Management A Competitive Advantage
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Recently, a number of the world's leading project management organisations have taken important initiatives to illuminate government management in regards to the strategic importance and advantages of project management. The focus would be to move from specific project management to organisational project management, which these organisations keep is a strategic advantage in a competitive economy.
In this article, Ed Naughton, Director General of the Institute of Project Management and current IPMA Vice President, requires Professor Sebastian Green, Dean of the Faculty of Commerce and Professor of Management and Marketing at University College Cork (previously of the London Business School), about his views of proper project management as a car for competitive advantage.
Ed: What do you point ideal Project Management is?
Prof. Green: Strategic project management is the management of those tasks that are of critical importance to help the business in general to own competitive advantage.
Ed: And what defines a competitive advantage, then?
Prof. Green: You can find three qualities of experiencing a core competence. The three characteristics are: it adds value to customers; it is maybe not simply imitated; it opens up new opportunities in the future.
Ed: But just how can task management provide a competitive advantage?
Prof. Green: There are two aspects to project management. One element is the actual selection of the sort of projects that the business engages in, and subsequently there's implementation, the way the projects themselves are handled.
Ed: Competitive advantage - the importance of choosing the projects - it is difficult to define which projects should be chosen!
Prof. Green: I do believe that the choice and prioritisation of projects is something that has not been done well within-the project management literature because it's generally been thought away through reducing it to financial analysis. The strategic imperative gives you an alternative way of prioritising projects since it is saying that some projects may not be as successful as others, but when they add to our expertise relative to others, then that is going to be important.
Therefore, to simply take an example, if a company's competitive advantage is introducing new services more quickly than the others, pharmaceuticals, let's say, finding product to market more quickly, then your projects that enable it to get the product more quickly to market are likely to function as the most critical ones, even if in their own terms, they do not have higher profitability than some other projects.
Ed: But if we are going to select our jobs, we've to establish what're the guidelines or measurements we're going to select them against giving us the competitive advantage.
Prof. Green: Completely. The company needs to know which activities it's employed in, which are the critical ones for it competitive advantage and then, that drives the selection of projects. Firms are not excellent at doing that and they may not even know what these activities are. They will believe it is every thing they do due to the energy system.
Ed: If its strategy is formulated by a company, then what the project management group says is that project management is the medium for delivering that strategy. Therefore, if the company is great at doing project management, does it have any strategic advantage?
Prof. Green: Well, I suppose that comes back to this issue of the difference between the kind of projects that are chosen and the way you manage the projects. Demonstrably choosing the kind of projects depends on being able to link and prioritise projects ac-cording to an understanding of what the ability of an organisation is in accordance with others.
Ed: Let's suppose that the technique is placed. So that you can deliver the strategy, it's to be separated, decomposed into a series of tasks. Thus, you have to be good at doing project management to supply the strategy. Now, the literature says that for an operation to become great at doing jobs it's to: devote project management procedures, train people on how to apply/do project management and co-ordinate the efforts of the people qualified to work to procedures in and built-in way utilizing the concept of a project company. Does getting those three steps provide a competitive advantage with this operation?
Prof. Dig up supplementary info on our affiliated web page - Click here: asea sex com site. Green: Where project management, or how you handle tasks, becomes a source of competitive advantage is when you may do things better than others. The 'better than' is through the ability and thinking and the data that will be built-up as time passes of managing projects. There's an experience curve effect here. Regarding knowledge they've built-up to manage those components of projects where the rule book is inadequate two organizations will soon be at various points in the experience curve. You-need knowledge and management sense because however good the rule book is, it'll never deal completely with the complexity of life. You have to manage down the experience curve, you've to manage the learning and knowledge that you've of these three areas of project management because of it to become strategic.
Ed: Well, then, I believe there's a niche there that's to be resolved as well, in that we've now produced a competency at doing project management to do projects, but we have not aimed that competency to the choice of projects which can help us to give this competitive advantage. Is project management effective at being copied?
Prof. Green: Not the softer features and not the develop-ment of tacit understanding of having run many, many jobs over time. Therefore, for example, you, Ed, do have more knowledge of how to work tasks than other people. That is why people stumbled on you, because while you both may have a typical book including the PMBoK or even the ICB, you have produced more experiential knowledge around it.
Essentially, it can be imitated a certain amount of the-way, however not once you arrange the softer tacit knowledge of experience into it.
Ed: Organisational project management maturity types are a hot topic at this time and are directly linked to the 'knowledge curve' effect you mentioned ear-lier - how should we see them?
Prof. Green: I really believe in moving beyond painting by quantities, moving beyond the idea that that's all you should do and you may demand this pair of text book practices and capabilities and procedures and an enterprise is completely plastic. In a way, exactly the same problem was experienced by the designers of the ability curve. Learn further on this related article directory - Click here: chris brummer. It's very nearly as though, for every single doubling of volume, cost reductions occur without you having to do something, if you show the experience curve to companies on cost. Visit www.asea to discover the reason for this belief. What we know is nevertheless, that the experience curve is a potential of a risk. Its' realisation depends on the skill of administrators.
Ed: Are senior executives/chief executives in the attitude to understand the potential benefits of project management?
Prof. Green: Until lately, project management has promoted it-self in technical terms. Then it'd become more attractive to senior managers, if it was promoted in terms of the integration at basic management, at the ability to manage across the features financing method processes with thinking. So, it is about the mixing of the smooth and the difficult, the methods using the judgement and the experience that makes project management so effective. If senior managers don't accept it right now, it is not because they are wrong. It's because project management has not sold itself as efficiently as it should've done.
Ed: Do we have to offer to senior executives and chief executives that it'll produce competitive advantage to them?
Prof. Get further about www asea com products info by visiting our prodound wiki. Green: No, I think we need to demonstrate to them how it does it. We need to go inside and actually show them how they could put it to use, not just with regards to delivering tasks on time and within cost. We need to show them how they can use it to overcome resistance to change, how they can use it to enhance capabilities and actions that lead to competitive advantage, how they can use it to enhance the tacit knowledge in the operation. There is an entire range of ways in which they could utilize it. They need to observe that the proof of the end result surpasses just how they are currently doing it..