Project Management is a practice that enables managing each project from an integrated and consolidated perspective to successfully achieve the objectives defined. It consists of the integration of processes, tools and techniques through the application of the knowledge and skills of the project members, based on the best strategy defined.
It combines management and methodology through the implementation of a governance model based on strategy, thus becoming synonymous with project leadership built on management, methodology and best practices.
DIFFERENCE BETWEEN PROJECT MANGEMENT AND ORGANIZATIONAL PROJECT MANAGEMENT
The Project Management Institute makes a clear conceptual and structural differentiation between Project Management and Organizational Project Management:
- “Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements” (PMI, 2017, p. 10). *1
- “Organizational Project Management is a framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives” (PMI, 2018, p 3). *2
THE VALUE OF PROJECT MANAGEMENT
The value of this practice is based on achieving organizational efficiency with each project, implementing the appropriate strategy and methodology for the purpose of ensuring the required functionality, in the time and according to the cost defined, with the quality expected by the stakeholders.
The value of Project Management is fully aligned and integrated into business value which scope is defined by each organization, reflected in the strategy, and achieved through portfolio, program and project management.
*1 Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide). USA: Project Management Institute.
*2 Project Management Institute. (2018). The Standard for Organizational Project Management (OPM). USA. Project Management Institute.
The benefits of applying Project Management are directly related to its value and focused on helping organizations to achieve the business objectives defined in its strategy, through the successful management of all the projects related to the relevant business initiatives.
In addition, owing to the application of Project Management, organizations achieve higher performance, and consequently greater maturity, reaching their business objectives at a much lower cost than companies that do not adhere to such practice.
BENEFITS VS. SUCCESSFUL PROJECTS
Successful projects are those that achieve the objectives defined, while the benefits are directly related to meeting the organization’s business objectives through the success of each project. Therefore, the objectives of each project must be aligned to the business objectives that originated the project.
THE IMPORTANCE OF DEFINING A GOVERNANCE STRATEGY
The governance strategy helps define and apply the relevant Organizational Project Management or Project Management model best suited to the organizational context, and achieve the objectives defined. It is focused on embracing management under a single cultural umbrella that integrates the organization’s vision, mission and values with its policies and methodological standards, on the basis of existing paradigms.
DEFINING A PMO VS. AN EPMO AS PART OF THE STRATEGY
Establishing a Project Management Office leverages the organizational strategy, facilitating the implementation of a model that integrates the organizational strategy with its associated projects, the creation of value, and achieving the benefits provided by the organization.
Project Management has been implemented since the last century. While initially, the approach was based on the stakeholders’ experience, it has gradually evolved towards achieving a standardized practice, focused on strategy and governance based on two distinct paradigms: Traditional and Agile.
Knowing the history and evolution of Project Management provides insight into the growth and significance of the practice and the relevant concepts. The following chart includes a brief chronological overview of Project Management’s history.
There is no formal practice of Project Management. Projects are managed based on experience. The terms supervision and leadership are part of the language used.Informal approach to Project Management based on experience Before 1899
Use of tools in non-standard practice: Program Evaluation and Review Technique (PERT), Critical Path Method (CPM), Gantt Chart (GANTT), Work Breakdown Structure (WBS), Configuration Management (CM) and Earned Value Analysis (EVA).Non-standardized Project Management with the use of tools 1900 - 1969
PM practice started developing under traditional standards to establish as a profession in the market. Beginning of cost / benefit analysis.The Project Management paradigm started 1970 - 1979
Practice was considered bureaucratic. Greater challenge from a management perspective and focus on the scope, time and cost. Publication of the pilot version of PMBOK (1983).Project Management is bureaucratic and undervalued 1980 - 1989
Companies start to recognize the importance of Project Management. Creation of the concepts of Maturity, PMO, Program and Change Management, and beginning of the TQM (Total Quality Management) concept. The first version of the PMBOK (1996) was published.The Project Management practice started to be recognized 1990 - 1999
Start of the Strategy, Governance and Audits concepts. New Paradigm: Agile Methodology. Publication of the 2nd. (2000), 3rd. (2004) and 4th. (2008) editions of the PMBOK.Project strategy started to be assessed. A new paradigm began: Agile Methodologies 2000 - 2009
Comprehensive approach to the practice. Strategy started to be integrated to the business under the Portfolio, Program and Project domain with PMO / EPMO as governance. Greater consideration given to the value and benefits of Project Management based on Leadership. Publication of the 5th.edition of the PMBOK (2013) and 6th. edition (2017).The practice gains recognition. Project Management based on strategy and governance under two paradigms: Traditional and Agile 2010 -