Business Benefits in following project management processes
Anonymous
Hi,
Can someone help me understand the business benefits in following project management processes?
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Jaime TaylorSenior Project Manager| Navitor Inc.Saint Peter, Mn, United States
Wow! I can't believe this one is still out there without a reply. There are several benefits to following project management processes. First, in my mind, is to increase your opportunity for meeting the desired result of the project. The question implies several assumptions but since you asked about following the project management processes, I am going to assume you mean in accordance to best practices (such as the PMI methodology). This would mean that your project was selected because it has value to the business upon successful completion in the first place. The chances of completing a project that has value to the business are improved greatly when following a proven methodology. Most projects that are initiated without formal project management methodology not only fail to meet the desired outcome but they rarely are completed at all. This means that they either are canceled outright by a business leader/customer or they simply end due to continuous priority-of-the-moment demands. If none of those failures are observed, usually these efforts continuously remain open due to constant additions (scope creep) or trial and error rework resulting in little to no progress to an end. The cost of this approach (or lack of one) alone is often greater then any projected return.
In one case, I measured/observed improvement in project success rate from 32% to 98% (defined as on time and minimally meeting customer specs) using formal project management methodology for new customer program engagement within the first year of deployment. In this case the customer had to tell us they were satisfied in order to count it. No new technologies were introduced during this time other then those used exclusively for the purposes of internal project management. The initial upfront costs (training, direct labor and technology) were paid for by returns during the first year. Ongoing operational costs per program were down as well, dropping more revenue directly to the bottom line.
I am not saying that every project management program will meet is example. In fact, this example is not typical in my experience. However, I have not personally observed a project management program that produces more failure then observed prior to its installment.
You can find more qualitative and quantitative data in studies/observations by various organizations such as the following I was able to locate with a quick google search:
Chaos Chronicles, The Standish Group 2007
Global IT Project Management Survey, KPMG
2005
Boosting Business Performance Through program and Project
Management, PWC 2004
2003 PMO Survey by PMI and CIO Magazine
Standish Group International – CHAOS Chronicles, 2003 (study of 40,000 IT projects)
W.Ibbs, J.Reginato, Quantifying the Value of Project Management, PMI 2002
Standish Group International – CHAOS Chronicles, 2001 (study of 30,000 IT projects)
Proving the Profits, Bud Baker, PM Network® Magazine, December
2000, 19; The Barriers Affecting Project Success, Erik Larson and
David Gobelli, PMI Seminars & Symposium Proceedings, 1986
Don KimPROJECT-TO-PORTFOLIO MANAGEMENT EXPERT| Seeking opportunitiesSacramento, CA, United States
I pretty much agree with the previous post on the benefits of following a PM process. The one caveat I would like to add is that the main problem you can encounter when you adopt a formal PM process/methodology, is when you adopt and implement it dogmatically.
What I mean by that is when you attempt to shoehorn all your project processes into some methodology because you feel it is the best. I've seen this phenomenon occur when I was doing pure software development, where less experienced developers would get dogmatic about object oriented design and programming, and create highly elaborate and convoluted classes, where objects would derive from other objects that did not make sense, and this created bloated and overly complex designs where totally unnecessary.
Likewise, not all projects need to have all 9 knowledge areas of the PMBOK adhered to, so as to have a successful project. I find it best to have a good knowledge of multiple PM methodologies, whether PMBOK, RUP, Agile/Scrum, CMMI, etc., and pick and choose what I need for a given project in a just in time fashion, to ensure my project is successful.
I guess the burden of this approach, is that you will need to take the time to understand the trade offs and benefits of each methodology in a detailed manner, and most importantly, how, when and where to implement them. But then this is what a good PM should be able to do, IMHO.
Jaime TaylorSenior Project Manager| Navitor Inc.Saint Peter, Mn, United States
Hi Don,
Great points! I could not agree with you more. The example I discussed, for instance, could not have been as successful as it was had I used each of the 9 knowledge areas to the letter. The process lead time requirements could not have been met. I had to weigh the value of each of the knowledge area processes vs. the time it would take to utilize them as prescribe by PMI. I could not have learned this from the PMBOK. But a strong mentor, direct experience, education with multiple methodologies and regular refreshers has caused me to be more competent and confident in my ability to properly apply the right tools to the situation before me.
The sooner you commit the sooner the business benefits. Congratulations Anonymous, you have officially begun by showing up here and asking the question! Saving Changes...
Don KimPROJECT-TO-PORTFOLIO MANAGEMENT EXPERT| Seeking opportunitiesSacramento, CA, United States
Thanks Jamie!
Indeed, when you consider that projects are by their very nature temporary and unique products, services, or events, it makes no sense that there would be that one size fits all methodology that is applicable to all projects, all of the time. But rather as the PMBOK states, if followed appropriately is suitable "for most projects, most of the time".
A really good PM book I just read, elaborates on what I just wrote above and is one of the most practical books on Project Management I've read recently. The book is called "Manage It" by Johanna Rothman and outlines a very practical way to adopt PM methodologies depending on your project and the industry to which it applies.
A great and important topic. Thanks for all the responses.
Jaime TaylorSenior Project Manager| Navitor Inc.Saint Peter, Mn, United States
Thank you Don! I am going to go get that book. Okay, now for a picky technical question...how do you get your posts to display paragraph spacing? My posts have not displayed return strokes, indents or bullets. While no one will be seriously injured if they read my bunched-up posts, it bothers me too much to let it go. I commend you for reading them despite the level of difficultly I unintentional added. Any help on this one? Saving Changes...
Don KimPROJECT-TO-PORTFOLIO MANAGEMENT EXPERT| Seeking opportunitiesSacramento, CA, United States
Hey Jamie,
Its actually very simple, as most of these kinds of discussion forums allow you to embed html tags into your posts. So to create line breaks, just use the break tags.
Just click this link as a reference on html tags. You can find many other on google.
