A project is a brief endeavor to develop a product or service that is not part of ongoing business operations. When it comes to project management, small businesses don't require a sophisticated methodology, but they do benefit from having a designated project manager. When you realize well-managed projects help develop and boost profitability, the significance of project planning becomes evident as a project manager enhances the probability that it will be profitable and successful.
Central Contact
The project manager, as the key player in a project, communicates updates and information to the project team, company executives, and project clients to minimize confusion and enhance accuracy.
Efficiency
To ensure the smooth operation of a project, the project manager works with stakeholders to identify and sequence project activities for efficient execution. Each activity is interconnected and has its own checks and balances.
Control Scope
The work and activities needed to complete the final product or service are outlined in the project scope. "Scope creep," which refers to ongoing changes to the original project, often occurs. A project manager defines the scope and plans its management to avoid scope creep.
Manage Cost
According to Indeed, a project manager's role requires meticulous attention to finances. Projects must meet deadlines and financial limits. The manager oversees internal and external resources, equipment costs, and other expenditures.
Control Schedule
A significant limitation of any project is time. Managing project team members' time can be challenging because they also have their daily responsibilities. When a project gets underway, the project manager creates a timeline to help keep track of deadlines.
The project manager also ensures that each team member completes their assigned tasks correctly. To help team members meet their deadlines effectively, the project manager assists them with estimating task times and addressing any issues.
Manage Risk
No matter how carefully a project is designed, risks might still arise. A project manager develops a risk response procedure to track hazards after they are identified and anticipated. It's crucial to include risk reduction in the early stages of planning. The next best thing is for the project manager to manage the issues if they can't avoid them.
Manage Procurement
If your project calls for purchases from outside vendors, the project manager oversees the contracts and terms and keeps track of bills to ensure both the project client and the suppliers adhere to the terms of the agreement.
Manage Stakeholders
Communication is key! It's crucial to inform stakeholders of risks and milestones as a project develops. The project manager informs corporate executives of the objectives and performance through the appropriate reporting channels.
Project Close
This step is often taken for granted, but it is never to be neglected. In an effort to identify patterns, trends, and chances for improvement for the following project, the project manager documents and evaluates each step of the project with the team members and leadership after it has met the objectives and expectations of the project client.