In this assignment, you will see how and why project managers should be focused on
creating strategic value within an organization.
Deliverables
In your essay, discuss why project management should be involved in the creation of corporate
value
Discuss how project management activities or tools can be used to create this value
Describe how value is measured and how project managers can work with other divisions to
maximize this value
Submit this essay in the form of a Word document.
Your essay should be a minimum of three pages, double-spaced, 12 point font
Use APA format and include at least three scholarly references
Project Management
Project management is important in the creation of corporate value. A corporate value is
its well-being in the industry. Corporate value is expressed in terms of its competitiveness,
sustainability and the amount of profit made. There are several project management approaches,
activities and strategies that contribute to corporate value creation (Watt, & Schwartz, 2018).
This essay discusses how project management creates values for organizations, as well as the
project management activities and tools that facilitate achievement of corporate value and the
different methods used to measure corporate value.
PROJECT MANAGEMENT 2
Project Management and Creation of Corporate Value
Building the corporate portfolio is a project management strategy that increases a
corporate value. Developing corporate portfolio involves the allocation and use of resources and
time in carrying out training on project management. Expertise in project management facilitates
corporate welfare in an industry (Mossalam, & Arafa, 2017). An organization whose employers
have skills and knowledge in project management reduces costs, achieves high customer
satisfaction scores, and uses its resources efficiently. Further, building a project management
culture increases the confidence of the organization succession in future projects. If an
organization has employees who possess project management expertise, it is well prepared to
undertake projects of any nature (Mossalam, & Arafa, 2017). Proper project expertise reduces
the risks likely to be incurred. Possession of skills and knowledge on project planning increases
the rate of success and reduces the risks facing the project.
Frequent project assessments increase the value of the organization. After the initiation of
a project, the corporate project management personnel should evaluate the progress of the project
(Watt, & Schwartz, 2018). The project management assesses the risks that face the project and
the general value that the project adds to the organization. Frequent assessment of projects
provides data on the ways to reduce the overall costs and other measures to improve project
performance (Watt, & Schwartz, 2018). The unpredictability of fluctuation in the economy
requires proper use of resources of corporate resources, which are usually limited in project
implementations.
Strategic project planning is critical in creating and achieving corporate value. Strategic
planning involves the precise planning and determination of objectives and alignment of the
organization’s vision and mission and the goals and objectives of the organization (Mossalam, &
Arafa, 2017) The alignment of the corporate wider mission, vision, and goals of the project
harmonize the overall resources of the corporate with the resources needed for the given project.
Strategic planning in project management ensures the welfare of the corporate organization by
preventing risks associated with the project implementation (Mossalam, & Arafa, 2017).
Strategic planning creates a clear direction for the corporate to follow concerning a certain
project. Clear direction reduces the chances of resistance from some parties in the organization.
A further change in project management requires well outlined direction of action and strategic
planning in project management.
Project management increases an organization’s competitiveness in the industry.
Strategic project managers increase the adherence of the project implementation to its goals and
objectives. In turn, customer satisfaction increases the chances of securing other projects from
the same organization services. Subsequently, the competitive edge of an organization in the
industry increases. Overall, proper project management approaches increase the level of
competitiveness of the concerned corporate organization in the market.
Project Management Activities and Corporate Value Creation
One of the activities that create corporate value is work break down. Work breakdown
simplifies the overall activities of the project into smaller tasks. Each of the tasks is designed to
achieve easy delivery of any given project undertaken by the organization (Siami-Irdemoosa,
Dindarloo, & Sharifzadeh, 2015). The smaller activities are the basis of resource and time
allocation. Work breakdown increases the accuracy of allocating time and resources to a
corporate project. Accurate allocation of time and resources ensures that the project is delivered
within the appropriate time and at the highest possible quality (Siami-Irdemoosa, Dindarloo, &
Sharifzadeh, 2015). In turn, the project owners are satisfied with the quality and project
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deliverables,as a result the corporate competitive advantage and the overall welfare of their
organization improves in the market.
Use of visible diagram or gantt chart to show relationships between tasks and project
workers is a tool that adds the cooperate value. The activities are specified through work
breakdowns and are arranged in the sequence in which they will be executed. The relationships
between the tasks, staff members, and the management are also displayed (Siami-Irdemoosa,
Dindarloo, & Sharifzadeh, 2015). The aim of the task presentation is to ensure an agreement
between the staff members and the management. The agreement on the execution of project
activities reduces the risk of disagreement between the staff members and the management.
Rolling Wave Planning is another tool used in project management that creates value for
organizations. The stakeholders involved with project implementation plan for the activities after
the implementation of the previously planned activity in the initial months of project
implementation (Laufer, Hoffman, Russell, & Cameron, 2015). The project managers have a
clear visibility of the projects after its initial implementation. The plan is initiated, implemented
and re-planned as necessary. This approach supports evaluation and assessment for the projects
and prior adjustments (Laufer et al., 2015). Planning, implementation, and re-planning help
identify the risks associated with the projects. Additional rolling wave planning supports the
decision about cutting the costs of the project.
Project management software creates corporate value. Project management software is a
computer technology tool that is used to access the progress of projects. The software shows
updated levels of and activities that have been achieved at a given time (Ramachandran, 2017).
This data and formation is used by project managers to review the risks that face a project and its
financial viability. The project managers rely on the project software’s information on the project
to make changes to the project depending on challenges faced during the various phases. Project
management software tracks the progress of several corporate projects at different geographical
locations, managed by different managers and executed by different employees (Ramachandran,
2017). This reduces the costs of a project. Project management software is frequently used
through online portals, where the corporate management and the clients can access the progress
of the projects. This feature gives the organization the trust of the customer and increases client
satisfaction (Ramachandran, 2017). Customer trust and satisfaction increases the overall
probability that the organization will be awarded similar projects in the future and thus its
competitive advantage is boosted.
Measuring Corporate Value
Comparison with their companies is a method of estimating a corporate value. The
wellbeing of an organization is estimated through qualitative and quantitative comparison with
other matching organizations in the same industry. The method involves initial identification and
selection of the matching organizations within the industry (Dočekalová, & Kocmanova, 2016).
Additional factors that are considered in the selection and identification process are the number
of projects carried out at the same time and the type of the customer, the number of the
employers and the size of the project. The value of an organization is its welfare within its
respective industry. Therefore, to make accurate measurement of its value, the other organization
used in the comparison process should be in the same industry (Dočekalová, & Kocmanova,
2016). Further, this ensures that comparison is made based on the same or similar services
provided. The size of the organization and project are needed for accurate value estimation and
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measurements. The welfare of a corporate organization is expressed in terms of its
competitiveness in the industry. The type and number of projects undertaken by the other
organization are thus considered in this method of value measurement to reduce the errors
associated with the mathematical quantitative prices of standardizing some parameters such as
the profit made (Dočekalová, & Kocmanova, 2016). The level of sustainability of an
organization is a commonly used metric of corporate value. The value of an organization is
determined by the comparison of the costs and benefits of project undertaken by a business.
The business adds value if the benefits exceed the costs of the project. The benefits and
costs of the project are measured in respect to the environmental, economic and social impacts
(Dočekalová, & Kocmanova, 2016). The environmental effects are impacts that an organization
has on its surroundings. The economic effects are the effects on the skills, knowledge, capital
allocated to the project. The social costs and benefits relate the relations relationship between the
corporate and its employees and community, as a result of these projects (Dočekalová, &
Kocmanova, 2016). Both the internal and external benefits and costs are taken into account when
using this method. The environmental, social and economic costs and benefits are valued in
monetary terms. The aim is to reduce the benefits and costs in figures that can be used in
mathematical computation. The costs on the environment are described as the effects that
corporate projects create.
Qualitative research is used to measures a corporate value. The research provides data
and information on the perception and description offered by the management, associates, and
customer about the brand of the corporate (Dočekalová, & Kocmanova, 2016). The value of a
organization is defined by the satisfaction from customers and perceptions from other
stakeholders. The research studies about the organization will identify the strengths and
weaknesses of the organization in the industry (Dočekalová, & Kocmanova, 2016). The research
also collects data on the ways through which the organization can improve the implementation of
its project.
In summary, this paper has analyzed how project management creates values for
organizations. Also discussed in the paper are the project’s management activities and tools that
facilitate achievement of corporate value and the different methods used to instill corporate
values. It is evident that strategic planning and project review enhances corporate values. Work
planning and breakdown and project software are integral activities and tools used to achieve
corporate values. Equally research and sustainability are crucial in measuring the values created
by an accurate organization.
References
Dočekalová, M. P., & Kocmanova, A. (2016). Composite indicator for measuring corporate
sustainability. Ecological Indicators, 61, 612-623.
Laufer, A., Hoffman, E. J., Russell, J. S., & Cameron, W. S. (2015). What successful project
managers do. MIT Sloan management review, 56(3), 43.
Mossalam, A., & Arafa, M. (2017). Governance model for integrating organizational project
management (OPM) with corporate practices. HBRC journal, 13(3), 302-314.
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Ramachandran, M. (2017). Software Project Management as a Service (SPMaaS): Perspectives
and Benefits. In Software Project Management for Distributed Computing (pp. 87-115).
Springer, Cham.
Siami-Irdemoosa, E., Dindarloo, S. R., & Sharifzadeh, M. (2015). Work breakdown structure
(WBS) development for underground construction. Automation in Construction, 58, 85-
94.
Watt, D., & Schwartz, B. (2018). Governance in view: Done right, corporate governance
