How important is project management for a company?

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In the times we live in, the competitive dynamics of the current market are increasingly intense, so that it cannot be denied that even the most outstanding and successful companies are not safe from the blatant need to remain in constant innovation. . This leads them to the question: what is the importance of management of projects for a company?

Inattention to current trends and relaxing in comfort zones can be fatal for any type of business, and it is from this understanding that we begin to understand how essential project management is.

Throughout this article that we have prepared, everything you need to know about the subject will be explained to simplify your professional life: from the related general concepts to the practical aspects that make project management such an essential element for any and every business, regardless of your doors, field of activity or management model.

    First, what is a project?

    To explain what project management is, first of all, we need to talk briefly about the concept that defines a project itself.

    In summary, we can describe how project a cycle of specific temporary tasks and actions, which, apart from the routine of the company, occur on an ongoing basis in order to develop certain unique services, products or results.

    Reinforcing this idea, the PMBOK (Project Management Body of Knowledge), the definitive project management guide for companies developed by SMEs (Project Management Institute), defines a project as something unique and progressive.

    Therefore, its management aims to reduce risks and plan expenses to ensure the quality of results, in addition to optimizing employee satisfaction and taking advantage of market opportunities.

    Its development is based on steps and also within well-defined deadlines – both with regard to the beginning and completion of each of its actions.

    It is also interesting to compare the concepts of design and process – diametrically opposed, but closely related.

    The first is of a unique character, being previously defined with a beginning, a middle and an end, all always stipulated in strict deadlines.

    The second is cyclical in nature, repeating itself constantly in order to produce the same results in a constant and increasing fashion. 

    Generally speaking, it is correct to say that a project consists of a set of processes – and it is not uncommon for a project to exist for the purpose of improving a certain process.

    And what is project management in a company?

    Having explained what projects are, it is correct to say that project management consists of the orderly application of various strategic practices and techniques that understand that the entire workflow of an organization is composed of closed projects.

    If these projects are not perfectly aligned and built in a solid way, they can lead the company to catastrophic results.

    During the management process, projects are monitored in order to produce the best possible results within the proposed objectives, taking into account essential aspects such as costs, deadlines, quality standards and established objectives.

    Therefore, the importance of the manager is undeniable, and that a project management of excellence characterizes a key part in the a company's strategy that proposes to operate in a solid and consistent way, thus guaranteeing its place in the face of the relentless competitiveness of the market.

    The five steps of project management

    The implementation of project management basically consists of five steps: initiating, planning, executing, monitoring and closing. It is up to the manager to conduct them in the most solid way possible.

    1) Initialization

    This first phase is so important and basic that it starts to happen even before the project is approved. 

    Here, the entire scope of the project is defined. It is a stage that requires a great capacity for analysis, as it is the moment to gather all kinds of relevant information about the project proposal – objectives are outlined, all potential mistakes and successes are considered, budgets are defined. 

    Everything about this step can serve as a reference later, which is why it is important to document the entire process.

    2) Planning

    Once the first stage has been completed and the project approved, it is time to polish it. The planning phase is like an extension of the previous one, contemplating a complete schedule on absolutely everything that will be carried out. 

    It is time to detail everything that was outlined earlier: how the budget will be used; what are the best actions, at a strategic level, to achieve the determined objectives; in short, everything that concerns how to execute the plan.

    3) Execution

    It's time for action: here, everything that was conceived, defined and detailed in the previous stages takes shape. 

    It is time for the manager to focus on stock quality and pay particular attention to factors such as deadlines, dates and budget. Eventually, changes may be necessary, and this is a factor that cannot be neglected.

    4) Monitoring

    The fourth stage actually runs parallel to the third. This is because, for each action performed, there must be rigorous monitoring, so that constant analyzes are carried out to facilitate future decision-making. 

    This parallel step is very important to ensure that any unproductive actions in the execution step are not repeated for nothing.

    5) Closing

    If the project has progressed correctly, we have reached the final stage. At this point, it is important to gather the team, collect feedback and use all the information generated during monitoring to discuss improvement actions for future projects.

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    Why is project design important?

    In the affirmative, project management comes to cause beneficial interference in the progress of workflows, promoting constant innovation and substantial improvements in production processes. 

    Observing the achievements obtained by project management in the most diverse companies, we can clearly conclude that the main reasons for adopting it are the ones presented below.

    Cost reduction

    A well-established project management is one that is capable of structuring a productive workflow. When the time spent on each action is well managed, its cost-effectiveness is high, the incidence of rework decreases, and consequently, expenses are also reduced.

    Likewise, it becomes easy to control expenses and take appropriate steps to reduce them when the budget is monitored by the project manager.

    Growth in customer satisfaction levels

    Each and every company must keep in mind that customer satisfaction is always the main objective. The reason is simple: a dissatisfied customer not only does not return, but also seeks the desired solutions by looking to the competition.

    Aware of this fact, project management works in such a way as to employ the best practices regarding both the guarantee of the quality of the product or service offered, as well as the relationship and communication with the consumer.

    Integration between sectors

    Within a project, it is essential that all sectors act in an integrated and cooperative manner. Disagreements and communication failures can generate serious problems in the progress of the company's activities.

    Also, all the good ideas that can get lost, since information doesn't circulate properly between teams.

    Good management understands what is being done by each sector during each stage of the process, and acts to promote unity among all departments, valuing teamwork.

    This makes the work environment lighter, increasing productivity and positively engaging the team, so that the project can move towards satisfactory results.

    Team member optimization

    Reinforcing the previous item, we observe that employee engagement is directly influenced by the way management operates. In the same way as caring for the teams, direct communication with each professional involved also improves their performance.

    The good manager knows that each team member is an individual from whom something can be expected. Knowing each one is important to enhance their virtues and extract maximum productivity and satisfaction from everyone.

    Higher level of risk control

    We know that it is simply impossible to anticipate every possible risk or unforeseen event that may occur during a project – however, what well-qualified management cannot predict, it can control or combat.

    Through a continuous analysis of previous and current processes, it is possible to draw parallels between all and identify past mistakes, so that they do not recur or are easily circumvented.

    clarity and transparency

    Since one of the main tasks of project management is precisely the monitoring of work stages, it is possible to clearly extract all relevant information regarding the performance of each professional involved in the processes.

    In addition, it also assesses how effective each adopted practice is in practice. Reports and result indicators are easily generated, enabling continuous improvements for the company.

    More satisfactory overall results

    The final conclusion is that, once a success management provides satisfied customers, an engaged team and reduced expenses, the gain in productivity, fluidity and objectivity becomes more than evident. A light, organized and efficient work environment is fertile ground for success.

    Now that you understand better than ever the importance of project management for a company, how about spreading the knowledge? Share this article on social media!

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