Project Management: From Big Data to Everyday Life
A quick browse through various job platforms or a glance at the popularity of online courses will soon reveal that project management – or “project managment,” as it’s often colloquially written – is one of the most dynamic and sought-after career fields.
And let there be no confusion: while it is prevalent in IT projects, this phenomenon extends far beyond the IT industry. Considering the type of economy we live in – project-based and increasingly complex – it’s nearly impossible to find an industry that doesn’t require a skilled project management department or at least one competent project manager.
These aren’t just empty claims; numerous reputable studies conducted over the past decade confirm the rising importance of this field. Thanks to such research, we can track the growth of its significance. Today, it’s hard to find senior managers who won’t agree that project management is crucial. A full 90% of experienced managers consider project management vital for business success, and 60% rank investing in building a quality project team among their top three priorities. Recent studies paint an even starker picture: during the pandemic, project management emerged as one of the areas that saw a 20% global increase in resource allocation compared to just a year earlier, alongside critical thinking and strengthening basic digital skills.
This is hardly surprising when you consider the following statistics: due to inefficient project management, approximately $1 million is lost globally every 20 seconds, adding up to $2 trillion wasted annually. To put this into perspective, Croatia’s 2022 national budget was a “mere” HRK 145 billion – and that’s in kuna, not dollars. As if this weren’t bad enough, about 1 in 3 projects fail outright, 43% exceed their budgets, and 48% miss their deadlines.
Now, I understand statistics aren’t exactly the sexiest tools in the world, so let me present just a few more numbers before diving into how project management applies to everyday life. When a project manager does their job well, the rate of unsuccessful projects drops by 31%, 30% of projects are delivered under budget, and 19% are completed ahead of schedule. Productivity increases by 21%, and large projects save over half a million dollars. So, the benefits are clear.
Project Management in Everyday Life
When explaining project management to new colleagues, we often use the analogy of planning a family party. As the organizer, or project manager, you need to know how much money you have, how you’ll collect it, whether there’s anything already prepared that you won’t need to redo, how long the event will last, what the weather will be like, and even how to gather feedback to make the next party even better.
While some undertakings are explicitly labeled as projects, there are many others we can treat as such without an official designation. For instance, consider developing your career. Whether you plan to stay with the same employer until retirement or change jobs every few years, this process has a defined timeline – a key characteristic of projects, as opposed to operations, which can stretch indefinitely.
Now, to complicate matters further, we need to factor in a few additional variables. First, expectations. In any professional setting, we all navigate a sea of expectations – both our own and others’. We must recognize that investing time in additional education to acquire new skills will be necessary to meet some of these expectations.
So, to simplify: a project is any process with a defined duration that operates within specific parameters and aims to achieve a particular goal. This means any unique endeavor with a limited timeframe, whether in our private or professional lives, can be defined as a project.
With this perspective, it becomes clear why project management is so applicable to everyday life. Project management requires analytical skills that allow us to approach a problem objectively, guided by the goals we’ve set, regardless of whether we’re wearing rose-colored glasses or under a cloud of pessimism. Good decisions aren’t made based on emotional states or feelings.
Furthermore, a competent project manager understands that no project – like any life plan – will ever unfold exactly as initially envisioned. That’s why they leave enough room for adjustments. For example, in agile work approaches, this might mean postponing decisions that lead irrevocably in one direction for as long as possible or allocating a contingency budget for Plan B if things go awry. The key takeaway here is to recognize that nothing will ever go perfectly smoothly, there will always be unforeseen obstacles, but such situations shouldn’t be handled on the fly. Instead, they should be anticipated, with potential solutions prepared in advance, while staying focused on the set goal.
While these are all critical elements, good communication often proves to be the most crucial. Effective communication between the project manager, their team, and their supervisors is indispensable. Returning to the numbers for a moment, research shows that 56% of budget waste is due to poor communication between project managers and their superiors and subordinates. In other words, it’s not just about what is said but also how, to whom, and when it is said. Imagine subtracting that 56% from the $2 trillion wasted annually due to poor communication – how much higher would the average Croatian salary be?
Project Management in Practice
To ensure all these components work synergistically and yield optimal results, it’s essential to find the right balance of theory, experience, and suitable communication patterns. This is something we instill not only through our internal workshops, where we train colleagues at TIS to become more efficient project managers, but also by sharing our knowledge and extensive experience beyond our own walls.
A great example is the Soft Skills Academy, where we showed FER students what a good project manager must do in practice. This interactive workshop lasted two days, with four-hour sessions each day, and was organized around group work. After a brief introductory lecture, students chose one of three key project roles and a goal or purpose for the project they would develop. The only condition was that the project had to be as feasible as possible, allowing them to navigate all five phases of a project while confronting the real challenges faced by each project participant. Later, we analyzed their approaches through discussion, highlighting what worked well and what might look different in real-world practice.
Another type of collaboration offered by TIS involves deploying our experts to institutions that require such services. A recent example is the Instant Payments project, where Zagrebačka banka, for the first time ever, entrusted an external project manager to coordinate their experts. Although I joined the project after the kick-off phase and didn’t participate in early planning, I can confidently say I achieved my goals. At Zaba, I didn’t come in as an external expert to forcefully “fix” things but rather carefully examined the situation to identify where my experience and expertise could improve efficiency without disrupting existing processes that worked well.
We’re proud to say this collaboration was highly productive, enjoyable, and successful. Notably, we completed the project within the projected timeline, budget, and quality standards. I’d like to take this opportunity to thank Zaba for their support. They provided a pleasant work environment, allowing me to focus my energy on activities that contributed to the project’s success. I believe this supportive atmosphere was a significant factor in our fruitful collaboration.
How to Choose the Ideal Project Manager?
To conclude, here’s an open question faced by anyone considering hiring a project manager: should you hire someone who has honed their skills through experience in the trenches, or is it better to hire a formally educated project manager?
Both approaches, of course, have their advantages and disadvantages. However, our experience shows that combining both is the best solution. That’s why, at TIS, we invest in our technically skilled professionals, regularly supplementing their knowledge and skills with training and internationally recognized certifications essential for every project manager. This way, we consistently deliver outstanding results to our clients.
If you need our assistance, don’t hesitate to reach out. Our experts will find the ideal solution tailored to your specific needs.
Author: Alan Budak, TIS, Head of Project Management Office
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