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Done well, projects can give a firm a significant competitive advantage. Is it a needed function? Should it be outsourced? Our view is that projects hold the key to an organization’s productive future and done poorly can lead to the failure of a business. Projects have high failure rates and there is even some debate about projects and their value in the organization. Many references are made in various articles that point out that project management as a profession has not been very successful from an outsiders view. As a result, projects in organizations have simply not had sufficient time to mature to the state of other business disciplines such as finance, operations, or accounting. On the other hand, managing projects in an enterprise is one of the newest disciplines with its roots in the latter 1950s for most organizations. While managing projects is one of the oldest and most replicated accomplishments of mankind, one only has to look at the achievements of the builders of pyramids, the masons and the craftsmen of great cathedrals and mosques, the constructors of the Great Wall of China, and other manmade wonders of the world. Many project management professionals who work well in this area would say that the list consolidates a significant and sometimes overwhelming task.
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Besides a well defined charter, the list that follows summarizes some of the major project management functions that are necessary to achieve success in projects: Regardless of the physical arrangements of the functions, there is a common set of related organizational needs when properly delegated to the appropriate groups that can be used to save or manage projects. Some have fragmented and decentralized groups with multiple titles indicating that they are projects, while others might have large aggregations of project management professionals in a centralized support organization. Different organizations handle the functional projects differently.
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There is no single method or organizational structure that can be used to manage projects to success. The same enterprises agonize over the causes of project failure, call in expensive consultants to assess and recover failing projects, and often abandon what originally seemed like well-planned, well-organized projects, destined for success. Each year, enterprise organizations around the world face astronomical project failure rates, often wasting millions of dollars per failed project.