In South Africa, project professionals earn a median annual salary of R940,889.¹ However, this varies widely when you consider individual aspects such as years of experience, certifications, exact position, and even team or project size.

Note: All currencies have been converted from USD to ZAR using the exchange rate as of October 9, 2025 (1 USD to 17.21 ZAR).

How does experience affect project manager salary?

Like with most careers, time in the project management profession often increases your earning potential. There is a 169% increase in average salary between professionals with the lowest level of experience and the highest in South Africa.

In comparison, professionals with more than 20 years of experience in the United States earn 88% more than those with fewer than three years of experience. And in the United Kingdom, there is a 119% increase in salary between the two groups.

Median annual salary by years of experience in project management, South Africa²

How does PMP certification affect project manager salary?

The Project Management Professional (PMP) certification validates candidates’ skills in managing the people, processes, and business priorities of professional projects. It is intended for people with about 3–5 years of professional project management experience. Applicants must meet the minimum requirements and pass a 180 question exam.³

The PMP certification is administered by the Project Management Institute.

Non-PMP certification holders in South Africa earn an average annual salary of R620,989. Meanwhile, PMP-certified professionals earn R1,034,981 on average annually.⁴

This 67% increase among certification holders in South Africa is the largest regional difference in PMI’s data. For example, in the United States, PMP holders earn 44% more on average than non-PMP holders. And in the United Kingdom, there is a 25% difference between the two groups.

It’s important to note that earning a PMP certification does not guarantee project professionals will earn more money. PMI’s data indicates that PMP tenure also plays a role, which correlates directly with overall experience.

One-third of South African respondents in the PMI survey agreed that the PMP certification contributed significantly to their salary growth.⁵

How much money do specific project professional careers earn?

Within the project management field, there are a variety of careers and job titles. These positions come with different responsibilities and seniority, and different salary expectations, too.

For example, professionals with the title ‘Project Manager I’ earned the least on average when compared to other job titles in South Africa. Portfolio Managers earn the most, on average.

Among South African respondents, the average salary doubled from Project Manager I to Project Manager III — the largest regional increase in PMI’s survey.

Median Annual Salary by Position, South Africa⁶

Saïd Business School, University of Oxford
Oxford Leading Strategic Projects Programme

University of Cape Town (UCT)
Project Management Foundations online short course

University of Cape Town (UCT)
Advanced Project Management online short course

Rice Glasscock
Strategic Project Management online short course

The post What is the average project manager salary in South Africa? appeared first on GetSmarter Blog.

What is a strategic plan?

Ultimately, strategic planning allows a business to take control of its vision and turn projected results into reality. This emphasizes its importance for project managers, who are responsible for the success or failure of a project, and for ensuring an organization operates at optimal efficiency.⁴

Five steps of the strategic planning process

Strategic planning provides a sense of organizational direction and assists in the creation of realistic business objectives. A KPMG survey found that 27% more projects are executed successfully when an organization’s structure and resources align with its strategy.⁵ A one-page strategic planning document improves the decision-making process and allows organizations to be more proactive, which aids the ability to prepare for unfavorable situations and minimize any risks involved. The benefits include:

1. Projects are completed more efficiently
2. Project communication is increased⁶
3. Resources are managed more effectively⁷
4. Ensures project managers make informed decisions
5. Chances of success are improved⁸

While the initial creation task may seem overwhelming at first, simplifying it into a step-by-step process will ensure you target each business goal and reach your proposed business outcome. Try this five-step approach:

Step 1: Understand your company’s mission and objectives

This first step focuses on understanding your organization’s current business strategy. Without a clear outline of your mission statement and long-term goals, creating a successful strategic plan is nearly impossible.⁹ Review past and present performance to critically assess your strategic position and identify how to:

• Build on your strengths
• Combat weaknesses
• Take advantage of growth opportunities
• Recognize potential threats¹⁰

The University of Cape Town (UCT) Advanced Project Management online short course, with a firm focus on strategic skills, will also help you align project management activities with your organization’s overarching aims to bring about real change.

Step 2: Assess resources and capabilities

Analyzing the business’s resources is incredibly important, as it determines whether you can execute an effective strategic plan.¹¹ The plan should assess all available assets, including finances, employees, and equipment. In addition, it should examine business capabilities, and identify any organizational vulnerabilities.¹² This allows management to advocate for the appropriate type and amount of resources to accurately support the goals of the organization.¹³

Step 3: Establish future projections

The first two steps will help you establish the strategic priorities of your business and the corresponding resources for addressing them, but how do you determine the short-term goals to achieve your overall objectives? Consider this list as a starting point:

• Establish clear and specific goals
• Track the progress of each goal to remain motivated
• Remain realistic and set goals that are challenging, but attainable
• Ensure that the goals are relevant and beneficial to your overall business objectives
• Include a time target for each goal to create maximum efficiency

This process allows organizations to establish a vision statement. While the future is impossible to predict, ensuring there is a unified vision within the company will help define the prospective outlook of your business.¹⁴

Step 4: Determine the method to meet business strategic objectives

Once you have established your business’s vision statement, the next step is to develop an action plan. Determining the course of action you will take to reach your short-term goals can be the most significant step within a strategic plan and can directly influence the time it takes to achieve your business’s strategic objectives.¹⁵

The action plan should outline the short-term tasks that need to be completed in order to achieve each of your business goals, and effectively communicate how to budget time, human capital, and finances.¹⁶ This plan will ensure that each person is held accountable for their contribution to achieving the overarching goals.

If at this point it is discovered that strategic planning has been implemented incorrectly, your organization’s strategy will need to be reanalyzed further down the line. The 2018 PMI Pulse of the Profession survey found that 82% of project management directors believe it is extremely important to incorporate the lessons learned from failed strategy implementation back into strategy formulation to ensure your business stays competitive over the next three years.¹⁷

Step 5: Ensure the plan evolves

It’s important to recognize that a strategic plan is not set in stone. It’s more beneficial to assume that the plan is a continuous work in progress or a “living, breathing document”.¹⁸ To ensure the strategic plan continues to function in the intended manner, it’s important to review it regularly and make necessary adjustments as needed.¹⁹

Benefits of robust strategic planning in project management

There are numerous benefits to robust strategic planning, for both the organization and the project manager. Strategic planning:

• Helps to ensure that everyone in an organization is aware of the company’s vision and objectives, and knows how their work contributes to these goals
• Gives direction and focus to project managers, who can use strategic objectives as a guide when making decisions about priorities, resources, and risks
• Facilitates better communication between the organization and its stakeholders, as everyone is aware of the strategic direction and how it will be achieved
• Improves decision-making by providing a framework for evaluating options and trade-offs
• Increases the likelihood of success by identifying and addressing risks early on
• Helps to ensure that resources are used efficiently and effectively, as project managers can align their projects with strategic objectives

The success of a strategic plan relies on the people and systems involved in its creation. Thus, it’s vital that the right people are involved in the strategic planning process and that business objectives, as well as how they will be achieved, are clearly communicated. To do this, there should be a greater sense of accountability. Lessons learned in strategic plan development should be incorporated into future planning processes, while continuously redefining the plan to ensure you keep working towards achieving your vision and overall priorities.

Rice Glasscock
Strategic Project Management online short course

The post Project Management: How To Develop a Strategic Plan appeared first on GetSmarter Blog.

Although industries and economies can slow, one thing is for sure: everyone and every business needs a space to operate from. Construction managers make these spaces happen.

A construction manager is a specialization that is similar to, but not the same as, the more general project manager role. They’re responsible for the control, execution, and planning of a construction project or civil engineering project, from inception to completion.

A construction manager’s skills are defined by an ability to work with a variety of people, an aptitude for organization, and knowledge in property and construction principles. Whether it’s a large- or small-scale construction project, you’ll be required to navigate clients, risks, and challenges. It’s essential you gain the right skills to ensure a successful and safe project.

With the estimated growth for South Africa’s construction industry dropping from 6.2% to 4.6% due to the effects of the global pandemic, more than ever before, professionals will need the skills to navigate industry complexities and fierce competition. ¹

What are the requirements for a construction manager?

Successful construction managers need to be able to:²

• Manage work sites for both new construction and existing projects, coordinating the various site activities
• Oversee and provide direction to general contractors, subcontractors, and vendors, ensuring quality standards are met
• Liaise between engineers, architects, and others working on the project
• Prepare and manage estimates, budgets, timetables, and resources
• Proactively identify, mitigate, and track recurring construction issues
• Adhere to legal regulations, building and safety codes, and other requirements

What are the key responsibilities of a construction manager?

They don’t differ widely from a project manager’s, but they do have a more specific focus on the following tasks:³

Project management

A construction manager oversees the planning and delivery of construction projects to ensure the work is completed to specification, on time, and within budget. By enlisting a project manager, risk is managed more effectively. With so many facets to consider in both pre- and post-construction, the PM works closely with engineers, architects, and others to drive the best outcome.

Leadership and team management

• Manage detailed daily communication with internal and external project stakeholders
• Be comfortable dealing with both senior executives and a range of personalities
• Strategic planning and delegation of tasks across teams of sub-contractors

Budgeting and cost management

• Deliver consistent, high-quality work within budget and time constraints, with the skills to calculate costs
• Allocate resources efficiently; this refers to both manpower, building materials, and machinery

What is the career path for a construction project manager?

With more than 120 expanding cities and a population exceeding 1.3 billion, Africa is a continent that consistently needs more housing and stronger infrastructure.⁴ For developing economies like this, the construction of roads and the installation of reliable electricity transform citizens’ lives and their business prospects.⁵

As a construction manager, your job is not limited to a single location. You possess the types of skills that’ll allow you to collaborate with many industries, around the world. Knowledge and experience within this industry will expose you to other careers too, such as an architect, engineering manager, civil engineer, property developer or investor, or a health and safety officer.

The green property movement

In more developed economies, keeping up with demand and building new and sustainable infrastructure is key to increasing economic growth.⁶ This is a demand construction managers need to manage in many countries – one which offers great career growth.

The green movement continues to gain traction in both the residential and commercial property sectors, mirroring consumers’ growing tendencies to consider how they can cut costs through more energy-efficient approaches and lifestyles. Expertise in the field of green construction and property development is one way to safeguard your position in the construction industry of the future.

What is the potential salary for a construction manager?

Salaries for construction managers vary extensively, depending on their level of experience and the country that they work in.

You can assess your worth through the GetSmarter Salary Navigator, which gives you your earning potential as a construction manager in the United States, Canada, United Kingdom, Australia, New Zealand, and Singapore.

What are the education and qualification requirements for a construction manager?

To enter the construction management industry, you can follow two general routes:

1. A degree or short course

Some individuals will start their path by acquiring a degree that enables them to enter the construction field. Education in civil engineering, construction science, architecture, and property are options for those with the right resources and time. Short courses are another route – and offer on-the-job skills, gained in a short amount of time. Construction is a job and industry that places practical capabilities way over tertiary qualification.

The UCT Construction Management online short course will also allow you to upskill while you are employed full-time.

2. Work experience

In an industry like construction, experience plays a decisive role in securing you a job and determining both the seniority of your role and salary. If you’re new to the industry, you’ll start as an assistant and work your way up to managing your own projects. If you’ve finished high school but already have experience, you can still be successful in the industry, but you’ll likely perform better as a self-employed construction manager.

If you’re looking for a precise and practical insight into the South African construction industry, the UCT Construction Management online short course provides both entry-level individuals and experienced professionals with the essential tools to become an impactful construction manager.

University of Cape Town (UCT)
Construction Management online short course

The post Career Path: How to become a Construction Manager appeared first on GetSmarter Blog.

What is a supply chain?

A supply chain is the network of activities, resources, and technologies involved in the creation of a product.¹ It typically begins when the source materials are received from the supplier, then progresses through the chain to production at the manufacturer, and concludes when the finished product is delivered to the end customer.

What is project management?

Project management can be defined as the application of processes, methodologies, insight, knowledge, skills and experience that will result in the goals of a project being reached.² Projects are typically not part of the day-to-day business operations, and this is what separates project management from everyday business management. A project manager leads a team of people selected to be involved in a project that it is locked into a specific timespan, and has a set of finite, key outcomes to achieve.³ Business management on the other hand, typically has long-term goals with broader outcomes.

Where can project management play a role within a supply chain?

As project management is the process of coordinating resources and tasks that will result in a defined objective within a set timeframe, budget and scope, it is ideally suited to the supply chain.⁴ Areas along the supply chain where it could be considered, include:⁵

• Transitioning from a local to a global supply chain
• Improving lead times
• Driving inventory process efficiency
• Improving supplier efficiency
• Rolling out new software and systems
• Outsourcing tasks, such as assembly or manufacturing

How could project management functions improve the supply chain?

To bring about improvement to the supply chain, project managers can apply the following functions:

1. Project integration management⁶
   A strategy that factors in other existing projects and initiatives. It looks at the tasks, tools, methods, expenses, staffing needs, process tracking, communication between stakeholders, risks, constraints, challenges, and contingencies, in order to deliver the project on time and within budget.
2. Project scope management⁷
   In this role, the project manager takes care of all the legal requirements, civil infrastructure or project fundraising required for the project to effectively increase the business profits and productivity. This includes looking into the latest available technology, current market demand, environmental restrictions, or social needs.
3. Agile scheduling and planning⁸
   An important aspect of project management in the supply chain is to develop and maintain accurate delivery schedules that are relevant to project dependencies and resources. Following an Agile approach, allow requirements to be delivered iteratively and in smaller increments throughout the life cycle by scheduling, planning, and collaborating throughout the project.
4. Risk management⁹
   The process of identifying, analysing and responding to risks that arise and threaten to derail or delay a project. Risk management should be included in the planning process, so that potential risks can be identified, made provision for, and consequences preempted, thereby eliminating a ‘reactive’ risk-management approach.
5. Business case and financial awareness¹⁰
   For a project to be successfully executed, personal assumptions about business initiatives need to be put aside in favour of a well-developed business case. This will provide the action needed to make the supply chain processes more efficient, and will ensure the costs for executing it are planned for, and covered in the budget. It will also ensure key players understand the business benefits of carrying out the project.
6. Resource management¹¹
   Resources include people, materials, equipment, knowledge and time, of which most businesses have a limited supply. Make provision for challenges in execution with regards to limited resources, such as training, skills, equipment and processes that support project execution. Counteraction of these challenges will ensure the execution phase of supply chain project management is a success.
7. Quality systems¹²
   Strategically gaining goods with low costs are of little use to the business if they are not fit for purpose or do not meet the quality standards of the business.
8. Document roles and responsibilities¹³
   A key part of project management is the documentation of tasks, priorities, and responsibilities, with delivery dates. Meeting with project stakeholders regularly will ensure that tasks have been prioritised accurately, and that the team and other individuals involved understand their roles and responsibilities. Likewise, if external teams are included in the project, the documentation should include their tasks and categorise any dependencies. The documentation will help all involved understand the progress of the project through the life cycle.
9. Communication¹⁴
   Even with the improvement of project software tools and applications, nothing can replace communication and soft skills. Just as a supply chains incorporate technology to analyse and track the movement of data, products, and finances through the supply chain, so too human relationships and interactions remain the critical link to building trust, setting expectations and conveying confidence.

As technologies such as artificial intelligence (AI) and robotics develop, and big data gives decision makers access to deeper business insights, the supply chain gets more complex.¹⁵ The project manager is best placed to identify factors that might add to these complexities. These could include: geographical variances between customers and suppliers, potential risks and security considerations, changes and subsequent obstacles due to regulations and compliance standards, increased customer expectations regarding quicker lead times, and an increase in the number of competitors.

Being able to effectively manage change and drive improvement in these complexities is vital in order to achieve business objectives, such as greater efficiency, growth and profitability. To achieve success in supply chain initiatives, a project manager can provide the foundation upon which executives can carry out growth strategies.

The post Supply Chain and the Role of the Project Manager appeared first on GetSmarter Blog.

Three key differences between strategic and tactical planning

Some of the key distinctions between strategy and tactics – and hence, between strategic and tactical planning – relate to the following factors:

1. Long-term vs short-term

Strategy and tactics are often distinguished on the basis of timeframes. A strategy is generally tied to long-term goals and maps out a plan that might stretch over several years. In contrast, tactics are often short-range measures taken to yield immediate results.² A strategic plan might be compiled and reviewed fairly infrequently (once a year or quarter), whereas a tactical plan may be revisited more regularly.³ Similarly, tactics are typically rooted in the present – what actions need to be taken today? – while strategy tends to focus on the future.

Of course, the timeframe distinction doesn’t always hold true. A sports coach, for instance, might employ the same specific tactics to gain advantage on the field for many years (long-term). Alternatively, they may implement an overarching strategy that spans only the duration of the game (short-term), and then switch it up next time. It’s true that because tactics support strategies, they often have a narrower, more short-lived focus, but it’s important to remember that this isn’t always the case.

2. High-level vs on-the-ground

Strategic thinking is often equated with big-picture thinking – in business, it requires high-level consideration of an organisation’s vision and mission.⁴ Tactical planning is more concerned with day-to-day activities and the practical execution of tasks on the ground – with getting work done, essentially.⁵

For this reason, strategies tend to have a more abstract quality, while tactics are generally more tangible. As the eminent Chinese general and military strategist Sun Tzu famously wrote:

As a result, a strategic plan alone doesn’t necessarily shed light on what needs to be done. A tactical plan, however, facilitates implementation through the use of specific actionable items that have assigned due dates and responsible parties.⁷

3. Proactive vs reactive

In a tactical approach, a fair amount of time is spent responding to situations as they arise by troubleshooting and problem-solving to ensure that operations run smoothly. As strategy takes a broader perspective, it’s more anticipatory and oriented towards future change.⁸ It’s not uncommon to hear leaders concerned about their inability to think strategically – and hence, proactively – because they’re so preoccupied with reacting to on-the-ground happenings that belong more firmly to the tactical realm.

Examples of strategy vs tactics

The easiest way to grasp the distinction between strategy and tactics is to see examples of them in action. Below is an outline of strategy and tactics employed in projects run by two fictional companies – the first concerned with environmental sustainability and the second with entering the e-commerce space.

The shift from tactical project management to strategic project management

Why does this distinction matter for project managers? Because it’s become clear that successful project management requires the application of both focused tactics and high-level strategy, and yet historically, emphasis has been placed on the first rather than the latter.

Traditionally, project management was predominantly a tactical tool, focused on getting work done, managing schedules, and guiding projects to completion within time and budget constraints.⁹ However, as organisations started to face unprecedented disruption and increased competition, more and more business leaders have come to recognise that project managers can bring much more value to companies than simply ensuring the successful coordination of activities. That is, many have realised that projects are central to organisational success, and that project managers, therefore, can and should operate on a more strategic level to help a business evolve, innovate, and thrive.¹⁰

It’s this recognition that created a demand for strategic project management. A landmark conference paper from the Project Management Institute (PMI) outlines the rise of this approach, which focuses on aligning project objectives with a business’s strategic goals and overarching mission.¹¹ Strategic project management, it says, isn’t simply about executing projects for the sake of continued operations; it’s about carefully selecting, prioritising, and channelling resources towards the projects that will contribute most to organisational success and agility, while boosting the bottom line.

The value of adopting a strategic mindset in project management

It would seem that projects tied to business goals through strategy don’t only play a role in fostering organisational growth and efficiency, but also tend to be more successful. Recent survey results show that companies that undervalue project management as a strategic tool for driving change see around 67 per cent more of their projects failing.¹² It makes sense that if strategy drives tactics, and this important scaffolding is absent, the whole project can easily come tumbling down. Even if effective tactics lead to successful project completion, if the project was not founded on strategy, it may not generate any substantial wins.

Owing to the rise of a stronger focus on strategy, there’s a growing demand for practitioners with developed project competencies in the strategic realm. Research indicates that 65 per cent of organisations consider it a priority for project professionals to possess leadership skills, and 58 per cent place emphasis on business skills.¹³ This need has laid the foundation for the launch of educational initiatives like the Rice University Strategic Project Management online short course, which aims to prepare practitioners to link projects with the attainment of business objectives.

Executives are now looking for project leaders that are strong in strategy in order to:

1. Keep the focus on value

A strategic project manager is unlikely to waste time and resources on a project that doesn’t align with an organisation’s goals. They’ll spend time assessing the viability of a project pre-initiation, developing a sound business case for it, and conducting a cost-benefit analysis to enhance strategic decision-making and assess whether the initiative will add value to the business.¹⁴

If the focus is purely tactical, it’s easy to get lost in the low-level details and lose sight of the purpose of a project. A strategic approach helps professionals keep their eyes on the overarching vision, and on customer and business priorities. Throughout the life cycle of a project, a strategic leader will make regular assessments to ensure that it continues to deliver real returns on investment. They’ll consistently monitor and measure benefits, while evaluating and managing risks and costs.¹⁵ Consequently, they’ll also quickly recognise when it’s time to discontinue tactical work and adopt an entirely new strategy in response to change, or a crisis like a global pandemic, for instance.¹⁶

2. Encourage systems thinking

Strategic thinking relies, in part, on systems thinking, which considers not just a single entity, but all its connections within a larger system in order to solve problems.¹⁷ Strategic managers recognise that a project is part of a bigger whole, and aren’t only preoccupied with scope, time, and budget, but with the many contextual factors that could impact its success – the environment, the organisational structure, and the team.¹⁸ Consequently, they invest in the bigger picture – in stakeholder engagement and participation, in leading and inspiring staff, and in improving processes and structures.

At the end of the day, both strategy and tactics are key to project success. As much as a business relies on strategy alignment to move forward, projects rely on solid tactics for effective day-to-day implementation. One simply won’t work without the other. Therefore, as a project leader with sound tactical skills, it’s important to also build the capacity for long-term, high-level strategic thinking. Fostering this mindset lies at the heart of the Rice University Strategic Project Management online short course, which is designed to help you transcend the tactical to drive real change and deliver real value.

Register Now to Explore Strategic Project Management

Rice Glasscock
Strategic Project Management online short course

The post Strategic vs Tactical Project Management appeared first on GetSmarter Blog.

When project managers carry out a financial analysis, they do so to ascertain whether a project will be a profitable undertaking and would warrant financial investment.² Financial analysis is not only to be done in the planning stages of a project, but throughout every stage of the project. It remains within the purview of the project manager to be up-to-date with the project’s finances based on the initial estimates, and to keep an eye on it throughout the duration of the project.³

Before starting a new project, carrying out a proper financial analysis is vital to determining whether the project will be financially viable or not. There are several ways to determine this.

Start with a cost benefit analysis

Cost benefit analysis (CBA) in project management is the evaluation of the cost versus the benefits of the proposed project.⁴ It also offers a baseline on which to compare projects and evaluate which have greater benefits than costs, in order to know which to pursue.

By listing every expected project expense and the anticipated benefit, a project manager can calculate the following:

• Return on investment (ROI).⁵ This compares the profit value that can be earned from a project against the cost of investment, as a percentage value. The higher the percentage, the better the ROI

• Payback period analysis.⁶ This is the simplest way of looking at one or more project ideas, as it calculates how long it will take to earn back the project capital. This is calculated as follows: Cost of project divided by annual cash inflow equals payback period

• Accounting rate of return (ARR).⁷ ARR provides a quick estimate of the project’s net profits based on its entire lifespan, and gives a basis for comparing several different projects. This can be calculated as follows: ARR equals annual cash inflows minus depreciation initial investment

• Net present value (NPV).⁸ NPV shows the difference in the current value of cash and the value that cash will have in the future, or the sum of the present cash flow value (both positive and negative) for each year associated with the investment, that is then discounted so that it is expressed in today’s currency value. In project management, this is used to calculate whether the expected profit of a project will outweigh the present-day investment costs. NPV is calculated as follows:

• Internal rate of return (IRR).⁹ The IRR method of financial analysis factors in the time value of money, allowing the project manager to find the interest rate that matches the expected financial returns from the project. Once this rate is known, it can be compared against rates that might be earned from investing elsewhere to determine if this is a financially viable project

Here is a short list of some useful project management apps and online tools that allow for project cost estimation, such as time- and budget-tracking functionality, that can help to produce more accurate project estimates.

• Microsoft Excel:¹⁰ Widely used project cost estimator tool, with plenty of project estimate templates
• Google Sheets:¹¹ Free project cost estimation tools alternative to Excel
• Price&Cost:¹² SaaS (an online software subscription) estimating and cost management tool to manage project financials
• Eastimate:¹³ Free SaaS estimation tool to create estimates and timelines collaboratively
• Simplestimate:¹⁴ Free project cost estimator SaaS tool with three-point cost estimation and easy sharing

Create a project estimate

Once the project has been deemed viable through the cost benefit analysis process, an estimate needs to be done at the start of the project and can be done by using the following estimate models:

• Time and materials.¹⁵ This type of estimate is useful when it is difficult to estimate the complete scope of the project, and so the focus is placed on time spent and materials used
• Fixed price estimate.¹⁶ This is a total fixed price for the project, regardless of the amount of effort applied to the project
• Reserve analysis.¹⁷ This is where some budget is set aside for unforeseen overruns or risks
• Cost of quality.¹⁸ This is the amount of money it will take to ensure the project is done right; checking for bugs or errors during the project, and correcting them, over and above the time and materials costs

Monitor the project progress

The project manager needs to identify when costs deviate from the budget, and manage those deviations, by regularly comparing the money spent with the budgeted amount, and reporting this back to key stakeholders.¹⁹ Establishing an understanding of how this progress will be measured and reported is important.

1. Earned value analysis (EV).²⁰ A widely-used method by project managers, EV allows for the periodical comparison of the budgeted costs with the actual costs during the project. It joins the scheduled activities of the project with detailed cost estimates for each activity, and makes provision for the partial completion of an activity, where some of the associated costs have been paid, and others not
2. Budget timeline.²¹ Costs are linked to project milestones, with each activity having a start and end date. Therefore, it is possible to determine how much money will be spent by a particular date during the project. This allows for project capital to be deposited in strategic intervals throughout the project in order for finances to be made available, and managed, against the activities schedule
3. Schedule variance (SV).²² The project manager needs to know if the project is within budget against the time schedule. The difference between the planned schedule and actual progress is the SV. The SV is the difference between the EV and the planned value (PV), shown as SV = EV − PV. If EV is below what was budgeted, then the SV will be negative, which means the project is running behind schedule

The post-project analysis

Once the project is complete, a post-project financial analysis should take place to determine how profitable it was. Profit margin measures the profit of a project relative to its revenue, and has three main profit margin metrics:²³

1. Gross profit margin. This is total revenue less the project costs, like time and materials.
2. Operating profit margin. This measures revenue less project costs with operating expenses.
3. Net profit margin. This is revenue less all expenses, including interest and taxes.

When comparing the actual profit or loss of the project against the initial estimate that was carried out at the beginning of the project, variances may become apparent. A variance analysis is the investigation of the difference between what actually happened as opposed to what was planned, and studies why these variances occurred.²⁴

If the project was deemed a financial failure with a negative profit margin, it is easy for project managers to fall into one or both of these fallacies:²⁵

1. The ‘sunk cost fallacy’. This is when project managers or stakeholders believe that, if more money is invested into a failed project, it will recover. However, this typically leads to financially catastrophic results.
2. The ‘commitment fallacy’. This is where people are so committed to a project that they will not admit defeat, to the point of damaging their finances, reputation, and company.

Successful project managers know when to admit that a project is a financial loss, and learn from the failures and mistakes. Many project managers conduct a ‘lessons learned’ review at the end of every project for this very reason. The knowledge and experience gained from previous projects will prove highly valuable to the success of projects to come.

Knowing how to do a financial analysis before, during, and after a project is a key skill set that project managers in every sector of business need if they wish to make sound project viability decisions, and ensure the project is carried out on time, within scope, and within budget.

Learn how to approach and execute projects more effectively and efficiently with a Project Management online short course.

The post How to Do a Financial Analysis When Managing a Project appeared first on GetSmarter Blog.

Change management is people-focused, and serves as a guide to how a business can prepare, equip, and support employees to embrace change in ways that may result in greater organisational success.¹ Change management also reduces the potential risk that any changes may be rejected by the people within the business.² While change management might not have a visible impact on the bottom line, it does enable the teamwork and cohesion needed for an organisation to accept change and operate more efficiently.

Project management, on the other hand, pertains to achieving specific project outcomes within budget and on time by applying processes, methods, skills, insight, and experience based on the project acceptance criteria within agreed parameters.³ Project management oversees every aspect of a project, from people to tasks to tools.⁴

Strong project management skills can save an organization time and money. Learn how to approach and execute projects more effectively and efficiently with the UCT Project Management course. Stand out from the crow with newfound project management skills.

Project management vs change management

Change management and project management cross paths throughout the life cycle of a project or initiative, as each of these bring required and important structure and process that enable the effective implementation of change and project outcomes. Here’s how they compare:

Why integrating change management and project management is important

When a project brings about changes within a business, these need to be efficiently managed on both the human as well as project level.⁹ The project-level focus means that the change is developed, designed, and implemented effectively through the structure, processes, and tools provided by project management. The human-level focus means that the changes are successfully adopted and used by the employees who have to learn how to perform their jobs effectively as a result of the project.

Project management and change management both seek the successful delivery, outcome, and implementation of projects or initiatives within a business. While each discipline can function in isolation, integrating change management and project management is the most effective approach, offering multiple benefits:

1. Shared objective.¹⁰ Integrating change and project management efforts provides a singular focus and united objective for both teams. This improves the performance of the business by successfully delivering and bringing about a change that delivers the intended outcomes.
2. Proactive steps.¹¹ Managing the human aspect of change becomes more proactive in an integrated system, as obstacles and resistance can be identified and proactively mitigated, ensuring greater buy-in of the project throughout every step of execution.
3. Sequencing and alignment.¹² When project and change activities are integrated, it ensures the steps that need to be carried out in the project life cycle are carried out in the right order. This facilitates the adoption of change by employees and thus produces the desired outcomes of the project.
4. Exchange of information.¹³ The flow of communication and information is improved with the integration of these disciplines. From the front-end, impacted employees are kept up to date and receive appropriate messaging, while on the project-facing side, teams are able to receive feedback on adoption, usage, and response to the project’s changes.

How to successfully integrate change management and project management

Even if change management and project management are both present in an organisation, it doesn’t mean they are integrated. There are prerequisites required to successfully integrate change and project management:

1. A united focus on results and outcomes.¹⁴ The project team needs to have a clear focus on the broader desired results and outcomes of the project, and must be responsible for delivering these outcomes. This is more than simply reaching a deadline. Similarly, change management needs to align their own outcomes with the wider project objectives and outcomes, over and above the more typical change management outcomes, such as business communications and employee training. Having a shared focus on results and outcomes is pivotal to successful integration of project and change management.
2. Recognise the role and value of change management.¹⁵ The value of change management must be acknowledged as a crucial component of project delivery in order for integration to be successful. It must be understood that the application of change management to a project will have direct benefits on achieving the desired outcomes of the projects.
3. Integrate processes.¹⁶ When integration takes place, the activities of project management and change management activities are brought together within the life cycle of the project. This allows these complementary disciplines to effectively sequence work, timing, and information exchange. Here is how to integrate processes:
   
   • Structure: Approach change management from a process-oriented and milestone-driven angle in order to make integration with project management activities more effective
   • Deliverables: Concrete change management deliverables will ensure greater integration with project management
   • Identify key points in time for integration: During the life cycle of the project there are certain points at which integration of activities is more important than others, such as risk identification, solution design, project communication, and system testing. Integration of activities during these phases should be more holistic and focused

4. Integrate tools.¹⁷ Integration at the tool dimension will allow a focus on the specific deliverables created by both disciplines. There are many tools that can be used by both project management and change management, such as the communication plan, and risk assessment tools. This integration makes a single tool plan that incorporates the people as well as the project aspects of the project. Here is how to integrate tools:
   
   • Identify specific tools that make sense for integration. There are tools that are commonly used for project management, such as stakeholder analysis, risk identification and communication plans, that can easily be adapted to cover change management activities.
   • Work with what the other team has already done. Rather than excluding or redoing work that has already been done by either role, show how each can add value to the other’s process.
   • Ensure ownership is clear. Clarify early on in the process which team will maintain and own the tool, while still including both teams’ perspective, in order to avoid each team assuming that the other is taking responsibility for an activity.

Success for a project comes from an effectively designed, developed, and delivered initiative that is welcomed, adopted, and applied by the employees that are impacted by it.

No matter what approach is used to integrate people, processes, tools and methodologies, integrating change management and project management affords a more united approach and solution to bring about sustained and meaningful change in a business.

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Dale Richards notes that “without effective project management, 9-10 per cent of a company’s work and output is wasted”. With revenue, potential profits, and the company’s bottom line at stake, project managers need to be aware of how their project fits into the organisation as a whole. Project’s don’t exist in a silo, and there are certain business factors that influence strategic project planning. These factors give context for how the project should be managed and proceed to best align with the overall vision of the organisation.

The five factors that influence strategic project management:

1. Stakeholders and leaders

Before beginning a project, meeting with the stakeholders and company leaders will help you define the parameters and direction of the project, and provide a broader view of how it fits into the business’s overarching strategic plan.⁴ You are then able to determine prior to kickoff if the various stakeholders have conflicting or differing ideas about the vision or scope of the project.⁵ Addressing this upfront and reaching a consensus about the project goals will help manage expectations as the project unfolds. In other projects, leaders or stakeholders may have views about the organisation that don’t seem to directly influence the project, but can have significant impact later down the line on budget, timing, or priority.⁶ Uncovering these misalignments can reduce any potential negative impact, and make for more strategically planned projects.

2. Project priority

An organisation’s priorities and the short-term goals that contribute to these overall priorities are seldom singular. Being aware of the importance of your project in relation to other operations within the organisation will determine how you approach scheduling and planning. Knowing where your project lies in terms of priority can help you set realistic expectations in terms of workload, resources, and turnaround time.⁷ If your project is labeled top priority, make a note of any other priority projects, and plan in advance for potential shortages of resources, or conflicts of interest.

3. Resource allocation

Understanding how an organisation allocates resources, specifically time, budget, and workforce, can help you determine whether the objectives for the project are viable. Your assessment of resources allocation should be viewed through the lens of project priority. For example, if there is limited budget that needs to be shared among five different projects, being aware of what portion will be allocated to your project is critical during your initial project evaluation.⁸

4. Risk assessment

Assessing business factors that may threaten the execution of a project is important in strategic planning. Without a clear idea of what these factors are and the ways they might affect the project, you risk being taken by surprise at critical stages in the project’s life cycle.⁹ Organisational risks to the project may involve the financial state of the company; the allocation of necessary equipment and resources needed to best execute the project; or the appointment of qualified talent to effectively implement the proposed project.¹⁰ Problems involving key team members may also present a risk, such as absenteeism or unexpected termination. If location is a factor, electricity and internet connection, or the availability of software may also present risks.¹¹

As these key business factors influence the success of the project directly, procedures should be in place to ensure each factor is evaluated and its potential risk profile is assessed.¹² Leadership and stakeholders play a role in this instance, as a diverse set of opinions and perspectives can help analyse what factors need to be considered, and brainstorm ways to mitigate potential risks.

5. Company culture

A project operates within the larger context of a company’s culture, and as projects are often outsourced, understanding the culture and established practices of an organisation can help you to align your project to the broader objectives of the business.¹⁴

If you are able to align your project with this culture, you may have a higher chance of a successful and smooth implementation. However, projects that challenge cultural norms within an organisation are more likely to run into conflict.¹⁵ While resistance can occur with new projects, conflict can be avoided when you familiarise yourself with the cultural frameworks and motivations within the organisation.

Identifying these key business factors that influence the strategic planning of your project upfront will make for a smoother execution overall. Aligning your project with the goals, culture, and leadership expectations of an organisation provides direction and context to a project that can help inform how you manage it from beginning to end.

Understand the key success factors in strategic project management.

Rice Glasscock
Strategic Project Management online short course

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This industry has grown from being a specific career to a practice that forms a part of the large majority of sectors. The leading markets where project management positions are in high demand include:³

A large reason for why project management is making its way into almost every industry is because the world economy has become project-focused. Essentially, anything considered to be not a routine operation, is a project.⁴ By adopting project management strategies and frameworks such as stipulating clear deliverables and outlining a working schedule, operations can be managed more effectively.⁵

Antonio Nieto-Rodriguez, considered as being a world leader in Project Management and Strategy Implementation and a past Chair of the Project Management Institute, said at the Speakers for the 2017 European Business Forum, “Ideas, without a project, is just wishful thinking”.⁶ There has been a paradigm shift in the world of business in that project management is no longer an addition, but a priority, and in some cases, an essential part of the organisation.

While the role of the Project Manager has changed dramatically over the past decade, due largely to the infiltration of emerging technologies, the basics remain the same. An example of one of the primary tools every project manager will utilise, is the project management framework. This framework combines a number of tools and processes to ensure a project runs smoothly from start to finish. This framework consists of six stages involving different types of methodology.

Depending on the company, this framework may have different names for the different stages, but the six examples below include all the basic elements. These are:

1. The initiation stage

This refers to the launch of a project. The stakeholders are identified, the scope and objectives are defined, and the project need is clarified.⁷ It’s during this stage that the feasibility of the project is measured, and the project partners begin collaborating with one another. The main deliverable at this stage is starting the project.

2. The planning stage

This is the period when all the decisions are finalised, and the project solution is developed. The team will develop a project schedule and corresponding timeline, and determine which materials will be needed. Potential threats that could extend the project timeline, or prevent tasks from being completed within budget, are identified.⁸ The main deliverable at this stage is creating a set of plans.

3. The execution stage

The project will move on to design and development. This is often the longest stage in the framework, and it involves developing the deliverables according to the project plan. At this point, the team will often use status reports and hold regular meetings with project sponsors and key stakeholders to evaluate project progress.⁹ The main deliverable at this stage is to get the intended product or service approved.

University of Cape Town (UCT)
Project Management Foundations online short course

4. The control stage

This is the adjustment stage when project stakeholders will take corrective actions in response to deviations from budget, timelines, and scope.¹⁰ The Project Manager might re-evaluate resource levels, monitor the project goals, and set up meetings with stakeholders to have changes approved. The main deliverable at this stage is progress reporting.

5. The monitoring stage

It is at this point that the performance of the project as a whole is evaluated. The Project Manager will use key performance indicators (used to evaluate the success of an objective) to determine if the project is on track. Factors that will be monitored include: whether the project is within budget; if the project is following the stipulated schedule, and any changes to the project scope.¹¹ The main deliverable at this stage is measuring project performance and progression.

6. The termination stage

A successful project comes to an end once it has met all of its deliverables. The lessons learned will be gathered from all stakeholders and documented.¹² This ‘lessons learned’ document serves as an opportunity to learn from past mistakes, and implement successful practices for future projects. All administrative tasks such as closing of contracts will also need to be completed at this stage.

Traditional project management processes are continually evolving as new practices are adopted. Striking the right balance between embracing these modern tools, and the classic, tried-and-trusted methodologies, will be a great challenge for working professionals in this industry. The project management framework allows for a subset of tasks to be created to develop structure and organisation, and for best practises to be developed. At the end of this process, a Project Manager can be sure to deliver a project within budget and deadline.¹³

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Whether you’re tasked with developing a new database, a marketing campaign, designing an online programme, planning a function, or any other project large or small, there are certain roles and responsibilities a project manager needs to fulfil in order to successfully execute a project.

While the daily tasks of a project manager will vary depending on the scope of the industry, field or project, the general roles and responsibilities of a project manager include four phases: planning, organising, leading, and ending off the project.¹

While each phase is separate and defines a distinct aspect of a project, there are instances when they overlap. For example, planning does not only happen at the beginning of a project. While it would be ideal if plans were executed perfectly within budget and on time, this is not always the reality. Planning is generally something that occurs throughout the project, as adjustments need to continuously be made. A mark of a good project manager is someone who is dynamic and plans for changes in order to respond to them as quickly and efficiently as possible.²

As the project unfolds and a realistic picture of what it entails becomes clearer, your project can be refined. As a starting point, here is an overview of the four phases and how they work together to ensure a successful project. The role a project manager is pivotal in driving each phase of the plan. In amongst the hard skills of planning, organising, leading, and ending off, maintaining strong interpersonal relationships and strong problem-solving skills are key amongst project managers, as they are continuously dealing with people and changing circumstances.

1. Planning

The first phase of a project is about determining what has to be done and how it will be done. The planning function involves setting a purpose or goal, and establishing how to achieve this goal with the stakeholders, resources, and environmental constraints in mind.³

The purpose

The most important step in any project is defining the overall objective of the project. However, it is important not to be too rigid when describing your initial baseline or purpose. The 2016 State of Project Management Annual Survey found that out of nearly 700 projects, almost a third are rarely completed according to the initial goals originally planned for.⁴ However, this doesn’t mean the goals of your project should not be discussed and determined at this stage. Once the purpose has been defined, a project manager needs to develop a plan to best execute the purpose or overall goal of the project.

To do this, there are certain aspects of the project the project manager needs to determine at this stage. Firstly, identifying the stakeholders and their various roles in the project will indicate to the project manager how wide or narrow the scope of the project is.⁵

Once this has been established, you need to determine what each person or team involved in the project is going to need in order to complete their job successfully. This is known as resource allocation, and is essential in creating a feasible budget in the organisation stage.⁶

2. Organising

Related to planning is the organising function, which involves delegating for the work to be done. Teams need to be put in place, and identify who needs to fulfil what role, and when, in order to meet the project delivery deadline.⁷

Schedule

To ensure everyone is aware of their roles, project managers need to create a schedule. With an idea of the stakeholders, the scope, and the resources needed, you can begin scheduling the project. It is important to keep in mind tasks can run late, so as you create your schedule, it is advised you leave some room for delays between tasks.

When you begin to create the schedule for your project, the first thing to ask yourself is what needs to be done in order to meet your project’s goals.⁹ It is important to be detail oriented, specific, and thorough in this stage as your schedule will be refined from this list of tasks.

Next, decide which tasks need to be completed before others can begin in order to establish the order of the tasks.¹⁰ If you are dealing with a large project spanning over a considerable period of time, it is advised to create project milestones.¹¹ This makes it easy to track progress, and serves as motivation and reassurance for your team and stakeholders.

University of Cape Town (UCT)
Project Management Foundations online short course

Having decided on the order, you now need to establish a timeline.¹² Discuss with each team or stakeholder responsible for each task to get an accurate idea of how long each task will take to complete. It is important to manage expectations in this stage, and always budget for some wriggle room in your schedule to take precautions against unexpected delays or challenges.

With your timeline in place, you can begin to give a detailed allocation of tasks to the teams and stakeholders.¹³ Ensure everyone is aware of their responsibilities, their deadlines, and how their role impacts the project as a whole.

When the project begins and your schedule is put to use, as the project manager it is crucial you continually review¹⁴ the process and remedy any delays, issues, or misunderstandings as early as possible.

Budget

This step should happen once you have successfully defined all the tasks that need to be done to complete the project, or after the first step in the scheduling process. Using your task list, estimate the cost of each component of your project.¹⁵ Make sure to take every aspect into account, and be as flexible as possible, while still remaining within your limitations.¹⁶

Kick-off

Hosting a kick-off meeting is all about briefing your team on the schedule you have created. It is about clarifying the roles and responsibilities of each person involved in the project, and receiving feedback from those who are experts in the field. For example, if you had initially allocated one week for production, but the head of production knows it takes 10 days, you can adjust your estimates, budget, and activities accordingly.¹⁷

3. Leading

This stage is about the execution of the project. It is the project managers job to make sure every aspect involved in the project is going according to plan.¹⁸

Monitor

Keeping a close watch over the project helps to catch any signs of emerging problems early on. Tasks in the project running over time, issues in the team, quality and budget concerns are easier to get back on track if you catch them earlier rather than later.¹⁹ To successfully monitor your project, you can follow a few simple steps throughout the process:

• Having developed your plan and your detailed schedule, you need to communicate the expectations of the project clearly to your team. With clarity on what is expected of them, you will be able to effectively monitor progress.
• Set intervals for when you monitor. It is important not to micromanage, though you do need to keep a good level of oversight at all times. Decide on an interval that works for you, your team, and the project timeline, and communicate these clearly to your team so they can be prepared, and your meetings are productive.
• It is your job as the project manager to not only monitor the progress, but track progress throughout. Decide at the beginning how you will go about determining progress, and keep a record of the necessary data, information, and updates as you go.
• As you collect information and evaluate the progress of the project overall, it is important to adjust expectations and communicate these adjustments if and where necessary.

Progress Report

Holding progress meetings can help keep teams and stakeholders connected to the bigger picture and the overall goal of the project in relation to how they fit into the process. Reporting to them on the progress of the project helps to maintain transparency to avoid surprises down the line, and allows them to provide input if any issues do arise.²⁰ It also gives an opportunity to problem solve, and keeps everyone involved focussed and driven to achieve the overall objective.

4. Ending Off

Evaluation

Before you close your project, you need to evaluate how your team and project performed in comparison to the initial goal set at the start of the project. Make sure you and your stakeholders are on the same page with how the project performed, and whether it is time to close the project or not.²¹

Post Project

Reflecting on the overall success post-project allows teams to share lessons learnt in order to grow from experience and prepare in the best way for the next project.²²

The steps outlined above indicate the role of a project manager in planning, organising, leading, and closing a project, and the responsibilities that go along with each phase. Organisation, forward-thinking, practical problem solving, and relationship management are all characteristics of an efficient project manager – capable of handling complex projects.

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