There are many ways to quantify how well a business is doing at any point in time. One option is to look at the size and scope of its projects. Generally speaking, company growth leads to bigger projects that take more time, cost more money, and involve more people. That’s why it’s so important to maintain effective project management as a company grows.
Organizations like the Janiko Group offer project-management-as-a-service to companies of all sizes. By outsourcing project management, companies can reduce the hassles that come with sizable projects while simultaneously keeping the focus on core products and services intact.
Outsourcing project management is the right way to go in some cases. But even if it’s not, the thing to remember is that the effectiveness of each project contributes to the overall success a company enjoys. Ineffective project management can doom a company just as easily as effective project management can drive its growth.
Scope and Budget Issues
If the size and complexity of a company’s projects provide a snapshot of its overall health, project budget and scope offer a similar look at how effectively a company manages its projects. Poorly managed projects are susceptible to scope and budget creep. So are well managed projects, though considerably less so.
Experienced project managers with the right tools and resources have the ability to prevent a project from expanding too far beyond its original scope. While some expansion may be required, going too far sets a project back, leads to cost overruns, and can potentially derail everything.
Also note that scope creep is the main driving force in budget creep. Failing to contain scope inevitably means spending more money than was originally budgeted. Either type of creep can easily become a project killer. Therefore, effective project management seeks to keep both in line.
Managing Vendors and Vendor Relationships
Next to scope and budget, managing vendors and vendor relationships is another big challenge for project managers. Do it effectively and problems are minimized. Vendors live up to their obligations and the project moves forward. On the other hand, a project could very well crash and burn if vendors and vendor relationships are poorly managed.
The key element here is working closely with vendors at every stage of the project. It is not enough to solicit bids, negotiate contracts, and then turn vendors loose. They need to be managed every bit as diligently as the company employees on the project team. They also have to be properly coordinated.
It goes without saying that a project becomes more complicated with every new vendor added to the mix. The more vendors involved, the more important the need to coordinate their efforts. Effective project managers know how to do this. Ineffective managers leave things to chance.
It is All About the Details
Maintaining effective project management as a company grows can be complicated in a practical, day-to-day sense. But in the end, it all boils down to details. The most effective project managers are sticklers for detail. They want to know everything. They demand as much information as possible before making decisions. And when decisions are made, they are followed up on.
Can one be too detailed as a project manager? That’s hard to say. On the other hand, having little to no interest in the details virtually guarantees a project manager will fail. Companies cannot afford that. As they grow and expand, their projects follow, gradually getting larger and becoming more complex. Companies need effective project management to support growth. Otherwise, any growth that does come is likely to be short lived.