Recently, several the world's top project management companies have taken important initiatives to illuminate executive management in regards to the strategic value and benefits of project management. The emphasis is always to move from specific project management to organisational project management, which these companies maintain is a strategic advantage in a competitive economy.

In this essay, Ed Naughton, Director General of the Institute of Project Management and recent 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 issue strategic Project Management is?

Prof. Green: Strategic project management may be the management of the tasks that are of critical importance to enable the company as a whole to own competitive advantage.

Ed: And what defines a competitive advantage, then?

Prof. Green: There are three characteristics of having a core competence. The three qualities are: it gives value to customers; it's not simply imitated; it opens up new possibilities later on.

Ed: But how can project administration provide a competitive advantage?

Prof. Green: You will find two aspects to project management. One aspect is the actual collection of the kind of projects that the organisation partcipates in, and subsequently there's implementation, the way the projects themselves are handled.

Ed: Competitive advantage - the importance of choosing the projects - it is challenging to determine which projects ought to be chosen!

Prof. Green: I do believe that the choice and prioritisation of tasks is something that has not been done well within the project management literature because it's essentially been assumed away through reducing it to economic analysis. Be taught supplementary information on this affiliated web site - Click this link: ambrotose. The strategic imperative gives another way to you of prioritising projects because it is saying that some projects might not be as profitable as others, but when they add to our proficiency relative to others, then that is going to be important.

So, to take an example, if a company's competitive advantage is introducing services more quickly than others, pharmaceuticals, let us say, getting product to market more quickly, then a projects that allow it to obtain the product more quickly to market are going to be the most critical types, even if within their own terms, they do not have higher profitability than other sorts of projects.

Ed: But if we are going to select our jobs, we've to establish what're the variables or measurements we are going to select them against that provide the competitive edge to us.

Prof. Green: Completely. The enterprise must know which actions it's involved in, which are the critical ones for it then and competitive advantage, that drives the choice of projects. To get supplementary information, please check-out: close window. Organisations aren't excellent at doing that and they could not even understand what those activities are. They will believe that 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 will be the channel for providing that strategy. Then, if the operation is good at doing project management, does it have any strategic advantage?

Prof. Green: Well, perhaps that returns to this problem of the difference between the type of projects that are selected and the way you manage the projects. Demonstrably selecting the sort of projects depends on having the ability to link and prioritise projects ac-cording to a knowledge of what the potential of a business is in accordance with others.

Ed: Let's assume the approach is set. To be able to provide the strategy, it has to be separated, decomposed into some tasks. Thus, you have to be proficient at doing project management to provide the strategy. Now, the literature says that for an operation to be proficient at doing tasks 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 integral way utilizing the concept of a project office. Does getting these three methods offer a competitive advantage with this enterprise?

Prof. Green: Where project management, or how you handle projects, becomes a source of competitive advantage is when you can do things a lot better than others. The 'better than' is through the ability and sense and the knowledge that is built up as time passes of managing projects. There's an experience curve effect here. Two organisations will soon be at various points in the experience curve as to the information they've developed to handle these items of tasks where the rule book is inadequate. You-need management thinking and knowledge since however good the rule book is, it'll never deal entirely using the complexity of life. You've to manage down the ability curve, you have to manage the knowledge and learning that you've of these three aspects of project management for it to become strategic.

Ed: Well, then, I do believe there's a gap there that's to be resolved as well, in that we have now produced a competency at doing project management to do projects, but we have not aimed that competency to the choice of projects which may help us to give this competitive edge. Is project management able to being copied?

Prof. Green: Not the softer features and not the develop-ment of tacit understanding of having run many, many jobs with time. So, as an example, you, Ed, have more knowledge of just how to run projects than others. That is why people stumbled on you, because while you both may have a standard book including the PMBoK or the ICB, you have produced more experiential knowledge around it.

Basically, it could be copied a certain amount of the way, however not if you arrange the softer tacit knowledge of knowledge into it.

Ed: Organisational project management maturity types are a hot topic at this time and are directly for this 'knowledge curve' effect you mentioned earlier in the day - how should we view them?

Prof. Green: I believe in moving beyond painting by figures, moving beyond the basic idea that an enterprise is wholly plastic and you can encourage this group of methods and skills and text book standards and that's all you have to do. You might say, exactly the same problem was experienced by the developers of the experience curve. It's almost as though, for each and every doubling of size, cost savings occur without you needing to do something, if you show organizations the ability curve on cost. What we realize is however, that the experience curve is a potential of a possibility. Their' realisation depends upon the ability of managers.

Ed: Are senior executives/chief executives within the mindset to appreciate the potential advantages of project management?

Prof. Green: Until lately, project management has offered it self in technical terms. Then it'd be much more attractive to senior managers, if it was offered in terms-of the integration at general management, at the capability to manage throughout the functions lending technique processes with sense. So, it is about the ability that makes project management so effective, the strategies with the reasoning and the mixing of the hard and the soft. If senior managers don't accept it right now, it's maybe not since they are wrong. It is because project management hasn't sold it self as effectively as it should've done.

Ed: Do we have to offer to senior executives and chief executives that it will offer competitive advantage for them?

Prof. Green: No, I think we must demonstrate to them how it does it. We need to go in there and really show them how they can use it, not merely in terms of offering assignments on time and within cost. We need to show them how they can use it to over come resistance to change, how they can use it to enhance capabilities and actions that cause competitive advantage, how they can use it to enhance the tacit knowledge in the enterprise. To read more, we recommend you check out: asea water. There's a whole array of ways they can utilize it. They need to note that the proof of the results is preferable to the way they're currently doing it..