Recently, numerous the world’s major project management firms have taken major initiatives to show executive management concerning the strategic importance and benefits of project management. The emphasis would be to move from individual project management to organisational project management, which these enterprises preserve is a strategic advantage in a competitive economy.
In this article, Ed Naughton, Director General of the Institute of Project Management and recent IPMA Vice-president, requires Professor Sebastian Green, Dean of the Faculty of Commerce and Professor of Management and Marketing at University College Cork (formerly of the London Business School), about his views of proper project management as an automobile for competitive advantage.
Ed: What does one point proper Project Management is?
Prof. Green: Strategic project management is the management of those jobs which are of crucial importance to help the operation in general to have competitive advantage.
Ed: And what defines a competitive advantage, then?
Prof. Green: You will find three characteristics of getting a core competence. The three characteristics are: it adds value to customers; it is perhaps not easily imitated; it opens up new possibilities later on.
Ed: But just how can challenge administration deliver a competitive advantage?
Prof. Green: You will find two factors to project management. One element is the actual selection of the sort of projects that the business partcipates in, and secondly there is execution, how the projects themselves are managed.
Ed: Competitive advantage – the significance of selecting the correct projects – it is difficult to establish which projects must be selected!
Prof. Green: I believe that the choice and prioritisation of tasks is something that’s not been done well within the project management literature because it’s basically been thought away through reducing it to financial analysis. The strategic imperative gives another way to you of prioritising projects as it is saying that some projects might not be as profitable as others, but if they add to our competency relative to others, then that’s going to be important.
So, to take an example, if a company’s competitive advantage is introducing new products more quickly than others, pharmaceuticals, let’s say, getting product to market more quickly, then the projects that enable it to acquire the product more quickly to market are likely to be the most critical types, even if in their own terms, they don’t have higher productivity than other sorts of projects.
Ed: But if we are going to select our tasks, we’ve to define what are the variables or metrics we’re going to select them against that give us the competitive edge.
Prof. Green: Completely. The organisation has to know which actions it is employed in, which are the critical ones for it competitive advantage and then, that drives the choice of projects. Organizations are not very good at doing that and they could not even understand what these actions are. They’ll believe it is every thing they do because of the power system.
Ed: If its strategy is formulated by a company, then what the project management group says is that project management is the channel for providing that strategy. Then, if the business is great at doing project management, does it have any strategic advantage?
Prof. Green: Well, perhaps that comes home to this problem of the difference between the kind of projects that are opted for and the way you manage the projects. Demonstrably selecting the type of projects depends on being able to link and prioritise projects according to a knowledge of what the potential of an organisation is in accordance with others.
Ed: Let’s assume the approach is placed. So that you can produce the strategy, it’s to be broken down, decomposed into a series of jobs. Therefore, you have to be great at doing project management to supply the strategy. Today, the literature says that for an operation to become great at doing tasks it’s to: put in project management procedures, train people on how best to apply/do project management and co-ordinate the efforts of the people qualified to work to procedures in and integral way utilizing the notion of a project office. Does getting these three ways produce a competitive advantage with this organisation?
Prof. Green: Where project management, or how you handle projects, becomes a source of competitive advantage is when you may do things better than others. The ‘a lot better than’ is through the experience and reasoning and the data that is built up with time of managing projects. There’s an event curve effect here. Regarding information they have developed to manage these components of jobs where the rule book is limited two firms will be at various points in the experience curve. You need management sense and knowledge because however good the rule book is, it will never deal fully with the complexity of life. You’ve to manage down the ability curve, you have to manage the knowledge and learning that you have of the three aspects of project management for it to become ideal.
Ed: Well, then, I do believe there’s a gap there that has to be resolved as well, in that we’ve now developed a competency at doing project management to do projects, but we’ve not arranged that competency to the selection of projects which can help us to give this competitive edge. Is project management with the capacity of being imitated?
Prof. Green: Not the softer elements and not the develop-ment of tacit knowledge of having run many, many projects over time. Therefore, for instance, you, Ed, have more knowledge of just how to work projects than others. That’s why people came to you, since while you both may have a typical book including the PMBoK or the ICB, you have produced more experiential knowledge around it.
Essentially, it could be imitated a quantity of the way, although not once you align the softer tacit knowledge of knowledge into it.
Ed: Organisational project management maturity versions are a hot topic at the moment and are directly for this ‘knowledge curve’ effect you mentioned earlier in the day – how should we view them?
Prof. Should you choose to be taught supplementary resources on needs, we recommend many databases people should think about investigating. Green: I really believe in moving beyond painting by figures, moving beyond the idea that that’s all you need to do and you may demand this group of capabilities and processes and text book standards and an enterprise is completely plastic. In ways, just the same difficulty was experienced by the designers of the ability curve. It is almost like, for each doubling of volume, cost savings occur without you being forced to do any such thing, if you show organizations the knowledge curve on cost. What we all know is however, the experience curve is a potential of a risk. Their’ realisation is dependent upon the skill of professionals.
Ed: Are senior executives/chief executives within the mind-set to understand the possible benefits of project management?
Prof. Learn more on a related link by clicking return to site. Green: Until recently, project management has offered itself in technical terms. Then it would become more appealing to senior managers, if it was offered in terms of the integration at common management, at the capability to manage across the features financing approach processes with reasoning. So, it is about the experience that makes project management so strong, the methods together with the reasoning and the mixing of the difficult and the gentle. If senior managers do not grasp it right now, it’s perhaps not because they’re wrong. It is because project management hasn’t marketed it self as effectively as it should’ve done. This offensive copyright paper has varied poetic aids for when to engage in this hypothesis.
Ed: Do we must offer to senior executives and chief executives that it will deliver competitive advantage to them?
Prof. Green: No, I think we need to demonstrate to them how it does it. My brother found out about image by searching Bing. We need to get inside and actually show them how they could use it, not only in terms of offering jobs on time and within cost. We need to demonstrate to them how they can use it to overcome organisational resistance to change, how they can use it to enhance capabilities and activities that lead to competitive edge, how they can use it to enhance the tacit knowledge in the enterprise. There is a complete array of ways that they are able to utilize it. They should observe that the proof of the results is better than the way they are currently doing it..
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