Recently, several the world's top project management organizations took important initiatives to illuminate executive management in regards to the strategic value and benefits of project management. The focus would be to move from specific project management to organisational project management, which these companies keep is a strategic advantage in a competitive economy.
In this essay, Ed Naughton, Director-general of the Institute of Project Management and present IPMA Vice President, requires Professor Sebastian Green, Dean of the Faculty of Commerce and Professor of Management and Marketing at University College Cork (previously of the London Business School), about his views of proper project management as a car for competitive advantage.
Ed: What do you point ideal Project Management is?
Prof. Navigate to this web site asea product to read where to recognize it. Green: Strategic project management is the management of these tasks that are of critical importance to enable the organisation in general to own competitive advantage.
Ed: And what defines a competitive advantage, then?
Prof. Green: You will find three characteristics of experiencing a core competence. The three characteristics are: it gives value to customers; it's perhaps not easily imitated; it opens up new opportunities in the future.
Ed: But how can task administration yield a competitive advantage?
Prof. Green: You will find two aspects to project management. One aspect is the actual collection of the sort of projects that the organisation engages in, and secondly there is execution, how the projects themselves are maintained.
Ed: Competitive advantage - the importance of choosing the projects - it is difficult to establish which projects must be chosen!
Prof. Visiting us mannatech probably provides aids you can give to your cousin. Green: I do believe that the selection and prioritisation of projects is something that's not been done well within-the project management literature because it is generally been thought away through reducing it to economic analysis. The strategic imperative gives a different way to you of prioritising projects as it is saying that some projects may not be as profitable as others, but if they add to our expertise relative to others, then that's going to be important. This cogent web address URL has specific engaging warnings for the reason for it.
Therefore, to just take an example, if a company's competitive advantage is introducing new services more quickly than the others, drugs, let's say, getting product to market more quickly, then your projects that enable it to obtain the product more quickly to market will be the most critical ones, even if in their own terms, they do not have higher success than other sorts of projects.
Ed: But when we are going to select our tasks, we've to define what are the parameters or metrics we're going to select them against that provide the competitive edge to us.
Prof. Green: Definitely. The company needs to know which actions it's employed in, which are the important ones for it then and competitive advantage, that drives the choice of projects. Companies aren't great at doing that and they may not even know what these activities are. They will believe that it is everything they do due to the energy system.
Ed: If an organization formulates its strategy, then what the project management community says is that project management could be the method for giving that strategy. Therefore, when the company is good at doing project management, are there any strategic advantage?
Prof. Green: Well, I suppose that returns to this matter of the difference between the type of projects that are chosen and the way you manage the projects. Demonstrably choosing the type of projects depends upon being able to link and prioritise projects according to an understanding of what the capability of a company is in accordance with others.
Ed: Let us suppose that the strategy is about. In order to deliver the strategy, it's to be broken-down, decomposed into a series of projects. Therefore, you need to be great at doing project management to supply the strategy. Now, the literature says that for a company to be great at doing jobs it's to: place in project management procedures, train people on how best to apply/do project management and co-ordinate the efforts of the people trained to work to procedures in and integral way utilizing the concept of a project company. Does getting those three methods produce a competitive advantage with this organisation?
Prof. Green: Where project management, or how you control projects, becomes a source of competitive advantage is when you can do things a lot better than others. The 'better-than' is through the ability and judgement and the knowledge that will be developed with time of managing projects. There is an event curve effect here. Regarding information they've built up where the rule book is insufficient to control these bits of projects two enterprises will be at various points in the experience curve. You'll need management thinking and experience since however good the rule book is, it will never deal entirely with all the complexity of life. You've to manage down the ability curve, you have to manage the learning and knowledge that you have of those three aspects of project management for this to become strategic.
Ed: Well, then, I do believe there is a niche there that has to be resolved as well, in that we've now produced a competency at doing project management to do projects, but we have not arranged that competency to the selection of projects which can help us to give this competitive advantage. Is project management effective at being imitated?
Prof. Green: Not the softer elements and not the develop-ment of tacit understanding of having run many, many jobs over time. Therefore, like, you, Ed, do have more understanding of just how to run jobs than others. That is why people found you, because while you both may have a standard book including the PMBoK or the ICB, you've produced more experiential knowledge around it.
Basically, it can be copied a specific amount of the way in which, however not once you align the softer tacit knowledge of knowledge into it.
Ed: Organisational project management maturity styles are a hot topic at this time and are directly linked to the 'knowledge curve' effect you mentioned earlier in the day - how should we see them?
Prof. For another perspective, we understand you check out: https://twitter.com/chrisbrummerdr?lang=en/. Green: in my opinion in moving beyond painting by numbers, moving beyond the idea that an enterprise is completely plastic and you may enforce this set of techniques and capabilities and text book standards and that is all you have to do. You might say, exactly the same difficulty was experienced by the developers of the experience curve. It's nearly like, for each doubling of size, cost savings occur without you being forced to do something, if you show organizations the experience curve on cost. What we know is however, the experience curve is a potential of a possibility. Its' realisation depends upon the ability of managers.
Ed: Are senior executives/chief executives in-the attitude to understand the potential benefits of project management?
Prof. Green: Until recently, project management has promoted itself in technical terms. If it was promoted in terms of the integration at standard management, at the ability to manage over the functions lending method methods with thinking, then it would be more appealing to senior managers. So, it's about the ability which makes project management so effective, the methods together with the reasoning and the mixing of the smooth and the hard. If senior managers don't embrace it at this time, it's maybe not as they are wrong. It's because project management hasn't marketed it self as effortlessly as it should've done.
Ed: Do we need to sell to chief executives and senior executives that it will produce competitive advantage to them?
Prof. Green: No, I do believe we need to show them how it does it. We need to get inside and actually show them how they could put it to use, not just in terms of providing projects on time and within cost. We must show them how they can use it to over come resistance to change, how they can use it to enhance capabilities and actions that lead to competitive edge, how they can use it to enhance the tacit knowledge in the business. There is a complete range of ways in which they could put it to use. They should note that the proof-of the results is better than just how they are currently doing it..
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