18 October 2019

Table of Contents for Project Management





Spotlight-PMI

How Project Management can boost Indian Infrastructure sector?

 

The Road Transport and Highway sector is the backbone of the domestic infrastructure in India and it is going through a very exciting phase today. They have embarked upon a journey of rapid construction, upgradation and expansion. There are many reasons to be upbeat about this sector, including the government focus and policies, road freight and many more. Plus the rise in two wheeler and four wheeler vehicles, increasing freight traffic, strong trade, and tourist flows between states are all set to augment growth.

 

In all this however, compounding the challenges of government projects is the shortage of trained project managers to run and implement these projects. As the government is increasingly challenged to do more within limited resources, there is a strong need to inculcate the practice of project management. Some of the key issues that are critical to be addressed are as follows –

  • The infrastructure sector is the key driver of economic growth but time and cost overruns threaten to limit the industry’s potential to help achieve the desired growth and ensure efficient capital expenditure.
  • In India, organizations waste an average of 11 per cent (Rs.10.9 lakhsfor every
    Rs.1 crore spent on projects or programs) due to poor project performance as per 2016, PMI Pulse of the Profession®: The High Cost of Low-Performance findings
  • Organizations that adopt a mature approach to managing benefits waste 67 per cent less (Rs.11.2 lakhs) for every Rs.1 crore invested in projects and programs, compared to those that do not take a mature approach. (Rs.5.4 lakhs vs Rs.16.6 lakhs respectively)
  • According to the KPMG-PMI report, ineffective project planning and project monitoring are rated as the most significant risks having maximum impact on project delivery.
  • The report also highlights that poor program management results in ineffective coordination with projects and schedule delays. It is imperative for companies to have effective project management and risk management. Hence, Project Management Office (PMO) is seen as an essential for independent reporting and ensuring project management excellence.
  • Lack of project managers with the requisite skill sets has also emerged as the primary cause of concern across the infrastructure sector. Therefore, formalising project management training for professionals has become imperative to counter the shortage of project professionals well equipped to handle infrastructure projects.

 

With an increasing number of planned projects, there will be a need for more project professionals to implement smooth execution. The Anderson Economic Group’s research reveals that, India is likely to have a shortage of around 4 lakhs project professionals every year up to 2020.

 

Project Management (PM) today forms an inherent part of the working culture of an organization, which believes in delivering project results effectively and within all possible constraints. It not only brings business value to an organization but also helps create an edge in the competitive marketplace. In such a dynamic scenario where an organisation always has to meet the changing needs of the customer, remain cost effective and be within planned schedule limits, project management becomes indispensable.

Today, the need and importance of project management is widely recognized all across the globe. Government Ministries and Departments, Multilateral Agencies and several other National/International Bodies of high repute are talking about the adoption of project management in the same breath for witnessing better economic growth.

 

While the very simplest projects can be managed easily by applying common sense and just getting on with things, projects that are more complex – like the ones handled by Ministry of Road Transport and Highways (MoRTH) — need a great deal of planning, and benefit from a formal, disciplined management approach. From making sure that projects will actually meet the specified requirement, to devising a workable schedule, developing systems for reporting progress, managing risk, managing multiple stakeholders, and managing requests for changes – all of these issues require thoughtful consideration.

 

Projects are vital to a country like ours that is changing, creating and growing fast to rise above the rest of the world. In order to sustain the pace and ensure successful execution of the various new infrastructure initiatives it is essential that standard processes for planning, execution and monitoring are put in place where project management plays a vital role. And the first step towards this is to create a project management culture. With this objective in mind, Project Management Institute (PMI) India and Indian Academy of Highway Engineers (IAHE), have entered into a Memorandum of Understanding (MoU) to promote the discipline of project management and building a project management ecosystem within IAHE. PMI will support IAHE through the development of customised project management training modules for individuals being trained at IAHE. PMI would also assist with periodic faculty development programs for the faculty members delivering training on project management to individuals.

 

Managing projects well, requires a great deal of time, skill, and finesse. There are many sides to project management and this is what makes it so interesting and demanding. Project managers are expected to take an uncertain event and make a certain promise to deliver. They are also expected to do this within a specified time, within a limited budget and meeting certain quality parameters.

 

For an organization whose objective is to meet its strategic objectives by being competitive in the market at the same time, identifying and developing project management competency in its project personnel becomes crucially important. For it not only enhances the project personnel’s performance but also positively affects the overall productivity of the organization. The 2016 PMI Pulse of the Profession®: The High Cost of Low-Performance findings show that organisations that effectively use formal project, program and portfolio management practices waste 13 times less than organizations that don’t. The report also highlights that organizations should place a greater emphasis on project management training and development, strategic alignment and benefits realisation.