Source: http://www.pmi.org/eNews/Post/2011_07-22/pm_small_medium_business.html
Large companies like The Boeing Company, Deloitte and Procter & Gamble have enjoyed success, thanks in part to sound project management practices. But what is the value of project management for small- and medium-sized businesses and how can they implement it?
What constitutes small- and medium-sized businesses (SMBs) varies depending on your geographic location and industry. Where some consider a small business to consist of less than 20 employees, others define it as having a few hundred. Medium-sized businesses usually have about 1,000 employees.
With fewer employees to complete the work and compete with the giants of the business world, SMBs have their fair share of challenges. A few of the more common challenges include:
Lack of capital
Lack of skills in specialized areas such as human resources, finance, or project management
Poor processes and procedures
Lack of insight or skills to develop weak areas
If you own or work in an SMB, you may wonder why it’s even important to adopt project management and how your organization can do it when resources already are stretched so far.
How Project Management Helps
SMBs make up 40 to 50 percent of the business world, so adopting sound project management practices can help advance the profession, but also improves your business results and has a positive impact on practitioners.
PMI’s 2010 Pulse of the Profession study surveyed more than 1,100 practitioners from a variety of business sizes from around the world. Regardless of size, the survey found that more than half of respondents have standardized project management practices throughout their organizations.
Moreover, those who use standardized practices [and most use A Guide to the Project Management Body of Knowledge (PMBOK® Guide)] report an average of 16 percent more projects meeting their goals and intent than organizations that don’t use standardized practices. Depending on the size of the project, that 16 percent can translate into significant funds used more effectively. And regardless of the size of the business your work in, that's good news.
High-performing organizations also have formal processes in place for developing project manager competency which helps them finish more projects on time, within budget and meeting the project’s original intent.
Beyond improving project outcomes, developing project manager competency enables organizations to attract and retain the best talent because practitioners feel supported in their professional development and have a career path.
Tips for Implementing Project Management in Your SMB
Philip R. Diab, MBA, PMP, former PMI chair, recently published a book, Sidestep Complexity: Project Management for Small- and Medium-Sized Organizations [PMI, 2011] that looks at the unique challenges of SMBs and offers details on how you can help your organization adopt project management.
In this book, he contends that SMBs still seem underrepresented in the project management community.
Mr. Diab acknowledges that since the needs of an SMB as they relate to adopting project management are different from those of a larger organization, the requirements that are fed into standards, methodologies, tools and processes also have to be different.
He offers insights to help you develop a stronger understanding of those challenges and 10 principles that enable SMBs to reach success with project management.
One of the most important lessons focuses on establishing a unique model for leadership that recognizes the need for change and transformation.
Mr. Diab, who has led global teams across four continents and in 10 countries, insists that project managers must advocate for SMBs to adopt project management. It is a critical success factor for the profession.
Research and industry experts concur that it is equally imperative for the success of such businesses.
