What is project management? How does it differ from other business functionalities such as operation management? And, how does it impact an organization? In a very simple way to explain project and project management; Project is a planned endeavor with series of unique activities that a business or an organization perform through a series of processes in which the achieved end results or goals produce a unique product or services that add business values, help meet its present or future business goals and objectives or, in some cases increases its competitive edge in the market. Project management is the art of planning, managing, coordinating and controlling every process or activities in each process, the resources and the components of the project plan to achieve the project goals.
Some would probably confuse the activities of a project with business operations or operation management. Even though both functionalities work interchangeable and affect each other, there is a slight difference in how they both impact the organization. Operations are the day to day activities or routines that are mandated to be performed to keep the business running and producing revenue. It turns material resources and human labor into goods or services that are used to generate revenue and profits. Operations management is simply planning, organizing, managing and controlling the processes or operation activities which produce the organization products and services. Sales, Human Resources, Supply Chain Management, Accountant Department, Customer Service, Administration, IT, and Quality Management are all key elements of business operations. Most organization who provide the same continuous services or products are often operational (i.e. hospitals, hospitality, food processing, retail, consumer services providers or supply chain). With operations management, the process continues unless the business units or process is no longer useful to the organization wherein most cases a new process is enrolled allowing the business operations to continue.
Unlike business operations, all projects have a duration; a start and a finish date. In project management, there is a lot of emphasis on planning. Planning is one of the key components of successful project management. Within operation, there is less emphasis on planning as process and goals have already been pre-established and the goals are repeatedly achieved based on continues work. On the other hand, all project has a plan to deliver specific goals or objectives unique to the business needs. An organization who provides a single or specific end result to meet certain business goals or objectives are considered a projectized organization or has a pure project organization structure (i.e. Software developer, custom manufactured products, construction firm or engineering and in some cases financial and marketing).
Some components that make up a project plan are but not limited to; the Scope which details the goals of the project, the product, service or results to be produced at the end of the project. It also detailed the work necessary to complete the project. The schedule which is a series of activities that are outlined sequentially with their specified dates of when each activity will be performed and completed. These activities are work that should be performed to achieve the project goals. The sequence of activities serves as a role map to accomplish each goal of the project also creating the milestones. The budget which is the monetary cost or value estimated and approve to be allocated towards the project activities. These three areas Scope, Schedule, and Cost are considered the triple constraints of project management. Lastly but not least, the Resources that are allocated to facilitate the implementation of the project activities. The resources could be materials or human labor. In addition to these, there are other components of a project plan which include Integration, Communication, Quality, Risk, Procurement and Stakeholder management plan. All these components of the project have measurable impacts on the project goals, and they must be managed through their unique processes according to the plan in order for the actual goals to be met.
For businesses or organizations who solely rely on business operations might find it comforting to do business the same way it’s done every day if it keeps meeting its revenue goals. It is no doubt that business operation contributes significantly to the organization as one of the driving forces that keep the organization healthy, but the need for project management is increasingly significant as well. Here is my reason for saying: considering an organization decides to undertake a project which the end result will improve one of its core business processes (i.e. build a better and understanding relationship with customers, reduce defects or mistakes made during product production, manage change effectively, or produce a new product that will effectively serve or meet customer needs). In some cases, the impact of this project can be linked directly to operations as well. The organization could assign a specific project team to manage the project which reports to the project manager. These teams could be made of individuals within the organization who has different sets of unique skills and expertise (cross-functional team), based on the project requirement or they can be a group of consultants or an external entity hired just to manage the project.
The advantage to the business is that the organization do not have to stop normal business operation due to the shortage of resource, personnel or team members pull from functional duties to work on the project activities. With a designated project team, a normal business operation can continue, while the project team focuses on the project objectives only. It allows both functionalities to focus separately and entirely on what they need to be doing to help the organization accomplish its overall business goals and meeting its needs. Operations can provide support to the project team if necessary. Also, this help for project activities to be aligned with the business needs. Once the project is completed and the end product/ results are created, it can be rolled to operations to be utilized for revenue and profit generation. In some cases, the project team is disbanded or assign to a newly approved project.
The impacts of project goals could be measured by short term, mid or long. Some business may initiate and implement a project base on short term strategies, midterm push, or long term anticipated growth or expansion. Also, based on the industry, organization products or services, the reason and frequency for the project(s) may differ, but regardless of what it is, all projects are generally standard in definition, follow a standard format or process, tools and have a duration.
So if you are one of those who wants to understand what project and project management is or if an organization (could be yours) has a projectized/ pure project or operational structure, I hope these clues below help you understand your organization better:
Projects are planned endeavor (has duration) with series of unique activities that are performed through a series of processes in which the achieved end results or goals produce a unique and specific product or services that add business values, help meet its future business goals and objectives or in some cases increases its competitive edge in the market.
Project management is the art of planning, managing and controlling those activities through a standard systematic process to achieve the project goals as described in the project plan.
Business Operations are the day to day (no duration or ongoing) activities or routines that are mandated to be performed to keep the business running and producing revenue. It produces the same results continuously and turns material resources and human labor into goods or services that are used to generate revenue and profits
The result(s) of a project could significantly affect the business operations and operations management, as some projects are initiated to enhance the efficiency of some operational activities.
Operations could provide support to the project team or project activities. This help keeps the project in alignment with the business objectives.
Most project teams are made of individuals with a different set of unique skills based on the project requirements (cross-functional teams), whose focus are entirely on the performing the project activities that will lead to the accomplishment of the specified goals or objectives.
Operational teams are made of individuals with skills sets that are unique to the operation department (i.e. Sales, customer services, accounting, marketing, human resources, production).
Project team reports and works under the directives of the project manager and the operation teams reports and work under the supervision of the team supervisor or operation manager.
Indeed, all functionalities of business are all important aspects to the business success, but the idea of project management is for a project to be implemented while the business operation continues without any drawbacks, shortage or limitations. Initiating and implementing projects could positively influence the organization growth and sustainability strategically. The frequency and the reasons while an organization would undergo project, is simply based on the industry, products, services or short term, mid-term or long-term strategies. does your organization have a projectized/ pure project organization structure or operational? Please leave a comment!
Thanks for reading
Esmeal Sheriff
