Managing the demand for change in project management

16 April 2019 Consultancy.uk

The forward-looking nature of project management means that regardless of the type of project, thorough planning and risk assessment are essential to ensure it is delivered on time, on budget, and in line with the client’s requirements – while delivering the expected results. Consultants Eman Al-Hillawi and Peter Marsden elaborate in the article below. 

However, it is important to recognise that in this fast-moving working environment, and with projects increasing in scale and complexity, a degree of change is inevitable. Putting the right mitigation strategies in place early on can provide project managers with much-needed agility, allowing them to respond quickly to any new issues that arise.

When the goalposts move or project managers are issued with an unexpected client request, adopting a holistic approach is essential to ensure that changes are implemented successfully the first time around, reducing the risk of any problems arising in the future. Rather than considering the demand for change in one area of a project in isolation, it is important to conduct a full impact assessment, taking into account any knock-on effects on people, processes, systems and infrastructure. For example, a sudden need to digitalise a key HR process may have implications for recruitment, or the need to upskill existing staff through new training programmes, or both. 

Implementing a Portfolio Management Office (PMO) can also enhance project managers’ ability to spot interdependencies and better manage unforeseen changes. Where a number of projects or programmes are being undertaken simultaneously, this function is particularly useful, providing stakeholders with increased visibility and driving intelligent decision-making. For example, spotting an unexpected delay to a particular project could enable resources to be reallocated across the portfolio at an early stage, helping to drive efficiencies within the business and keeping budgets on track. 

Managing the demand for change in project management

As part of their efforts to make the most of available resources while keeping costs under control, project managers should consider using blended teams wherever possible. By combining the organisation’s existing employees with different skills and experienced project managers, it is easier to ensure that the correct levels of skills and resources are utilised at each stage of a project. Furthermore, this method can provide the additional flexibility needed to respond quickly to new developments without unnecessarily prolonging project timelines or increasing costs. 

It is worth bearing in mind that introducing some mitigation strategies may require an initial cost outlay and, as such, effective communication with stakeholders from the very beginning of a project is key. One example is to allocate a contingency budget to the project. This helps to facilitate the project manager’s ability to address key issues that require unplanned spend, without the need to undergo a time-consuming budget approval process. By educating all involved parties about the inevitability of change during projects, it is possible to put buffers in place, both financially and in terms of the project timeline. Over the course of a project, this should enable project managers to react quickly to change and take effective action without compromising on the timescales and delivery of client objectives. 

Likewise, where project delivery is reliant upon large and diverse teams, clearly communicating the impact of unexpected changes, and the required response, is also vital to ensure everyone is on the same page and disruption to day-to-day processes is kept to a minimum. When curveballs to project delivery occur, a failure to brief the team on how these should be addressed could also have a significant impact on levels of motivation and morale, which in turn has the potential to have a negative impact on productivity across a project. 

While meticulous forward planning will always be an essential element of project management, it’s equally important to recognise that to a certain extent, change is unavoidable. The ability to respond effectively to new developments as they occur is therefore vital. By making change a central part of discussions with stakeholders and clearly communicating with all parties on a programme, project managers can take new issues in their stride while continuing to deliver exceptional results for clients. 

Eman Al-Hillawi and Peter Marsden are principal consultants at business change consultancy Entec Si.

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Project management industry adds £156 billion of value to UK economy

15 April 2019 Consultancy.uk

Project management has grown into one of UK’s largest areas of business over the past decade, amid the increasing ‘projectification’ of work. With the gross value added to the UK economy by project management estimated to be £156 billion, this trend is likely to continue in the coming era.

Despite the huge success of project management in recent years, until now there has been relatively little data available on the size of project activity. As a result, there has been a great deal of debate on things like the number of people involved in the sector, the number of projects, and how it contributes to economic output. Due to this need for clarity, APM, the UK’s professional body for project management (the largest organisation of its kind in Europe, with 28,000 individual members) commissioned economists from PwC to shed light on the industry's economic impact.

The research concluded that the profession makes a more significant contribution to the UK economy than the financial services sector. 2.13 million full-time equivalent workers (FTEs) were employed in the UK project management sector, generating £156.5 billion of annual gross value added (GVA). In comparison, the financial services sector contributes £115 billion, and the construction industry adds £113 billion.

Gross value added to UK economy

Commenting on the discovery, Debbie Dore, Chief Executive of APM said, “Project management runs as a ‘golden thread’ through businesses, helping to develop new services, driving strategic change and sector-wide reform.”

Who is a ‘project manager’?

To reach these estimates, PwC’s researchers used detailed models to map out the value of project management activity. They ultimately defined relevant ‘projects’ as “temporary, non-routine endeavours or rolling programmes of change designed to produce a distinct product, service or end result… [with] a defined beginning and end, a specific scope, a ring-fenced budget, [and] an identified and potentially dedicated team with a project manager in charge.”

Building on this, they then went on to define what the act of project management actually is. The job consists of applying “processes, methods, knowledge, skills and experience” so that clients can meet their objectives and bring about planned outputs or outcomes. The analysts added that this includes “initiating the project, planning, executing, controlling, quality assuring and closing the work of an identified and dedicated team according to a specified budget and timeframe.”

Importantly, it should be noted that the profession is not exclusive to only roles explicitly labelled as ‘project manager’, but to any role where specialist project management skills are used. This means that across sectors these roles can have very different titles, from the self-explanatory contract managers of procurement, or the campaign managers of advertising, to the likes of festival co-ordinators in the events sector, and many more. The roles in question also span all strategic levels of the profession, from strategic to tactical and operational positions.

Gross value added of project management profession

From a sector perspective, the financial and professional services, construction and healthcare industries make up almost two-thirds of the total project management GVA. At the same time, understandably, the UK Government has a huge project portfolio, which further drives the size of the GVA the sector contributes, thanks to megaprojects like HS2 and Crossrail.

Commenting on this to the report’s authors, Oliver Dowden, Minister for Implementation remarked, “Project delivery is at the heart of all Government activity, whether it’s building roads and rail, strengthening our armed forces, modernising IT or transforming the way government provides public services to citizens. Getting these projects right is essential if we are to ensure that we build a country that works for everyone.”

Throughout 2019, 26 major government projects were delivered, representing a fifth of the overall Government Major Projects Portfolio (GMPP) of 133 projects. According to the IPA annual report 2017-18, these represented a whole life cost of £423 billion. In addition to this were a plethora of smaller scale projects, and those in early development.

Elsewhere, with the increasing digitalisation of the economy impacting entities of all shapes and sizes, IT and digital transformations tended to dominate the projects of the UK scene alongside new product development projects, with a respective 55% and 46% of organisations in the research sample having undertaken these types of project in the past year. At the same time, this varied across sectors, and unsurprisingly, in the construction and local government sectors, fixed capital projects were the main project type undertaken.

Outlook

Looking to the future, 40% of business leaders expect project management will grow in the coming years due to the increased use of projects – or the ‘projectification’ of the UK. In a trend that has been witnessed elsewhere, organisations have to rapidly and continuously change in the digital age of business, driving the need for project management.

Outlook for project management services

An increased focus on value over cost – especially in the construction sector – and a forecast increase in the number of international projects are predicted to be key drivers of growth, according to the expert contributors. However, this will not happen in the absence of challenges; more than half of organisations expressed concern over the perceived impact of political uncertainty in the UK. Skills and capability shortages were also cited as a potential barrier by a third of organisations.

With regard to budgets, meanwhile, a third of those surveyed by PwC said they expect the size of project budgets will increase in the coming three years, while 40% anticipate a growth in project size. As the profession continues to mature, and as the recognition of the importance of good project management grows, it is expected that a greater proportion of project work will gain more distinct attribution to the profession itself, giving more recognition and appreciation to the role of the project manager.

Speaking on the findings of the study, Sandie Grimshaw, a Partner at PwC, concluded, “The project management profession is relatively new compared to some other professions, such as lawyers, teachers and doctors. However, as project management is a core competence vital to organisations in the UK, the profession is critical and will continue to grow in stature.”