Have you ever stopped to wonder what the value of effective project management equates to for your company? I define project management as … leading and motivating team members so a project’s goals are met according to company scope, time, quality and cost constraints. Benefits of successful project management include: less “re-dos”, learning from past experiences, less time referencing project specific information, a better solution fit the first time through, completing projects ahead of schedule, and resolving tasks / action items more quickly. What’s this worth in terms of dollars and cents?
The value calculator above illustrates the enormous impact potential of practicing project management correctly. The math is straightforward: 5 person team x 1 hr saved / person / day x 5 days / week x 13 week project x average compensation rate with benefits of $125 / hr equates to a savings of $41,000 per project. For a company with a total of 25 projects this represents over a million dollars per quarter in “productivity opportunity”. As the number of people on the project team expands and/or the length of the projects increase the potential savings get larger.
The next time you don’t receive a timely and actionable set of minutes from an important project meeting, stop to ask yourself – how much productivity is being lost as a result?