Project Management could be defined as the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements that normally covers four stages of initiation, planning, execution and closure.

In simple terminology the purpose of project management is to plan and manage a project to successfully complete its listed goals and deliverables. It involves identifying and managing risks, careful resource management, smart budgeting and clear communication across multiple teams and stakeholders. Looking at the definition, it is clear the importance of project management could bring to any business organizations, so how project management could make or break businesses? The following are the top 5 importance of project management to businesses.

#1. Defined plan

Project management gives businesses a clearly defined plan of the project undertaking before it ventures into taking up the said project which could affect them. The importance of planning in project management cannot be ignored. The more complex project, the higher the possibilities for things going south fast. One of project management’s primary functions is to venture to the unknowns by mapping out a clear plan of the project from beginning to end. By doing so it gives businesses an opportunity to see how viable a new project would be for their organization both financially and in resource allocation.

#2. Agreed schedule and plan

Project management gives businesses an established schedule and plan that has been agreed upon by all stakeholders. This schedule helps to eliminate delays or overruns and provide a plan to be followed for all those involved with the project. For businesses this gives them the leeway to work on multiple projects while maximising their potential business revenue for each project that has been undertaken. Any deviation from the set plan or schedule could be tackled collectively by all relevant stakeholders.

#3. Base for teamwork

Project management provides a base for teamwork. In organizations people are required to work in a team on for any given project. Project management brings team synergy benefits through the sharing and support of knowledge and skills. Bringing people together in this way inspires team members to collaborate on a successful project and gives businesses better manpower development and healthier working environment. This in turn could also reduce high human resource turnovers and keeps knowledgeable members of the organization content and productive.

#4.  Maximise resources

In this challenging economic climate, every penny spent must be accounted for. Currently the cost of both human and financial resources tends to be expensive. By emphasising in good project management practice like project tracking and project risk management it ensures that all resources are used efficiently and are accounted for economically. This in turn would help businesses better manage their financial standing and productivity by minimising unwanted or unseen risks.

#5. Manage change

In today’s business world change is the only constant. When running a project there is high possibility of change from the original plan. Businesses must be able to face deviations and prepared for unexpected change. Project management allows for effective change management and makes it less of a complex task, this in turn would allow business to be able to cope and respond appropriately when sudden changes do occur in a proper and defined way.