•     •   10 min read

20 Advantages of Project Management in Organizations

Do you want to reduce costs, work sta­bly, improve the qual­i­ty and effi­cien­cy of the team’s work, and also increase the lev­el of sat­is­fac­tion of cus­tomers and part­ners? Then you def­i­nite­ly real­ize the impor­tance of project man­age­ment and the role of project man­ag­er in the company.

If you are still think­ing about whether it is worth imple­ment­ing such a man­age­ment for­mat in your busi­ness, this infor­ma­tion will help you under­stand the issues in more detail.

Why is Project Man­age­ment Important?

Com­pa­nies that invest time and mon­ey in inte­grat­ing the best project man­age­ment prac­tices into their process­es ulti­mate­ly see mea­sur­able results. These enter­pris­es are actu­al­ly suc­cess­ful. This opin­ion is con­firmed by a num­ber of studies.

For exam­ple, in 2021, PMI and PwC con­duct­ed a sur­vey with 4,069 respon­dents. It showed that 80% of projects that are rec­og­nized as real­ly effec­tive have a cer­ti­fied project manager.



Besides, the use of project man­age­ment method­ol­o­gy increas­es the prob­a­bil­i­ty of suc­cess. Accord­ing to PwC, approx­i­mate­ly 77% of respon­dents with suc­cess­ful projects report doc­u­ment­ed man­age­ment process­es. At the same time, com­pa­nies that do not use project man­age­ment say that their projects are less successful.

The same inves­ti­ga­tion of PwC demon­strates that in orga­ni­za­tions that are mature in terms of build­ing man­age­ment process­es, more than 90% of project man­agers are cer­ti­fied. On the oth­er hand, only 61% of such employ­ees are in com­pa­nies that are still under­go­ing the process of formation.

Orga­ni­za­tions that do not pay much atten­tion to project man­age­ment waste approx­i­mate­ly 12% of their resources.
So, com­pa­nies that intend to gain lead­er­ship posi­tions in their mar­ket def­i­nite­ly need project man­age­ment. To final­ly make sure of all the ben­e­fits, let’s think of the advan­tages pro­vid­ed by the use of project man­age­ment and why man­age­ment is important.

Busi­ness Grow­ing Advan­tages of Project Management 

Below are the ben­e­fits of project man­age­ment implementation.

Mul­ti­ple project management

Prac­tice shows that 85% of project man­agers got used to work­ing with sev­er­al projects at the same time, only 15% of them man­age only one project. After all, in today’s high­ly com­pet­i­tive mar­ket, com­pa­nies can often remain prof­itable only in this way.

Some of the man­agers may have five projects in progress, while oth­ers suc­cess­ful­ly man­age ten. Of course, a lot depends on the com­plex­i­ty of the tasks and the size of the team. But in any case, the project man­ag­er needs to keep a lot of tasks in focus.



So to avoid burnout and make a min­i­mum of mis­takes, it is worth using not only man­age­ment method­olo­gies, but also a task man­ag­er. It will allow you to keep all the key infor­ma­tion in one place, and quick­ly ana­lyze the cur­rent state of each of the projects.

We wrote more about effec­tive mul­ti­ple project man­age­ment here.

Quick finan­cial growth

Sta­tis­tics demon­strate that com­pa­nies with agile man­age­ment method­olo­gies increase their rev­enues 37% faster than those who refuse such an approach. In addi­tion, agile orga­ni­za­tions are approx­i­mate­ly 30% more prof­itable than inflex­i­ble competitors.

To use this ben­e­fit of project man­age­ment it is nec­es­sary to
  • choose a method­ol­o­gy, which ulti­mate­ly suits your business;
  • have tools of finan­cial man­age­ment (any spe­cial­ized ser­vice or a mod­ule in a task manager).

Bet­ter qual­i­ty of prod­ucts and services 

The goal of each project is mak­ing a prod­uct. So, 44% of com­pa­nies that work using project man­age­ment con­firm that the qual­i­ty of their prod­uct is high­er than those that do with­out this man­age­ment format.



This is large­ly pos­si­ble due to progress and error track­ing sys­tems. After project com­ple­tion the data from these ser­vices are col­lect­ed, sys­tem­atized and ana­lyzed. As a result, you can notice com­mon mis­takes and avoid them in the future. You can also see the best prac­tices at once. There­fore, they become the basis of work on the com­pa­ny’s future projects.

Sav­ing time

It is known that the project man­age­ment sys­tem offers man­agers the oppor­tu­ni­ty to work in less time.

On aver­age it is not much, just ten min­utes a day. But dur­ing the year it is about 153 hours or 19 work­ing days. Not bad, right?

This time is saved because project man­age­ment method­olo­gies tra­di­tion­al­ly pre­scribe the use of ser­vices: task man­agers, time track­ers, etc. These tools offer automa­tion of many rou­tine actions and you get the infor­ma­tion you need faster.

The degree of pre­dictabil­i­ty is increasing

One of the basic things in the project man­age­ment process is plan­ning. When all com­po­nents of work are care­ful­ly worked out, it is pos­si­ble to under­stand at the ini­tial stage whether the project will be successful.

It is also pos­si­ble to pre­dict prob­a­ble risks in advance and decide how to man­age them. There­fore, the prob­a­bil­i­ty of an unpre­dictable event is very small.

In order for every­thing to work as it should, you need to sys­tem­at­i­cal­ly work accord­ing to the prin­ci­ples of the cho­sen method­ol­o­gy and clear­ly per­form all the actions pro­vid­ed for the project life cycle. That is: if in one project every­thing is done accord­ing to the rules from the ini­ti­a­tion phase to the com­ple­tion phase, then in the next one you will have less unpre­dictable items.

Reduc­ing stress and burnout of employees

When employ­ees have to con­stant­ly keep a lot of things in mind, solve tasks with­out rely­ing on a pre­vi­ous expe­ri­ence, and also have prob­lems with com­mu­ni­ca­tions — a con­stant stress, and over time, burnout — is guaranteed.



If you fol­low the prin­ci­ples of project man­age­ment and use the appro­pri­ate tools, you can reduce these neg­a­tive phe­nom­e­na. After all, the tasks will be col­lect­ed in the task man­ag­er, the doc­u­men­ta­tion with the team’s pre­vi­ous expe­ri­ence can be eas­i­ly found in the cor­po­rate knowl­edge base, and the main com­mu­ni­ca­tions can be con­duct­ed in the mes­sen­ger inte­grat­ed with a task manager.

Opti­miz­ing the use of resources

You have def­i­nite­ly faced the fact that work­ing time is less than tasks that need to be solved. Unfor­tu­nate­ly, almost every­one has this expe­ri­ence. But teams that work with project man­agers and task track­ers usu­al­ly face this less often. Why?

Because all the tasks are fixed, they have pri­or­i­ty lev­els, and there are also time stan­dards for com­plet­ing cer­tain tasks.
Accord­ing­ly, the project man­ag­er, for exam­ple, sees that some­one has an over­loaded list of tasks, and all tasks have a high pri­or­i­ty while some­one else in the same peri­od has only tasks that are not dif­fi­cult and not very urgent. So, he can redis­trib­ute tasks, mak­ing work­load more adequate.

Reduc­ing the risk of bankruptcy 

Sta­tis­tics state, projects with an invest­ment of more than $1,000,000 fail 50% more often than those with a bud­get of up to $350,000. It is clear that such an epic mis­take can end in com­plete finan­cial collapse.

There­fore, project man­age­ment is impor­tant for those who work with expen­sive projects. After all, as we indi­cat­ed above, com­pa­nies in which project man­age­ment is car­ried out by pro­fes­sion­als are gen­er­al­ly more successful.

Bet­ter team communications

Above we men­tioned the impor­tance of com­mu­ni­ca­tions, because it some­times becomes a real chal­lenge in project man­age­ment. In fact, this prob­lem can only be solved by fol­low­ing the prin­ci­ples of the cho­sen methodology.

To improve team com­mu­ni­ca­tion, you can use task track­ers with a built-in chat and/​or inte­gra­tion with pop­u­lar mes­sen­gers. In this way, you avoid the prob­lem of lost mes­sages and unno­ticed tasks.


Increas­ing the effec­tive­ness of leaders

A true leader should always be aware of the affairs of the com­pa­ny as a whole, as well as cer­tain projects. When all teams work with­in the approved stan­dards, it is eas­i­er for the man­ag­er to get an overview of what is hap­pen­ing. All teams have the same stan­dard of doc­u­men­ta­tion, task set­ting reg­u­la­tions, KPI, etc.

Task man­agers, which have Gantt charts, dash­boards, etc., also sim­pli­fy the man­ager’s work. That is, tools that allow you to lit­er­al­ly see the main indi­ca­tors for each project on one screen.

Increas­ing trans­paren­cy of process­es and roles in teams

Often team mem­bers do not under­stand each oth­ers’ respon­si­bil­i­ties even with­in their own divi­sion, noth­ing to speak about oth­er depart­ments and top man­agers. At the same time, about 38% of orga­ni­za­tions believe that this uncer­tain­ty is one of the main obsta­cles to project success.

High-qual­i­ty project man­age­ment is based on max­i­mum trans­paren­cy, when every­one can see, for exam­ple, in the task man­ag­er, which tasks his col­league or direct man­ag­er is respon­si­ble for. When work is struc­tured in this way, it is much eas­i­er for peo­ple to ask for help, del­e­gate tasks and go to suc­cess together.


More atten­tion to strate­gic tasks

Project man­age­ment assumes that many rou­tine tasks are auto­mat­ed and process­es are stan­dard­ized. That is, both employ­ees and man­agers can have more time for the strate­gic tasks.

This approach results in growth and expan­sion of the company.

Good under­stand­ing of goals and progress 

As men­tioned above, it is impor­tant for lead­ers to quick­ly assess the state of affairs in the com­pa­ny. But it is no less impor­tant for oth­er employ­ees. Hav­ing clear­ly defined goals is real­ly moti­vat­ing. Besides, when every­one sees how much they have already done, for exam­ple, from a month­ly or a week­ly plan, it becomes eas­i­er to move on.

There­fore, when man­ag­ing projects, it is worth hav­ing the visu­al dis­play of goals and the amount of work that the team has already com­plet­ed. Here, again, charts, scales, per­for­mance graphs, etc. are of great help.


Con­sid­ered decision-making

When deci­sions are made intu­itive­ly, it usu­al­ly leads to unpre­dictable con­se­quences. There­fore, much atten­tion is paid to the gath­er­ing and struc­tur­ing of infor­ma­tion in project man­age­ment. Based on it, you can make bal­anced, rea­son­able and effec­tive decisions.

Sim­ple reporting

Hav­ing a sin­gle stan­dard for work­ing with infor­ma­tion for the entire com­pa­ny, it is much eas­i­er to gath­er it and make it into a report. Besides, there are tools that auto­mat­i­cal­ly down­load cer­tain data in the for­mat of graphs and tables. That is, you don’t even need to spend time con­vert­ing num­bers into graphics.

This is espe­cial­ly use­ful when the team works in an hourly pay­ment for­mat. Then it is enough for each spe­cial­ist to record the time spent on solv­ing tasks every day. At the end of the month, you can down­load a ready-made report, where the time for the projects will already be calculated.

Effec­tive man­age­ment of work volumes

It hap­pens that the com­pa­ny has a poten­tial client who would like to order cer­tain ser­vices. But the man­age­ment is not clear whether the exist­ing staff will be enough or new employ­ees must be hired.

This hap­pens in com­pa­nies with no project man­age­ment. If it exists, then the amount of work and work­load dis­tri­b­u­tion among employ­ees is easy to estimate.

Accord­ing­ly, it is also easy to under­stand how to deal with an addi­tion­al work­load. For exam­ple, if you have five employ­ees, each work­ing 40 hours a week and ful­ly loaded, you should not take an order for 20 addi­tion­al hours and expect to ful­fill it with the avail­able forces.

But, let’s repeat, you can under­stand this, if you record time and employ­ees’ workload.

Quick adap­ta­tion of new employees

With a well-estab­lished project man­age­ment sys­tem, you can train new team mem­bers faster, because a large part of the process­es is described.



Besides, the expe­ri­ence of work­ing with cer­tain requests has already been accu­mu­lat­ed, so a new per­son will not have to invent on his own what some­one already knows. It is enough to ask col­leagues and study the infor­ma­tion received.

Greater sat­is­fac­tion of all participants

It is clear that cus­tomers are hap­py when their order is ful­filled on time (or ahead of sched­ule), with­out cost over­runs and seri­ous defects. Like­wise, the team is sat­is­fied with every­thing going accord­ing to plan, with­out dis­rup­tions and work to exhaustion.

This is what all project man­age­ment method­olo­gies are aimed at and, as prac­tice shows, their use makes it pos­si­ble to achieve over­all satisfaction. 

Increas­ing the attrac­tive­ness of the com­pa­ny for part­ners and customers

Gen­er­al­ly, peo­ple want to work with those who are sta­ble, effi­cient and pre­dictable. Com­pa­nies with imple­ment­ed project man­age­ment are just like that. There­fore, they will always have advan­tages over com­peti­tors and attract part­ners with the same values.

Easy scal­ing

Com­pa­nies that work with project man­age­ment prin­ci­ples from the very begin­ning scale faster and more effi­cient­ly, because the man­age­ment already knows about the best prac­tices that help achieve results. There­fore, when new teams, depart­ments and areas of activ­i­ty appear in the com­pa­ny, their work is auto­mat­i­cal­ly built in the best way.

How do you deter­mine the val­ue of project man­age­ment for the company?

Now you know why project man­age­ment is impor­tant for com­pa­nies and what spe­cif­ic advan­tages it offers. But there can be dif­fi­cul­ties with the ques­tion of mea­sur­ing val­ue. After all, real­ly high-qual­i­ty project man­age­ment works so organ­i­cal­ly that it seems as if all process­es hap­pen by themselves.

There­fore, the real val­ue of project man­age­ment is often noticed when there is an oppor­tu­ni­ty to com­pare. That is, to see what hap­pens when there is no project man­age­ment, namely:
  1. releas­es do not come out on time;
  2. work sched­ule is vio­lat­ed;
  3. bud­gets are exceed­ed.

As a sum­ma­ry, project man­age­ment impor­tance is that it helps to val­ue the time, mon­ey and effort that the com­pa­ny spends on the com­ple­tion of the project, and helps to make these invest­ments as prof­itable as pos­si­ble. So good project man­age­ment and all its com­po­nents will allow you and your team to work more effi­cient­ly and accom­plish more in less time.

esc
Share
или
PM school
Project scope is the cornerstone of an organization, guiding teams through the complex challenges of transforming ideas into tangible results. Defining the scope of a project is critical to its success...
13 February 2024   •   11 min read
PM school
Project management is a field that has been in constant evolution over the last couple of decades. It's critical to the success of companies and organizations in a wide range of industries. The role of...
22 January 2024   •   12 min read
PM school
Today we will discuss the difference between goals and objectives, which is important to understand. Knowing this will make it easier to plan your business and achieve results. Goals give us a final image...
17 December 2023   •   8 min read
Get started now
Please enter your real email 🙂