The Role of Project Management in Today’s Business Environment

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Project management has become a vital component in today’s business environment. It has become a standard way of doing business today. A project can be anything with a defined objective and a life cycle which has a beginning and an end. A project should be on time, on budget and should meet the given specifications. The demand for project management has increased and a best indicator for that is the expansion of Project Management Institute (PMI). According to statistics the number of failed projects has decreased from 31% in 1994 to 18% in 2004. Managing a project is interesting because it’s not like daily organizational repetitive work; it is always something new that you haven’t done before. Following are the driving forces for demand of project management. * A business should focus on increasing strategic advantages. Back then, the main goal of a business was to make a good profit, but today in addition to making a profit, companies pay more attention on ‘time to market’. Project management helps in shortening the product life cycle which makes it an important force of modern business. A product life cycle of 10 to 15 years those days has been compressed to a life cycle of 1 to 3 years. It is said that a delay of 6 months in a project can cause a loss of 33% in product revenue share. * Due to vastly available knowledge the complexity of a project has been increased. A product is a combination of a variety of technologies, and to face this complexity project management is needed. * An organization should focus on three factors; profit, how the company corporate with people and how environmentally responsible the company has been, which are also known as the three bottom lines. By effectively applying project management, a company can have the balance of the triple bottom line. * Customer satisfaction is one of the main goals of a company. In

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