Investing in project management doubles the odds of success
Key takeaways
One-third of projects fail due to subpar program and project management
Well-managed programs navigate complexities and enable quick adaptation
The success of any organization often hinges on the effective management of programs and projects. While these two disciplines are closely related, they serve distinct functions in driving business objectives. Understanding the nuances of each and mastering their execution is critical for modern organizations.
An important investment
While often used interchangeably, program management and project management accomplish different goals. Project management is focused on a specific, well-defined objective—such as launching a product or implementing a new system—within a set scope, timeline and budget. In contrast, program management consists of overseeing a collection of related projects that have a broader, long-term business objective in mind. Program management requires strategic oversight and the ability to balance multiple moving parts and ensure alignment with overarching business objectives.
In either case, organizations should invest in these management practices. An effective program or project manager makes sure that all contributors are focused on a common goal, helping the company to avoid costly delays and ensuring that tasks are completed on time and within budget. Because of its need to be flexible and adaptable, program and project management is more art than science.
According to a study by Wrike, organizations that invest in dedicated engagement management more than double their odds of achieving a successful outcome. In contrast, more than one-third of all projects fail because of subpar project or program management, according to a study by the Project Management Institute.
Without robust program or project management many initiatives are set up to fail. This can be devastating for organizations, especially in industries where technology changes rapidly, such as AI and robotics. Well-managed programs and projects emphasize integrated delivery across teams, enabling companies to adapt quickly to the evolving business landscape.
By using standardized project and program management practices, companies can reduce their administrative overhead and improve profit margins through effective risk management, better resource allocation and enhanced client satisfaction.
Qualities of a strong manager
An effective project or program manager offers more than just technical expertise. Professionals have a clear understanding of an initiative’s expected benefits and can map those results directly to project or program activities. A strong manager also possesses excellent communication skills and focuses on key performance indicators to gauge progress.
Additionally, conflict management is a key skill. Given the complexity of most projects or programs, disputes are inevitable, whether over resources, priorities or timelines. A good manager can resolve conflicts through customized communication, prioritization and transparency.
Tools like AI and strategic portfolio management software are set to revolutionize program and project management. These tools offer greater visibility and help managers assess the impact of changes in real time. AI-driven tools are becoming increasingly intelligent, helping to identify potential risks and optimize plans by analyzing data from multiple sources. While these tools can enhance efficiency, they won’t replace the need for skilled managers. Ultimately, it’s the human element—leadership, decision making and communication—that drives project or program success.
Best practices
Organizations with strong management practices often reduce waste and gain flexibility for future growth opportunities. This measurable impact transforms program and project management from an overhead cost to a strategic advantage, driving both immediate and long-term business value.
Developing a clear strategy for project or program execution starts with understanding the connections between different teams, products and scopes. Defining the "what, why and how" of the initiative is crucial for breaking down tasks into manageable pieces. Once the objectives are clear, they can be translated into timelines, status reports and deliverables.
Regular monitoring and the tracking of progress are also essential. Managers must establish contingency plans and risk mitigation strategies to handle unexpected challenges. This involves continuously assessing risks and communicating them effectively to make sure that potential issues are addressed before they escalate.
One of the most significant challenges is pinpointing interdependencies between different teams, products or systems. Neglecting these interdependencies can lead to delays or failures. Creating a checklist of “give and gets”—what each team provides and receives from others—can help map out these relationships and increase the odds of a smooth collaboration.
Sanga Chandel, principal, RSM US LLP
Resource constraints are another common challenge. Many organizations are hesitant to invest in project or program management, viewing it as an overhead cost rather than a critical investment. But this is a flawed approach. Skimping on project or program management for a high-stakes initiative can lead to massive losses, while investing in management dramatically increases the chances of success.
The takeaway
Program and project management are indispensable components of modern business. With strong leadership, a clear understanding of scope and risks, and the ability to build trust across teams, managers can navigate the complexities of today's business environment. At its core, program and project management blends technical skills with strategic insight that guides the organization toward success.
RSM contributors
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