Project Management Tools and Techniques Business Organizations

Question: Describe about the Project Management Tools and Techniques for Business Organizations. Answer: Introduction The management of projects in the right direction with the help of suitable tools and techniques is called project management. Project Management is essential for all business organizations for evolution or modifications of business strategies and other aspects. Managing these projects in the right direction is an important step towards making the project a successful venture for the business organizations (Burke 2013). Risk management is an important stage of project management where possible risks are identified and solutions are prepared. This is important for the development of organizational strategies. Milestones are the points of the project where particular deliverables are met. In other words, there are a number of deliverables of a project that are to be met, each at a different phase of a project. Project, Programme and Portfolio Management are all related to each other and the organizational strategy affects the course of all these factors significantly. A project is a se t of activities that is to be performed in a specified path to obtained a desired outcome for benefitting the organization. Programme is the schedule and management of some related projects together so that the projects are conducted according to the specified path within a specified programme timeline (Schwalbe 2015). Portfolio Management is the highest level for project management that mainly deals with the management of the activities of the project managers regarding the use and application of resources in the project. Now, researchers have provided different ideas regarding the relationship between project, programme, portfolio management and organizational strategies. A whole project stands on the existing organizational strategy and the objective of the project is to further modify or enhance the organizational strategy to establish more control over the market (Fitzsimmons and Fitzsimmons 2013). For this purpose, the project is first planned with a set of deliverables that n eed to be met during the course of the project. After that, the project programme is executed along with portfolio management. In this report, a critical analysis has been conducted on the relationships between the different parts of project management. Relationships between Different Project Management Tools Some Key Definitions of Project Management Tools Project Management is essential for all business organizations for evolution or modifications of business strategies and other aspects. While projects are designed or prepared, the main aim is always some change in business strategy or some modifications in the existing organization structure (Walker 2015). Managing these projects in the right direction is an important step towards making the project a successful venture for the business organizations. A successful project management system consists of a number of steps or tools. These are as follows. Risk Management This tool or step is taken in order to mitigate any risk associated with the project (Verzuh 2015). This is an important stage of project management where possible risks are identified and solutions are prepared. This is important for the development of organizational strategies. Budgeting Budgeting is essential in any project as the overall costs and cost benefits are identified during this phase. This also affects the direction of the project as well as the quality of the project. Work Breakdown Structure In this part, the overall activities of the project are arranged in a chronological order and the estimated timeline is prepared for completion of all of these tasks (Boud, Cohen and Sampson 2014). This is the most critical part of the project programme as it defines the arrangement of the tasks that will be conducted during the course of the project. Gantt Charts Gantt Charts are the summarized forms of the work breakdown structure showing the paths and dependencies that are critical to the project programme. Critical Path Analysis This is required to determine the paths of the project programme that are critical to the project i.e. these paths must be followed without any errors in order to ensure a successful outcome of the project. Resource Management Resources are essential parts of any project. Resources include funds, hardware, softwares as well as the workers that are related to the project (Bennett and Ho 2014). After the project programme is prepared, the resources are allocated according to the organizational strategy and the project is executed accordingly. Milestones Milestones are the points of the project where particular deliverables are met. In other words, there are a number of deliverables of a project that are to be met, each at a different phase of a project. These deliverables are called milestones. These milestones are preset before the start of the project programme. Reports Project reports are documentations of the outcomes of the project programme. The duration of project, meeting of deliverables, use of resources and others are all documented inside the report. The organizational strategy is modified according to the reported outcomes. Software Softwares are used for data management and calculations in a business project. Softwares like Microsoft Project, Microsoft Outline and others are generally used to create data charts, tables and others in which important business data are kept and calculated. Project Control System This system is used to control the outcomes of the project programme (Gido and Clements 2014). Without any control on activities and outcomes, the ultimate objective may not be met and hence, the project will be a failure. Cost Benefit The outcome of any business project must have a very high cost benefit ratio. Organizational strategies are always based on increasing the cost benefit ratio of any activity and hence, cost benefit analysis is necessary before initiation of any project. Project, Programme, Portfolio Management, Organizational Strategies: How they are affected by Project Management Tools The project management tools discussed are extremely important for ensuring positive outcome of a project. However, there are a several parts of a business project and the tools are used to ensure each of the parts are executed in the correct path. These parts of the project are discussed below. Overall Project This is the summary of the entire project i.e. it is the plan or documentation that contains every information related to the project including costs, timeline, communication plan, deliverables, milestones and others (Marchewka 2014). Preparation of the overall project plan enables the management team to estimate required resources and time as well as modify the organizational strategy accordingly. Again, the change in organizational strategy affects the course of the project and brings in some changes in the overall project. Project manager designs and implements necessary changes in the project based on the requirement of milestones. The activities of the project working team are monitored and controlled for maintaining the path of the project to ensure project success. Project Programme Project programme is the scheduling and management of the project activities according to the plan. Project programme is always designed for the beneficial organizational strategy and is mainly associated with management of several related projects at the same time for a positive outcome from all the projects (Grefen, Pernici and Snchez 2012). Managing several related projects at the same time gives the management team more control over the projects. The project tools discussed can play a significant role in the change in project programme. Programme manager brings changes from inside and outside to deviate the projects to the paths that will ultimately benefit the organization. The project schedule and programme are managed based on the priority of deliverables that will ultimately benefit the organization. Portfolio Management Portfolio Management is the highest level for project management that mainly deals with the management of the activities of the project managers regarding the use and application of resources in the project (Heagney 2012). Portfolio management defines the path and other management resources that are to be used by the project managers for controlling the outcome of the project. Portfolio manager monitors the changes in the project and advises the project manager for the allocation and management of resources and the overall project based on several parameters. Monitoring is done on the development of portfolio, allocation of resources and the role of the project manager that influence the overall outcome of the project. The scope of portfolio is limited within the business and strategic plan of the organization. Organizational Strategies This is the main decisive factor for the planning and outcome of a business project. In the actual case, organizational strategies are decisive factors for all the above discussed factors. The project is planned based on the improvement of cost benefit or a change in the organizational approach in the global market (Bozarth and Handfield 2016). Based on the organizational strategy, the project plan is prepared and project programme is executed. Accordingly, portfolio management is conducted so that the project manager (or managers) can take suitable actions regarding allocation of resources and management of the project activities. Critical Analysis on the Relationships between Project, Programme, Portfolio Management, Organizational Strategies Project, Programme and Portfolio Management are all related to each other and the organizational strategy affects the course of all these factors significantly. A comparison table between the three factors is as below. Characteristic Project Programme Portfolio Definition A project is a set of activities that is to be performed in a specified path to obtained a desired outcome for benefitting the organization This is the schedule and management of some related projects together so that the projects are conducted according to the specified path within a specified programme timeline Portfolio Management is the highest level for project management that mainly deals with the management of the activities of the project managers regarding the use and application of resources in the project Change Project manager designs and implements necessary changes in the project based on the requirement of milestones Programme manager brings changes from inside and outside to deviate the projects to the paths that will ultimately benefit the organization Portfolio manager monitors the changes in the project and advises the project manager for the allocation and management of resources and the overall project based on several parameters Management The activities of the project working team are monitored and controlled for maintaining the path of the project to ensure project success The project schedule and programme are managed based on the priority of deliverables that will ultimately benefit the organization The activities and steps of the project manager are managed so that the resources are allocated in the right manner according to the requirements of the project Monitoring Monitoring is done on the activities of the project as well as the existing situation of the company; a change in plan or situation will result in changes in the project activities as well Monitoring is done on the schedule of the project i.e. changes in the project plan will result in the change in project schedule Monitoring is done on the development of portfolio, allocation of resources and the role of the project manager that influence the overall outcome of the project Planning Planning is done based on the requirements of the organization; there might be change in operational strategies followed by the organization and accordingly, the project plan is prepared The programme is planned based on the priorities of the organization regarding the milestones decided for the project The portfolio is planned based on the management of resources and the role of project manager in the project Scope The scope of the project is limited to the requirement i.e. the requirements on which the project is based on is the ultimate boundary of the project scope The scope of project programme is very wide different executions can be applied for more benefits and successful project outcomes The scope of portfolio is limited within the business and strategic plan of the organization Success The success of project is measured by the quality of the deliverables and milestones that have been the outputs of the entire project The success of the project programme is decided by the success of the outcomes that have been possible because of the management of several related projects together The success of portfolio depends on how well the project manager has been able to manage the project Figure: Relationship between the Four Parts of Project Management Now, researchers have provided different ideas regarding the relationship between project, programme, portfolio management and organizational strategies. A critical review on some these works are as follows. Alotaibi, Sutrisna and Chong (2016) said that the most important part among the four is organizational strategy. They said the whole project stands on the existing organizational strategy and the objective of the project is to further modify or enhance the organizational strategy to establish more control over the market. For this purpose, the project is first planned with a set of deliverables that need to be met during the course of the project. After that, the project programme is executed along with portfolio management. In other words, the organizational strategy is the foundation stone for the project to materialize. This is true, without an organizational strategy, no project can be planned and materialized. The entire project milestones are based on the strategies of the organization. Moreover, the project milestones largely affect the existing organizational strategy. However, sometimes, this is not true in all cases. Sometimes, the projects are not always totally dependent on organizational strategies (Brle?i? Val?i?, Dimitri? and Dalsaso 2016). Some projects may be conducted for internal development that does not affect the overall business strategy of the organization. Again, there are other projects that are based on expansion of a small or medium sized company that is not related to organizational business plans. Hence, entire project depends on organizational strategy is a misleading term. In his works, Ismaeel (2015) said that project program is the most important part of the business project as it directly affects the organizational strategies as well as the project overall. His point of argument is that the existing organizational strategy decides the initiation of the project. However, the project programme determines the future organizational strategies related to the business and commerce. For instance, the organization targets a specific change in strategy, hence, they decide to execute a project for the change. However, the outcome from the project program is different. If it is not beneficial, it is completely discarded. On the other hand, if it is even more beneficial than the original plan, then the organizational strategy will change further to sustain the benefits that have been gained from the project program (Rusare and Jay 2015). This is quite true in its own right the organizational strategy determines the project programme and the project programme r e-determines the future organizational strategy. However, there are flaws in this statement as well. The final organizational strategy does not only depend on the project programme; it depends on the overall project output. The milestones of the project are achieved by the overall activities of the project and that involves project planning, portfolio and project programme. Hence, although the statement is true to quite some extend, sometimes it is misleading. Lapina and Sluka (2015) in their works said that the portfolio management is the most important part of project management as it involves management of resources and the working team by the project manager. Different project managers have different takes on projects and hence, there must be some suitable standards and guidelines that should be followed while managing the project. Moreover, resource management is an essential part of project. Lack of resources will stop the project at a certain time while too many expenses of resources will result in reduction of cost benefit ratio that is to be gained from the project outcome. Hence, managing the project in a certain way is necessary. However, this statement is also not always true. Controlling the activities of project manager is not always a good idea. The project manager may have some ideas that can actually benefit the overall project (Kerzner 2013). Again, while executing the project, the manager may be able to identify certain risks or faults within the project that were not visible initially. Hence, without controlling the project manager activities and depending entirely on portfolio management, some duties should be given to him that he will have to manage alone. Conclusion From the entire report, it can be concluded that all the parts discussed are equally important to the project and that all the parts are closely interconnected to each other. The project is first planned with a set of deliverables that need to be met during the course of the project. After that, the project programme is executed along with portfolio management. In other words, the organizational strategy is the foundation stone for the project to materialize. This is true, without an organizational strategy, no project can be planned and materialized. The entire project milestones are based on the strategies of the organization. Moreover, the project milestones largely affect the existing organizational strategy. However, sometimes, this is not true in all cases. Again, the organization targets a specific change in strategy, hence, they decide to execute a project for the change. However, the outcome from the project program is different. If it is not beneficial, it is completely dis carded. On the other hand, if it is even more beneficial than the original plan, then the organizational strategy will change further to sustain the benefits that have been gained from the project program. This is quite true in its own right the organizational strategy determines the project programme and the project programme re-determines the future organizational strategy. Finally, different project managers have different takes on projects and hence, there must be some suitable standards and guidelines that should be followed while managing the project. Moreover, resource management is an essential part of project. Lack of resources will stop the project at a certain time while too many expenses of resources will result in reduction of cost benefit ratio that is to be gained from the project outcome. Hence, managing the project in a certain way is necessary. This study proves that all the factors are decisive in the successful outcome of the project. References Alotaibi, N.O., Sutrisna, M. and Chong, H.Y., 2016. Guidelines of Using Project Management Tools and Techniques to Mitigate Factors Causing Delays in Public Construction Projects in Kingdom of Saudi Arabia.Journal of Engineering, Project, and Production Management,6(2), p.90. Bennett, J.M. and Ho, D.S., 2014. Human resource management. InPROJECT MANAGEMENT FOR ENGINEERS(pp. 231-249). Binder, J., 2016.Global project management: communication, collaboration and management across borders. CRC Press. Boud, D., Cohen, R. and Sampson, J. eds., 2014.Peer learning in higher education: Learning from and with each other. Routledge. Bozarth, C.B. and Handfield, R.B., 2016.Introduction to operations and supply chain management. Pearson Higher Ed. Brle?i? Val?i?, S., Dimitri?, M. and Dalsaso, M., 2016. Effective Project Management Tools for Modern Organizational Structures.Pomorski zbornik,51(1), pp.131-145. Burke, R., 2013. Project management: planning and control techniques.New Jersey, USA. Crawford, J.K., 2014.Project management maturity model. CRC Press. Fitzsimmons, J. and Fitzsimmons, M., 2013.Service management: Operations, strategy, information technology. McGraw-Hill Higher Education. Gido, J. and Clements, J.P., 2014.Successful project management. Nelson Education. Grefen, P., Pernici, B. and Snchez, G. eds., 2012.Database support for workflow management: the WIDE project(Vol. 491). Springer Science Business Media. Heagney, J., 2012.Fundamentals of project management. AMACOM Div American Mgmt Assn. Ismaeel, W.S., 2015. Assessing and Developing the Application of LEED Green Building Rating System as a Sustainable Project Management and Market Tool in the Italian Context. Kerzner, H.R., 2013.Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Lapina, G. and Sluka, I., 2015. PROJECT LAB AS A LEARNING TOOL FOR DEVELOPMENT OF PROJECT MANAGEMENT COMPETENCES AT UNIVERSITY.Journal of Business Management, (10). Leach, L.P., 2014.Critical chain project management. Artech House. Marchewka, J.T., 2014.Information technology project management. John Wiley Sons. Rusare, M. and Jay, C.I., 2015. The project implementation profile: A tool for enhancing management of NGO projects.Progress in Development Studies,15(3), pp.240-252. Schumann, C.A., Gerischer, H., Tittmann, C., Orth, H., Xiao, F., Schwarz, B. and Schumann, M.A., 2014. Development of International Educational Systems by Competence Networking based on Project Management.Procedia-Social and Behavioral Sciences,119, pp.192-201. Schwalbe, K., 2015.Information technology project management. Cengage Learning. Turner, R., 2016.Gower handbook of project management. Routledge. Verzuh, E., 2015.The fast forward MBA in project management. John Wiley Sons. Walker, A., 2015.Project management in construction. John Wiley Sons.