Question

Discuss the reasons why most organizations have chosen to incorporate projects in their organizations (15 Marks

Answer 1

REASONS FOR UNDERTAKING PROJECTS

Projects are done to solve a problem, satisfy a need, comply with a legal requirement or capitalise on/exploit an opportunity. These are often the business reasons for undertaking projects and are outlined in the business objectives.   In each case an analysis has to be done:

Re problems– there is the need to differentiate between symptoms of the problem and causes of the problem. It is only when the causes are found, that there can be a resolution of the problem. The reasons for undertaking projects therefore have to do with addressing the causes of the problem.

Re needs – In an environment of scarcity, especially of finances, there is the need to differentiate between needs and wants and so attack critical issues.   For example, a person wanting to obtain family housing may not qualify for a mortgage but the need for housing can still be filled by way of rental. However if the need was really for acquisition of capital assets, then only purchase of the house will suffice.

Re opportunities: Properly define the opportunity and clinically examine whether you or your organization are truly in a position to successfully exploit the opportunity.

Re Legal requirement-. In this case there is no consideration of whether the project should be done or not. It has to be done. You have to determine what the legislation requires you to do and seek to do it in the most cost effective and efficient way.

It is important to be aware of the above so that you can keep your eyes on the objective as achievement of it will be how the success of the project will be judged

Some reasons for initiating projects include- market demand, business needs, customer request, technology advances, legal requirements, social needs.

Research suggests that aligning project management and organization strategy produces significant benefits for the organization. Where previously project managers might lead expensive projects that may or may not have been compatible with greater business aims, alignment casts spending in a new light. Funds are spent to directly impact a company’s overall performance, thereby increasing profitability and reducing unnecessary expenses.

Alignment can also help improve project success rates and, therefore, the ability for the organization to address customer needs and expectations. Research has shown a significant increase in organizational financial performance and project success rates when projects were aligned with business strategies. When each project directly contributes to the welfare of the company, the organization as a whole improves, improving customer experiences and retention rates.