What is the Importance of Project Management in Business?

Project managers are a highly sought-after position across all forms of industry, and it is only increasing in importance as time progresses. The term 'Project manager' is an umbrella term for three different management types: project management, portfolio management and program management. Each of these disciplines is similar and connected. However, vital and unique differences impact the total responsibilities of project managers. 

Project management is about delivering an output that will affect some change for the benefit of the business. This is a large part of the transformation of a business from a start-up to an industry leader.

Statistics from the Project Management Institute (PMI) highlight that by 2027, businesses and, in turn, employers will need 87.7 million employees working within project management roles. The outlook for the position is overwhelmingly positive for the future of management positions. 

What does the future look like for a project management recruitment agency? Is there going to be a boom in the recruitment sector?   

What is A Project Manager? 

To begin, we'll examine what role a project manager possesses within a company and how they can impact businesses and enforce a positive result. 

A project manager is an individual who plans, organises and executes projects while working within strict restraints, such as schedules and budgets. Project managers, in addition to an organisation, can: 

• Lead full teams 

• Define goals within a project 

• Communicate with clients 

• Close a project with a successful or failed result

Project managers are involved in many parts of the projects from beginning to end. 

Project Management vs Portfolio Management vs Program Management

Under the umbrella term of project management, there are three types of interrelated disciplines. These disciplines impact the role of project manager and could impact the recruitment process; they are called: project management, program management and portfolio management. 

But how do these three disciplines interconnect? 

Project management: In a traditional role of a project manager, the goal is to complete projects successfully while remaining on time and within budget. In this role, there is a range of project management strategies to help organise teams and complete tasks according to their success criteria. 

Program management: Program managers collaborate with project managers to ensure that each project is strategically aligned and on the right track to hit significant milestones. The prominent role of program management is to facilitate organisational-level issues and risks that affect the program. 

Portfolio management: They work with the organisation's leaders to identify, prioritise, select, balance, authorise, evaluate and control the organisation's approved work to best meet its strategies, given resource capacity and risk.  

What does a Project Manager do? 

The responsibilities of a project manager can be vast and varied, resulting in no two days being the same. For example, a project manager, one day, might be interviewing and hiring new talent to reallocate resources to cover unexpected expenses the next.

The extent of the duties of a project manager will depend on the industry, company, and type of ongoing projects. All of those managers possess and share the responsibilities across the project life cycle, which consists of five phases: 

Initiating 

Project managers begin each project by defining the main objectives, the project’s purpose and the overall scope. They also identify the key internal and external stakeholders, discuss any shared expectations and gain any required authorisation that is necessary to begin the project. 

Planning

Once the plan for the project is established, the project managers are able to have a clear understanding of what the project will need and will be able to oversee the scope, cost, timelines, risk, quality issues and communications. The key deliverables of the project will also be outlined, along with the milestones. 

Executing 

In this stage, the project manager’s role is to assign the work that will achieve the project’s goals. They will also ensure that the tasks are complete as scheduled. In addition, a project manager will also: 

• Protect the team from distractions

• Facilitate issue resolution

• Lead the team in working through project changes

Monitoring and Controlling 

Monitoring and controlling is used throughout the entire process of project development. Beginning at the start of the project and continuing through the planning, execution and closing stages. 

Closing

In this final stage, a project manager strives to ensure all activities necessary to achieve the final result are completed. After the project has been completed, a post-implementation review is used to identify key lessons learned. Outline what went well, what could be improved and what needs to be stopped in order to resolve complications. 

These processes allow project managers to return throughout a project's life continually. 

What skills are needed for Project Management? 

We look through the different elements a recruiter needs to look out for in new project management candidates. The skills portion is an important aspect. Candidates would need to demonstrate a range of experience and skills in order to progress through the recruitment process. The primary skills that a project manager needs to be effective within a business are as follows: 

Leadership and Interpersonal Skills

• Communication
  Successful leaders need to be able to portray effective communication. You would need to be specific with your directives and your expectations. Being clear and concise is also vital. While spoken communication is vital, non-verbal communication is also important. Body language, such as facial expressions and hand gestures can speak volumes during team meetings, training, interviews and negotiations. 
  
  
• Active Listening 
  Active listening means that you pay attention to each person that you converse with and ask yourself questions, such as ‘What can you learn from them?’. In this area, it is important to let the members of your team know that you hear them.  
  
  
• Feedback 
  Feedback is essential for many reasons. It is a way to maintain a consistent high level of performance from your staff. Being able to provide a flow of constructive criticism is an important element in a leadership role. 
  
  
• Self-Awareness 
  To be self-reflective about your own strengths and weaknesses, as well as adjust your approach to any developing situations. 
  
  
• Compassion and Empathy 
  This skill goes hand-in-hand with self-awareness. These skills are beneficial for you to understand the thoughts and feelings of those you work with, being either clients or other employees. Empathy and compassion allows for the building for trust, making you more personable. 
  
  

Good Communication and Negotiation Skills

• Know your purpose for the conversation 
  In any situation for negotiation, you need to know your audience. People often are placed within four categories of business personality: the driver, the amiable, the analytic and the expensive. Each type has its own unique features and can present their own challenges. You’d need to appeal to your audience’s personality, respect their needs, answer questions and keep the purpose of your meeting in time. 
  
  
• Focus on how you deliver your messages 
  The type of body language that you present can say a lot about your thoughts and feelings. Most of the time without you realising. Be mindful of the way that  you are presenting yourself. Are you slouched in your chair? What are your facial expressions saying? 
  
  
• Mirror your audience’s speed of speech and tone 
  With this skill, you need to assess your audience. Are they serious? Are they talking fast? Then you should mirror them, this process makes negotiations stronger, demonstrates your respect towards your client and keeps you at an equal business stature. 
  
  
• Listen to their ‘Real’ emotions 
  You need to listen to what words that your client uses, and what sense those words are appealing to? Staying on that ‘sensory mode’ during the conversation, by doing this it improves your rapport while showing respect. In using this technique, you are able to relate to your audience and their point of view. Through this, you’ll develop better listening skills and address the problem in a constructive way. 
  
  
• Practice saying your content out loud before the meeting 
  Outline your purpose statement, your opening and closing statement. You can say it aloud, finding any last minute errors, or clarify your message. 
  
  
• Create suspense in relaying the details and why they are important 
  Using suspense in public speaking allows us to grab the audience’s attention while carrying a deeper sense of emotion. Ultimately creating a powerful impact. By being able to present your statements with purpose and intention, the message will be clearer and more direct. When you are practising the delivery of those statements, you’ll build up the ability to effectively influence the decisions that have been made. 
  
  

Organisation

Organisation skills are another critical part of any job role. These skills allow you to use your resources more efficiently and effectively. You are able to manage your time, energy and workspace in a skillful manner and accomplish all your assigned tasks successfully. Organisational skills can take different forms depending on your industry, but they usually involve maintaining an orderly work area, meeting deadlines and communicating effectively with your team. 

Critical Thinking 

Critical thinking is the act of analysing facts in order to understand a problem or topic thoroughly. The process includes steps from collecting information and data, asking thoughtful questions and analysing possible solutions. 

There are 5 common critical thinking skills, including: 

• Observation

• Analysis

• Inference

• Communication

• Problem-solving 

Good critical thinking skills are essential in every industry and at every career level, from entry-level to top executives. These skills can demonstrate that you can work both independently and with other to solve problems. 

Technical Knowledge 

Most technical skills refer to the knowledge required to execute practical tasks within science, mathematics, mechanics and information technology just to name a few. You would be required to undergo specialised training or education to build more advanced skills or technical knowledge. 

With the recent developments in technology, a knowledge and skill set based around technology has proven beneficial, allowing for companies to assess them in standardised and reproducible environments. 

Project management can be challenging, so you need the best talent to work and manage your projects. 

When do I need to hire a Project Manager? 

As a recruiter, you are looking for the best talent available to add a new perspective to your business. Hiring a new project manager is vital when your organisation embarks on a big, new project or significant internal transformation, such as updating systems and workflows. 

As you and your business launch new ventures, your project manager - whether permanent or temporary - will be more likely to be able to help if you have specific, measurable and achievable goals. 

If you need to hire a project manager to help a team transition smoothly from one way of working to another, they need to fulfil this goal through three process stages: planning, managing and reinforcement. 

For more information about hiring a project manager or if you need additional knowledge on how a project manager could benefit your business, click here to read our page on finding your next project manager. 

Benefits of hiring a Project Manager 

Whether it’s a project manager leading a project, team members trying their hardest to give their best work, or a client waiting for updates and project completion, project management benefits everyone, not just a single section of an organisation.

Talk to us today about hiring talented Project Managers. 

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