Development of a project management system in the organization of medium-sized businesses

Until now, among the heads of organizations, it is often believed that the project management system (hereinafter referred to as the SOF or System) is software that automates project management processes, which as a rule are calendar-resource planning processes.
In fact, in the updated interpretation specified in the PMI PMBoK (4-th edition) knowledge base [1], SOU is a set of processes, tools, methods, methodologies, resources and procedures for project management.

Along with this, it is worth paying attention to the fact that the project methodology is a three-level structure “PRODUCT - BUSINESS - STRATEGY”:
1st level (PRODUCT) - project management;
2nd level (BUSINESS) - program management;
3rd level (STRATEGY) - project portfolio management.

Moreover, the PRODUCT (Project Management) level is the base level, the starting point for building the remaining levels - BUSINESS and STRATEGY (see Figure 1).



Figure 1 - Three-level structure of the design methodology

Why organization of the EMS and design activities?
The project management system allows you to effectively carry out projects leading to qualitative changes within organizations, which in turn allows organizations to gain new competitive advantages.

Examples of such projects include infrastructure construction, IPO, market launch of a new product or service, etc.

The value of the project management system is especially high at the stage of organization growth, when it already has experience in the local market and tries to transfer the already tested business model to the national or international market. At this time, organizations are implementing large-scale development programs consisting of a dozen projects.

Key Elements of the Project Management System
There are many interpretations of the composition of the elements of the EMS. Of this set, the following can be attributed to the key elements of a stable system (see Figure 2):
- Methodological;
- Organizational;
- Software and hardware;
- Motivational.



Figure 2 - Key elements of a sustainable project management system

Methodological element of EMS
It is a complex of methods, tools, tools, theories and approaches used in the framework of ongoing projects. Those. This is a project management methodology that determines how to do the work.

Organizational Element of the PMF
Determines the order of activities and interactions of project participants. It consists of 3 components:
- Organizational structure of projects and governing and control bodies (for example, project office, Coordination Committee, Governing Council, etc.);
- Members of project teams and project management bodies;
- Documentation support of the CMS (regulations for the interaction of project participants, procedures for managing various stages of the project, detailed instructions for executing procedures, templates for management documents, regulations on governing bodies and job descriptions).

Software and hardware element SOF Basically, it
is a hardware-software complex of calendar and resource planning, which can integrate with financial planning and accounting systems, document management, personnel management, reporting system.

The motivational element of the EMS
is a set of motives that encourage the implementation of functions that ensure effective project management.

As shown in Figure 2, the Organization Strategy influences the development of these elements.

Why are these elements and not others?
Consider a little theory, namely the work of M.Kh. Mescon "Fundamentals of Management" [2], where the author defines the management process as a set of functions of planning, organization, motivation and control, combined by the connecting processes of communication and decision-making (see Figure 3).



Figure 3 - Key functions of the management process.

In this regard, there is an assumption that the minimum set of elements of a stable control system should ensure that at least these functions are performed.

Table 1 provides information on the relationship of key management functions with the elements of the EMS.

Table 1


As can be seen from the table, the group of elements of the EMS provides the implementation of all key management functions.

Certain elements are established between the elements of the control system. The basic element in the project management system is the Methodological, which is a set of processes, methods, project management procedures that allows you to perform the monitoring function by comparing the current processes, methods and procedures with those that must be performed in accordance with the selected methodology.

The organization of work in accordance with the established methodology is ensured by the organizational element of the project management system that performs the functions of a project management office, project teams, a steering committee, using documentary support containing a description of regulations, procedures and templates for project documents.

The software and hardware element provides calendar-resource planning of work in accordance with the processes of the Methodological element, their relationship with the financial planning and accounting system, personnel management, document management and reporting system.

The motivational element ensures the implementation of the processes and functions of the methodological, software, technical and organizational elements by forming motivational locks that encourage participants in project activities to correctly perform the necessary procedures and functions. The complex of motives is a kind of “cementing mortar” for the entire System, holding all its elements as one and ensuring its stability. An example of the relationship between the elements of the EMS is presented in Figure 4.



Figure 4 - An example of the relationship between the elements of the project management system The

evolution of the development of the EMS in the organization
Management activities within the organization can be divided into three types:
- Operational management (emergency response)
- Project management (targeted change of systems)
- Operational management (constantly repeating processes)

The share of each type of management activity in the total volume depends on the stage of the life cycle at which the organization is located. In turn, the proportion of project management depends on the degree of development of the management system in the organization.

The dependence of the share of project management on the life cycle of the organization is presented in Figure 5 [3].




Figure 5 - The dependence of the share of project management on the life cycle of the organization

The organization is setting specific goals and timelines for the development of the business. A program or project is being implemented that should show the prospects of this organization in the form in which it was conceived. There is no project management system. Project management is practically not used (the share is about 25%). The main tool is operational management. The planning horizon in the organization is from a month to a year. As a rule, deviations in terms and costs range from 100 to 300% of the planned. At this stage, a weak idea of ​​owners and managers about the state of the internal and external environment of the organization is characteristic. The duration of this stage for the organization of medium-sized businesses is about 2-3 years.

At the stage of Business Formation, project management, as a rule, focuses on the purchase of missing assets and on creating an effective business model. The share of project management is higher and amounts to about 30%. The duration of the stage for organizing medium-sized businesses is 3-4 years.
The Growth Stage is connected with the struggle for the share of the national market. Project management is used in large-scale expansion programs to regional or international markets. At this stage, the project management system is most in demand. The share of project management is higher and amounts to about 40%. The duration of this stage for the organization of medium-sized businesses is about 4-5 years.

Closer to the “Stabilization” stage, project management becomes more operational (projects become cyclical, most projects become standard). At the Stabilization stage, the organization needs to implement innovative projects that would help it maintain a competitive advantage by introducing new products and services to the market. The period of this stage can vary greatly and depends on the quality of organization management. The share of project management is reduced and amounts to about 20%.

The degree of development of the project management system in an organization depends on the level of its technological maturity in the field of project management and the stage of the life cycle in which it is located.

If, for example, we take the 5-level model of the maturity of Herold Kerzner (see Figure 6) [4], then the dependence of the level of maturity of project management on the organization’s life cycle will look as follows (see Figure 7).



Figure 6 - Maturity model of Herold Kerzner



Figure 7 - Dependence of the level of maturity of project management on the life cycle of the organization

The level of development of the project management system depends on the degree of development of its elements, and also depends on the maturity level of the organization in the field of project management. Information on this dependence is presented as an example in Figures 8–12. In these figures, the “Strategic” element is external to the CMS and is shown for information and comparability.



Figure 8 - The degree of elaboration of the elements of the EMS (1 level of maturity)



Figure 9 - The degree of elaboration of the elements of the EMS (2nd level of maturity)



Figure 10 - The degree of elaboration of the elements of the EMS (3rd level of maturity)




Figure 11 - The degree of development of the elements of the EMS (4th level of maturity)



Figure 12 - The degree of elaboration of the elements of the CMS (5th level of maturity)

The process of developing a project management system usually occurs in the following order:
- Training employees in project management;
- The accumulation of management practices;
- Understanding the results;
- Summarizing the results, conceptualization, building action templates;
- Formation of experience.
- This process is iterative.

At the same time, the method shown in Figure 13 is more effective. Using this approach in the development of a project management system will help accelerate the maturation in the field of project management in a medium-sized organization, according to expert estimates, by about 10% - 20%.



Figure 13 - The process of developing a project management system

Recommendations
In conclusion, I would like to recommend using a professional assessment of the technological maturity of the organization in the field of project management, which allows you to correctly draw up a program for the fastest development of the project management system taking into account the current strengths and weaknesses of the organization and get new competitive advantages the most optimal and in a quick way.


List of used literature:
1. PMI, Guide to the Project Management Body of Knowledge. Fourth Edition, 2008
2. Meskon M. Fundamentals of management: Moscow, Delo Publishing House, 1997.
3. Chernov D.V. The role of project management at different stages of the organization's life cycle. Project and program management No. 01 (29) 2012
4. Malinina M.V. Modern maturity models of organizational project management. Project and program management №3 2011