Tuesday, November 2, 2010

Needs and Demands that drive Projects


Projects are usually come as result from business requirements, opportunities, or problems. Most of the projects will fit one of the following needs and demands:
  • Market demand. The demands of the marketplace can drive the need for a project. For example, a bank initiates a project to offer customers the ability to apply for mortgage loans over the Internet because of a drop in interest rates and an increase in demand for refinancing and new home loans.
  • Strategic opportunity/business need. The new phone system that was announced at the quarterly meeting came about as a result of a business need. The CEO, on advice from his staff, was advised that call volumes were maxed on the existing system. Without a new system, customer service response times would suffer, and that would eventually affect the bottom line.
  • Customer request. Most companies have customers, and their requests can drive new projects. Customers can be internal or external to the organization. Government agencies don’t have external customers, but there are internal customers within departments and across agencies. Perhaps you work for a company that sells remittance-processing equipment and you’ve just landed a contract with a local utility company. This project is driven by the need of the utility company to automate its process or upgrade its existing process. The utility company’s request to purchase your equipment and consulting services is the project driver.
  • Technological advance. Many of us own a multifunction cell phone that keeps names and addresses handy along with a calendar and a to-do list of some kind. I couldn’t live without mine. However, a newer, better version is always coming to market. Satellite communications now allows these devices to also act as GPS units. The introduction of satellite communications is an example of a technological advance. Because of this introduction, electronics manufacturers revamped their products to take advantage of this new technology.
  • Legal requirement. Private industry and government agencies both generate new projects as a result of laws passed during every legislative season. For example, new sales tax laws might require new programming to the existing sales tax system. The requirement that food labels appear on every package describing the ingredients and the recommended daily allowances is another example of legal requirements that drive a project.
  • Ecological impacts. Many organizations today are undergoing a “greening” effort to reduce energy consumption, save fuel, reduce their carbon footprint, and so on. These are examples of ecological impacts that result in projects.
  • Social need. The last need is a result of social demands. For example, perhaps a developing country is experiencing a fast-spreading disease that’s infecting large portions of the population. Medical supplies and facilities are needed to vaccinate and treat those infected with the disease. Another example might include manufacturing or processing plants that voluntarily remove their waste products from water prior to putting the water back into a local river or stream to prevent contamination.
All of these needs and demands represent opportunities, business requirements, or problems that need to be solved. Management must decide how to respond to these needs and demands, which will more often than not initiate new projects.

2 comments:

Anonymous said...


Tag: PM205A51. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it

1. Plan your day using time management techniques

As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.

If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.

Related post: Free ebook 104 secrets to become a great project manager

2. Include stakeholders in important project conversations

While you will have plenty of responsibilities regarding the project, don’t neglect your clients.

Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.

Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.

3. Regularly communicate with your team

Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.

For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.

4. Anticipate project setbacks

Even the best-laid plans often go awry.

Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.

Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.

Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.

Related post: 92 free project management templates

5. Stay focused on the details

A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.

Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.

And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs



Muhammad Shazab said...

You have studied about the how project come out? Read the following scenario and guess that the
project was launched because of which of the reason? (Hint: need & demand of project)
You're the company's project manager. Your company has a large customer who has demanded
that one of its research engines develop a special component. Your organisation, and your boss
assigns you to run this project, accepts and establishes a standard contract with the customer.