**2.1 Necessity for project management**

Managing project is fast becoming a standard way of executing business strategies. Some of the reasons for deploying project management practices are:


Nature and frequency of projects determine whether an organization requires an informal or formal project management practices. Some of the following questions will help determine the requirement of a formal project management in organizations.


Affirmative responses to some or all of these questions will determine the extent to which project management is required to be formalized. However, project Management (PM) needs investment in resources and consequently demands results. Also, organizations are required to train people at all levels. On the positive side, PM facilitates effective and efficient use of resources. PM also provides an opportunity for senior management to realize strengths and weaknesses of an organization.

In many organizations, PM demands changes in policies, practices, and procedures. Further, PM will also influence the function of finance because project-based financial control systems are routinely implemented. PM tools and techniques aid productivity and help us deal with complexity [7].

### **2.2 Key drivers of project performance**

Projects, by definition are new and learning new is associated with change in behavior. Thus, working in teams, integrating, learning, and collaborating are essential characteristics of the project teams. Consequently, effective communication assumes great importance for its success. As a general rule, with the increase in project size, the number of people involved in the project will also increase. Consequently, effective communication becomes complex with the increase in project size. Based on extensive research, the following are identified as the key drivers of project performance and they are also considered success factors [7]. It is the primarily the responsibility of the project manager to:

**219**

*Project Management Concepts*

• establish trust

*DOI: http://dx.doi.org/10.5772/intechopen.93766*

• create clarity in communications

• facilitate organizational support

• PM Maturity and success

considered successful by the client.

**3. Strategic alignment**

**4. Scope management**

for the project execution.

meeting the enterprise financial objectives.

• communicate expectations and outcomes to all stakeholders

• manage outcomes be developing performance measures

Project management maturity is a state determined by fully developed standards and processes, which lead to repeatable success in managing projects. PM maturity ultimately should lead to developing best PM practices. However, you should remember that project success factors are different for different stakeholders. For example, a project, in spite of experiencing time and cost overruns, may still be

The distinction between project success and project management success must be understood. Project success is measured against the overall project objectives whereas project management success is a measure of managing project within time, cost, and meeting the scope requirements [8]. Success of a project should be measured by considering three different areas: project meeting its own cost-duration targets, the deliverable meeting enterprise strategic objectives, and the deliverable

Projects are means to accomplish strategic objectives and goals of organizations. Project Management (PM) is an integration of several academic disciplines such as accountancy, decision sciences, economics, finance, and management. It uses systems approach in integrating these disciplines. PM will continue to grow in its importance because it is how business is done, in the present global economy.

Project selection should be based on the corporate strategic plan and investment

Project Scope must include all the work required, and only the work required by the client [6]. Scope management is concerned with defining and controlling the scope. It assumes greater importance than all other knowledge areas of project management. The scope should define the project by what should and should not be planned, budgeted, staffed and executed. Project scope also identifies the boundaries separating excluded activities or resources from those, which must be included

strategies [1]. Thus, each project must have a business objective that is aligned with the strategic plan; it will serve as the foundation for the project investment proposal. In addition, a project must conform to a broader purpose than a set of internally derived objectives. It must support overarching strategies of their parent company or its clients. To be successful, the project manager and the team should clearly understand the vision and mission of their clients; such understanding is more likely to deliver products and services that meet demanding customer

requirements, which eventually results in customer satisfaction.


#### *Project Management Concepts DOI: http://dx.doi.org/10.5772/intechopen.93766*


*Operations Management - Emerging Trend in the Digital Era*

• increased competition due to free market philosophy

• Is the effort associated with complexity and uncertainty?

• constraints of cost, time, and scope (quality)

• Are there multiple functions involved?

productivity and help us deal with complexity [7].

the primarily the responsibility of the project manager to:

**2.2 Key drivers of project performance**

• define project processes and roles

• implement consistent processes

Managing project is fast becoming a standard way of executing business strategies. Some of the reasons for deploying project management practices are:

Nature and frequency of projects determine whether an organization requires an informal or formal project management practices. Some of the following questions will help determine the requirement of a formal project management in organizations.

• Are external and technical environments dynamic to compel changes in the

• Is it governed by constraints such as time, budget, scope, and quality?

Affirmative responses to some or all of these questions will determine the extent to which project management is required to be formalized. However, project Management (PM) needs investment in resources and consequently demands results. Also, organizations are required to train people at all levels. On the positive side, PM facilitates effective and efficient use of resources. PM also provides an opportunity for senior management to realize strengths and weaknesses of an organization.

In many organizations, PM demands changes in policies, practices, and procedures. Further, PM will also influence the function of finance because project-based financial control systems are routinely implemented. PM tools and techniques aid

Projects, by definition are new and learning new is associated with change in behavior. Thus, working in teams, integrating, learning, and collaborating are essential characteristics of the project teams. Consequently, effective communication assumes great importance for its success. As a general rule, with the increase in project size, the number of people involved in the project will also increase. Consequently, effective communication becomes complex with the increase in project size. Based on extensive research, the following are identified as the key drivers of project performance and they are also considered success factors [7]. It is

**2.1 Necessity for project management**

• knowledge economy

• resource constraints

organization?

• client focus

**218**


Project management maturity is a state determined by fully developed standards and processes, which lead to repeatable success in managing projects. PM maturity ultimately should lead to developing best PM practices. However, you should remember that project success factors are different for different stakeholders. For example, a project, in spite of experiencing time and cost overruns, may still be considered successful by the client.

The distinction between project success and project management success must be understood. Project success is measured against the overall project objectives whereas project management success is a measure of managing project within time, cost, and meeting the scope requirements [8]. Success of a project should be measured by considering three different areas: project meeting its own cost-duration targets, the deliverable meeting enterprise strategic objectives, and the deliverable meeting the enterprise financial objectives.
