For the execution of any project, organizations require resources such as people, material, equipment, time, knowledge and skill. But these come at a cost and so no firm has unlimited access to a range of resources. For maximizing profits, it is therefore important to share the available resources judiciously among projects such that all project deadlines are met while quality output is generated. That is why resource management is a critical aspect of any project, especially for efficient financial operations.
Planning for a project requires a lot of decisions to be made on intuition and experience. There are times when shortcomings in the planning phase lead to disruption during execution. There are times when targets of the project are not met. No matter how unfortunate it might seem, when one notices early signs of failure one should terminate the project immediately to prevent further loss of time and resources.
There are times when a manager can achieve the most by bailing out of a project. This does not mean quitting when the going happens to be a tad tougher. People who are productive rarely surrender sans a fight. There could be times, however, when the personnel hit a point where returns start diminishing every passing day. This is the time when further investment in resources could be waste of money. Even big companies flop [...]
Risk management is a critical aspect of project management that involves identifying, evaluating and mitigating any potential pitfalls associated with the task at hand. To put it in simpler words, project risk management is all about assessing what risks or hazards might come along during the process of achieving a specified goal and devising ways and procedures of dealing with the inevitable. Lack of proper risk management can lead to a number of issues including [...]
A business organization has to manage both business risks and project risks. But there is a significant difference between the two. Let’s try and gain some insights into what distinguishes a business risk from project risk. Business Risks When you talk about risk in the context of business, it could be anything that has the potential of threatening the generation of profits at the predetermined target levels. Business risks could be quite dangerous for the [...]
The success of an organization depends upon the quality of project it is able to undertake and deliver successfully on schedule. Sometimes even with the best of efforts and intentions projects get delayed or do not work the way client wants them to resulting in disrepute to organization and team members. So what is the difference between success and failure and what measures should an organization take to complete every project successfully? Both professionally managed [...]
Every project has an equal chance of failure or success. Which way it goes depends on a variety of factors and aspects. Employees, processes and leadership can all have a very big influence on how a project shapes up. When a project succeeds, it is important to evaluate why it worked, so you can replicate the success for later projects. In the same way, it is important to evaluate failed projects to understand what went [...]
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The project management office staff faces security theft issues from the time a project is accepted till the time it is delivered and as it passes through various stages of development. Projects in every industry be it software, manufacturing, research and even construction can suffer if security breaches are recognized and information is stolen by rivals. Depending upon the criticality of project, the team members have to be careful about varied security issues ranging from [...]
A business is subject to multiple environmental risks including market, legal, operational and strategic risk as well as risk from factors like governance and hazards like terrorism, civil unrest and more. An effective Project Portfolio Management (PPM) strategy can help a business be prepared for multiple contingencies, allowing the management team to make more informed decisions. Project Portfolio Risk management can help identify some of these risks in advance to determine what the likely impediments [...]
Any business must make a decision which will ultimately produce some kind of product that can be either goods or services. An important decision can affect the company, the products and its employees. Plant: The decision to invest in new factories, or in upgrading the present ones Products: The decision to start new lines People: The decision to invest in the form of development and training Most decisions are dependent upon its predictability. A distinction [...]
Well-designed project portfolio management (PPM) tools and methodologies go a long way in helping an organization cope with multiple projects, deadlines and gauging of performance levels. Risk management is an invariable aspect of PPM, and without the former, PPM will fall flat. Varieties of risks To understand how to master risks, one must understand what constitutes a strategic risk. Simply put, it is a system of analyzing potential opportunities or problems which are crucial to [...]
The crux of IT Portfolio Management lies in analyzing the right areas/projects a business should invest in, to gain maximum Return On Investment (ROI). The multi-layered methodology for implementing IT Portfolio Management ensures that resources, such as financial and human, are invested in projects which deserve them the most based on the value and criticality of each project towards the smooth functioning of the business as a whole. It is the effective investment of the [...]
As project managers, it is important to create plans that effectively cover all aspects of project lifecycles. Despite experience and knowledge in the field, some common mistake and errors may arise. Here are some of the most common mistakes made when managing IT portfolios. No tangible investment strategies It is a common practice in many IT companies, whether start-ups or larger corporations, to directly start with budgeting and funding. The projects scoring higher on the [...]