As a software company grows, the importance of project management will be increasingly apparent to help the clients roll out the use of the software. The need to establish a dedicated department to deal with project management issues will also increase. This concise proposal will examine the value of a robust project management approach for the company brought by the department.
The Key Benefits of a Robust Project Management Approach
The project management approach allows an organization to improve its practical competitive advantages, including its effectiveness in the marketplace and its efficiency in using organizational resources (Pinto, 2019). It provides well-studied and practiced methodologies to pursue technological advancement, streamline new software development, and manage risks and challenges arising from the business environment.
The need for the approach will surely increase as the company faces an escalating number of projects. In a recent survey of over a thousand executives and professionals, the majority of them suggested a significant increase in the number of projects in their firms over the last five years (Nieto-Rodriguez, 2021). A dedicated project management department will be the main office that addresses this trend, ensuring the deliverables of the projects, and gaining the utmost benefit out of them.
Improving Project Success
With a great surge in the number of projects, the company has to deal with more complexities in managing the project. Failure in addressing this issue will be very costly. A study from the Standish Group shows that, typically, commercial software projects are insufficiently planned and managed and almost 25% were canceled without any final product, costing firms $67 billion (Mann, 2002). Robust project management will improve the planning and managing stage, and block poorly purposed projects to be run. Senior executives have recognized the benefit of the project management approach in reducing risks, cutting costs, and ultimately improving success rates (PMI, 2010).
Increase Project Efficiency
Without a robust project management approach, even successful projects can be wildly inefficient. Remarkably, software development projects often spend 80% of the time and budget to repair flaws created in the process (Mann, 2002). The project management approach may enable an efficient testing and proofing system which can minimize the costly rounds of testing.
By establishing a project management department, the company will have a team whose role is dedicated to ensuring that the project is completed on budget and schedule. A project manager can control and help the work to run smoothly, so the engineers can focus on developing and fixing bugs instead of unnecessary distractions, such as reporting and evaluating the project phase (Corrales, 2022). This department will enable the company to develop top-notch software efficiently.
Promote Project Transparency
The department will allow better project management reporting that provide thorough details on schedules and budget. It will ensure project transparency that enables the development team and other stakeholders to monitor the project and enjoy its progress. It can also enhance the company’s accountability, where all stakeholders fulfill their roles properly (Corrales, 2022). It will also ensure that the project meets stakeholders’ expectations, making the entire team and stakeholders happy.
Ultimately Establish a Sustainable Competitive Advantage
All of the benefits above combined will improve the company’s competitive advantage and profitability. A study showed clear relationships between the investments in the project management approach and its qualitative and quantitative benefits of it (Lappe & Spang, 2014). With more project success rates, more efficiency, and project transparency, the company will continuously elevate its customers’ satisfaction. It will ultimately translate into a sustainable competitive advantage.
Establishing a dedicated project management department will be a solid decision in the long run as the company grows and faces more projects. The trend shows that more and more companies are adopting project management. Companies in the software industry are increasingly becoming project savvy companies and they will push their employees to be project-savvy as well (Pinto, 2019). The company should embrace this challenge. By adopting project management approaches, various benefits can be extracted, such as improving project success rate, efficiency, and transparency. It will ultimately provide a sustainable competitive advantage for the company.
References Corrales, E. (2022, February 28). Benefits of Project Management for Software Development. Developer.com. https://www.developer.com/project-management/benefits-of-project-management-developers/ Lappe, M., & Spang, K. (2014, May). Investments in project management are profitable: A case study-based analysis of the relationship between the costs and benefits of project management. International Journal of Project Management, 32(4), 603–612. https://doi.org/10.1016/j.ijproman.2013.10.005 Mann, C. C. (2020, April 3). Why Software Is So Bad. MIT Technology Review. https://www.technologyreview.com/2002/07/01/40875/why-software-is-so-bad/ Nieto-Rodriguez, A. (2021, October 19). Harvard Business Review Project Management Handbook: How to Launch, Lead, and Sponsor Successful Projects (HBR Handbooks). Harvard Business Review Press. Pinto, J. K. (2019). Project Management: Achieving Competitive Advantage, Global Edition. Pearson. PMI. (2010). The Value of Project Management. In Project Management Institute. https://www.pmi.org/-/media/pmi/documents/public/pdf/white-papers/value-of-project-management.pdf