Project Management involves ensuring that the objectives of each project are met efficiently and effectively. Within the project life-cycle, steps such as risk calculation and crisis management are executed in high risk projects or with budget and time constraints. This discipline investigates the value of each project and ensures that the scope is adhered to, within the allocated budget and time in order to deliver quality services.
Influence of the economic crisis on Project Management.
PM World Journal identifies that the economic downturn has the potential to scale down departments within a company, and compel professionals to succumb to lesser roles. Project Management is not necessarily exempt to such roles, and this may, to some extent, result in an overall exit in the profession for some.
How Recession can benefit the role of Project Management.
As mentioned above, the knock of the financial crisis can lead to extreme changes in organisations as well as individual lives. The current economic crisis has had a negative effect on Project Management, however, having a strong Project Management discipline could be beneficial to any organisation during this financial downturn. Project times highlights some changes that could impact this profession in an economically disadvantaged environment:
- Changes to the Profession – Firms may require a more advanced version of PM, which includes risk management to effectively deal with any prospect of threat. Consequently, with this requirement, an increased need for the relevant certification in this field will compliment the experience of the project manager.
- Changes to Methodology – Increased significance of expenditure, budget and scope oversight. In the face of a recession, the balance quadrant is usually compromised and requires effective authorisation thereof. Effective governance in this regard will be an added advantage. Furthermore, a better grip on resource management is necessary for the project objectives to be effected.
To conclude, most professions are inclined to diminish in some way during economic slumps. Project Management demonstrates value organisations during these times, as a way to ensure that value is retained throughout the project life-cycle.