In life, almost everything we do can be considered a project. Whether it's forming a team, recruiting new members, rolling out a fresh marketing campaign, or handling financial tasks, these are all projects in one way or another. If we lack the skills to manage these projects effectively and ensure their successful completion, they are likely to fail. However, if we apply the principles of project management, we can significantly increase the likelihood of achieving our goals and completing our projects with a high degree of success.

What is a Project?

The Project Management Institute (PMI) defines a project as "a temporary endeavor undertaken to create a unique product, service, or result." This definition emphasizes the temporary nature of a project, as it is distinct from ongoing operational activities. To illustrate this concept, consider the process of hiring employees. Hiring is an ongoing activity for an organization, and therefore does not qualify as a project. However, if the organization is undertaking the specific task of hiring a CEO, COO, Head of Operations, or Head of Marketing, then this can be considered a project. Once the individual is hired, the project is completed, demonstrating the temporary nature of the endeavor.

What is Project Management?

Project management involves the strategic application of knowledge, skills, tools, and techniques to effectively execute project activities and meet project requirements. In essence, project management is the utilization of these four components - knowledge, skills, tools, and techniques - to successfully complete a project.

After defining the project, it's essential to understand the frameworks and steps of management that provide the structure for the project and guide its successful completion from start to finish. Let's delve into these steps in detail.

Steps in Project Management

I recently came across a comprehensive explanation of the five pillars of project management:

1. Initiation: This stage involves conceiving a project and thinking it through. For instance, if you decide to hire a CEO for your company, that's when you've initiated the project.

2. Planning: Proper planning and team formation are crucial. Using the CEO hiring example, you might first need to hire a Head of HR or Consultant to oversee the hiring of the CEO. This individual would conduct 10-15 interviews and select the most suitable candidate.

3. Execution: Once the planning is complete, the project needs to be executed. In the case of hiring a CEO, this might involve conducting interviews over a period of time and eventually sending out an offer letter and managing the onboarding process.

4. Monitoring and Controlling: This phase involves closely monitoring the execution of the project. For example, if you've delegated the CEO hiring process to an HR resource, a senior HR manager should monitor the progress and ensure it stays on track.

5. Closing: Finally, the project should be closed with 100% achievement. Even if unexpected factors arise and cause the project to extend, a strong project manager should be able to handle it and adjust the plan accordingly.

These are the critical reasons why project management is essential for businesses and why students should learn this valuable skill.

Ten Steps of Making Project Management Successful

1. Integration – This means how you will be able to fit the entire project in your company. Integration is very necessary. Many times, you become so passionate about one project that you leave all other things. It should not happen that your entire focus comes on a small project and companies’ actual growth goes away. Don’t do this.

2. Scope - As a project manager, your KRA is the scope of the project.

3. Time - You need to decide in how much time it is to be delivered and how much time would it take to complete it.

4. Cost - The cost of the project includes human resource cost, operational cost, technical cost, etc.

Example:

How big IT companies like Wipro, TCS, and Infosys earn money? If they are making software for big international clients, then they need to decide various things like how they make these software and from where their employees’ salaries will come, etc. All this comes in project management.

In these companies, the customer gives them work. The project manager decides the number of people required for it along with the total cost of their salaries and scope of work. Based on the amount he will take from the client for the project and time duration in which he will deliver the project, the fund is allocated to the project manager.

5. Procurement – For projects’ success, procurement is very necessary. Procurement can be of anything. It can be of raw material, human resources, communication, funding, etc. So, procurement is critical.

6. Human Resources – How many people are required, which skillset people are required, and what cost of people you will put on that project. This choice is yours.

7. Communications - If there are less people in the project, say 2, then it’s easy to communicate. But if the team is big or the project requirements increase, then communication becomes a challenge. A big team can be of 5000 people and communication in such a big team becomes difficult. The KPIs and KRAs of the team will also be set by the project manager.

8. Delay – Everyone knows that the project should not be extended, else the cost will increase.

9. Risk Management –If you are an owner, who is a project manager or you hire a project manager, then from day 1 you should know about the potential risk of the project. The risk could be any say:

• Employee leaves in-between
• If any communication goes wrong
• Any natural calamities if happens
• No funding

So, you should know and be prepared for risk management.

Example:

In real estate, builders promise that if you pay today, the flat will be yours after 5 years. But, those 5 years never come.

10. Stakeholder Management – A project can have internal stakeholders and external stakeholders. Internal stakeholders are your employees and external stakeholders are your customers, partners, retailers, and distributors. And, if you are listed as a public company, then every person in the public is your stakeholder. You need to communicate with them and manage the project.

Example:

Basecamp is a US-based tool, which helps 100% to manage the project of your business successfully. It is a very easy and economical tool with an incredible team for many years. If you implement its SaaS-based software, your entire project management will be in your hands.

The day you are able to manage the project, you will see that you can make your small business like Amazon, which is gathering several small projects.