Project Management is a Powerful Tool for SMEs
The importance of Project Management in Small and Medium Sized Enterprises (SMEs)
The manufacturing industries play a vital role in the economy of many countries. A large number of small and medium sized enterprises (SMEs) make up the manufacturing industries of these countries, but they have some limitations for entrance into and sustainability in the market, especially on a global scale.
SMEs are often suppliers to big companies and are producers of final products for ultimate customers. In the case of their final products, SMEs cannot compete with larger companies without paying due attention to customer needs.
In the current customized market environment, SMEs are able to increase product varieties, but the time for developing a new product is often more than initially thought.
To many SME managers, the majority of project management literature may seem overwhelming, complex or downright inapplicable to their business environments. However, fast moving SMEs inevitably at some point of their development face the challenge of putting into place project management processes in order to handle their growth or improve the products or services that they provide.
Oftentimes the major added value of SMEs is their agility and ability to quickly bring to market products or services – therefore, any initiative that structures this ability or takes time away from the employees is bound to run into resistance.
Project management procedures therefore have to be intelligently scaled to fit the requirements of such SMEs – otherwise such procedures will be perceived as hurdles and overly bureaucratic by the employees.
Project management has become an essential reality for business and government as they aim to encourage innovation, improve efficiency, solve problems and manage scarce resources. However, despite the common misconception that project management is solely for large organisations, it is a powerful business tool for businesses of any size.
As any SME owner will tell you, effectiveness and efficiency is never about size – it is about working intelligently.
Where Are the Projects in Your Business?
Practically every organisation is engaged in some kind of project activity. A project does not necessarily have a huge budget associated with it; a project is any activity in your business that has a distinct deliverable and a clear beginning and end.
Now the questions are:
- Do you know how to properly manage a Project?
- If you are an entrepreneur, do you have the required Project Management skills you need to build your business?
- If you are managing people, do any of them have the Project Management skills that can save you time and money and bring more profit to the bottom line?
Failed Project Management can impact the bottom line
Generally, money spent on projects is wasted because companies do not have a consistent approach to good project management. Further research has shown that Project Management improvement initiatives may improve project performance by up to fifty percent for the first project and can continue for each new project if the enterprise offers ongoing supports with Project Management tools.
Project management is the science of getting things done.
The problem in most businesses is that there is no process to get work done effectively and efficiently.
Small business owners often make the mistake of thinking that because they are small; they don’t need to develop processes. This is certainly not true. Even if you are an entrepreneur and a company of one person, you need to have a standard way of approaching projects. The largest project management challenge facing companies is implementing a consistent process.
From lost time to inconsistency, not having a process means poor performance.
Develop and build your Project Management capabilities
- Understand and know your business drivers and where it is most important to apply the Project Management techniques first.
- Decide and develop a simple and proven approach to Project Management. If you choose something too complicated, no one will follow.
- Train your people at every level with the Project Management skills and tools to help improve their value to your business
- Apply a Project Management Scorecards to measure the effectiveness of your Project Managers throughout the project.
How do you boost your bottom line with Project Management?
- Develop clear and quantifiable goals
- Track your time and money spent
- Constantly meet your deadlines and milestones
- Discover the hidden gems in your project agreement and documentation
- Create a consistent and standardized approach to good Project Management