Learning from the Successful
Companies in construction, engineering, architecture, and defense industries operate in highly competitive environments in which their primary source of profit is the margin between their project costs and contract price. Every dollar or day of overrun reduces their bottom line. They must do project management efficiently to survive, and much can be learned from their practices.
Central to their project management efficiency is the project administration service. Visit our Project Administration Service page for a description of this service and its benefits.
If your company derives its revenue from the sale of products or services instead of from projects the cost of project management has become a growing concern over the last 10 to 15 years. Globalization has Increased competitive pressure in almost every industry creating the need for companies to cut costs while increasing productivity, generating the need for more projects done more quickly and efficiently to implement these changes. Your company may not depend on projects for its revenue, but the cost of projects increasingly affects your bottom line.
Because your product and/or service company has traditionally focused more attention on other processes, there is a high probability that your project management process has not yet reached the maturity level of companies that do projects for a living. Responding to pressures to improve project management efficiency many companies have embarked on unnecessarily expensive programs to catch up.
Visit our Process Comparison page to compare the objectives of your project management program with the practices of those in the business of project management. How many elements of the "Expensive Methodology" are being implemented in your organization?
For a discussion of why the recent increase in interest in project management efficiency see Project Administration Library item (4), "Seven Techniques for Project Control in a Functional (Matrix) Environment" and scroll down to the discussion on "The Accelerating Growth of Interest in Project Management."