Resistance to Change

Why was project management so difficult for companies to accept and implement? The answer is shown in Figure 2-7. Historically, project management resided only in the project-driven sectors of the marketplace. In these sectors, the project managers were given the responsibility for profit and loss. This profit and loss (P&L) responsibility virtually forced companies to treat project management as a profession.

In the non-project-driven sectors of the marketplace, corporate survival was based upon products and services, rather than upon a continuous stream of projects. Profitability was identified through marketing and sales, with very few projects having an identifiable P&L. As a result, project management in these firms was never viewed as a profession.

In reality, most firms that believed that they were non-project-driven were actually hybrids. Hybrid organizations are typically non-project-driven firms with one or two divisions that are project-driven. Historically, hybrids have functioned as though they were non-project-driven, as shown in Figure 2-7, but today they are functioning like project-driven firms. Why the change? Management

Figure 2-7.

Industry classification (by project management utilization).

Figure 2-7.

Industry classification (by project management utilization).

1960-1990

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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