Management by projects

Management by projects - a set of activities including planning, decision making, organization and leadership, i.e. managing people and controlling, used with the intention of achieving the objectives of various projects in an efficient and effective manner.

Management by projects has become today a very popular management tool used in organizations. By using of this concept managers helps the company to adapt better to changing operating conditions and uncertain environment especially during its dynamic change.

Project management techniques allow to efficiently direct the resources of the company (due to rational decision making and efficient implementation of projects). When organization is managed by projects, these techniques are used continuously, consciously and whole business is conducted as if it was a projects. Therefore, the management of the projects is a powerful instrument, which is used in the entire system of management in the company.

Planning in the company managed by projects

Fig.1. Management by projects

• Project planning - involves planning of realization of individual projects, setting objectives of time, quality, cost and preparing resources necessary to the implementation.
• Multi-project planning deals with groups of projects important for the realization of various strategies of the company. Portfolio of projects is prepared using the resources of the company to effectively implement its strategic and operational objectives.

Organizing in the company managed by projects

• Grouping tasks and resources in the company managed by projects managers should bear in mind the high relative position of the projects in the hierarchy of the organization.

The company managed by projects builds a flexible organization structure and manages processes of unusual and innovative character.

Leadership in the company managed by projects

• Employee motivation (work in the project team should be attractive and interesting)
• Training in the field of instruments and techniques used in project management is necessary, since these tools are used in everyday work.
• Training on working in project teams in order to increase labour productivity in dynamic project groups.

Culture in a company managed by projects

• Adaptability to changes
• Ability to work in a team.
• Tolerance for individual errors.
• Good communication.
• A sense of collective responsibility for the project.
• Responsibility of employees.
• Project management instruments are essential tools for the everyday job.

Advantages of Management by projects

Management by projects has many advantages which can help an organization achieve its goals. These advantages include:

• Improved planning: Projects can be managed more effectively when the objectives and desired outcomes are clearly laid out. This allows for more accurate budgeting and scheduling, as well as better decision-making.
• Improved communication: Projects involve the collaboration of many different stakeholders, and having a clear plan can help ensure that everyone is on the same page. This can reduce conflicts and misunderstandings.
• Improved quality control: The planning, decision-making, and tracking of projects can help ensure that quality standards are met. This can help ensure that projects are completed on time and within budget.
• Improved resource management: Projects can be broken down into smaller tasks and resources can be allocated more efficiently. This can help save time and money.
• Improved accountability: Projects can be tracked and monitored, allowing managers to identify any problems or issues that need to be addressed. This helps ensure that projects are completed in a timely and efficient manner.

Limitations of Management by projects

Management by projects can be an effective way of managing projects, but there are certain limitations that should be taken into consideration when deciding if it is the right approach for your organization. These include:

• The difficulty in accurately estimating the time and resources required to complete a project;
• The potential for project scope creep, which can add time, cost, and complexity to the project;
• The risk of the project becoming derailed due to unexpected events or changes in the organization;
• The potential for a conflict of interests between the project manager and other stakeholders;
• The potential for project teams to become siloed due to the focus on individual projects rather than the organization as a whole;
• The difficulty in measuring the success of a project, as success can depend on subjective criteria.

Other approaches related to Management by projects

One approach related to Management by projects is the use of project management tools such as Gantt charts, Critical Path Method (CPM), Earned Value Management (EVM), and Project Management Software (PMS). These tools can be used to plan, schedule, monitor and control projects, as well as to measure the performance of a project.

Other approaches related to Management by projects include:

• Agile project management - Agile project management is an iterative approach to project management, which focuses on rapid delivery, collaboration, flexibility and customer satisfaction. It breaks down a project into small chunks of work and allows for continuous improvement and adaptation.
• Risk management - Risk management is a process of identifying and assessing potential risks that can affect a project, and then implementing measures to minimize the impact of these risks.
• Quality management - Quality management is an organized approach to ensuring that products and services meet the expectations of customers. It focuses on meeting quality objectives and delivering products and services that meet customer requirements.
• Change management - Change management is a process of managing and implementing changes in a project. It aims to ensure that changes are implemented in a controlled and structured way, minimizing the impact on other areas of the project.

In conclusion, Management by projects is a set of activities used to achieve the objectives of various projects in an efficient and effective manner. Other approaches related to Management by projects include the use of project management tools, Agile project management, Risk management, Quality management and Change management.

Management by projects — recommended articles

Planning and control — Interdepartmental planning — Management functions — Project management theory — Project leader — Efficiency and effectiveness — Successful project management — Organization of managerial work — Project lifecycle

References

• Gareis, R. (1991). Management by projects: the management strategy of the "new" project-oriented company. International Journal of Project Management, 9(2), 71-76.
• Gareis, R. (1989). Management by projects: the management approach for the future. International Journal of Project Management, 7(4), 243-249.
• Hamilton, A. (1997). Management by projects: achieving success in a changing world. Thomas Telford.
• Piwowar-Sulej, K. (2013). Human Capital Development via Management by Projects. Edukacja Ekonomistów i Menedżerów, 3(29), 143-154.
• Turner, R., Clark, F. A., & Lord, A. (1990). The Impact of Management by Projects on Organisation, Systems and People. Henley The Management College.