How to implement project management in the business

Issues discussed in the material:

• What is project management
• Objectives of project management
• Key principles of project management
• Differences between project management and traditional
• 5 Methods of Project Management: From Classics to Kanban
• How to implement project management in the enterprise
• Examples of project management

Project management comes to the rescue if the company has a need for systemic development in accordance with the management approaches relevant to modern realities. Today, it is not enough just to create a product or provide services, you need to constantly integrate innovations.

This version of management requires the implementation of certain actions, following a specific strategy, only then it is possible to successfully apply project management. Read more about how to achieve this and what is important to consider, read on.

Project management – what it means

 

Project management is a method of organizing, coordinating and controlling the achievement of significant and large-scale goals, the implementation of which involves time constraints and the provision of financial, material, human and other resources. This concept makes it possible to integrate both standard linear processes and targeted one-time activities within one enterprise.

The relevance and importance of project management are due to a number of factors, for example, the development of NTP, increased competition in all sectors of the economy, integration phenomena, the introduction of new technologies in production, and the increasing complexity of the tasks being implemented.

For an economic entity, the use of this approach in management processes allows you to get the following advantages:

• implementation of indicators planned in the short and long term, through the implementation of the most profitable ideas;
• planning and the possibility of implementing the qualitative characteristics of the products;
• compliance with the deadlines for the implementation of certain tasks solved in isolation or in interaction with other processes;
• optimization of coordination of material, financial, labor resources of the enterprise.

Simply put, project management is the process of effectively organizing the achievement of goals of different sizes in a timely manner and under conditions of limited funding. It is project management that allows companies to conduct successful activities both, for example, in the release of a new product on the market, and in the development of a merger and acquisition strategy.

Objectives of project management

The essence of project management is impossible to understand without interpreting the category of "project". Different economists in their teachings and works agree that a project is a set of measures carried out in a specific time frame, united by the common goal of achieving a certain result. In the activities of the enterprise, a project is any set of actions taken under the control of management separately from other current tasks. In other words, if the achievement of a goal must be controlled separately from other processes taking place in the organization, then such an activity can be attributed to the project
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It is permissible to identify a number of factors that contribute to the monitoring of tasks that contribute to the achievement of the goal, disconnected from other processes.

To do this, it is important to identify two main features that characterize the activity as project:

Reducing the risks of negative consequences. There are cases when tasks that at first glance are not unique, are allocated to a separate project. For example, if the company applies for financing under any state program. On the one hand, this is the current task for the financial department of the firm. But on the other hand, if this task is not implemented, the company will lose its source of financing, which will entail negative consequences for its activities. With the help of project risk management tools, it is possible to strengthen control over the effective achievement of a goal.

Human resource management. There are tasks that require coordinated actions of different departments of the enterprise. Then an employee of one department may be under the control of the head of another department. In order to avoid conflicts of interest, as well as in order to organize more effective management of the activities of specialists, such tasks can be allocated to the project. For example, the current operations of an employee are qualified as project activities, and then he falls under the additional control of other subjects of the company's management.

Thus, the project can be considered a set of tasks that contribute to the achievement of a common goal, the control of the implementation of which is carried out separately. Special monitoring of project activities is due to the importance of the developed plan of the company. When allocating project activities, it is necessary to maintain a balance between the benefits of increased attention of the organization's management to it and the cost of such control.

Key principles of project management

 

 

The areas of project management have absorbed a large number of management tools and methods based on such principles as:

Focus on achieving results. This principle is due to the economic essence and content of the term "project" - a set of tasks united by a common goal.

The principle of tripartite limitation. Project management processes are characterized by the fact that they are limited by three main parameters: timing, amount of funding, quality of execution. Accordingly, these parameters are interrelated and affect each other.

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The principle of taking into account the life cycle of the project. Each project has certain stages of its development (implementation). The first stage is the formation of the idea of the implementation of any project. The last stage will be the moment when the deadline for the project expires. Typically, the lifecycle of a project ends when the life cycle of a product created as part of that project begins.
The principle of allocating business processes. The essence of this principle is that the project is considered as a complex of interrelated processes, in each of which the solution of a certain task is achieved. Through this approach, all activities within the project are continuously monitored.
 

Differences between project management and traditional

 

Management in the enterprise has undergone great changes since its inception. If earlier preference was given to traditional concepts, then from 1950-1960 the project approach to management began to gain popularity. Nevertheless, the development of project management began a long time ago. Mankind has been implementing complex and large-scale projects for a long time, for example, this includes the construction of pyramids in Egypt, and the organization of round-the-world trips by scientists, and the development of new territories.

From the usual activities in the company, the project is distinguished by a number of characteristics, namely:

• exclusivity of the idea, the purpose of which is to create an innovative product (services, solutions);
• focus on achieving a predetermined result;
• triple limitation;
• the presence of a large number of interrelated business processes within the project, characterized by different speed of flow and different levels of control.

If we compare traditional management and the project approach to management, we can highlight some differences. The characteristics of traditional management are:

• focus on the organization and control of the course of processes;
• absence of strict restrictions on the timing of work;
• resource planning for each specific task;
• focus on the workflow;
• routine performance of work, monotony of processes;
• tasks are implemented by the staff of the organization.
• Traditional management

The tasks that need to be solved in the project approach to management are characterized by the following differences, in comparison with the traditional approach:

• are aimed at achieving a goal that is set in advance;
• the result is more important than the way it is achieved;
• there is a threefold limitation: in financing, in terms of timing, in terms of quality;
• business processes are calculated for available resources, and not vice versa;
• the implementation of each stage is carried out through the achievement of a certain goal, while the process itself is secondary;
• project completion – acceptance of the results of all business processes, while the aggregate final result is important, and not the success of each process;
• all processes are planned in advance to more accurately achieve the intended result;
• to achieve the goal, a non-standard approach to the organization of work is important;
• to implement a certain idea, a team of professionals with unique skills and abilities is recruited.
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In the practice of Russian enterprises, it is more often possible to observe the use of the traditional approach in management, although one of the main problems of its implementation is the lack of highly qualified personnel who can qualitatively solve routine monotonous tasks. Currently, it is believed that for promising and successful business development it is important to implement innovative ideas and attract specialists from the outside. But the project approach, in addition to the advantages, also requires material investments, for example, for training personnel in project management, advanced training, etc. In addition, the project approach provides for an irregular organization of work, and not every employee can be prepared for such working conditions.

5 methods of project management

All projects are characterized by different parameters. Therefore, there is no perfect formula suitable for managing every project. Also, for different managers and performers, there is no single methodology for implementing ideas. Nevertheless, during the development of the project management sphere, a large number of concepts and approaches to the implementation of projects have been developed. Consider the most popular of them.

It should be noted that we will analyze only those methods that are most very different from each other, characterized by different areas of implementation, detail, self-sufficiency.

1. Traditional project management

The traditional approach in project management is based on the fact that the project is divided into successive stages, in order to make it easier to manage and control. In other words, the project management structure here is linear. This means that the implementation of each subsequent stage is possible only after the implementation of the previous one.

The traditional approach is relevant for those projects where the sequence of problem solving is important. For example, construction projects can be implemented only according to a strictly defined technology: it is impossible to put the roof of the house if the walls have not yet been erected.

The main processes of the traditional project approach include the following five steps, although others can be added to them as needed.

Traditional project management

5 stages of the classical project approach in management:

Step 1. The birth of an idea. The team of project implementers, led by the manager, by the method of "brainstorming" determine what the result or final product of the project being implemented should be.

Step 2. Planning. When the main goal of the project is defined, it is important to plan all the processes or stages of its implementation, identify the most important tasks that contribute to the achievement of the goal, and also think over the list of works. At this stage, a calendar plan is drawn up, where the terms for each project process are prescribed, its budget is formed, and the risks and benefits for all interested parties are predicted.

Step 3. Development. This stage is not typical for all projects. It is often included in the planning phase. But for some categories of projects, for example, technological, the development stage is really inherent. At this stage, the configuration of the future project or product is determined, as well as the technical and technological methods of its implementation. For Russian practice, the term "development" is not used.

Step 4. Implementation and testing. This is the main part of the project. It is at this stage that all work is carried out on the real implementation of the idea, for example, the construction of an object is carried out or the code of the program being developed is prescribed. Each process is continuously monitored and checked against the planned parameters. At the end of this stage, the finished product is tested: compliance with the requirements of interested parties is revealed, the shortcomings found are eliminated.

Step 5. Control and completion of the project. At this stage, the result of the project is transferred to the customer. It is also possible to clarify the client's level of satisfaction with the quality of the project. If the customer service in the enterprise is sufficiently developed, then this phase can be characterized by a long interaction with the customer in order to improve the quality of service.

2. Agile Project Management Strategy

The traditional approach in project management involves the decomposition of the project into successive stages, but the "flexible" methodology is implemented differently. It is not always possible to perform some activity in stages. For example, if you consider the organization of a banquet in a restaurant, you can see that in the case when the chef will start preparing a new dish only after the previous one is ready, it will not be possible to serve dinner on time. In other words, the classical approach to project management may not always be effective.

Flexible project management strategy or Agile management methods can be much more effective, since they do not involve a phased implementation of the project, but the allocation of small subprojects within it, the achievements of which are collected in a single final result.

As a result, the stages of idea generation and planning are carried out as a whole throughout the project, and then for each subproject the stages of development, implementation and testing and control are separately prescribed. With the help of a flexible approach, it is possible to achieve the final result of the project more quickly, moreover, in the case when it is necessary to adjust some tasks, it turns out to be less costly, since changes are made only to individual subprojects.

Agile methods in project management began to be used not so long ago, although the very idea of iterative development originates in the publication of the Agile Manifesto (AgileManifesto) of 2001, where all the basic principles of an agile approach to software development were outlined, the main of which are adaptation to rapidly changing conditions and teamwork.

 

It turns out that the concept of Agile is not a concept of project management. This methodology served as a source of ideas and methods for implementing projects. It was on their basis that such frameworks as Scrum, Kanban, Crystal and others were developed. Although they are all quite different, they are based on the same principles of flexible response.

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3. Scrum

Scrum

The Scrum framework was developed in 1986 and is a concept related to agile project management practices. Its peculiarity is that it includes both elements of the classical approach and Agile methods. This combination leads to a balance between the structuring of the project and adaptability to changes.

As in an agile management strategy, the project here is divided into subprojects that are implemented in parallel, and the results of which can be immediately transferred to the customer. These results are called "product backlogs", although this is a literal translation, it quite accurately conveys the meaning. Nevertheless, in Russian practice, the term "backlog" is more often used. The customer or the customer's representative in the team of contractors can assign a different level of priority to the results of each subproject.

The most important subprojects are selected for implementation in the Sprint - these are iterations in Scrum, the duration of which is 2-4 weeks. Upon completion of the Sprint, the customer receives a product increment - the results of priority subprojects that can be used. For example, if the project is the development of a software product, then at the end of the Sprint, the customer receives a program that can be used, but needs to be finalized. Next, the executors of the project move on to the implementation of the next Sprint. Each Sprint has its own duration, which is prescribed individually, based on the requirements of the Customer and the performance of the Contractor.

To determine the compliance of the customer's conditions with the project planned for implementation, each Sprint, even before the start, is re-evaluated and, if necessary, modified. All interested parties of the project participate in this process - the team of performers, Scrum-Master or team leader, the customer of the project. Accordingly, each of the participants of this project is responsible for its result.


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The customer can be represented by the product owner in the team of performers. Depending on the features of the project, it is possible that he does not have a specific customer. Then the owner of the product is a representative of the target audience. In other words, the product owner must know the pains and needs of potential customers, as well as be competent in matters of product quality and manufacturing technologies. Scrum-Master is the bearer of the scrum concept value system. Its task is to help project participants comply with the principles and methods of this project management strategy. Scrum-Master is a link between the external environment of the project and the team of performers. In turn, the team of performers is responsible for the timing and quality of each Sprint.

4. Lean

Lean

If we recall the concept of Agile, you can see that its essence is to divide the project into processes that proceed sequentially. The Scrum strategy involves identifying subprojects that can be implemented in parallel, and also describes the processes and procedures of organizational and project management. The Lean method is a kind of flexible strategy and is distinguished by a detailed description of the workflow scheme, which allows you to carry out each task qualitatively and on time.

The similarity of the concepts of Lean and Scrum is that there are also subprojects that are executed in parallel. But in a Lean strategy, each subproject has a description of the workflow with phases. These stages can be the same as the design stages in the traditional management approach, or be unique to each individual project.

The advantage of the Lean concept is that the quality of each subproject here is particularly high, since all its operations are clearly spelled out. Unlike the Sprints in the Scrum strategy, the stages in Lean do not have rigid restrictions, and in comparison with the traditional approach to project management, the stages in Lean can be implemented simultaneously, thereby increasing the flexibility and speed of project implementation.

Lean and Agile are two project management concepts that are highly flexible and can adapt to a specific goal. There are no clear rules and guidelines for action. Using the provisions of these concepts, you can create your ideal project management strategy.

5. Kanban

 

The previous Lean strategy discussed describes the project management method in a slightly abstract way. If you apply this strategy in tandem with the Kanban strategy, it becomes much more effective. The Kanban concept was developed at Toyota's Japanese automobile plant in 1953 to manage large-scale industrial production. Its essence lies in the fact that at the initial stage the raw materials enter the enterprise, and at the final stage - the finished product is obtained. That is, the increment of the project is processed and transferred from stage to stage, and at the end a ready-to-use element is obtained.

Kanban's management strategy adopted the practice of hypermarkets, which offered their customers only products that were in demand. Similarly, in Kanban, only those tasks that will bring the desired result are important, and if the priorities of the project change, then the secondary stages are not completed, but more urgent issues are solved. For Kanban, it is quite normal if some processes remain in an unfinished state indefinitely.

Kanban, unlike Scrum, does not set clear limits and deadlines for the implementation of stages and does not prescribe roles in the project. Each member of the team of performers can be responsible for the result of several processes at once, which is unacceptable in Scrum. Kanban does not regulate the assignment of status to the project - this issue is decided at the discretion of the customer or manager.

Workflows or project operations in a Kanban strategy are depicted as columns. Tasks also have a designation in the form of cards. The cards move from column to column in the same way that workpieces in a factory move from machine to machine until the finished part is obtained. At the end, the project product is transferred to the customer. Columns and cards can be displayed on graphs or electronically, Kanban does not impose restrictions in this part.

 

 

How to implement project management in the enterprise

 

1. Introduction of modern technologies

Currently, our life can not be imagined without the latest technologies that we use literally everywhere: at home, at work, in stores, clinics, government agencies, etc. We are accustomed to the fact that we do not need to remember and process information on our own - special gadgets and devices can do it for us. Now no one wants to use landline phones, send paper letters or take a live queue for a doctor's appointment. That's because we're used to technologies that simplify our lives.

If we are talking about business or work, then modern technologies are especially important here, since with the help of them tasks can be solved faster and more efficiently using special software.

If you want to introduce project management into your business without receiving the support of a special software product, then in practice this can lead to the following consequences. Each ordinary employee will have an increase in the number of tasks, documentation, reports that will be controlled by management. At the same time, the quality and speed of performing new tasks will directly affect the level of income. For management, the amount of work will also increase by 2-3 times, but it will be necessary to manage not projects, but the results of the "manual" labor of the company's personnel.

Of course, reporting is very important in the work of any enterprise. It can record important results, decisions, agreements, project management rules. But on paper, any documentation will be compiled much longer, the level of errors will be higher, and the risk of information loss will also be higher. Management will be less effective if all reports need to be formatted, signed, collected and combined in printed form.

In addition to document management, established communications and communications with stakeholders are important in project management. If you do not use modern technologies, then this will have to be done manually, that is, for a very long time, time-consuming, with a loss of quality and important information. Even if the paper workflow in the company is established, without special software it will function in isolation from the project processes, and it will be difficult to establish interaction with all participants in the project activities.

 

The company's management in the absence of an effective information system will also work less efficiently. This is due to the fact that the speed of collecting and processing information will be very low, and the lack of online decision-making will make the management process unproductive.

2. Development of an algorithm of actions

 

In this case, is the introduction of expensive software products important if you want to implement a project approach to management in your business? Not at all! At the initial stage of development of your business, you can do with minimal investments in improving the information system:

Step 1. First, highlight only those processes that are really important at the initial stage of the business and the implementation of project management.

Step 2. Think about what projects that involve these processes you will try to implement first. Also plan in advance who will be the customer, executors, participants of these projects, what will be required for their effective implementation.

Step 3. Determine in advance what budget you can allocate for the purchase of software. These costs can be included in the capital expenditure section when implementing a corporate project management system (CSM) when calculating the economic effect.

CSMS is a corporate project management system. In Russia, an analogue of the KSUP is the project management system fixed in GOST.

Step 4. Analyze the offers in the software market and choose the product that meets your requirements and fits your budget.

Initially, it is important that:

• the software product was suitable for the level of automation of your company and could ensure the fulfillment of those tasks without which it is impossible to imagine the company's activities;
• the software product was convenient and understandable to all employees, it was easy to work in it, and training would not require a long time and financial investments;
• the software product could be configured independently, without recourse to IT specialists for an additional fee;
• a software product that offers a low-cost trial so that you can determine if it's right for your business without spending significant amounts of money on buying and maintaining it.

a software product that is in demand among large enterprises and organizations, as it guarantees its quality.

3. System Project Management

The cost of acquiring even inexpensive software is still a cost that needs to be recouped. But if the company's staff does not see their own benefits from the introduction of project management and modern software, then the system will not work, and it will not be possible to return the investment. A second attempt to implement the CSMS and the necessary software will be much more difficult and long. To improve the quality of management decisions, it is important to organize an effective information system in time at the enterprise, which will help to increase labor productivity, the level of competitiveness of the company, as well as the main performance indicators of its activities.

By implementing a project approach to management and modern software at the same time, you will provide your business and employees with the necessary and correct information at the start of project activities. In addition, if you buy inexpensive software, you will not have to incur large material costs, and the processes of project management can be tested in the light-version.

In other words, using the algorithm proposed above, you can easily check whether it is necessary to introduce a project approach to management into your business, whether the company's personnel and the current information system are ready for this. If everything goes smoothly, and the efficiency of management decision-making and processes increases, then you can switch to the use of more expensive and convenient programs and tools at any time. In fact, if your staff is trained, the work is organized, and the rules of project management are followed - this is "system project management".

Examples of project management

1. Project as a way to create a new one

The most popular type of project is a project, the result of which will be a new product. Usually, the customer requires the creation of a product that will be used in the future at his own discretion. For example, often the objects of project management are software, design development, etc. Special attention is paid to technologies, namely CASE, CAD, etc.

Examples:

The organization engaged in the development of computer programs, increased the staff by 5 times per year due to the increase in the number of orders. At the same time, the question arose of increasing labor productivity and reducing the time of work. To do this, a new expensive CASE technology from Rational was purchased. According to the idea, this was supposed to halve the time of order implementation, but, in fact, such an effect was not observed. In addition to the fact that funds were spent on technology, the company also had to pay to train employees to work with new software and attract specialists from the outside to optimize the work of the software. Due to the fact that the company's offices were strongly divided geographically, the costs of maintaining the program increased significantly and there were problems with communications.

For several decades, AvtoVAZ has been implementing a project to automate the processes of design development and technological work. During this time, several million dollars were spent on this project.

The manufacturer of rocket technology in Russia indicated that the acquisition of modern CAD / CAM technologies worth more than $ 50 million. would allow it to become a world leader in the market, like Boeing.

2. Project as a market product

A project can not only create a new product, but also be a product itself. The customer may require the development of the entire organizational and technological complex, which, in fact, will become a guide for the implementation of the project.

Examples:

The American telecommunications company accepted an order for the organization of a regional integrated data transmission system, the cost of which amounted to about $ 300 million. For better execution of the customer's instructions, the company turned to the company engaged in the development of projects in order to obtain a project management structure, a list of processes, to designate project management objects, to calculate the budget, work schedule, required personnel, etc. In addition, the project received support from an automated control system and was taken for support by a consulting company-developer.

One of the Ministries of the Russian Federation has decided to improve its information structure. At the same time, all elements of the project were developed independently, such as technical architecture, stages and processes, budget, executors. However, very soon it became clear that the project was completely uncontrollable. The processes could not be coordinated with technical solutions and capabilities, and the composition of the performers could not cope with their duties.
The volume of reports increased, but it was unrealistic to assess the degree of implementation of the project. Despite the fact that all documentation was regularly submitted for each project process, it was not possible to assess the degree of achievement of the result.

3. Project as a business tool

The project can also be a method of doing business in the field of trade and services. Then the transaction here can be formalized in the form of a project, respectively, the relevant principles and tools for its implementation will be applied.

Examples:

The insurance company has introduced a project approach to management in the matter of registration of transactions with legal entities and individuals under individual insurance programs. This made it possible to manage the business more qualitatively and effectively, in particular, to control and analyze the profitability of specific insurance products, transactions, specialists.
One of the Russian companies engaged in the supply of fashionable clothes and shoes from manufacturers of well-known world brands, every season updates the proposed collection. Orders to suppliers are placed for the year ahead. At the same time, there is a huge network of regional partners who form orders, and much attention is paid to the marketing strategy.

In order to identify the project management structure, a new ERP system was introduced, which made it possible to form orders on the basis of seasonality, product group, partners, etc. For example, for each product group, an order formation project was developed with a breakdown by season.