The manner in which business is conducted has changed drastically over the last five years, forcing companies to pay closer attention to acquiring and applying project management competencies in almost everything they do. Project Portfolio Management and Project Management has therefore become a specialist area requiring an understanding of business and IT architectures and processes.
"It`s not only in technical and business areas that special competencies are required, but to deal with the cultural changes and people management during the execution of projects in the workplace, soft project management skills have also become important," says Pieter Meyer, Chief Operating Officer of UMT Portfolio Management Experts SA. "Today, people management and facilitation skills and to be able to stimulate teamwork have become crucial competencies in every project.
"Unfortunately, due to the rapid adoption of business applications in the corporate world and the change from a product-specific to a solution offering, businesses no longer have the time or budget luxuries to train project managers or to provide them with industry-specific skills. To be able to effectively manage enterprise projects, companies are looking for project managers that already possess the required skills and experience, and are able to deliver value from day one."
This trend poses a challenge to the project and portfolio management industry as specific skills are not always readily available and in some instances the understanding of formal project management from senior management as line-managers and their accountability during project delivery in their space is a challenge. Any person wishing to enter the project management field can today be assured of a challenging career if they first obtain solid practical experience as first price and certification of some sort, followed by some form of specialisation.
In this way, a lack of experience can be overcome by the addition of another skill such as facilitation, or an industry specific qualification. University graduates, PMI in States, APM in the UK for example, can add a project management certification to their degree in order to add soft skills to their portfolio and to bridge the gap between their industry specific competencies and management.
Additionally, one of the worst mistakes companies make is to ignore the importance of people and the appropriate staffing of projects. Interpersonal relationships are one of the most important components of project management. Culture, expertise, common understanding, willingness and participation all play an important political role during the project life cycle.
Meyer says it is imperative for the project and portfolio manager to have the skills to manage these complexities in order to facilitate bonding and team building. "The project and portfolio manager leads the team and management that build the solution for the stakeholders."
This is also why a dedicated project and portfolio managers should be appointed. Temporary appointments and shared resources will only contribute to the project`s ultimate failure. Effective project management is professional project management, not an afterthought. A lot of companies are working on an outsourced model and it`s therefore crucial to bring in independent project and portfolio managers to manage the governance for both parties (Vendor appointed and the Client) because they have no other invested interest but to deliver the project within expected boundaries.
"Looking at the enterprise from the management angle, every project undertaken is a business project and should have a business rationale from the outset," adds Meyer. "This means the project`s success or failure must impact the company`s strategy. Management commitment and support for a project should begin in the boardroom and should be maintained throughout the agreed project or portfolio life cycle."
In practice, many projects are started without the approval or commitment from management, and sometimes even without a clear understanding that it will add value to the bottom line and support the strategic intent of the company. This is clearly unacceptable and a recipe for disaster. Meyer says a well-documented scope definition with clearly defined deliverables will facilitate the accurate measurement of project success or failure long before all the money is spent, empowering companies to stop doomed projects and focus time and resources on those that succeed.
In conclusion, Meyer notes, "projects success is often subjective. Adherence to disciplined project portfolio and project management practices and good communications strategies usually adds to the probability of success. The three factors that play a major role in the measurement of success of a project are the triple constraints of money, time and performance criteria (Quality)."
Project Portfolio and Project management capabilities are sorely needed in today`s enterprise, not only from the perspective of individuals who apply the correct principles to achieve corporate goals, but also from the management perspective as it affects the direction of the company as a whole because all project deliveries must in some form be aligned to the overall strategic themes of companies, or why do it.
* Pieter Meyer Pieter Meyer is Chief Operating Officer of UMT Portfolio Management Experts SA
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