Project approach to enterprise business development
Project approach to business development companies
TumbinskayaNataliaYurievna
Natalia Tumbinskaya
Graduate student,
Moscow State Forest University
graduate student, Moscow State Forest University
Annotation
The article is devoted to the problems and features of applying the project approach to managing the business development of an enterprise. The concept of business development is examined, the relevance of effective business development for modern enterprises is substantiated, the concepts of project and project management are clarified, and recommendations for managing business development projects are offered.
The article deals with the problems and peculiarities of the project approach to managing a business development company. The concept of business development, the reality of an effective business development for modern businesses, refined the concept of the project and project management, makes recommendations on project management of business development.
Key words:business development, organizational change, change management, business development project, project management, project team, overcoming resistance to change.
Keywords: business development, organizational change, change management, project business development, project management, project team, overcoming resistance to change.
In the modern economy, business conditions change very quickly. The emergence of new technologies, new types of products and services shape changes in consumer demands and the very structure of demand. Businesses are forced to change their strategies in order to introduce new ideas, technologies or behaviors.
Today, the issue on the agenda is not so much the need for economic growth, but how to ensure its sufficiently high pace. Achieving this goal largely depends on the specifics of the external environment and the ability of the enterprise to develop business and effectively implement organizational changes.
The main strategic challenges of the external environment are increased competition in a saturated market, the unlimited possibilities of modern production and the successful implementation of information technology, and business success depends on the speed of response to changes in the external environment. This requires effective management business development aimed at increasing the competitiveness of the enterprise.
Within the framework of this article, the business development of an enterprise is understood as a system of progressive changes in accordance with technical, economic and socio-cultural progress, which contributes to the expansion of activities and increasing the significance of the enterprise, both in the economic and socio-political environment.
Business development may affect structures, technologies, goods, people. To implement it, you need to know what the goals of specific upcoming changes are, that is, start with the substantive side of the issue, with what should be implemented, and then only decide how it will be implemented.
Timely analysis of the logic of processes occurring in the external and internal environment of the enterprise makes it possible to more effectively determine goals and business objectives, implement the necessary changes at a lower cost, and coordinate them in terms of timing and actions among themselves and with changes in the external environment of the enterprise.
Business development can be carried out slowly and constantly, relatively small changes - quickly, and large-scale radical changes - rapidly. For small businesses, they are more acceptable constant changes. For medium-sized companies – the first and second ones, and only large companies can carry out radical transformations in the form of reengineering.
Analyzing the work of any organization, it is almost always possible to distinguish two main types of activities that exist in parallel: current, recurring processes(operations) and projects. The main differences between these two types of activities are that the processes are repetitive, cyclical in nature, and projects are aimed at achieving unique goals in certain deadlines.
Any changes carried out as part of business development are initially a project in which the main task of the manager responsible for the development of the company is to transfer change management projects into an ongoing business process of the same level as the process of managing the organization, and it is not important here , what are the organization’s methods for managing change - do they happen “spontaneously” or planned.
The task of an organization that relies on continuous improvement of efficiency is the integration of project initiatives (changes) into all elements of this organization: processes, structures, systems, and their consolidation in the corporate culture of the organization.
In domestic practice, the concept of “project” until recently was used mainly in the technical field. The “project” usually meant the development of documentation for the creation of any buildings or structures, and the development process itself was called design.
IN foreign countries To denote this design process, another term was used - designing (design, building design, product development), and the concept of project (project) is interpreted more broadly.
In this article, the concept of “project” is understood a set of interrelated activities designed to achieve, within a given period of time and within a specified budget, set objectives with clearly defined goals.”
Common characteristics of projects can be identified:
1.they are aimed at achieving specific goals;
2.they involve the coordinated implementation of interrelated actions;
3.they have a limited extent in time, with a definite beginning and end;
4.they are all unique and unique to a certain extent.
IN general case, it is these four characteristics that distinguish projects from other activities.
As you know, for the first time such an approach as “project management” was practically applied in the 50s in the US military and aerospace industries. The emergence of such an alternative to traditional management methods was caused by the growth in the scale and complexity of work, the involvement of a large number of participants in it, increasing requirements for the timing of work and the efficiency of using various types of resources, quality and results. Under the traditional management system, successfully completing these types of tasks was difficult. Thus, new formalized management methods were introduced into practice, which collectively received the name “project management.”
The American Project Management Institute (PMI, USA) defines “project management” as follows:
« Project Management (PM) or Project Management (PM) is the art of directing and coordinating human and material resources throughout the life cycle of a project through the application modern methods and management techniques to achieve the results defined in the project in terms of the composition and scope of work, cost, time, quality and satisfaction of project participants.”
The essence of the PM methodology is the concentration of rights and responsibility for achieving project goals in one person or a small group. This person - the project manager - ensures the implementation of the project, implementing key project management functions. Moreover, he does not necessarily perform these functions himself.
According to Russian National Requirements for the Competence of Project Management Specialists (STC) , the main functions of project management include:
-project domain management,
-project management according to time parameters,
-cost management in the project,
-quality management in the project,
-risk management in the project,
-personnel management in the project,
-project communication management,
-project contract management,
-project change management,
-other control functions
The head of the company has reasons for applying professional methods management of business development projects (BDP) in all cases when it deals with complex and non-trivial tasks that must be solved within a strictly defined time frame, within established budget and with the required level of quality.
By FGP management we mean activities aimed at implementing a business development project with the highest possible efficiency under given limitations in time, money (and resources), as well as the quality of the final results of the project (documented, for example, in the terms of reference).
Any project goes through certain phases in its development, collectively called the life cycle.
A distinction must be made between the project life cycle and the product life cycle. For example, a new product development project is only a separate phase of the product life cycle.
Sometimes, when considering the payback of an investment project, three main phases are distinguished: preliminary (investment justification), preparatory (investment) and production (production and sales). The life cycle of a project, the purpose of which is to perform work under a contract, may include the initial phase (preparation of contracts and initiation of work), the project implementation phase (detailed planning and execution) and the completion phase of the project work.
When implementing FGP, an important role is played by the tasks of communications and collaboration representatives of various and often competing divisions of the enterprise. The internal culture of each enterprise and the conditions for implementing projects are unique to each company. However, following the fundamental principles and concepts will undoubtedly help the enterprise create an effective project structure, without which, as practice shows, effective and successful implementation of FGP is impossible.
The main strength of the project concept of innovation management lies in delegation of power And assigning responsibility for achieving goals on certain managers - the project manager and key team members. The main problem of the project management concept is the difficulty of creating an effective temporal management system, which must function in conjunction with the permanent management system in the organization.
Projects are complex in their structure, and a large number of organizations performing various functions take part in the process of their implementation. The distribution of functions between project participants is decided specifically for each project.
Creating an effective team is the most important component of project success. To be effective, a project manager must create an atmosphere of positive teamwork. The project leader must create an environment in which the new project team members are professionally satisfied, engaged, and have mutual trust in each other. The greater the team feeling, the higher the quality of information exchange, including the sincerity of the exchange of ideas and approaches.
Project team is a temporary team created to implement a specific project. The organizational structure and method of creating a project team depends on many factors:
-type and type of project;
-the traditional approach adopted in a given region, city, or specific company;
-the presence of specialized project management firms, etc.
The optimal organization of the project team, which includes both project managers and a team of performers, as well as departments and specialists influencing the progress of work or providing some kind of support to the project, allows you to increase management efficiency and avoid problems.
In Fig. 1. shows the project structure, in which the project manager ensures the integration of the main project participants. The project goals control group ensures control and coordination of project goals with the strategic goals of the organization. The technical control group is responsible for compliance technical solutions and technologies used to generally accepted standards, organizational standards and contract specifications. The project administrator and office provide support to the project manager in collecting information and performing management functions.
Rice. 1. Example of project organization.
The titles of key project team members vary depending on the type of project. For an industrial project, for example, the core team, in addition to the project manager, should include the chief project engineer, who is responsible for the specifications and quality of the final product. For large projects, it is necessary to have a team of several engineers: an engineer responsible for product specification, an engineer responsible for production technology, and a specialist responsible for installation, testing and pilot production.
Project Administrator -a specialist responsible for all official paperwork within the project, logging changes made, complaints and other issues related to contractual obligations. Often the project administrator is also responsible for maintaining the project archive.
Large projects may also include:
Project controller - collects, processes and records information on the progress of work and actual costs.
Head of Support Services -is responsible for the functioning of information support services and support of general management functions.
Project office.It is useful to have a project office (project headquarters) even for small projects. The project office is the center where project information flows, meetings and appointments are held. Workplaces of permanent members of the project team, if possible, should be located at headquarters.
In each project, you can identify specialists whose activities are critical to the success of the project as a whole. For example, members of the organization's senior management who control the project; specialists with specific qualifications necessary to achieve project results, etc. In any case, the organizational management structure must ensure direct contact between the project manager and these specialists.
Project team management can also be considered as an element of the overall corporate personnel management system. The structure of the project team management system consists of the following elements:
The main goal of the business development project management process is to implement changes in the organization with the least resistance.
Achieving this goal is possible, according to the author, only through creating effective communication in the process of change management.
An effective communication process in an organization depends on the following factors:
-culture and goals of the organization;
-opinion leaders;
-market and national traditions;
-personnel and production technology;
It is possible to evaluate the communication process in an organization using the following parameters:
- reliability;
- speed;
-distortion factor;
-inequality;
- type of connections;
-availability of feedback.
At the same time, when working with resistance to change, it is important to remember the factors of resistance:
-Most changes are resisted by one force or another, and are primarily resisted by those who must undergo the change;
-people resist not only those changes that harm them, but also those that will benefit them in the long run.
The following are the main causes of resistance that need to be remembered:
-change is unknown, and employees think that change will have a negative impact on them;
-change is coercion (even if it is not);
-changes destroy formal, psychological and social relations the relationship between the employee and the organization;
-changes require the employee to abandon established elements of culture (habits);
When overcoming resistance to change, one should not expect that resistance can be eliminated completely; however, it is necessary to cross the line of criticality:
-involve all those affected by change at the planning stage;
-maintain open communications through the most effective information channels (example: senior management and/or third parties);
-convey the benefits to all employees affected by the changes;
-form a motivation system for the project/changes;
-avoid thinking like “Us – Them”;
-pay attention to the individual needs of employees;
-Encourage voluntary change and demonstrably reward people and teams who are successful in implementation.
So, all projects related to the business development of an enterprise and requiring additional organizational efforts, measures to improve the skills of employees, and the separation of experienced specialists from everyday work require the administration of the enterprise to overcome resistance from staff. The situation is often aggravated by the fact that the result is not obvious and the estimated costs are quite high. However, the implementation of business development projects is an urgent need for companies aspiring to market leadership.
Let us summarize the results of the study.
By now, project management has become a recognized methodology for business development in all developed countries.
A modern organization is able to exist and compete successfully in the market only if continuous development and adaptation to changing business conditions. The acceleration of the rhythm of modern life increases the instability of the functioning of companies, forces them to carry out frequent and rapid transformations, adapt to external conditions. Project activities allow us to cope with this task.
Market economics forces us to reconsider the content of the system of disciplines involved in economics, planning, organization and management. The massive increase in the scale of projects and changes in the criteria for their effectiveness required not just an increase in the level of specialization management activities, but also the development of new methods of planning, monitoring deadlines and organizing interaction between project participants. The basis of a new approach to the business development of a managed object is the concept of project management.
References:
- Akinfiev V.K., Karibsky A.V., Konovalov E.N. and others. Analysis of the effectiveness of investment projects. – M.: PBRU RAS, 2008. p. 29
- Gray K., Larson E. Project Management. Practical guide. M.: IT, 2007, p. 28. Veprova R.N. Change management in small and medium-sized enterprises // Bulletin of the Baikal State University of Economics and Law, No. 3, 2010. p. 22.
Matveev A.A., Novikov D.A., Tsvetkov A.V. Models and methods for managing project portfolios. M.: PMSOFT, 2005. p. 73.
Shvandar, V. A. Management of investment projects / V. A. Shvan-dar, A. I. Bazilevich. – M.: Unity, 2001. p. 188.
Vzyatyshev V.F. Introduction to the methodology of innovative project activities: Textbook for universities. – M.: “ETSK”, 2002.
Balashov V.G., Zalozhnev A.Yu., Ivashchenko A.A., Novikov D.A. Mechanisms for managing organizational projects. – M.: PBRU RAS, 2003.
The most obvious beginning of design activity for contemporaries is the creation of pyramids and other majestic structures. Most likely, this is not the case, and projects as a phenomenon arose much earlier. And their history is the same age as earthly civilization. Today there are many types of project activities. Construction and renovation of your own home, scientific research, space flights, government modernization, educational programs, 2018 FIFA World Cup. In a word, you can’t count it enough. A business project is a special category of projects; they are used only commercial companies for the purpose of future profit.
The essence of projects in business
Projects as a means of solving business problems are closely related to the company's strategy. The result of any developed strategy, brought to the tactical level, is a plan of strategic actions. Based on this plan, a portfolio of enterprise projects is developed. And only then does the opportunity and need arise to organize individual business projects. This is the typical logic of transferring strategy to the level of practical implementation.
What is the essence of the task set by the company's management? The essence of understanding a project is determined by three points included in its definition.
- The company has localized goals that it intends to achieve.
- The management of the enterprise sets time limits to achieve this goal.
- Achieving a goal involves non-repetitive activities (not the usual production of products or services). The prescribed activity is unique.
Business projects are understood as the activities of a commercial organization with the aim of creating unique products or services under budget and time constraints. Projects in the business sector have the features of business tasks. That is, by pursuing specific goals, they serve to achieve specified results, directly or indirectly aimed at making a profit in the future.
Almost all business tasks are unique and are divided into two large groups: cyclically reproducible tasks classified as business processes, and unique tasks - those same projects. The more experience a company has in implementing certain projects, the more less level their uniqueness, the more they gravitate towards processes. The development of business processes produces results when a once unique task enters the cycle.
This happens quite often. Let's give an example. It is more profitable to create and replicate a branch network on the basis of the described business processes “Opening a branch of a company.” However, it is safe to say that the company that adopted the branch network development strategy opened the first three branches in the form of business projects. And only when the creation of all three divisions was completed, the management had a desire to reduce project budgets, describe the accumulated experience, and put the procedure on stream. On this basis, a new business model is developed and the corresponding process is described.
Types and place of projects in the company
We have already noted that the essence of business projects is well revealed through the strategic model for implementing the company’s development. The strategy “goes down” thanks to the BSC tools to the grassroots processes of the main production, passing through the middle zone called “Development Programs and Projects”. Inside the main production there is an option to deploy the so-called “Project Production”, which is a specific individual species business. An idea of the architecture of such a translation of a strategic plan will help you create the Strategy Implementation Pyramid, presented below.
Pyramid of strategy implementation for a commercial organization
Thus, there are two main forms of projects in business: development projects and contract projects (also called project production). The first category presents more unique development challenges. To solve them, completely heterogeneous resources are used, the tasks for which are not worthwhile at the portfolio level. On the contrary, it is important to provide each project with sufficient resources and implement it into business structures (organizational, financial and informational). Here are some examples of such projects:
- entering new markets;
- launch of new products or services;
- production scaling;
- marketing campaigns;
- internal projects related to the reorganization or implementation of IT systems;
- mergers and acquisitions.
The essence of contract projects is determined by the company's industry. Project manufacturing represents those companies that make money by implementing projects as ways to create a product. They create portfolios of orders and plan individual projects within them. It is important for such manufacturing companies to manage not individual projects, but at the portfolio level. For them, it is of serious importance how planned and optimized the resources - task performers are. A feature of this form is the homogeneity of resources, since they are of a production nature. Examples include:
- construction companies;
- IT companies;
- small-scale and piece production;
- consulting business.
Business project management
It should be noted right away that often even experienced businessmen confuse the concepts of project and business plan. This must be dealt with, otherwise difficulties will arise later. Which of these two concepts is “chicken” and which is “eggs”? Naturally, the project is primary, and the business plan is secondary.
In other words, it is possible to draw up a business plan only after the project to open a new business or a new line of activity has been launched. It won't work the other way around. The result of the project is, for example, new business, and the result of planning is the development of a “Business Plan” document as a justification for launching a project for investors and the customer.
Writing a business plan means going through a phase of the planning process that is part of the project management system. What else is included in business project management besides planning? As a system of applying knowledge, skills, methods, and technology to accomplish a unique task, management serves the purpose of meeting the expectations of project participants. The structure of this system includes at least seven components.
- Project initiation.
- Preparation of the charter.
- Selection and appointment of PM.
- Planning.
- Organization of execution.
- Monitoring and control.
- Completion of the project.
It is worth noting that the second and third items in the list are not considered as separate management processes in the PMBOK PMI Guide. However, the preparation of the charter and the appointment of a project manager, especially in Russian conditions– very important positions in the implementation of a unique development task. The interaction of management processes has a rather complex architecture of connections; its work flow diagram is presented to your attention below.
Diagram of interaction between project management processes
This diagram identifies the five main process groups of initiation, planning, executing, controlling, and closing. The structure of connections between them allows for different interpretations. And no matter what the scale of the project, it may be small, but its manager will in any case be faced with the need to act according to the presented model to one degree or another. Otherwise, creating a project as a regulated and productive task may fail.
Project management success criteria depend on three key parameters: project content, constraints and risks. The structure of the project is determined by the correctness of the chosen goals, the effective organization of management, and the technical and resource support for completing the task. The larger the project, the more complex it is, the higher the importance of the management component and technical and resource support. These two components complement each other.
In this article, we were able to distinguish projects in commercial organizations from other types of projects and business plans. Thus, the misconceptions existing in practice are dispelled. We examined the main essential points, concepts and content of the project task, confirmed the mandatory connection with the company's strategy as a way to develop activities with a given target setting. In addition to the essence of the project as such, a system of management processes consisting of seven main components is briefly presented. All this allows the reader to tune in to the fundamental principles of project management and move on with the basic understanding gained.
Old Soviet project management tools have been rejected, and new Western ones are not easy to implement. There are mountains of literature around the project business: large volumes and short articles. Only a few of them represent original primary sources. Most others are simply damaged copies of the originals. The trouble is that with such copying, sanity often disappears, and myths quietly creep into its place. Let's look at the most important of them.
There are mountains of literature around the project business: large volumes and short articles. Only a few of them represent original primary sources. Most others are simply damaged copies of the originals. The trouble is that with such copying, sanity often disappears, and myths quietly creep into its place.
A reasonable person will not build his business based on myths. It is necessary at the start to form a critical look at common schemes. If you don’t do this from the very beginning, you will have to learn from real business mistakes and pay for them.
Myth 1. The term “project” itself
This may surprise many, but the first and most important myth in project management relates to defining and/or understanding what a project is. As a matter of fact, all the problems of project management rest on the concept of “project”. What is included in the primary definition also determines the subsequent vector. That is why all works on this topic begin with a definition of the term “project,” although it would seem that it makes no difference to the user from one or another formal definition.
All formulations are based on the following five components:
- the project represents an activity (set of actions, type of activity);
- this activity is limited in time;
- this activity has a purpose;
- the purpose of the activity is unique;
- The resources available for the activity are limited, in particular, the goal must be achieved by a certain calendar date.
- Any business is an activity.
- Any modern business limited in time. Even the largest corporations change beyond recognition over a period of about 10 years, even to the point of changing their name. Small businesses simply, by their very nature, change dramatically in 2-3 years.
- Any business has a goal, first of all, to make a profit.
- The purpose of any business can be considered unique. Without uniqueness, a business is not competitive.
- Any business is limited in resources.
How does Western project management base its activities on an erroneous definition?
- Answer 1. In fact, such a definition arose much later than the mass use of design tools: budget, network diagrams, scheduling etc. These tools have been tested in practice. Therefore, in practice no contradictions arise.
- Answer 2. The definition of a project arose as a transfer within corporate ideas about the project into general economic language. Indeed, often within a corporation one can talk about the uniqueness of the goal, a special procedure for obtaining a budget, opening financing, etc. However, these formulations cannot be universal. It is also common practice for companies to divide all their activities into projects, although the goals of the projects are approximately the same.
Myth 2. Russia has never been able to make projects
This is another myth that has quietly emerged over the past 15 years. If we expand the horizons of history further and use modern terminology, we will immediately see: the USSR was a phenomenal project-oriented system.
Let's look at the USSR as an organizational, self-governing system or as a very large company. We will not consider the political or moral aspects of this system; we will simply take these issues out of the equation.
Starting from plan GOELRO, which arose immediately after civil war, the USSR introduced a system of planned management for the creation of new facilities throughout the country, unique in human history. The number of newly created factories, power plants, and roads is simply amazing. A gigantic innovative spirit emerged in society. The nationwide system of supporting scientific and technical creativity and invention has created a conveyor belt for the production of new knowledge.
Many projects, such as the space program, the construction of giant power plants, the development of oil and gas fields in Siberia, the construction of thousands of new cities, even now, in the 21st century, may seem like some kind of alien phenomenon.
For 17 years, from 1970 to 1987, 663 new urban settlements were created in the USSR, i.e. on average 3-4 new cities and towns every month. In 1980-1987, 3,378 major (according to the terminology of the USSR State Statistics Committee) industrial facilities were put into operation and reconstructed. On average, 2 industrial facilities were commissioned every working day.
If in 1960 there were 354 thousand scientists in the USSR, then in 1987 there were already 1 million 517 thousand people. In the 1980s, 5 million innovation proposals and invention applications were submitted annually.
A unified document flow system was used throughout the country. There was end-to-end, bottom-to-top planning (budgeting), which can be the envy of a modern large company. Five-year plans in modern language correspond to strategic development plans. Methods of “project management” specific to socialism were developed: a system of capital investments, procedures for reviewing projects (feasibility studies), resource balances, network diagrams, capital productivity, etc. The system of personnel policy of the CPSU acted as an analogue of modern methods of personnel management. For example, instead of modern concept“key specialist” the term “nomenclature” was used. No matter how a specialist included in the nomenclature lists moved around the country, his personnel history was accumulated and analyzed in party bodies. Thanks to this, a phenomenally fast, even by today's standards, mobilization of the necessary specialists was achieved.
The above should not be taken as praise for the communist economic system. The situation is both simpler and deeper: from a management point of view, there is no difference between the USSR and a modern large company. Moreover, basic methods modern management projects are a non-market procedure. This is most clearly evident in resource management. Resources are always measured in physical terms - personnel, materials, production capacity, etc. If modern company initiates a project, then, first of all, the availability of resources, expressed in physical terms, is analyzed. Only in the case of attracting external resources is a monetary valuation made, and here too money often plays the role of a natural resource.
In the USSR, due to its scale, resource management (management of natural indicators) was placed at a very high level. Financial management, on the contrary, was unsatisfactory. The main reason for this was the prescriptive nature of prices. This problem is also known for large modern integrated companies as a problem of transfer prices- sale of products between managed enterprises.
Why is the USSR economy considered ineffective? Let's use modern terminology again. The economy was inefficient because The USSR was not a client-oriented system at all. The entire economy was focused only on the creation of new facilities. At the same time, the production of factories was in no way tied to consumer requirements. There was no effective feedback from the consumer to the manufacturer. As a result, financial and accounting indicators could not be controlled parameters.
There was only one exception: military production, but even here the feedback chain was very long. The final conclusion about the merits of the new technology was made through comparison with Western models. Given questions of natural secrecy on both sides, the signal about the advantages or disadvantages of the new military equipment arrived to the manufacturer with a significant delay. The civil Soviet economy never created any instrument equivalent to the instrument of competition in a market economy. This was precisely the main reason for the collapse of the USSR. By the way, in a market economy there are known cases of failure of large monopoly systems.
What relevance can the economic history of the USSR have for everyday practice? Russian company? The answer is the most direct. We inherited from the USSR 1.5 million scientific workers and 24 million people with higher education. You can’t easily retrain these people, you can’t force them to forget all the old knowledge and learn new ones like MBA & PMR. This is where the need to adapt Western experience rather than direct copying manifests itself. There is also no point in abandoning all Soviet instruments. If these tools are purely technical in nature, then they can easily continue to be used.
Myth 3. Western project management systems are easy to copy
In Russia, quite often some elements of Western management systems are introduced, including in the field of project business, based on the belief that any Western element will easily fall on Russian soil. In fact, the ease of copying is just another myth. An ill-considered, non-comprehensive copying of a Western project management system may turn out to be not only ineffective, but also simply harmful. There are a number of underlying reasons that do not allow one to directly copy the Western business system.
Differences in national cultures. The way business is conducted is influenced not only by legal and political institutions, but also by national culture. Culture here refers to the types of relationships between people and the sources of the formation of human groups and collectives.
Difference in the formation of business institutions. It is national culture that creates balanced system business institutions. For the project business, the most illustrative example is the formation of project teams. It would seem that it could be simpler. A project team is simply a group of people working together to complete a project. The view of a team changes when we think about the personal responsibility of team members.
Project team in the West:
- often a team is formed from independent individuals;
- specialists bear personal financial liability for your mistakes or offenses;
- there is an error insurance system in place;
- certification of specialists is carried out by self-governing public organizations;
- For personnel, hourly planning and reporting is applied.
Project team in modern Russia:
- the team is formed from enterprise delegates;
- specialists, as full-time employees, bear responsibility only within the limits of the Labor Code;
- Full responsibility can only be borne by legal entity, counterparty enterprise and then within the limits of the agreement;
- There is no certification of specialists in the Western sense; there is a licensing system for legal entities;
- The hourly system does not apply.
Various internal corporate regulations. In the West, project management systems are not used in isolation from other management systems, but rather in combination. It is difficult to imagine a situation where in a Western company the design component is well regulated, but the remaining components are not regulated in any way.
Over the past 10 years, Russian companies have also introduced a system of internal regulation. Along with job descriptions (functional responsibilities), new documents have appeared: standards, regulations, policies, and methodological recommendations. Regulatory documents are in the nature of internal laws. Full-time employees are obliged to comply with the standards contained in internal regulatory documents.
In the West, unlike Russia, internal regulatory documents have been formed and accumulated over the past 100 years. It is clear that the system of Western regulatory documents is much more polished than ours. The effectiveness of the internal regulatory system is determined precisely by the quantity and quality of forms and instructions. Everywhere, both in the West and in Russia, little is read about manuals; in contrast, forms and instructions are used every day. Forms and instructions allow the employee to save time, simply work, and not think about how to work. As a result, the balance between the bureaucracy of the regulatory system and its effectiveness becomes positive for the company.
The actual number of documents in a Western project management system. The problems of copying Western project management systems should also be supplemented purely technical problem. Total copying requires the introduction into practice of a Russian company of all documents provided for by Western standards (schedules, plans, budgets, etc.). For the unprepared Russian reader, an amazing fact arises here: according to the popular IPMA standards, PMI total quantity project documents amount to approximately 200 units. Just describing these documents and creating samples and forms will require significant human and time resources.
Inevitably, for a Russian company, with total copying, the problem of reducing the number of standard, standard documents arises, and this is already an adaptation of the Western project management scheme.
Myth 4. Project result goal or Value added
Typically, in Russia, the result of a project is interpreted as the achievement of a certain goal, and this goal is understood in physical terms (house, equipment, drawing, etc.). In Western economics, the result of activity is value added . Many companies position themselves in the market as "value added oriented company".
This term can be translated into Russian in the following ways:
- added value;
- added value;
- added value;
- added value.
The first difference arises if we analyze these words from the point of view of Russian accounting. In our accounting the term " value" is missing, and the term " added value"has a narrow scope of application. According to our rules, added value arises only at the time of sale (sale). Until this point, there is no added value. So, let’s say a company managed to purchase a building very cheaply, which was reconstructed after the purchase. Even if the market value of the renovated building is high, the book value of the building will still be equal to the purchase price plus the cost of renovation. In this sense, added value is of no interest to business.
Western understanding value added is fundamentally different from our accounting (or, rather, the Ministry of Finance) understanding of added value. Confusion arises due to the ambiguous understanding of the term VAT:
- on the one hand, VAT is the part of the price of a product or service that is paid by each consumer; This most common understanding has little to do with added value.
- on the other hand, VAT is a tax paid by business enterprises to the government. Unlike ordinary consumers ( individuals), For commercial enterprises There is a deduction procedure. According to this procedure, the state tax is calculated as the difference between the VAT received and paid. Because of this, the tax to the state from commercial enterprises is really a value added tax, and the added value arises only at the time of sale;
- Since the revaluation of fixed assets in Russia is not successful, and the revaluation of intangible assets is generally prohibited, the increase in the market value of the asset is not reflected in accounting in any way.
With the disappearance in our everyday life basic concept added value has staggered and general definition business results, which is directly related to project business as results-oriented. An attempt to replace added value with accounting profit, in fact, greatly narrows the meaning of economic activity.
Without rejecting such an attribute of the project as the goal, among the project results, the first place should be given to the added value that arises after the project is completed.
What Russian word to replace value added? According to the author, the following options are possible:
- in those companies where English language and/terminology is often applicable; the easiest way is not to use Russian analogues, but to use English words;
- "added value": when using this option, it is strongly recommended that the main corporate documents provide an interpretation of the term;
- "market added value", i.e. the difference between the cost of creating a product and its selling price; accordingly, we can further distinguish: future market value added, actual market value added, fair market value added.
Statistics from the last 15 years indicate that in Russia the number of completed projects is significantly less than in the West and than in the corresponding period in the USSR. Undoubtedly, the main factor constraining investment activity is political risks. The risk of property being “taken away” is still high.
Against the background of this problem, another, no less important problem is hardly noticeable: from a technical and managerial point of view, we in Russia do not know how to implement projects. Old Soviet instruments have been rejected, and new Western ones are not so easy to introduce.
The question is often asked: what is the main know-how of design technology? What should you do first of all: draw up a network schedule, calculate and obtain resources, manage risks, find key specialists?
The most important factor lies on the surface and lies in the answer to a simple question: what should a project manager and his team do every day? You can draw up a project plan of any size, recruit professionals, but it all comes down to this simple question: what to do today, what needs to be done tomorrow.
This falls into the category current management. In the West, there is a simple, universally used tool for managing ongoing activities - a checklist ( check list). A checklist is a table in which the first column contains a list of actions, and the second column contains a checkmark for completing the action. The checklist does not contain calendar dates or instructions from those responsible. This is just a list of actions. Based on the checklist, an ongoing plan for the working day, week or month can be drawn up. Calendar plans already indicate both the deadline and the person responsible for execution.
An important condition of the project list is its detail. A general checklist for completing a project may contain hundreds of activities.
Creating an ongoing calendar plan based on a checklist is not difficult. This is why the checklist has the highest priority of practical usefulness, perhaps even higher than the project plan.
A business project is an idea and actions to implement it with the goal of creating a product, service or other useful result.
Purpose of the business project
Business project management is increasingly becoming the standard way of doing business.
The complexity of the products made it necessary to integrate incompatible technologies. And to solve this problem, it was project management that turned out to be extremely necessary and timely.
The development of small business in our country has led to the creation of a large number of small organizations in which changes are constantly taking place. Therefore, it is now extremely rare for a large business project to be carried out by one organization.
Implementation of project management at Russian enterprises it's very difficult. One of the main reasons is the lack of qualified personnel. Our enterprises are usually run by strong leaders who are accustomed to making decisions alone and do not want to share their powers and make the necessary changes.
But we must understand that global business projects cannot be effectively implemented with a traditional vertical management model - a multi-level management system is needed, in which many people are involved structural divisions companies.
Today in our country a new type of manager is being formed - heads of design companies, focused on solving complex tasks. Be that as it may, domestic business is entering a new international level development. Companies are actively modernizing and developing large-scale business projects. Therefore, they cannot do without special business technologies, including project management systems, which allow solving complex production problems.
Types of business projects
A business project is an event limited in time, budget, and resources. Let's list the main types of business projects:
1. Business projects, the implementation of which must be carried out in a remote area exposed to factors remote from the contractor’s main enterprise.
For example, construction business projects are associated with special risks and problems in the field of organization and communication.
2. Industrial business projects, the implementation of which is carried out directly on the territory of the organization. This could be the development of a new product (service) or the manufacture of parts. When implementing such a business project, the company can carry out on-site management and provide optimal conditions.
3. Management business projects, the need for which is always present in any organization. This
- development of a new report;
- opening a branch;
- implementation of a computer program;
- cost reduction measures;
- trade show
- etc.
Features of business projects
Until recently, a business project was understood as a set of drawings with accompanying documentation. Now the features of business projects include:
- specific goal
- start and end times of work,
- financial, personnel and other restrictions,
- uniqueness of the business project,
- special requirements for time, costs and quality of work,
- specific project management with the involvement of specialists.
The main difference between the goal of a business project is that it must be characterized by three main indicators: time, costs and quality. The final result of a business project must correspond to the purpose for which it was conceived. The business project must be completed on time or ahead of schedule, carried out without exceeding the approved funds, in accordance with the ISO 9000 quality standard.
To account for costs taking into account the time factor, it is useful to form the cost using the direct costing method.
Personnel limitations of a business project are also possible, since it is necessary to attract highly qualified specialists to the management and implementation of a business project, but on a temporary basis.
A business project is never the same and always includes some elements with to varying degrees uniqueness. This may be something that has never been done before, which means it requires solving new problems and the emergence of completely new technologies. But these can also be basic business projects, for example construction, but they require customization to one degree or another, which also makes them unique.
7 signs of business project management
Business project management is also different from traditional ones. For example, there are so-called “Seven Pros” - 7 distinctive features management, business project management.
In the German version they are defined as follows:
- 1. Problem-oriented, that is, business projects solve problems.
- 2. Professionalism - the need for professional competence.
- 3.Projects relate to the future, that is, projects need to be planned.
- 4. The preventive nature of projects, that is, projects require a focus on interdisciplinarity and communication.
- 5. Productivity of projects, that is, projects should be evaluated based on the results achieved.
- 6.Uniqueness of projects - projects are one of a kind.
- 7. Projects are pro-humanitarian, that is, work in projects for the most part represents work in a team, free of hierarchy, which is done by people and for people.
© Planet KIS 2000
© Victor Biryukov, Vladimir Drozhzhinov
Once upon a time Swan, Cancer
Yes Pike was conceived
Play a quartet...
We will concentrate on one
only topic: “Project approach in
modern business”, since the entire topic
project organization management
too vast to be possible
cover in one not too lengthy article.
This formulation allows us to give
discussions practical orientation and
at the same time stimulates conceptual
approach to problems whose solution is
significantly influences the development
project activities.
Features of project management
activities
Under the term “management
projects” is understood comparatively
a small range of technological subjects
character. However, this interpretation
significantly narrows the problem and does not allow
solve important practical questions. “Project
business" is used as a generic term
to indicate business activities,
based on project-oriented
approach. This includes system
integration, film and video shooting, development
software, insurance
activities, organization of exhibitions, etc.
Electronization
business and commerce requires a new look
on the problem of project management. Short
speaking, we are talking about the fact that it is time to
project management go to
“Projectivization”
business. In modern business
There are a number of global trends
allowing us to talk about its “projectivization”,
i.e. an increase in the share and value
activities related to the implementation
projects. The most important among them are:
- · transition from regulation and
concentration to coordination and
distribution; - · reduction of product life cycle and
services, especially development times and
launch; - · personalization of supply and demand,
products and services.
Generally
we can talk about a paradigm change (the main
models) of business: they are beginning to consider it
This approach allows adequate
reflect another feature of modern
business when the main strategic
becomes a competitive advantage
flexible behavior in a changing external environment
environment. In such conditions, withdrawal is inevitable
from hard organizational structures And
management technologies.
Especially
clearly indicated trends are manifested in
business related to the Internet. Moreover,
we can say that it is this area
will serve as the main consumer of new
information systems for management
projects.
Main conclusion
is that in the near future it should
expect a change in approach to construction
information systems for project
business, taking into account its characteristics,
based on modern system
architecture, highly scalable and
affordable.
Peculiarities
project business. Now accepted
talk about the crisis of traditional ERP systems.
However, it would be more correct to state
crisis of general models of organization and
business management, to maintain
which such systems were created.
In relation to project business
the problem becomes particularly acute
due to some of its features (see.
box).
Control
Project approach to management Let's consider Challenge of time. Examples
|
Peculiarities
It should be noted |
Project like
product creation tool. This
the most common type of project. On
order is created some alienable
product that the customer uses
at your own discretion. Examples of such
products can serve as programs,
design solutions, buildings, etc.
Traditionally special attention was given
design technology, and therefore
systems such as CASE, CAD, etc.
Examples
1. Software company operating in Russia,
for last year increased staff from 50 to 250
people due to the growing number of developments
to order. To increase
productivity, the company acquired
integrated CASE technology of the company
Rational. According to calculations, this should have reduced
software development timeframe
doubled. Actually the order fulfillment cycle
has not changed significantly. Moreover,
had to hire and train additional
employees - managers and business analysts,
and also involve third parties.
At the same time, costs for
support, and due to geographical
distribution of company offices, groups
developers and clients have problems
communications.2. AvtoVAZ for decades
invested millions of dollars in
automation of design and
technological works.3. Large Russian manufacturer
rocket technology believes that if he
gave 50 million dollars for the acquisition
integrated CAD/CAM system such as
Boeing Corporation has it, then it quickly
would become a world leader in its segment.
Project like
market product. The project can be
be considered as independent
market product, which is
organizational and technological complex.
In fact, what we are talking about is that
the entire complex is developed for the customer
issues related to the implementation of the project.
Examples
1. Telecommunications company in
Boston (USA) received an order for
deployment of regional
integrated data transmission system
worth about 300 million dollars. This
the company turned to specialized
consulting firm so that
developed an organizational structure,
work management technology and procedures,
resources and quality, accounting, compilation
work schedule, etc. Moreover,
consulting firm displayed its
development in some automated
project activity support system,
and after the launch of the project I took on it
accompaniment.2. Large Russian ministry
decided to modernize its
information infrastructure. Was
technical architecture developed,
the stages of the project are carefully thought out,
money was allocated, performers were selected. But
It soon became clear that the program
uncontrollable. It turned out that almost
impossible to carry out within a reasonable time
coordinated changes in work plans and
technical solutions, as well as change
lineup of performers. Scope of design
documentation received by the head office
organization, grew exponentially. The most
the terrible thing, however, was that no one could
accurately estimate the amount of work done
and the degree of approximation to the desired
result. At the same time, formal reports on
the work done was received regularly.
Project like
business tool. If under
project to understand the form of doing business in
trade and service sector, then the transaction
is framed as a project for which
appropriate methods are applicable
management and accounting.
Examples
1. Fast growing transnational
the company carries out the following activities:
- o development and implementation of programs
promotion of existing and new
brand name products;- o packaging and delivery of 300 thousand items
products from more than 3,500 manufacturers;- o development and production of goods according to
custom specifications.Clients
have very strict requirements for
compliance with planned deadlines, due to which
the company must be able
predict and clearly monitor
processes of manufacturing and delivery of goods to
specified target dates. At the same time
a significant problem is
cost management, i.e. valuation
economic efficiency of each
individual order and cost control
each transaction, including the purchase price,
manufacturing, freight and transportation.During the selection
new ERP system, management realized that
the main activity of the company is most
can be adequately represented in the form
a set of parallel
interrelated projects. For this choice
significantly influenced by the presence in the system
developed project management module,
which in combination with finance modules,
production management and logistics
allowed to track cost and progress
execution everyone order.2. Largest insurance company
uses a modern control system
projects for their design as
individual transactions (including transactions with
individuals) and entire programs
insurance. As a result, it is achieved
possibility of integral control
business, including planning and control
specific activities, cost estimates and
income from programs, products, transactions,
business units, target segments and
agents.3. Large Russian distribution company
the company supplies clothing and footwear to the market
world class. Collection update
is carried out every season. Production order
and delivery of goods is prepared and placed
one year in advance. The company has an extensive
network of regional partners involved in
formation of the order. Much attention
the company devotes its attention to marketing
events. In the process of implementing a new ERP system
the company set the task of identifying the design
structure of its activities using
such signs of decomposition as commodity
group, seasonality and partners. For example, for
projects are allocated for each product group
preparation and execution of consolidated
orders with subsequent breakdown by season
and partners.
Integration
methodologies and standardization. IN
there are currently many
specialized methodologies,
developed by leading
consulting and computer firms.
However, “projectivization” and “electronization”
businesses are acutely tasked with integration
these methodologies.
Examples
1. The rapid development of e-business is forcing new
look at methodological issues in
due to the following circumstances:
- o change in the substance of the issues under consideration
tasks;- o the need to integrate special
methodologies in connection with complex
the nature of the problems;- o the need to create a “new
competence” due to the merging of heterogeneous
competencies embodied in “computer”
and “consulting” methodologies.2. There are methodologies, naturally.
gravitating towards each other. So, for example,
CALS methodology is the basis for
building a product life cycle model.
At the same time, it represents
platform for building a total system
TQM quality. These methodologies are closely related
adjacent work flow models workflow,
formal means of modeling business processes,
methods for building corporate storage
data. Within the framework of the above methodologies
Various types of standards are being developed.
And all this has the most immediate
attitude towards project activities.
Project like
conceptual unit of knowledge.
Knowledge management is fundamental
value for project-oriented
activities, since fixed capital
such organizations - this is corporate experience
in solving problems of a certain class.
The project seems to be a convenient unit
organization of knowledge, in which in a coherent
form has essential components
knowledge: problem statement, result,
ways to achieve.
Examples
1. On the vast majority of Russian
machine-building enterprises
there is no coherence and
detailed description of the selection process,
creation and production
new product. This is a common disease
civil and military industries.2. Over the past ten years, AvtoVAZ has lost
hundreds of leading specialists -
middle managers. Essentially
we can talk about loss of potential
creating new car models.
A similar situation arose in other
large mechanical engineering enterprises, where
in fact, loosely connected “tops” remained
and “roots”: the tops dry out, and the roots
rot, and all this leads to general collapse.3. Any large organization has
some various types projects.
For example, a software company might
coexist custom development projects,
adaptation of an existing program
accompaniment, etc. at any
machine-building enterprise
development projects are definitely underway and
modernization of products, development of new
technology, building reconstruction and
infrastructure, etc.
Program
approach. Formally the program is defined
as a set of interrelated projects.
However for practical application given
the definition is not too
constructive.
Examples
1. In the late 60s, the US government
launched a creation program
ultra-large-scale integrated circuits (VLSI),
which gave a powerful acceleration to the development
microelectronics. Her successful experience
implementation has been used in others
US federal programs - yes
called strategic initiatives in
various industries.2. The situation is extremely acute in Russia
the problem of restructuring in a broad sense
words: public administration,
industries, enterprises.
Project like
quality assurance tool. IN
within the project approach, quality can be
define as obtaining the required
result under given restrictions on
resources and timing.
Examples
1. There are numerous examples of this
called “implementation” of ERP systems, when
the system was installed, but not
is used or does not provide the required
result. There have been cases of litigation in the USA
claims against consulting companies,
those who have implemented ERP systems in recipient companies,
after which the latter burned out.2. For each specific project
relatively easy to develop
a set of measures to ensure quality.
Using the entire range of measures and
quality management procedures are usually
leads to an increase in project costs by 15-30%. At that
At the same time, abandonment of quality management
can generally lead to the failure of the project.3. The company “1C” proclaimed security
quality of implementation projects
strategic goal of working with partners,
allowing you to stay on solid
competitive positions.
Design
organization and administrative structure.
No matter how much is said about divisional
matrix and other construction schemes
organizational structure, in Russia it is still
the functional structure dominates with
with all her grimaces towards the project-
oriented company management.
Examples
1. In a Russian consulting firm
a business development program has been adopted,
related to implementation
a fully functional integrated ERP system.
It is planned to launch two within a year
large projects (implementation period - up to
one and a half years), as well as several small and
medium projects (with an implementation period of 3-6
months). When implementing the program
it is intended to maintain the existing
functional structure oriented
to solve specific problems in the field
management consulting, software
development, system integration.
Management of each specific project
implementation and its implementation is expected
carry out through superiors
functional departments. Due to this
team busy with whatever
project, consists of a project manager -
general director and executives -
heads of functional departments.
The result is very expensive
pleasure: CEO
stops engaging in strategy and
the company as a whole, and department heads
act as simple switches
assignments, which also introduce distortions.2. In a Russian diversified company
a successfully functioning
internal cost accounting and payment system
labor according to real economic
performance results of business units. IN
in accordance with modern trends in
the company is considering the possibility
implementation of the project approach. Main
managers see the problem in change
financial accounting structure and principles
management accounting: replacing business units
projects should come with which in the new
structure will be linked to plans, budgets and
results.
New level
relationships between participants. Traditionally
projects are considered in context
relationship “customer - performer”. IN
modern conditions in their implementation
many involved (as many as tens)
partner organizations.
Examples
1. A publishing house with large
information resources, considers
possibility of creating trading platform For
groups of vertical markets. Already at the stage
developing a business plan unexpectedly
it turned out that it was necessary to work
attract a large number of participants (see
table). Moreover, every company wants
participate in the project not only as
performer (subcontractor), but also how
investor, counting on investment
attractiveness of the project. Thus, in
a group of partners is identified for the project,
applying for a certain participation in
project management. This situation
reflects the general trend towards establishing
long-term partnerships,
related to the implementation of projects.2. Analysis of successful development experience
companies - organizers of electronic
trading platforms shows that one of the
main success factors is
careful selection of partners capable
work without conflicts of interest.
At the same time, there is a tendency towards
absorption of partners as it develops
business.
Approximate composition of participants in the creation | |
| Type of activity | Functions in the project |
Consulting firm | Development of a development strategy |
Information and marketing agency | Development of a marketing program |
Consulting firm | Development of trading technologies |
Software company | Software selection/development |
Internet Service Provider | Website hosting |
Recruitment agency | Selection of management team |
System integrator | Development of technical architecture, |
Training center | Training of users (brokers) and |
Commercial bank | Maintaining accounts of trading participants and |
Processing center | Carrying out settlements for transactions |
Insurance company | Commercial Risk Insurance |
Freight forwarding company | Sales of supplies to prisoners |
Investment brokerage company | Preparation of the prospectus and conducting |
Supervisor
project. It creates the illusion that
introduction of new control technologies
business is reducing the need for personnel
problems. This fully applies to
project activities, when behind the plans,
methodologies, procedures cease
see specific people - managers and
performers.
Examples
1. Many Western companies operate
rule: a new project is considered when
provided that there is a real possibility
select a suitable project manager.
Often the conditions are even tougher: the project
considered only if available
suitable person to speak
his leader. Natural explanation
This is: every business must have an “engine”.2. In most Russian companies
the project manager is a figure
nominal, assigned according to the principle: “It is impossible
without a project manager.” At the same time
the project manager has no freedom
activities, since all his intentions are
must agree with the general
director of the company (real
budget manager) and bosses
functional departments (real
managers of human resources).
Because budgeting is like real
management tool in a company is often
does not work, then the project budget
is drawn up quite formally. In such
conditions to talk about delegation
powers and responsibilities of the manager
the project simply does not exist.
Project-oriented
KIS. The term “project management”
traditionally associated with networking
graphs and desktop applications type
MS Project. Using similar tools
You can describe some individual aspects.
However, in modern conditions, relevant
is the development of comprehensive models
project activities and their methods
descriptions.
Taking into account
trends in the “projectivization” of business can be
assume that project support
activities should become central
element of corporate information
systems. This means a departure from “ERP-centrism”,
which has dominated until now
time.
Examples
1. In integrated ERP systems, such
as “AxaptaAxapta, present more or less
advanced project management module,
usually problem oriented
project accounting and control. As a rule, on
export-import level is supported
possibility of using popular
desktop project management systems.2. Powerful systems appear on the market
support of project activities,
implemented in modern web architecture,
for example Maconomy. They contain possibilities
knowledge management, detailed role
elaboration, many other useful
functions missing in project modules
ERP systems.
Thus,
electronicization of business and commerce requires
a new look at the management problem
projects. It's about about the need
transition from project management to
support of project activities as
the most important component of business.
