course material

1. (Mt) – ACT College Arlington Project Management and Company
Performance Paper
Attached.Running Head: PROJECT MANAGEMENT AND COMPANY PERFORMANCEProject
Management and Company PerformanceStudentProfessorCourseDate1PROJECT
MANAGEMENT AND COMPANY PERFORMANCE2IntroductionLooking for a way to stay
ahead of the pack in today’s chaotic and competitive globaleconomy, organizations are
turning to project management to deliver consistent business results.The Project
Management Concept is based on the principle that prosperity depends on addingvalue to
an organization, and this value is added by systematically implementing new projects ofall
types, across the business, (Levinson, 2009). The better these projects are managed, the
better– and more prosperous- the overall performance of a company.More companies are
currently seeing the payoff from investing money, time, andresources to build project
management expertise: more significant competitive advantage,improved stakeholder and
customer satisfaction, greater efficiencies, and lower costs. Theeconomic downturn ideally
heightened this value (Doherty, Ashurst, & Peppard, 2012). A reportby Economic
Intelligence revealed that 80% of global executives considered projectmanagement as a
crucial competency that helped them remain competitive during the 2008recession. As
some global executives see the glimmers of a fragile recovery, it is quite clear thatstrong
company-wide commitment to project management brings about long-term business
valueas well as business results.The delivery of business results is realized through the
success of projects, and inessence, that is the way project management strategies bring
about overall organizationalsuccess, (Bannerman, 2008). This paper, therefore, outlines a
roadmap to show companyexecutives – and companies- how to successfully manage
projects. It focuses on how thesuccessful management of a project drives excellent company
performance. It outlines how totransform an organization by implementing project
management to boost organizationalperformance.PROJECT MANAGEMENT AND COMPANY
PERFORMANCE3Phases of Project ManagementSeveral projects begin with an idea. After
soliciting support and obtaining approval, aproject progresses through the first phases to
the final phase, where it is completed and closedout. As a project passes through this life
cycle, it is carried out through a set of projectmanagement processes. These processes
depend on one another and are also interrelated. Each ofthe phases displays characteristics
that reflect the level of the cost of the project, chances forsuccessful completion, staffing,
probability of risk, and stakeholder influence.A standard project typically has the following

2. four major phases: Initiation; planning;implementation and; closure. In the project initiation
phase, a business gap or problem isidentified. A business case identifying possible solutions
is created. Next, a feasibility study isconducted to determine whether the options put forth
to address the gap. A final solution is thenrecommended. Issues of feasibility (“can we do
the project?”) and justification (“should we dothe project?”) are addressed. Once one of the
recommended solutions has been approved, aproject is initiated to deliver the accepted
solution. A project manager to oversee the projectactivities is also appointed. The major
deliverables and the participating workgroups areidentified, and the project teams begin to
take shape. Approval is then sought by the projectmanager to move onto the detailed
planning phase.Planning PhaseOnce the scope of the project has been defined in terms of
reference, the project enters adetailed planning phase. This phase entails creating a project
plan that outlines the tasks,activities, timeframes, and dependencies. A resource plan that
lists the materials, equipment andlabour required is also created. A financial plan is created
outlining the material, equipment, andlabour costs. A quality plan is created, providing
quality targets, assurance, and controlPROJECT MANAGEMENT AND COMPANY
PERFORMANCE4measures. A risk plan that highlights the potential risks and actions to
mitigate them is created.An acceptance plan that lists the criteria to be met to gain customer
acceptance is also created. Acommunications plan that describes the information needed to
inform stakeholders is alsocreated. Additionally, a procurement plan is created that
identifies products to be sourced fromsuppliers. At this point, the project has been planned
in detail and will be ready to beimplemented.Execution PhaseIn the execution phase, the
plan is put into motion, and the project’s work is performed.Communication and control are
essential. While the plans are executed, several managementsteps are followed to control
and monitor the key deliverables of the project (Westland, 2007).This includes identifying
changes, risk as well as issues, measuring all the produced deliverablesagainst the
evaluation criteria and examining the deliverable quality. Progress information isreported
through regular meetings. The project manager uses this information to control theproject’s
direction by comparing the reports on progress with the project plan to determine howthe
project activities perform take corrective action where needed. Once the customer is
satisfiedwith the final solution, the project can be closed.Project ClosureProject closure
involves releasing the final deliverables to the customer, handing overproject
documentation to the business, terminating supplier contracts, releasing project
resources,and communicating the closure of the project to all the stakeholders. The final
step is to conductlessons-learned studies to examine what went wrong and what did not.
According to thePMBOK Guide, the project closure phase contains the following
actions:PROJECT MANAGEMENT AND COMPANY PERFORMANCE•Finalizing the project
work to complete the project phase or the project formally.•Completing and then closing
out all vendor contracts (Heldman & Mangano,52009).Benefits and Cons of Project
Management as a ToolToday, companies are managing their business through projects
(Kerzner, 2009). Theresult has been a vast amount of project management information
surfacing from all areas of thecompany. As organizations begin to realize the favourable
effect of project management inimproving the company’s overall performance, all of this
project management knowledge istreated as intellectual property.Leading companies

3. across all sectors of the economy, including the building and constructionindustry have
been embracing project management to improve company performance andcontrol
spending. Indeed, this practice became more evident during the beginning of the
2008Economic recession. Executives discovered that adhering to the project management
strategiesand rules improved success rates, cut costs and reduced risks which were all
three essentials tosurviving during the economic crisis.More than half of the global
executives in the Economic Intelligence Unit Reportmentioned that following a strong
project management strategy and practice began after the 2008Economic recession.With
fewer resources to rely on and little room for error, project management oversight
andexpertise are helping organizations sidestep risks, cut costs, and streamline their
deliveryprocedures thus helping them achieve exemplary overall company performance.
Excellentproject management discipline has helped several companies all around the globe
to stopPROJECT MANAGEMENT AND COMPANY PERFORMANCE6spending money on
projects that will come to fail. Fewer resources and tighter budgets implythat there is less
money for the innovative plans that will drive company growth anddevelopment. Therefore,
it becomes paramount to get the maximum advantage out of theseavailable
assets.Resources are scarce and precious. By applying the best practices of project
management,companies regulate their spending, which decreases the rates of project
failures. A decrease inproject failures gives benefits to companies which in turn improves
their capability and ability toremain in today’s chaotic and competitive economic
environment. This, therefore, improves theiroverall financial performance.Additionally,
more companies are more than ever realizing that with the maturity ofproject management
strategies, comes an increase in the business value derived from it.Therefore, executives
from global organizations are currently creating formal projectmanagement officers,
otherwise known as PMOs, to ensure strategic alignment and also increasevalue across
their strategic portfolio.Indeed, 84% of the 291 project professionals in State of the PMO
2010 who responsesmentioned that companies that have project management offices
demonstrated steady growth allway from 47% in the year 2000 to about 77% in the year
2006.Well, it is hard to imagine how one would go about delivering a project without a
projectmanagement discipline as well as a program. Without clear milestones and a
consistentapproach, metrics to measure the financial success of the company and decision
points, one willtypically be flying by the seat of their pants. Therefore, project management
is an essential toolin ensuring the overall financial success of the company.PROJECT
MANAGEMENT AND COMPANY PERFORMANCE7Alternatively, other executives require
their teams to define the business value of theirprojects in measurable terms before mov…