Effective Project Management Can Improve The Bottom Line
January 20, 2010
Who doesn’t want to have the right things done, at the right time, within budget? Nobody. Yet, across all industries, up to 72% of projects fail (Source: The Chaos Report, Project Management Institute, April 2009). A poor project management process is the single largest reason for this high rate of failure, which costs money, wastes time and increases frustration.
In today’s chaotic environment, it is advantageous for management teams to focus on the key items in their control so they are better prepared to handle the blows from external forces that are likely to persist. One of the key areas over which managements have most control is strategic allocation of human and financial resources (efficiencies and operating expenses). This strategic allocation is critical to the success of daily operations as well as new projects.
Many credit unions are undertaking projects with the intent of bottom line improvement that are failing or adding to expenses due to lack of prioritization, proper scope and execution. The following three actions can improve strategic allocation of human and financial resources, efficiencies, and employee, management and/or member satisfaction:
- Developing an effective, repeatable project management process.
- Dissecting key processes and implementing appropriate changes to create sustainable efficiencies.
- Creating a reliable process for CEOs and senior managements to use to successfully manage a portfolio of projects.
For a more detailed framework on how to achieve these actions and possibly an improved ROA, please refer to our recent c. notes articles: