I 

Introduction

Two essential characteristics are used by the Project Management Institute (PMI) to define a project. Firstly, every project is temporary. Also, a project is done to create a product, service, or output. 

 

 

For an operations manager, whose job is focused on long-term and continuous process improvement, these two straightforward concepts help to establish a thriving work environment. 

Defining and completing short-term projects requires a unique set of skills. In addition, projects should have a clear start and finish because they are transient. Hence, both the start-up and close-out phases require good management.

In this article, we will consider the importance of project management for nonprofits and how organisations can develop an effective project plan. 

II

What is Project Management?

Project management can be defined as the application of information, skills, mechanisms, and methods to project activities to fulfil project requirements. By and large, the goal is to ensure the project is completed successfully. 

 

 

Due to its complexity and the unpredictable nature of future events, this management process is often associated with risk management in theory and practice. 

Essentially, the project manager is responsible for overseeing and controlling project risks. Likewise, in good times and bad, the project manager should be able to identify possible risks or resistance, communicate them, and put in place sound procedures. In the long run, this will enable him to step in and help when those situations present themselves.

III

Critical Statistics to Consider in Project Management 

In this section, we will consider various project management statistics to emphasise the need for good project planning. 

a. Project Management Industry 

According to experts’ predictions, the project management sector is expected to maintain its upward trajectory. Since the early 2000s, it has rapidly expanded, thanks to technology developments that have simplified and improved project management. 

 

 

b. Project Management Software

Project management software was valued at $6 billion in 2021 and is expected to scale at a substantial increase of $16.05 billion by 2030.  Also, the software market is projected to grow at a compound annual growth rate (CAGR) of 10.68%. 

With project management software being used by only 23% of organisations, there is a great deal of room for future expansion. However, project management software is deemed unnecessary by 44% of managers worldwide, according to estimates.

c. Project Management jobs 

Project managers will require 2.3 million workers annually to fill open positions, according to PMI’s most recent Talent Gap report. Also, PMI estimates that by 2027, there will be 87.7 million project management positions needed worldwide. For project managers, this means more work opportunities. 

Based on data, 91% of teams report using virtual tools for project management, indicating that remote project management is here to stay. Over the coming years, there’s a good chance that this trend will gain popularity. In addition, 69% of organisations prioritise project management skill development to boost performance.

 

 

d. Project Completion

According to the most recent PMI Pulse of the Profession report, 89% or more of projects are completed on schedule, within budget, and according to scope in high-performing organisations. This demonstrates how crucial efficient project management is to success.

About 43% of organisations stated that they often or always complete their projects within budget. 

e. Project Failure

67% of projects fail because project management is not given enough priority. Poor planning, poor communication, and ambiguous goals or objectives to gauge progress are the most frequent reasons for project failures (37%).

Companies that make project management investments save 28 times as much money compared to those that don’t.

f. Project Management Process 

Project Managers report that planning (35%), resource management (25%), and stakeholder engagement (50%) are the most valuable project management processes. Hence, if you want your organisation to improve project performance, you should give priority to these processes.

g. Proper Budgeting 

78% of projects tend to have budget overruns or schedule delays. To stay within budget, project managers must therefore concentrate on improving planning, risk management, and forecasting.

h. Project Planning 

As stated by 46% of companies, project planning is essential and should be given high priority. This is so because successful project execution is predicated on effective planning.

IV

What are the top Project Management Areas for Nonprofits?

To begin with, nonprofits should have an expert project manager who can help guide the organisation when undertaking various initiatives. Also, a project manager needs to be skilled in all aspects of the various components that make up a project. 

 

 

The upcoming section will delve deeper into each of these subject areas.

a. Project Start-Up and Integration

The conception of a project is comparable to the launch of a new organisation. Firstly, the project manager creates the infrastructure needed for the project’s design and implementation. Throughout the early stages, or definition phases, the project management team must foster alignment among the key stakeholders. 

Secondly, during the project start-up phase, the project management team should develop a conceptual budget, a preliminary schedule, and a refined scope of work. Also, the project profile should be used by the project team to develop an execution plan. During the startup phase, plans are developed for creating and monitoring the procurement plan, creating the budget, and estimating and monitoring expenses.

There are special tools used to record the work processes involved in carrying out the project plan. This includes diagrams, responsibility matrices, and flowcharts. Correspondingly, the team members’ historical and intuitive skills are captured in the initial draft of the project procedures manual. The creation and evaluation of these protocols and workflows aid in the project’s organisational structure development.

Lastly, in addition to encouraging team members to participate fully in the project, the project manager should foster an environment that rewards creative thinking in the creation of the project plan.

b. Project Scope 

A project scope is a document that outlines the parameters of the project. This includes the work that is done both inside and outside the organisation’s boundaries, as well as the characteristics that define a system and dictate its behaviour. 

Essentially, project deliverables, or the work that will be completed by the end of the project, are specified in the Scope of Work (SOW), which is usually a written document. Also, the project execution plan outlines the method by which the work will be carried out, while the project scope specifies what will be done.

Most importantly, every project requires a different template. For certain projects, the scope of work is extremely specific, while for others, it is just brief. Hence, the ability of project managers and other project stakeholders to create and uphold a shared understanding of the outcomes the project will yield serves as a gauge for the quality of the scope. 

The scope of the project’s size and level of detail is based on its complexity. An extensive and in-depth scope document is often required for a more intricate project.

1. Characteristics of a Scope Statement

According to PMI, the scope statement ought to contain the following: 

• Scope description 
• Product acceptance criteria 
• Project deliverables 
• Project exclusions 
• Project constraints 
• Project assumptions 

 

For all parties, the agreement starts with the scope document. Managing project change requires a clear project scope document. Confusion may result from any change in expectations that is not noted and recorded. This is because the project scope specifies the work that will be completed on the project. 

Also, expanding the project scope incrementally is one of the most prevalent trends in project management. By and large, this pattern can be referred to as “Scope Creep.” However, a project’s viability is threatened by scope creep. This is because even a slight scope increase calls for extra resources that weren’t budgeted for. 

Oftentimes, there is a need for a project to expand in scope, and to accommodate these changes. In this case, the budget and timeline must be modified. When these changes go unnoticed or unmanaged, scope creep happens. Consequently, the calibre of the scope documents has a direct bearing on a project manager’s capacity to recognise possible modifications.

c. Project Schedule and Time Management

Often, meeting deadlines is a key component of what constitutes a successful project. Hence, when carrying out a project, there is a need to create and oversee a schedule. This will ensure the timely completion of the project. Also, creating a realistic plan and managing it well is crucial in this process. 

The team responsible for the project should analyse the contract, the project scope, and other relevant data to determine the project deliverables and the project schedule. 

Firstly, the project team creates a milestone schedule using the information provided. A project’s milestone schedule outlines important dates that must be reached throughout the project’s duration for it to be completed on time. Oftentimes, the important dates are set to fulfil contractual requirements or to indicate regular intervals that will show suitable project progress. 

In simpler projects, monitoring the project’s progress can be accomplished with just a milestone schedule. However, an elaborate timetable is necessary for more complicated projects.

Secondly, a Work Breakdown Structure (WBS), or a description of tasks arranged in layers of detail should be created by the project team to ensure a more detailed schedule. By and large, a project plan is derived from the WBS. Also, the tasks required to complete the work specified in the WBS are listed in the project plan. 

Thirdly, the project team should arrange the activities in a sequence that corresponds to the order in which they must be completed. One of the products of the work process is the Project Logic Diagram. Essentially, the logical flow of the tasks required to finish the project is shown in the logic diagram. 

• Length of task

Also, estimating how long each task will take to complete or how long it will take to complete each activity should be the next stage in the planning process. While certain tasks can be completed concurrently, others must be completed in a specific order. The planning process generates a project schedule by organising tasks to make the best use of project resources and time resources.

d. Project Costs

Completing the project within the allocated budget is often regarded as a sign of project success. Hence, critical project management skills include creating and managing a budget that will enable the project to achieve its goals. 

More importantly, there is a correlation between the project team’s knowledge base and the accuracy of the project budget. However, it is common in the early phases to lack the quantity of data required to create a comprehensive budget.

To begin with, the project team should create several project budget estimates at different levels to address the lack of data. Afterwards, the least amount of information is used to develop the conceptual estimate, also known as the “Ballpark Estimate.” Expert knowledge or prior experience is a major component of the conceptual estimate. Regardless, previous project costs can be used to estimate the costs of the current project.

Also, the project’s cost should be monitored according to both the work’s progress and its estimated completion date. The cost estimate is used to compare the actual cost of the work to the budgeted amount for that work. Thereafter, the project team investigates the causes of any notable increases or decreases in costs. 

e. Project Quality 

Project quality is centred on the final product or service deliverables that fulfil the project’s objectives. As a result, a high-quality plan must start with a thorough understanding of the project deliverables. This can be achieved by recording expectations and specifications. 

The procedures for guaranteeing that the requirements and anticipations are fulfilled are incorporated into the Project Implementation Schedule. Throughout the project, modifications may be made to the project specifications in addition to budget and completion dates. Also, Quality Specification Modifications are usually handled in the same manner as schedule or Cost Modifications. 

Changes to the project execution plan are made after the necessary approvals have been obtained and the effects on schedule and cost have been evaluated. Thereafter, finding areas for quick improvement is necessary to affect the outcome of the project. 

The early phases of the project require the largest investment of time and resources to discover areas of improvement. Hence, project activities become less receptive to Work Process Modifications as pressure to meet project schedule goals mounts in later stages.

f. Communications

Effective teamwork is necessary to complete a challenging project. Likewise, effective teamwork necessitates effective communication among team members.

Two categories of communication exist: Synchronous and Asynchronous. A communication is considered synchronous if every participant is participating at the same moment. However, asynchronous communication occurs when there is no simultaneous interaction between the participants. In this case, it takes a communications plan to establish efficient communications.

g. Project Risk

Every project has some level of risk. The project management team should identify the different types and intensities of the project risks. Subsequently, the team will need to create and carry out plans to reduce those risks. 

In simple terms, risk is the possibility that something will happen during the project’s duration that will make it more difficult to accomplish the project’s objectives. 

The kind and degree of risk differ depending on the project’s phase, industry, and complexity. Identification of possible project risks is the first stage in creating a risk management strategy. As a result, a checklist is valuable because it encourages reflection and conversation about possible project risks.

• Risk identification

In this stage, the project team evaluates the risks and assesses the likelihood that they will occur. Next, assuming that the event happens, the team considers the possible impact on project goals. Lastly, the team should create a ranked list of estimated project risks with a value indicating their probability of occurring and possible effects on the project.

• Risk strategy

Afterwards, the project team creates a risk mitigation strategy that either lessens the possibility of an event happening or lessens its impact on the project should it occur. Project team members who are suitable are assigned to undertake mitigation activities as part of the integration of the risk management plan into the project execution plan. In this case, there is very little chance that any of the possible outcomes found in the risk analysis will come to pass. However, there is also a strong likelihood that one or more issues will occur.

• Risk plan

The project risk plan takes into account the risks associated with the project and weighs the benefits of mitigation against the investment made. Using contingency is one of the more popular methods for risk mitigation. Funds reserved by the project team for unanticipated circumstances are known as Contingencies. 

• Contingency budget

Large contingency budgets are usually associated with projects that have a high-risk profile. The team can allocate contingency to the highest-risk activities if they are aware of the ones that carry the greatest risk. Throughout the project, there will be a need for regular reviews of the risk plan. In addition to assessing the current plan’s efficacy, the risk review looks into potential hazards that were omitted in previous meetings.

V

What are the Project Management Activities in the Nonprofit Project Cycle?

Various phases in the project cycle outline the step-by-step process of carrying out project management initiatives. They include; project initiation, project planning, project execution, and project closing.

 

 

In this section, we will expand on each cycle. 

a. Project Initiation

One common definition of project start-up is project initiation. This is a crucial phase in the project work preparation process. To begin with, case studies or problems are defined and examined. Afterwards, a project proposal is made available for review. 

Project work will commence following a feasibility study which determines that a project should be established to address an issue or test potential solutions. 

Oftentimes, there will be an official appointment of a project manager in this case. This could be the person who brings up the issues or is knowledgeable about the subject area. Such individuals are responsible for drafting the project proposal and are typically assigned to oversee the project. 

Usually, the project initiative will undergo additional revisions and be finalized as the project outline for documentation. Also, at the conclusion of the first phase, the project outline will be approved by all parties. Afterwards, the project manager begins assembling his team.

b. Project Planning

The stage of detailed planning is called project planning. Here, the project manager is required to complete the duties of hiring the appropriate personnel and outlining the schedule and activities. 

Also, the allocation of resources and the financial plan must be specified. The Project Action Plan is one tool that can assist with project planning and a good structure. 

c. Project Execution 

The third stage of the project lifecycle is called project execution. At this point, the primary objective is to carry out the scheduled tasks to complete the deliverables within the allotted time and resource limit. 

Nevertheless, despite meticulous planning, the project may ultimately take a different path. This however does not imply that the project was a failure. One of the most difficult jobs for the project manager at this point is control, which involves handling changes and modifying the project plan as needed.

d. Project Closure

The formal end of a project is signified by project closure. At this final stage, the stakeholders will be allowed to review the deliverables. 

Generally speaking, a project review report is written for the project’s documentation and evaluation. It may be necessary to arrange a lessons-learned workshop for the stakeholders to share project experiences. 

The balance of scope, cost, and time—known as the “project triangle“—remains a continuous challenge for the project manager throughout the process. Essentially, these are the three opposing constraints that influence the project’s performance. 

A tight timeline may result in higher costs and a smaller scope; a tight budget may result in a larger scope and a shorter time frame. Should the project need to be completed quickly and well, the cost will increase. Conversely, if it must be completed quickly and cheaply, the scope or quality won’t be up to par. In project management, this idea is also referred to as “pick any two.”

Conclusion

To sum up, project management is a specialised discipline that includes organising, carrying out, and overseeing projects to meet predefined deadlines and financial constraints. In many sectors and organisations, project management remains an essential tool. 

Not to mention, project management techniques are being adopted by organisations of all sizes. Project software is used by organisations to increase efficiency, lower costs, and streamline procedures. By and large, all these factors are crucial in today’s cutthroat marketplace. 

For the foreseeable future, project management will continue to be a crucial aspect of an organisation’s operations. Therefore, project managers need to keep up with the latest trends. This will allow them to seize the opportunities brought about by these rapidly evolving technologies.