Learn How to Convince Executives of the Value of Project Management

(Part 1 of 2)

There is no question that a common set of project management processes provides value to an organization. Even if your organization utilizes “light” methodologies, there is still value in implementing a common set of “light” project management processes that everyone can use on similar projects. The exact argument to use for convincing executives of the value of common project management practices is going to be different from company to company because every company has a unique culture and unique problems they face. Each organization is also starting from a different reality and a different set of problems they are trying to resolve.

Is Your Company Feeling Pain Today?

If your organization delivers projects okay today, your arguments would have to focus on how project management would bring improvements in project cycle time, costs and overall quality. However, the argument is easier if you can identify areas where your organization is feeling some pain today. In that case, your executives will be much more open to changes, since they should be more easily able to see the value.

Enter Project Management

The majority of organizations have a spotty reputation for delivering projects within expectations. Characteristics of these organizations include:

• Consistently completing projects late, overbudget, or not meeting agreed upon requirements
• Weak standard processes and techniques used inconsistently by project managers
• Project management is usually applied in a reactive manner and not seen as providing value
• The time required to manage projects proactively is not built into the workplan and is considered 'overhead'
• Projects are 'successful' in spite of a lack of planning and project management, through heavy stress and overtime work throughout the life cycle

Good project management discipline is the way to overcome these shortcomings. Having good project management skills does not mean you have no problems. It does not mean that risks go away. It does not mean that there are no surprises. The value of good project management is that you have standard processes in place to deal with all of these events.

The Cost of Project Management

Of course, there is also a cost to implementing project management. This cost is at both the organizational level and at the project level. Some of the organizational costs, such as building a Project Management Office, are long-term. The costs at the project level are more short-term and include the one-time costs associated with having to learn new project management techniques and templates.

Ultimately, if the result of project management was that projects would complete more slowly, cost more and have poor quality, it would not make sense to use it. The opposite is true - using sound project management techniques and processes will give you a higher likelihood that your project will be completed on time, within budget and to an acceptable level of quality.

High-Level Value Proposition

Showing the value of project management is difficult because it is hard to isolate the specific benefits versus what “might” have happened if project management was not utilized. One alternative is to look at the various aspects of project management and show the value associated with each component. Project management processes and techniques are used to coordinate resources to achieve predictable results. The value proposition for project management goes something like this:

Implementing a common set of project management processes takes effort and resources. However, the value of project management to the organization is much greater, and includes:

• Better expectation-setting though up-front estimating, planning and project definition
• Faster execution through the reuse of common processes and templates
• Fewer project problems encountered utilizing proactive project management processes
• Better organizational decision-making through more effective project communication
• Higher client satisfaction and less rework by building a higher quality product the first time