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Importance of Project Management in Organizations

Unraveling the Importance of Project Management in Organizations

Importance of project management in organizations is immensely felt today due to cut throat competition in the market. Meticulous management aids an organization to accomplish its goals with greater efficiency and within its requisite time frame.
Workspirited Staff
Last Updated: Dec 01, 2018
Effective leadership is putting first things first. Effective management is discipline, carrying it out.
 - Stephen Covey
project planning
Project management is the defining factor of an organization's success. It a meter that gauges the potential risks and finds the solutions to overcome them.
Project planning
Project management is essentially a plan that forms the firm footing for an organization to climb the ladder of success. Every organization has to chalk out its own plan to accomplish its predetermined goals and objectives.
There isn't a one-size-fits-all plan that can be blindly followed. It is the difference in planning and execution of project management that yields the desired results.
What is the Significance of Project Management?
Cost-Effectiveness
Project management provides a roadmap for the journey of success. It is the greatest resource that allows the manager to understand the available resources and the methods to use them with the demands. Thus, with a plan in hand, it is easy to utilize the resources in the optimum possible way.
Project management, prior to launching a project, identifies the irrelevant costs, reduces wastage of resources and thus ensures cost-effectiveness in the longer run.
Better Productivity
Trustworthy quality of products is a way of retaining the existing clientele and adding to the same. Project management keeps the quality of products in constant check, thus ensuring better productivity in terms of quality and quantity. This not only helps the company in earning goodwill for a lifetime, but also promises customer satisfaction.
Several project management plans use tools such as six sigma to improve its processes and eliminate the defects, to enhance their productivity.
Minimization of Risks
Every business is faced with risks of loses due to various reasons. However, with a strategy in place, gauging the risks is easier and making diversions from the same is easier as well. This maintains stable work in progress. By planning and analyzing, a project manager can mitigate risks and be a part of fair business competition.
Project management helps in identification of loopholes and potential threats. Once these are singled out, the management can then take decisions to change strategies to erase risks that can negatively affect the productivity and business interests at large.
Accomplishing Predetermined Goals
Every organization sketches its goals and objectives, which is the basis of earning profits and making a way towards growth. Project management is the key tool for achieving predetermined targets in a structured way. It decides the strategies that will be used to reach the goal in the fastest way. It is a structured way of getting to your objectives.
Project management goes through fives stages which are; initiation, planning and design, executing, monitoring and controlling, closing and project control systems.
After the allocation of the task, the project manager is responsible for drawing out a project management plan in the mentioned order. He must also hire a team for delegation of work and to supervise the work thereafter.
Project and time management flat design concept
Project management is a branch of management which uses various management tools such as budgeting, allocating and optimization to fulfill a defined goal for a shorter period of time.
The importance of project management in organizations is seen through the quality of products, customer satisfaction, employee satisfaction, efficiency in business, mitigation of risks involved and a successful business in totality. The positive nature of all these factors of an organization explains why project management is important.
Management of any kind always helps in painting a clear picture of what is available, what is required and what is the way to get there, and a true leader will always know it. As Stephen Covey rightly said, Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.