Project management is the coordination of people, tools, skills, and methods to realize specific objectives within a specific time and constrained resources. As businesses serve clients, it is important to ensure that the priority work being done aligns with the most valuable need of the customer. Getting this level of assurance on the value of deliverables requires clear project management practices and principles.
Corporate objectives do not get realized by luck, but rather by deliberate communication through strategic business units (SBU). These are further represented as portfolios of programs and projects for implementation.
Project failure rates and the case of the Dangote refinery
Project failure rates are different across industries, about 70% of projects fail in most organizations. While failure could mean different things to different businesses and stakeholders, it often means that a project failed to meet initial requirements, or did so outside the budget and timeline. There are varied reasons why projects fail to meet requirements.
In the case of the Dangote refinery whose completion date has been moved eight times and is now expected to be completed 9 years after its initial close date, the impact of project delays can clearly be seen. The financial implication of these failures and delays are significant.
Why projects fail and project management is important
Four of the top seven reasons why projects fail are people related.
Inexperienced project managers, poor communication, and team member procrastination are only some of the causes.
While people can learn through trial, and error, and multiple errors, which is costly to businesses. Project management fills this gap; reducing the learning period and offering clear frameworks for operation. Effective project management programs equip participants with the leadership skills required to manage team members, the project management principles, and the best practices required to meet project objectives.
Equipping organizations to complete projects on time and within budget is what Lonadek Global Services has done for the past three decades.
We are committed to developing project management professionals and outsourcing trained personnel to our clients because of the benefits that this brings which include:
- Improved customer experience
- Increased team collaboration
- Higher staff retention rates
- Improved revenue
- Higher repeat sales.
You can also sign up for our AACE Certified Cost Professional Training designed to equip you with advanced knowledge to apply the principles and best practices of Total Cost Management (TCM) in the planning, execution, and management of any organizational project or program.
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