How can project management tools improve business performance?

The new normal should be a challenge for everyone. No exception for a project manager. With different conditions due to the Covid pandemic which is still ongoing, a project manager is required to continue completing the project that is his responsibility according to plan.

Project managers do not work alone. Many parties are interrelated in order to realize a project. The number certainly depends on the size of the project being handled. It can be tens to hundreds. For example, a hospital building construction project. Of course the number of collaborators will be different from the handling of a toll road project.

In a construction project, collaboration generally occurs in the following elements:

• Owner
  Can be in the form of individuals or legal entities of government or private agencies who are the parties who take the initiative to hold the project. The rights and obligations of the owner include checking and approving the work of the executor, receiving and paying for the work.
• Planning/supervision consultant
  Is an individual or legal entity with certain qualifications who plans a project or supervises a project that is planned.
• Contractor
  Executor is an individual or legal entity, private or government that implements a project obtained by auction, direct appointment or direct procurement.

ERegardless of the new normal or not, in order to work effectively and efficiently, a project manager needs tools in the form of a project management system so that it can run smoothly according to plan so that it can provide maximum results.

“Project management is an important element in project implementation, because with good project management it determines the implementation of projects that are right on cost, right on time, and right on quality,” said Ayu Septiani, senior consultant of PT Ikonsultan Inovatama.

She added, good project management with the achievement of on-time and on-cost implementation shows that project implementers and project owners have a high commitment to achieving timely operation targets so that this is an important reason for improving their respective business performance.

What is Project Management?

According to the Association for Project Management, project management is the application of process methods, skills, knowledge and experience to achieve specific project objectives according to project acceptance criteria within agreed parameters.

There are 2 unique things to underline about project management:

• Projects always intersect with cost, time and performance. That is, a project must be completed at a cost that does not exceed the budget, completed within the right time frame, and the quality of work must be in accordance with predetermined performance standards.

For example, if the completion of a project is behind schedule, the domino effect will be that the budget will increase, and the quality of work may be better, and so on.
Borrowing and integrating functional resources from departments within the organization has the potential to cause conflict.

• Borrowing and integrating functional resources from departments within the organization has the potential to cause conflict.

A project manager is the person responsible for the continuity of the project. He or she must understand all the details involved. In addition to having the ability to communicate, he must also master other skills such as negotiation and in-depth knowledge of the project at hand.

In essence, project management is needed for everyone and everyone who manages projects in various industries such as transportation and infrastructure, IT, product manufacturing, building and construction, finance and law and events.

Project Management Methodology

There are several methodologies in project management, including:

1. Agile
   It is a project management process that divides the project into smaller tasks and stages. This method is widely applied in technology organizations. Most software development teams practice Agile in some form, and its elements have been widely applied in many work environments.
2. Scrum
   Included in the Agile methodology on how to manage and run a project. Usually used to manage all types of projects. Starting from making software, websites, hardware, marketing, event planning and so on.
3. Lean
   It is a method that aims to improve a process by eliminating all activities that have no added value and improving work processes to be more effective and efficient, faster results and better quality.
   Prinsip dasar dari lean bertujuan untuk meningkatkan nilai tambah produk ( barang atau jasa ) agar memberikan nilai kepada pelanggan dalam semua alur proses kerja pada perusahaan.
   The goal of lean is to continuously increase customer value by improving the value-to-waste ratio.
4. Waterfall
   It is named as such because each phase of the project flows into the next phase like a waterfall. In this method, if phase 1 has not been completed, then phase 2 cannot proceed, and so on. All phases are interrelated and each must be done in detail and documented.
5. Kanban
   A method that creates visualizations using boards, columns and cards to manage tasks. This visualization allows teams to see tasks or work in progress and understand complex information such as processes, relationships between tasks and issues and risks that affect the team’s ability to complete work on time

In addition to the above 5 methodologies, there are still some other methodologies such as critical path methodology, six sigma, critical chain project management, event chain methodology, and extreme project management.

So how can project management improve business performance?

Find the answer in a webinar organized by PT Ikonsultan Inovatama (IKON) in collaboration with Oracle, entitled Portfolio Management in New Normal: Improving Business Performance using Integrated Project Management System on January 28, 2021.