What is Project Management and Why is it Important?

Transcript:
In today’s episode I share the definition of a project, the definition of project management and why this is important in the business world.

By definition a project is a temporary effort that has four clearly defined components.

The first and most important component is the scope. That defines the size, the goals, the requirements needed for the project to be completed.

Next we have resources, this component is defined by the staff needed, equipment and materials.

Third, and one of the most critical, is the time. Every project needs a start and an end. You also need to know the length of each staff’s dependencies, meaning certain tasks can not start until what previous ones are completed.

Last, and equally important, is the money. How much will the project cost. You also need to know contingencies. Typically this refers to the amounts that are held in reserve to deal with unforeseen circumstances. And of course we must know the profits.

All business projects requires some form of management. Project management is a powerful business tool that can deliver many advantages to business of all sizes. It gives the business repeatable processes, guidelines and techniques to help manage the people and the work involved in each one of those projects.

A project management system can increase the chances of success and can help deliver projects consistently, efficiently, on time and within budget.

I’m going to leave you today with an inspirational quote by Sir Winston Churchill: “Those who plan do better than those who did not plan, even though they rarely stick to the plan.”

 

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