Project management - what is it? The pros and cons


2019-05-15 07:00:32




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Project management – is an essential element of a modern system of management in Russia. Many domestic and foreign companies use project management to improve the quality of products and services, reduce costs, increase profits. What is project management and what are its main benefits?

What is a project?

The Concept of “project” can be interpreted completely differently. The first option involves the definition of a project as a set of documentation on the construction of a building or structure. In this article we will talk about the second meaning of the word “project”.

Definitions of the project very much, although they all agree on one thing: the project is an idea that involve the performance of specific financial tasks in a limited period of time. Call the main features of the project:

  • Uniqueness (the project is something that is created for the first time).
  • The time Constraints (the project is always specified by the terms of its implementation).
  • The direction (the project is always carried out for specific tasks, expressed, usually, in a quantitative unit).project management

If you meet all three conditions, the set of actions can be called.

Programs and portfolios of projects

Projects are often combined in programs and portfolios. Thus programs called complex projects, which are United by a common purpose. For example, a program to improve the quality of education of the population may include projects to increase teachers ' salaries by 20%, the construction of 15 new schools, issue 26 of new textbooks in core subjects.

The project Portfolio integrates projects financed from one source, regardless of their tasks. Thus, the company's portfolio of projects N may include projects for charity, for the construction of a new corporate office, for the celebration of the anniversary of the Director and increase the annual turnover by 10%.

Projects in portfolios and programs must also have the above-described three main characteristics.

Basic principles of project management

Because of the dynamically developing market of technologies designed to facilitate the control process, it is difficult to name specific methods, fully describing project management.

Project Management involves a variety of approaches and tools and is based on the following main principles:

  • The Focus on results. This principle is determined by the meaning of the term “project”. Project management – it's not just quality management, is a purposeful set of interrelated actions.
  • The Principle of “design triangle”. While the project management should be guided by the interdependencies between timing, budget, quality of the project. A change in one factor leads to change in others that makes them like the sides of one triangle.Project management it
  • Based on the life cycle of the project. Project life cycle begins with the formation of the idea about creating a project and ends upon the expiry indicated in the project time period. The life cycle of a project, typically completed at the beginning of the product life cycle, created as a result of the project.
  • A Process approach to management. This principle requires the evaluation of the project as a set of processes, interconnected and terminating intermediate results in the form of semi-products or important documents. This approach allows the monitoring of implementation of the project without the so-called “blind spots”.

Methods of stimulation of participants of the project

To Stimulate the participants of the project usually pays special attention that the specific tasks chosen project management. Project management usually involves tangible and intangible motivational mechanisms.


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Financial incentives include bonuses, penalties, bonuses for early completion of intermediate tasks.

Intangible methods of motivation include disciplinary letters and gifts in the form of compensatory time off, as well as the deployment of competition among the participants of the project within the contest.

Basic steps of project management

Project Management is done in stages of the project life cycle and phases of the complexity of management. The relationship of stages and phases is given in the table below.

Staged financing of the project


Cost Management

Time Management

Managing content

Risk Management







Preliminary assessment of funding

The Preliminary estimate project timelines

Identify the key challenges

Preliminary analysis of the possible negative factors


Calculation of the budget and finding sources of funding

Calculation of project schedule

Calculation of target indicators of the project

Calculation of adjustments for risk

Implementation of

Control of the implementation schedule

Monitoring the achievement of milestones

Monitoring of changes in key factors


Assessment of the profit/ loss

Estimate of the lag/lead

Evaluation of performance/non-performance of project tasks

Analysis of errors

Thus, the field of project management include financial, human, structural areas of the organization.project governance

Fields of application of project management

Project management structure involves the breaking of all the work of the organization on projects, time-bound and targets. This forms each project team and team of project managers who report to the head on the progress of your project.project management structure

In this regard, project management is used, usually, in organizations of various sectors and sizes, with a wide range of concurrent orders. However, in a small business applies project management for specific tasks on modernization of production or, for example, the introduction of a new product.

Project management in the construction industry

In the construction industry especially important is the use of the methodology of project management. In the companies, carrying out functions of the customer, contractor, project management utilizes the natural division of work on the projects (product principle, that is, the construction of each building is a separate project), and the structure of top management practically requires a major reorganization.project management organization

Management of the project organization is also often carried out on the project principle, successfully using the already formed groups of designers as the project team.

Project management in government structures

Project management in government – quite a new trend of modernity. Program-target method of management, emerging from the Soviet period, has now taken the form of project management across the country. Now for the solution of strategically important tasks for the state use program, including individual projects against targets and deadlines. However, the methodology for the management of such a program is far from ideal and in need of modernization and updates.

Implementation Experience of project management in Belgorod region

The Project governance is well established worldwide. In Russia there is an experience of application of this technology in the Belgorod region.

This large-scale experiment has affected virtually all aspects of civil service in the Belgorod region. Among the key elements – Training of project management, organizational and methodological support, Field inspection, motivation, assessment of competency, the expert Commission on consideration of projects.project management of the Belgorod region

Project management of the Belgorod region now includes the collegiate bodies of project management:

  • Interdepartmental Commission, which manages the project activities.
  • Industry Advisory Commission, takes a decision about the opening/closing projects.
  • Regional project office, control the compliance of project management methodology.

The Principle of “single window”

Within the framework of the transition to project management of the Belgorod region in 2010 moved for approval of investment projects through the system “single window”, is now well-known in Moscow. The role of this window, just performs one of newly introduced services – regional project office. Now exactly a month since the treatment in a project office entity receives a document on the agreement.

Automated information system "Project management”

Informational and technical support of project management in the Belgorod region is carried out through automated information system (AIS) "Project management". Is a web application that does not require installing additional software and performs the following functions for projects, portfolios and programmes:

  • Maintenance of register (the base).
  • Scheduling.
  • Budgeting.
  • Monitoring of implementation at the regional and municipal levels.
  • Distribution of powers and responsibilities of the team.
  • Changes to the contents.
  • The System alerts about upcoming events and new projects.
  • Document.
  • Automated analytical reporting.
  • Integration with the electronic Government of the Belgorod region.

Advantages and disadvantages of project management

The experience of introducing project management in the Belgorod region was successful. The effect of these changes resulted primarily in an increase in the rate of growth of the gross regional product of 0.1% (over 3 billion), reducing spenttime for approval of projects (for 2 months per project) and increase the speed of development investment in the region by 23%. However, the most important result is the formation of design thinking in employees who actively analyze and try to solve the problem, sometimes even unconventional, innovative ways.

Motivation and the restructuring of the management structure allowed us to obtain a positive effect not only for the civil service, but also for businesses, forming a favorable investment climate and eliminating barriers to entrepreneurship.

The region's Population now actively participates in the selection and monitoring of the implementation of important strategic projects. For people project management – is the ability to use the services of high quality and high mobility.

However, despite all advantages of the project management structure, there are drawbacks to this approach.

First and foremost, a period of transition. It takes time in order for the project team worked well together and functioned as a harmonious mechanism.

Second, the introduction of project management in the enterprise, searching for a good project Manager may be delayed. Personal and professional qualities of the project Manager very high requirements: full qualification, a full immersion in the project, experience project management required specificity.

The Third lack of project management can be considered the need of crushing the company resources between projects. In “poor” firms, this can be impossible. Project managers will have “fight” for Finance and personnel, which is unacceptable in the conditions of total control of all stages of the project life cycle.

One of the most important drawbacks of project way of management in organizations is the employment of members of the project team and project Manager after its completion. Download team, as you know, the most important rule of successful business, and if project works occur regularly “hanging out” of a group of professionals who are simultaneously deprived of a constant load.

project management

In summary, we can conclude that project management – it is an integral part of modern business space and a study of its basics is essential for competent management decisions both at the state level and within individual businesses.

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