, supply of resources);
organization (implementation of the approved plan, creating an office and forming a team, exchanging information, concluding and maintaining contracts, placing orders for goods and services);
motivation (development and implementation of an incentive system for all participants in the work);
control (preparation and submission of reports on the progress of work, monitoring of costs and deadlines, quality control, study of measures to reduce risks, implementation of contracts).

There are major differences between functional and project management. Each system has its own strengths and weaknesses, but work on specific specific plans is recognized as more flexible, progressive and capable of transforming under the influence of new conditions.

The functions of general (traditional) management include:

stabilization of the existing condition;
a clearly limited range of tasks to perform;
powers are approved by the management structure;
work is carried out in stable organizational structures;
responsibility is determined by prescribed functions
definition of success - achieving certain intermediate results;
low level of variability of working conditions.

Based on the above factors, we can conclude that the main features of functional management are stability and predictability.

The principles of project management differ from functional management:

activities are characterized by uncertainty, there is constant work with changes;
powers may not be clearly distributed;
the range of tasks may vary depending on various influencing factors;
tasks can be cross-functional, but within the project cycle;
activities are aimed at innovation;
conflict resolution is one of the most important tasks;
effectiveness is determined by achieving the final goal.

Consequently, management of this type is aimed at achieving the required result in a certain period of time with a limited resource in unstable conditions. To do this, it is necessary to select and organize the work of highly qualified personnel, as well as introduce new technologies and management solutions.

At the same time, these two management systems cannot be completely opposed to each other. They can intersect and complement each other. For example, in general management there are a number of fundamental concepts that every competent project manager should know.

Project manager and requirements for him

A distinctive feature of project management is that the basic rights, as well as responsibility for the achieved result, are concentrated in the hands of a small group of people or even one person - the project manager. This does not imply that the project manager is able to know all the specific features of each process; his job is to use his skills to select and most effectively distribute specialists, as well as the division of labor between them.

The main function of the manager is to monitor the implementation of three main parameters:

Quality of work. There are proven methods for managing material and human resources, such as resource load diagrams and performer responsibility matrices. The problem here may be that it is not easy to formulate tasks and then control them yourself. In such cases, developed quality control techniques are used.
Time. To help the manager, various programs have been developed for the formation and tracking of work schedules.
Budget. The specialist creates a financial plan and ensures that there are no overspending.

The manager's competence in implementing a new idea is assessed according to the following components: experience, knowledge, skills, professionalism, ethics, mentality (professional thinking). Requirements for the competence of specialists are specified in the Body of Knowledge, which is supported by national or international professional associations. More than 125 countries have approved such Codes (PM BoK) and their own certification systems.

The largest management certification organization is IPMA, which has 55 members. Their standards are developed, approved and adjusted based on the main regulatory document of the ICB IPMA organization. In Russia, on its basis, the SOVNET Association has developed National Requirements for the Competence of Specialists (NTC), and certification of managers is carried out according to them. Countries that are not members of this organization have their own certification systems. For example, PMI in the USA, ENAA in Japan, AIPM in Australia.

Often, the right project manager determines the success of the entire enterprise. This specialist must accurately manage external and internal factors influencing the initiative being implemented:

Regarding external factors, management is required to:
- prompt adaptation of all processes to changing external conditions;
- management of sustainable interaction with other entities related to the work performed.
The control influence on internal factors consists of the following actions:
- rational distribution and timely redistribution of resources allocated for the implementation of the initiative;
- constant coordination of interaction between project participants.

In addition to controlled and manageable internal parameters, such as development costs, product production, marketing, production volumes, capital investments, price, there are a number of external uncontrollable parameters. These include economic conditions, environmental conditions, competition, consumer tastes, legal framework, social environment, access to resources. It is very difficult to influence them, so the structure must establish and promptly change its activities taking into account these factors.

Advantages of the project management method and its disadvantages

An increasing number of business structures, state and municipal organizations are introducing elements of project management into their daily activities. Even the President and the Government of Russia have been promoting this approach over the past few years. What advantages does this method of work provide?

Research by reputable international organizations proves that the introduction of project methodologies into management can significantly improve efficiency indicators within the first few years. A 20% cost savings is quite possible, as well as a reduction of 20-25%. The costs directly for integrating new techniques into work amount to several percent of the total amount of the entire plan and usually pay off within 1-2 years.

The new management approach opens up the following prospects for business and government organizations:

clear definition of activity priorities;
unambiguous formulation of expected results and goals;
the practice of putting initiatives into clear, structured forms of projects or programs;
competent consideration of possible risks and the search for ways to mitigate them;
achieving clear criteria for successful work;
optimization of the company's resource costs;
increasing staff motivation.

The disadvantages of switching to a new technique include the following factors:

Transition period. It may be delayed due to management's ignorance of the basics of Project Management or due to sabotage by middle-level managers who may lose their influence.
Lack of resources. Spreading funds between different plans can negatively affect the company's core operating activities, especially if it has limited financial capabilities.
Personnel. Without a qualified project manager, the process may stall. Often you have to bring in a manager and your team from outside.

However, despite all the difficulties, project management is gaining momentum around the world. It does not stand still, it develops quickly and constantly corresponds to the situation that has developed at a given moment in time.

Goals, plans, projects... These terms are often used in work and everyday life. Although people have been implementing projects for thousands of years, project management as a unique type of management is a recent development.

Modern project management methods are based on work structuring and network planning techniques developed in the late 50s in the USA.

In 1956, M. Walker of DuPont, exploring the possibility of more efficient use of the company's Univac computer, joined forces with D. Kelly of Remington Rand's capital planning group. They tried to use a computer to draw up schedules of large complexes of work to modernize DuPont factories. As a result, a rational and simple method for describing a project using a computer was created. It was originally called the Walker-Kelly method, and later received the name Critical Path Method (CPM).

One of the most famous projects in which methods of modeling and coordination of a set of works were first used is the project to develop the Polaris missile system, which began in 1957. This project had strict time limits, since it was tied to the expected date of commissioning in the USSR of missiles capable of carrying nuclear warheads and reaching US territory. At the same time, within the framework of this project it was necessary to develop, assemble and test a significant number of unparalleled components. The implementation of the project, which united about 3,800 main contractors and consisted of 60 thousand tasks, was entrusted to the US Naval Weapons Command. In order to manage the implementation of this project, Lockheed Corporation and the consulting firm Booz, Allen and Hamilton created a special method of work planning based on the optimal logical process diagram, called the PERT (Program Evaluation and Review Technique) method. Using the PERT method allowed program management to know exactly what needed to be done at any given time, who should be doing it, and the likelihood of individual activities being completed on time. Program management was so successful that the project was completed ahead of schedule. Thanks to this successful start, this management method was classified and soon began to be used for planning projects throughout the US military. The technique has proven itself to be excellent in coordinating work carried out by various contractors as part of large projects to develop new types of weapons.

Large industrial corporations began to use such management techniques almost simultaneously with the military to develop new types of products and modernize production. The project-based work planning technique has become widely used in construction. For example, to manage a project for the construction of a hydroelectric power station on the Churchill River in Newfoundland (Labrador Peninsula). The cost of the project was $950 million. The hydroelectric power plant was built from 1967 to 1976. The project included more than 100 construction contracts, some of which cost as much as $76 million. In 1974, the project was 18 months ahead of schedule and within cost estimates. The client for the project was Churchill Falls Labrador Corp., which hired Acress Canadian Betchel to design the project and manage construction.

Essentially, a significant gain in time resulted from the use of precise mathematical methods in managing complex sets of work, which became possible thanks to the development of computer technology. However, the first computers were expensive and available only to large organizations. Thus, historically, the first projects were state programs that were grandiose in terms of the scale of work, the number of performers and capital investments.

Today, the terms “project” and “project management” have already become familiar to Russian managers. From magazines, on radio and television, we increasingly hear about the planning or implementation of investment, organizational or environmental projects. Managers at various levels discuss marketing projects and projects for introducing new systems and technologies at meetings. Almost every manager from time to time finds himself involved in planning business goals and ways to achieve them, assigns performers to tasks, draws up, justifies and controls the execution of the budget. By drawing up and monitoring work plans, the manager essentially exercises project management functions.

However, despite the growing need to streamline and improve the efficiency of project management in a modern organization, the basic concepts and methods of systematic project management remain unknown to a significant number of managers.

This course provides a brief overview of the tasks, methods and tools of project management in an organization.

After completing the course, you will be able to:

Identify and categorize projects and project management tasks within your organization
Develop hierarchical and logical project structures
Calculate project deadlines using the critical path method
Classify available resources and build a schedule of project resource needs
Build a schedule of project financing needs
Apply methods for monitoring and analyzing the progress of work
Identify and systematize project management problems in the organization
Apply systematic approaches and project management methods
Define the roles of project participants
Develop, analyze and optimize the project plan
Develop and implement procedures for monitoring project implementation
Establish and control criteria for optimal project implementation
Develop project reports
Select project management software

Section 1. Projects and project management

Projects

Projects and processes

Analyzing the work of any organization, it is almost always possible to distinguish two main types of activities that exist in parallel: current, recurring processes(operations) and projects. Any activity requires resources, is carried out by people and accordingly requires planning and control.

The main differences between these two types of activities are that the processes are repetitive, cyclical in nature, and projects are aimed at achieving unique goals within a certain time frame.

For example, if we consider the production of automobiles, then the operation of the production line, the preparation of quarterly balances in the accounting department, or the processing of incoming/outgoing correspondence can be classified as repetitive operations. Repetitive operations are characterized by a fairly high degree of certainty, involve the use of mastered technological processes and existing equipment, and require a management system aimed at increasing the efficiency of using existing equipment and resources in similar production cycles.

Projects, as a rule, are aimed at implementing certain changes within the organization or in the external environment. Examples of internal changes in our case include the development of new product models, reconfiguration or repair of a conveyor, or the introduction of a new management system.

Changes external to the organization include conducting a marketing campaign, expanding business areas, and targeted environmental changes.

Examples of projects are:

Construction of a nuclear power plant
Development of the field
Construction of a factory or residential building
Development and launch of new products or services to the market
Conducting research and development work
Development and implementation of an information system
Opening a company branch
Carrying out renovations in the office
Preparing for the anniversary
Writing a book...

The list goes on, including examples from various industries that differ significantly in the scale of activity, implementation time, number of people involved and the importance of the results. However, all these types of activities have a number of common features that allow them to be called projects:

they are aimed at achieving specific goals;
they involve the coordinated implementation of interrelated actions;
they have a limited extent in time, with certain beginning and end;
they are all unique and unique to a certain extent.

In general, these four characteristics projects are distinguished from other activities. Each of the named characteristics has important internal meaning, and therefore we will consider them more closely.

Focus on achieving goals.

Projects are aimed at producing certain results - in other words, they are aimed at achieving goals. These goals are the driving force behind the project, and all planning and implementation efforts are made to ensure that these goals are achieved. A project usually involves a whole set of interrelated goals. For example, the main goal of a project related to the introduction of new computer technologies may be the development and implementation of an enterprise management information system. Intermediate goals (subgoals) can be database development, mathematical and software development, and system testing. In database development, in turn, lower-level goals can also be identified - development of the logical structure of the database, implementation of the database using a DBMS, loading data, and so on.

The fact that projects are goal-oriented makes great internal sense for managing them. First of all, he suggests that an important feature of project management is the precise definition and formulation of goals, starting at the highest level, and then gradually moving down to the most detailed goals and objectives. It also follows that a project can be viewed as the sequential achievement of carefully chosen goals, and that moving the project forward is associated with the achievement of higher and higher level goals until the final goal is finally achieved.

Coordinated execution of interrelated actions.

Projects are complex by their very nature. They involve performing numerous interrelated actions. In some cases, these relationships are quite obvious (for example, technological dependencies), in other cases they are of a more subtle nature. Some intermediate tasks cannot be implemented until other tasks are completed; some work can only be carried out in parallel, and so on. If the synchronization of different tasks is disrupted, the entire project can be jeopardized. If you think a little about this characteristic of the project, it becomes obvious that the project is a system, that is, a whole made up of interconnected parts, and the system is dynamic, and, therefore, requiring special approaches to management.

Limited extent in time.

The project ends when its main goals are achieved. Thus, projects are completed over a limited period of time. They have a more or less clearly defined beginning and end. Much of the effort in a project is focused on ensuring that the project is completed on time. For this purpose, graphs are prepared showing the start and end times of the tasks included in the project.

The difference between a project and a production system is that a project is a one-time, non-cyclical activity. Serial same output does not have a predetermined end in time and depends only on the availability and magnitude of demand. When demand disappears, the production cycle ends. Production cycles in their pure form are not projects. However, in a number of areas, production is carried out on a project basis (piece and small-scale production to order and on a contract basis).

A project as a system of organizing activities exists exactly as long as it takes to obtain the final result. The concept of the project, however, does not contradict the concept of the company or enterprise and is quite compatible with it. On the contrary, the project often becomes the main form of activity of the company.

Uniqueness.

Projects are, to a certain extent, unique and one-time events. However, the degree of uniqueness can vary greatly from one project to another. Uniqueness can be associated both with the final goals of the project and with the conditions for achieving them. If you are engaged in the construction of cottages and are building the twentieth cottage of the same type, the degree of uniqueness of your project is quite small. The basic elements of this house are identical to those of the previous nineteen that you have already built. The main sources of uniqueness can be found in the specifics of a specific production situation - in the location of the house and the surrounding landscape, in the particular supply of materials and components, in new subcontractors. On the other hand, if you are developing a new device or technology, you are certainly dealing with unique goals. And because past experience can only give you limited guidance on what to expect in a project, it is fraught with risk and uncertainty.

The higher the uniqueness of the project, the higher the uncertainty and the more complex the planning and management.

Any activity must be planned and controlled. As our experience shows, business leaders in Russia rarely try to comprehend and separate the tasks of managing current activities and managing projects. However, this is important for developing an effective enterprise management system. A management system focused on managing unchangeable technological processes does not provide the manager with the necessary information when planning and change management is required.

Development projects

So, a modern organization is able to exist and compete successfully in the market only if it constantly develops and adapts to changing business conditions. This means that the company’s management, planning and achieving certain goals, is constantly faced with corresponding management problems - how to plan work in time and meet a certain deadline, what resources will be required, how many resources and when exactly, how much it will cost, on what schedule and from what sources the financing will be made.

Development projects are investment projects and are related to the company's development strategy.

For example:

Development of new directions
Modernization of products and equipment
Entering new markets
Modernization of technologies and equipment
Development of company infrastructure
Reorganization
Automation

The figure shows a generalized diagram of the positioning of the project in relation to the structure of the organization. In the version presented in the figure, projects are carried out by the organization in parallel with the main production process.

Precise formulation of goals and their effective achievement are the key to the successful development of any company.

Project-oriented organization

There are areas of activity where project implementation is the main type of work organization. For example, the construction industry, unique, piece production, development of information systems and others. Companies in which the main production processes are planned and carried out on a project basis are called project-oriented organizations.

Project life cycle

Any project goes through certain phases in its development, collectively called the life cycle.

A distinction must be made between the project life cycle and the product life cycle. For example, a new car development project is only a separate phase of the product life cycle.

Sometimes, when considering the payback of an investment project, three main stages are distinguished: preliminary (investment justification), preparatory (investment) and production (production and sales). The life cycle of a project, the purpose of which is to perform work under a contract, may include the initial stage (preparation of contracts and initiation of work), the project implementation stage (detailed planning and execution) and the completion stage of the project work.

The stages of the project life cycle may vary depending on the field of activity and the adopted work organization system. However, for each project it is possible to distinguish the initial () stage, the stage of project implementation and the stage of completion of the project. This may seem obvious, but the concept of a project life cycle is one of the most important for a manager, since the tasks and processes of preparing and making management decisions, the methods and tools used are determined by the current stage of the project.

Project managers break down the project life cycle into stages in a variety of ways. For example, software development projects often include stages such as recognizing the need for an information system, formulating requirements, system design, coding, testing, and operational support. However, the most traditional way is to break the project down into four major phases: project initiation, planning, implementation, and completion.

Initiation

Initiating or developing a project concept essentially involves a project selection function. Projects are initiated because of needs that need to be satisfied. However, in conditions of resource scarcity, it is impossible to satisfy all needs without exception. You have to make a choice. Some projects are selected, others are rejected. Decisions are made based on the availability of resources, and primarily financial capabilities, the relative importance of satisfying some needs and ignoring others, and the comparative effectiveness of projects. The decision to implement a project becomes more important the larger the project, since large projects determine the direction of activity for the future (sometimes for years) and tie up available financial and labor resources. The determining factor here is the opportunity cost of investment. In other words, by choosing project “A” rather than project “B”, the organization gives up the benefits that project “B” could bring.

For comparative analysis of projects at this stage, project analysis methods are used, including financial, economic, commercial, organizational, environmental, risk analysis and other types of project analysis.

Planning

Planning in one form or another is carried out throughout the entire duration of the project. Early in the project's life cycle, an informal preliminary plan is usually developed - a rough idea of what will need to be accomplished if the project is to be implemented. The project selection decision is largely based on preliminary plan estimates. Formal and detailed project planning begins after the decision to implement it has been made. Key events (milestones) of the project are determined, tasks (work) and their mutual dependence are formulated. It is at this stage that project management systems are used, providing the project manager with a set of tools for developing a formal plan: tools for constructing a hierarchical structure of work, network graphs and Gantt charts, histograms of the project's need for resources and funding.

As a rule, the project plan does not remain unchanged, and as the project progresses it is subject to constant adjustments taking into account the current situation.

Implementation (execution and control)

After the formal plan is approved, the manager is tasked with organizing execution and monitoring the progress of work. Control involves collecting actual data on the progress of work and comparing them with planned ones. Unfortunately, in project management you can be absolutely sure that deviations between planned and actual indicators always happen. Therefore, the manager’s task is to analyze the possible impact of deviations in the scope of work performed on the progress of the project as a whole and in the development of appropriate management decisions. For example, if the schedule slips beyond an acceptable deviation level, a decision may be made to speed up certain critical tasks by allocating more resources to them.

Completion

Sooner or later, projects end. The project ends when its goals are achieved. Sometimes the end of a project is sudden and premature, as when a decision is made to terminate a project before it is completed as scheduled. Be that as it may, when a project ends, the project manager must complete a series of activities that complete the project. The exact nature of these responsibilities depends on the nature of the project itself. If equipment was used in the project, it should be inventoried and possibly transferred to a new use. In the case of contract projects, it is necessary to determine whether the results satisfy the terms of the contract or contract. It may be necessary to produce final reports and organize interim project reports in an archive.

Project management

Lerman's famous law states: "Any technical problem can be overcome with enough time and money," and Lerman's corollary specifies: "You will never have enough either time or money."

If you ask a manager to describe how he understands his main task in completing a project, he will most likely answer: “Ensure the work gets done.” This is truly the main task of a leader. But if you ask the same question to a more experienced manager, you can hear a more complete definition of the main task of the project manager: “Ensure the completion of work on time, within the allocated funds, in accordance with the technical specifications.” It is these three points: time, budget and quality of work that are under the constant attention of the project manager. They can also be called the main constraints imposed on the project. Project management refers to activities aimed at implementing a project with the highest possible efficiency under given constraints in time, money (and resources), as well as the quality of the final results of the project (documented, for example, in the terms of reference).

The art of effective management is largely determined by the abilities and talents of the leader. However, management is increasingly based on scientific approaches. Today, a manager can no longer rely only on opinions, judgments, and conversations. It is necessary to use systematic approaches to preparing and making decisions, which include methods and tools for collecting, processing and analyzing information that allow you to model the development of the situation and anticipate the consequences. Modeling and systems analysis are critical in turning disparate information into actionable knowledge.

Making any management decisions is usually associated with uncertainty, which is always present when implementing projects. The cause of uncertainty may be the inability to determine the exact timing of research in a new product development project; or instability in the supply of materials and components in a construction project; unclear level of demand in a marketing project; uncertainty regarding funding in the state program, etc. Typically, all types of uncertainty that may occur in a project manifest themselves to one degree or another. The manager begins to feel unable to purposefully plan and manage activities.

It is in this situation that it makes sense to think about using a more formalized project planning and management system. In addition, what did not make sense without a computer (why waste time developing a plan if any interference from external chaos will make this plan an unnecessary piece of paper in a week), begins to make sense with the use of a computer. By having a project information model, the manager essentially has the ability to constantly have an up-to-date work plan that matches the current situation and the current level of uncertainty.

THE THREE PITCHES OF PROJECT MANAGEMENT

The concept of “PROJECT LIFE CYCLE”:
a single, inextricable process of achieving a goal.

“PROJECT TEAM” concept:
unified organizational structure,
responsible for the success of the project at all stages.

Concept of “PROJECT FINANCING”:
correspondence of costs to the volume and quality of work performed.

Over the forty-plus years that project management technology has been in use, a number of techniques and tools have been developed to help project managers manage these constraints.

In order to cope with time constraints, methods for constructing and monitoring work schedules are used. To manage monetary constraints, methods are used to formulate a financial plan (budget) for the project and, as work progresses, compliance with the budget is monitored in order to prevent costs from getting out of control. To carry out work, they require resource support and there are special methods for managing human and material resources (for example, a responsibility matrix, resource load diagrams).

Of the three major constraints, the most difficult to control are the constraints on the given project deliverables. The problem is that tasks are often difficult to both formulate and control. To solve these problems, in particular, change management and work quality management methods are used.

So, project managers are responsible for three aspects of project implementation:

terms, costs and quality of the result. According to generally accepted project management principles, effective time management is considered to be the key to success across all three dimensions. Project time constraints are often the most critical. Where project deadlines are seriously delayed, cost overruns and poor quality work are likely consequences. Therefore, in most project management methods the main emphasis is on scheduling work and monitoring compliance with the schedule.

Team and project participants

The main strength of the project management concept lies in delegation of power And assigning responsibility for achieving goals on certain managers - the project manager and key team members. The main problem of the project management concept is the difficulty of creating an effective temporal management system, which must function in conjunction with the permanent management system in the organization.

The optimal organization of the project team, which includes both project managers and a team of performers, as well as departments and specialists influencing the progress of work or providing some kind of support to the project, allows you to increase management efficiency and avoid problems.

In Figure 1.4. shows the project structure, in which the project manager ensures the integration of the main project participants. The project goals control group ensures control and coordination of project goals with the strategic goals of the organization. The technical control group is responsible for ensuring that technical solutions and technologies used comply with generally accepted standards, organizational standards and contract specifications. The project administrator and office provide support to the project manager in collecting information and performing management functions.

Rice. 1.4. Example of project organization.

The titles of key project team members vary depending on the type of project. For an industrial project, for example, the core team, in addition to the project manager, should include the chief project engineer, who is responsible for the specifications and quality of the final product. For large projects, it is necessary to have a team of several engineers: an engineer responsible for product specification, an engineer responsible for production technology, and a specialist responsible for installation, testing and pilot production.

Project Administrator - a specialist responsible for all official paperwork within the project, logging changes made, complaints and other issues related to contractual obligations. Often the project administrator is also responsible for maintaining the project archive.

Large projects may also include:

Project controller - collects, processes and records information on the progress of work and actual costs.
Head of Support Services - is responsible for the functioning of information support services and support of general management functions.
Project office . It is useful to have a project office (project headquarters) even for small projects. The project office is the center where project information flows, meetings and appointments are held. Workplaces of permanent members of the project team, if possible, should be located at headquarters.

In each project, you can identify specialists whose activities are critical to the success of the project as a whole. For example, members of the organization's senior management who control the project; specialists with specific qualifications necessary to achieve project results, etc. In any case, the organizational management structure must ensure direct contact between the project manager and these specialists.

Section results

The concepts of project and project management are associated with the need to manage change. Project management is an integral part of the daily activities of managers at various levels. Many managers still associate the need to use formal project management methods with large projects, such as the launch of an interplanetary station, the development of a new type of weapons, or the construction of a nuclear power plant. However, even in mass production-oriented organizations, project implementation constitutes a significant part of the activity.

The use of formalized project management methods allows you to more reasonably determine investment goals and optimally plan investment activities, more fully take into account project risks, optimize the use of available resources and avoid conflict situations, monitor the implementation of the plan, analyze actual indicators and make timely adjustments to the progress of work, accumulate, analyze and further use the experience of implemented projects. Thus, the project management system is one of the most important components of the entire organization's management system.

A project is a unique enterprise that involves the coordinated implementation of interrelated actions to achieve certain goals under time and resource constraints.

Project - method, organizational form of achieving goals
Projects initiated within companies, but may involve the participation of several interested organizations. To carry out work project performers, equipment and material resources are involved
Project presupposes the existence of a plan to achieve set goals (set of work)
Project assumes the presence of a system of authority and responsibility for achieving goals, headed by a project manager
Projects, usually implemented within time and budget constraints

Project classification

Classification criteria:

Place in the structure of the company's business processes
Main business process
Business development projects
Kind of activity
Construction
Piece and small-scale production
Information systems development
other
Financing method
Investment project
Contract project
The degree of novelty (uncertainty) of the project goals and the process of achieving them
Scale, complexity, importance

Key project management processes and their results

The table below breaks down the twenty key project management processes into the main stages of the project life cycle: initiation, planning, execution, control, completion.

Action	Result of successful action execution
Initiation
1. Demonstration of the need for the project and its feasibility	A document confirming the need for project results in general terms: project goals (products), means and technologies for achieving goals, costs to achieve goals, expected return
2. Obtaining project approval	Obtaining approval or refusal from the project sponsor Appointment of a project manager “Decision (order) to begin work” has the following characteristics: Formal recognition of the project Published by a manager “external” to the project at a sufficiently high level in the organization so that funds are then allocated for the project Gives authorization to the project manager to attract resources for project work
3. Obtaining permission for the project at this phase	An authorizing or denying decision from the sponsor, giving the project manager the right to use organizational resources for work in the current phase of the project Written permission to move to the next phase of the project Issued by a manager “external” to the project at a sufficiently high level in the organization so that funds are then allocated for the project
Planning
4. Description of the scope of work of the project	Approval of the scope of work for the project Change Management Plan Hierarchical structure of work
5. Description of the sequence of work	List of works (this includes all the work that must be performed as part of the project) Adjustment and detailing of the hierarchical structure of work Network diagram of the project work package
6. Estimation of work duration and resource requirements	Estimating the duration (time required to complete) each project activity and the assumptions on which the estimates were based Determining Resource Needs Correction of the list of works
7. Development of a work schedule	Project work schedule in the form of Gantt charts, network diagrams, key event (milestone) diagrams, text tables Additional reports including, for example, resource usage histograms, cash flow forecasts, purchasing/delivery schedules, etc.
8. Cost estimation	Cost estimates for each project activity Additional cost information, including assumptions and limitations on which estimates were based Project cost management plan, including variance management
9. Development of a budget and spending plan	Initial financing plan or budget for control/monitoring of costs in relation to the calendar
10. Create a formal quality management plan (if required)	Quality Management Plan Quality Control Criteria
11. Create a formal interaction management plan (if required)	An interaction management plan that includes: Information collection channels Information distribution channels Schedules governing the collection and dissemination of information Methods for updating the communication plan
12. Recruitment and organization of personnel	Organizational structure Roles and responsibilities of project participants Project team composition and staffing plan
13. Risk identification and response plan (if required)	A document describing potential risks, sources of risks, symptoms of risks and methods of behavior when they occur
14. Plan for organizing work with external contractors/suppliers and (if required)	Supply management plan and ways to attract contractors Description of work and description of requirements (specification/technical specifications) corresponding to the purchased product or service Tender documentation (for example, an application for the preparation of a commercial proposal, an invitation to participate in tenders or negotiations for the award of a contract)
	Criteria for evaluating proposals Contacts with one or more suppliers of goods and/or services
15. Development of a project plan	A comprehensive project plan that integrates all project work planning outputs.
16. Completion of the project planning phase	The project plan was approved in writing by the sponsor. Formally, the green light is given to begin work on the project.
17. Re-schedule the project if necessary	Confirmation that the detailed plan for the implementation of each phase of the project remains relevant, correct, and most effective in achieving goals
Execution
18. Execution of project work	Work results Requests for changes to the composition or content of work -1 Regular progress reports The work of the project team is assessed, adjusted, and improved if necessary. Supply/offer prices have been determined, contractors (suppliers) have been selected, contracts have been signed and are being executed.
Control
19. Project work control	Decisions on acceptance of work performed and results obtained Corrective actions, such as correcting deficiencies, making changes to technology and work processes Adjustment of plans and scope of work Formalized description of useful experience Improving the quality of work execution Assessing the effectiveness of project work execution
Completion
20. Completion of the project	Formal, documented in writing, acceptance by the customer of the product of a given phase or work of the project Formal acceptance of subcontractor products and work Preparing project data for archiving Plan for continuation and/or transfer of work products

The importance of project management in the modern world can hardly be overestimated, because any organization, even the smallest one, implements new initiatives, most of which are nothing more than projects. These endeavors can be completely different in essence, from developing software to sending a person to Mars. But they are all projects.

And if in the 1980s the main focus in companies was on quality, in the 1990s on globalization, then in the 2000s the speed of implementation of initiatives came to the fore. To stay ahead of the competition, organizations are constantly faced with the need to develop complex products in very tight deadlines. To solve this problem, nothing more effective than project management, which is becoming more and more popular day by day, has been invented.

The consistent development and implementation of project management systems in organizations, including information systems, allows various teams and structures of the organization to work together to define plans and implement projects to bring products to market, synchronizing their schedules, coordinating resources and efforts to implement the organization's strategy. allows project teams to create and share project information in real time, realizing the full potential of the organization. With the help of such systems, it is possible to provide access to project information almost anywhere in the world for project teams, employees of supporting departments, partners and clients. And all to ensure fast and efficient implementation of projects.

At the macro level, organizations are motivated to implement project management tools to effectively implement their initiatives of any scale. At the micro level, the corporate project management system, among other things, solves the following problems:

Reducing the costs of implementing initiatives
Creating conditions in the organization for the work of the project team
Informing top management about the status of strategically important projects of the organization
Ensuring sufficient and efficient project document flow
Meeting project deadlines

Although the benefits of project management are obvious, implementing project management does not guarantee success.

A Brief History of Project Management

Humanity has been using project management since the construction of the Egyptian Pyramids, one of the greatest architectural monuments. Unfortunately, no documents or references to how the project management systems of that time worked have reached us. Therefore, the history of project management dates back to the 50s of the last century. Modern project management arose from the solution of two parallel problems in planning and controlling projects in the United States of America.

The first case relates to the military-industrial complex, namely the Polaris Missile Project. As part of this project, two-stage ballistic missiles were developed UGM-27 "Polaris"(UGM-27 "Polaris"), designed for nuclear submarines. For the successful implementation of the project, it was necessary to conduct scientific research, applied developments and establish the production of unique spare parts. This project is characterized by a high degree of uncertainty, as a result of which classical assessment tools did not provide acceptable forecast accuracy. And then the project developers applied the following approach. They prepared 3 possible scenarios for the development of events (optimistic, most likely and pessimistic), and an estimate of the project duration for each of them. Then, using mathematical calculations, we obtained an estimate of the duration of the project. This method got NameProgram (project)EvaluationandReviewTechnique (PERT). Initially, this method was used exclusively for estimating duration, but later it showed itself in estimating project costs. Today, PERT is considered the best way to evaluate projects with a high degree of uncertainty.

The second case is related to the private corporation DuPont, which develops high-tech materials. To build its factories, DuPont required clear and accurate estimates of the time and cost of construction projects. In solving this problem, the company’s specialists developed the PPS (project planning and scheduling) method. It required realistic estimates of the cost and duration of individual engineering and construction tasks. Fortunately, construction projects are more certain than projects to develop high-tech devices, so DuPont had these estimates from its past factory construction projects, as well as from industry statistics. Subsequently, PPS transformed into the famous and widespread today critical path method (criticalpathmethod,CPM). This method is especially popular in the construction sector, for which it was created to solve problems.

In the 1960s and 1970s, and PERT And CPM have gained particular popularity in both the private and public sectors due to the growing demand for project management. Ministries of defense of different countries, NASA, large construction and engineering companies began to introduce tools for project management and calendar and network planning. With the development of computer technology and software capabilities, the popularity of these tools has grown even more. However, in the early days, only large companies could afford expensive and bulky mainframes and software. allowed even small companies to apply the described methods and tools. A real boom occurred in the 1980s with the beginning of the era of personal computers and the Internet, and by the 1990s, companies in almost all industries began to actively use project management and network planning tools. Today, there is an incredible number of different software that allow you to automate the project activities of an organization.

4 stages of development of modern project management

Before 1958: Division of labor and scheduling

During this period, improvements in efficiency and reduction in project time were primarily driven by technological developments. For example, the development of transport has made it possible to improve the distribution of resources in terms of logistics, and telecommunications have allowed the rapid transfer of information. Moreover, the increasing division of labor made it possible to reduce the time required to complete specific tasks. Breaking projects down into tasks led to the creation of a tool such as hierarchical structure of work (workbreakdownstructure,WBS). Projects structured this way are much easier to manage. The most common planning and project management tool for this is Gantt chart (GanttChart), created by an engineer Henry L. Gantt. During this period, such large-scale and historically important projects were implemented as:

Construction of the Pacific Railroad in the USA (1850s);
Hoover Dam (1931-1936), the construction of which involved 5,200 workers. To this day, it is one of the largest dams in the US, producing 4 billion kWh per year;
The Manhattan Project (1942-1945), during which the first atomic bomb in human history was created. The project employed 125,000 people and cost up to $2 billion.

1958-1979: Birth of project management tools

During this period, there was a significant development of technologies that influenced the course of the history of project management. For example, in 1959, Xerox introduced the first copier, which made it possible to significantly speed up and simplify document flow and simply exchange information in organizations. The development of computer technology played a major role. The first project management tools appeared: PERT And CPM. Computers began to appear in all large companies and organizations. And by the late 1970s and early 1980s, there was a transition to personal computers and even small organizations were able to use project management tools. In 1975, Bill Gates and Paul Allen founded Microsoft, which almost immediately began bringing office and business automation solutions to the market. During the same period, special programs for project management began to appear from software companies such as Artemis (1977), Scitor Corporation (1979) and of course Oracle (1977), which is now one of the leaders in the project management software market with its Primavera. In addition, other systems appeared during this period, such as Material requirements planning (Material Requirements Planning,MRP).

The projects implemented at this stage had a serious impact on the development of project management. Among them:

Project "Polaris" (1958), already mentioned at the beginning of the article. The first successful rocket launch occurred in 1961. It was for this project that the system was developed PERT;
The Apollo lunar mission (“Apollo”, 1960), as a result of which man first set foot on the Moon. The lessons of the lunar mission were articulated in a book;
DuPont plant construction project (1958), for which the CPM system was developed.

1980 – 1994: Release to the masses

The history of project management in the 1980s and 1990s was largely due to the sharp decline in the cost of personal computers and their proliferation. Now they have appeared not only in companies and institutions, but have entered almost every home. In addition, the Internet appeared during this period. It is at this moment that it becomes possible to quickly, cheaply and effectively plan and control even complex projects. Software also fell sharply in price during this period of time and became more widespread, which made it easier to implement it in companies and train employees. Previously, software was often made for a specific company.

Projects of this period that influenced the course of the history of project management:

Channel Tunnel (1989 – 1991). This project was characterized by incredibly complex relationships and a large number of stakeholders. It involved 2 states, several large financial institutions, engineering and construction companies and many other organizations. In addition, the two parties involved had very different standards and even units of measurement, which greatly complicated the implementation of the project;
Space Shuttle Challenger project, 1983 – 1986. The Challenger tragedy forced NASA to focus on risk management, group dynamics and quality management;
Winter Olympics in Calgary (1988), during which project management practices were successfully applied to the organization of events. This project showed that event management is a related industry to project management.

From 1995 to the present day: Creating a new environment

The Internet has fundamentally changed business, and therefore project management. The Internet has made it quick, cheap, and convenient to promote, sell, buy, and track products on the market. The result of this was increased productivity and customer focus of companies. In addition, it became possible to create full-fledged distributed project teams, which gave companies additional opportunities.

One of the most interesting projects was the Year 2000 (Y2K) project associated with the Millennium bug, due to January 1, 2000, many computers could start working incorrectly due to the new date standard. This was a global phenomenon that could disrupt organizations around the world and create a domino effect across many distributed production chains. Many organizations created special units whose task was to mitigate the consequences of this bug in working with all interested parties. The goals of this virtual project:

Make a century change without consequences for the work of organizations
Monitoring the success of other organizations in combating this phenomenon
Coordination of efforts of various organizations
Developing a risk management plan associated with this phenomenon
Ensuring communications with stakeholders

This virtual project, implemented simultaneously by many companies around the world, showed how connected organizations and project teams around the world are, as well as the need to manage risks in the field of digital communications.

Project Management Efficiency

Without a doubt, today competition between companies is much fiercer than ever, and the uncertainty and turbulence of the environment is extremely high. This creates a need to improve the stability and efficiency of organizations in all sectors of the economy.

This can be achieved by implementing best practices to optimize the management and allocation of resources. However, it has been proven that operational and project management require completely different management approaches, and when implementing practices, it is necessary to clearly understand the needs of the organization. Project management has two key benefits. Firstly, project management, unlike operational management, is aimed at achieving goals, and not at ensuring a process. Second, project management focuses on communication and managing stakeholder expectations to improve stakeholder satisfaction.

A study conducted by Roberts and Furlonger showed that the use of a detailed and formalized project management methodology can increase the efficiency of project implementation by an average of 20-30%. Moreover, the use of a formalized project structure allows:

Clearly define the content of the project
Determine and agree on the goals and objectives of the project
Facilitate the identification of resources needed to successfully complete a project
More transparently and clearly distribute responsibilities between project roles
Focus the team's efforts on achieving the final benefits of the project.

In addition, according to this study, 85-90% do not meet deadlines, budget, or cannot achieve the required scope or quality level of the project. The main reasons for this:

Poor quality justification (business case) of the project
Project goals are not defined or are not clearly defined
Lack of communication and stakeholder management
Benefits and results of the project are not well defined or are not measurable
Insufficient quality control
Unrealistic estimate of project cost and duration
Roles in the project are not defined
Lack of leadership
Lack of resources and poor management of them.

The use of project management methodology based on best practices allows you to increase the efficiency of project management and avoid most of these problems, with proper implementation and use, of course. Additionally, it is important to understand that a project with cost overruns or missed deadlines is not necessarily a failure. The issue of project “success” requires a separate discussion, but here we are only talking about the effectiveness of project management.

Conclusion

The history of project management shows that the development of this area of management was largely due to the development of technology. But we know from history that often simple ideas and tools that do not require prohibitive technologies and costs can seriously influence efficiency.

Project management is a tool that allows an organization to implement planned initiatives as efficiently as possible. But the use of project management, the availability and application of best practices does not guarantee that all of the company’s projects will be successful. However, a correctly selected project management methodology tailored to the needs of the organization, taking into account industry and regional characteristics, as well as the corporate culture of the organization, allows you to avoid many mistakes during the implementation of projects and significantly increase the chance of their successful implementation.