6 Benefits of Project Management To SMBs

We are seeing a future where most work are project-based. In fact, it has been projected that it will be the case by 2027. We are bound to have teams that are more self-managed, reducing the need for traditional managers and paving the way for formal mentors to guide employees through their careers as they go from one project to another.

Small and medium businesses take on relatively smaller projects than larger enterprises. And it is probably a chief reason why some SMB owners do not deem project management a top priority, and often see it as a luxury expense. 

As SMBs continue to grow to be great contributors to the economy, it becomes more important to incorporate project management into their business strategy and effective enterprise resource planning.

Phases of Project Management

• Project initiation. Customer or client orders and ideas are formed in this phase. Communication tools are introduced and preparatory work are done here, as well. This is also where objectives are defined, and cost-benefit and risk analysis are done. 
• Project planning. All project details are worked out in this phase. This is also where you conduct a kick-off meeting, giving everyone an overview of the project — deadlines, milestones, stakeholders, and expectations, among others.
• Project implementation. This is where constant check-ins and monitoring become crucial, as well as good communication, to attain the ultimate goal: a successful project close-out.
• Project close-out. This is the last phase of the project where the degree of the project’s success becomes evident and is evaluated. This is also where project documentation becomes a very important tool, as this will contribute to the success of future projects.

6 Benefits of Project Management To SMBs

Project management is not that widespread in SMBs. Most internal projects are done within the teams, with management staff looking over them. When it comes to external projects or those done for clients, they are also mostly managed informally or without project management training. 

The business landscape continues to change and become tight-knit in terms of competition. Small and medium businesses should take into consideration how crucial project management is in making their business more agile in this ever-changing world.

Better communication

Project management ensures that tasks are delegated properly and the roles are outlined clearly. Project managers also makes sure that all progress and updates are communicated to everyone involved —the employees, team leaders, executives, and stakeholders — giving them the opportunity to address issues head on. This practice also promotes accountability and transparency. 

Cost Savings

Good and formal project management allows for an optimized methodology. In other words, you are able to do more work in as little time. This is made possible by a project plan in which all tasks, deadlines, task owners, and other important information are laid out clearly. Workloads are also well-monitored making employee burnout very less likely — decreasing the possibility of human error and rework. Project plans also include clear policies for when there are changes to be made while the project is ongoing.

Resource Conservation

This is very much related to cost savings, but to further discuss it, project management also ensures that company resources properly allocated. For example, rather than pooling a number of employees to work together on a project, a good project plan can tailor assignments to employees based on their competencies and skill sets. Team members suited for the role complete their deliverables on time since there is not much to worry about in terms of the learning curve.

Organized Timeline

Deadlines, expectations, and estimations are crucial elements of any project. Through project management, deadlines and target times are set more accurately. Any large enterprise understand that no matter how big or small a project is, a well-defined timeline is necessary to push teams forward and accomplish tasks more promptly and efficiently.

Optimal Performance

With project management as part of your methodology, it become easier to track performance and assess where the pain points are. A good project manager designates a repository for all tracking documentations and platforms, that are accessible to all persons involved in the project. Another essential part of a project plan is sitting down with a stakeholder to gain feedback. Such feedback are incorporated into an improvement plan created post-project.

Better Future Planning

With good project management, companies find it easier to see the bigger picture and pinpoint areas for improvement. With these crucial information, SMBs are able to create a roadmap for future projects. 

Takeaway

Project management can create a massive impact on small and medium businesses as it can streamline processes that can otherwise be taking up too much resources, such as time, workforce, and budget. The above list contains just some of the benefits that SMBs can potentially enjoy. Making project management a priority in your organization can give you competitive advantage and contribute to the longevity of your business.

Take your project management to the next level with IBQMI®’s exclusive certifications in Lean Project Management, Kanban, TQM and Enterprise Architecture.

 

Guest article by James Wilson