Project Management - Overview, Importance, and Median Salaries
What is Project Management?
Project management refers to how a project is designed and organized to produce an end product that will make an impact on an organization. It is where knowledge, skills, experience, and processes are applied to meet an organization’s objectives. Projects that are new, time-bound, involve multiple parties and require risk control need project management.
Different projects come up in almost all businesses across industries, including IT, transport and infrastructure, finance, law, and construction.
Why is Project Management Important?
Project management paves the way for the success of a project. It ensures that all professionals involved will work harmoniously to deliver results that translate to a positive return on investment. Without formal management, several problems may occur. They include a lack of teamwork, unclear objectives, inadequate resources, poor quality, and delayed deliverables.
What is a Project Manager?
A project manager is a professional who is responsible for making sure that the tasks toward the completion of the project are done seamlessly. Here are several key roles and responsibilities of a project manager:
1. Activity and Resources Planning
As they always say, “If you fail to plan, you plan to fail.” Planning is crucial in any project, as it sets the tone on what the entire process will look like. Project managers define the scope of the project and identify the resources available. They also set realistic deadlines and define the roles of each member of the team.
2. Time Management
The success of a project relies heavily on whether or not it was delivered on time. Project managers know how to communicate realistic deadlines and ensure that everyone knows what is expected of them. They are capable of setting the sequence of activities and the duration of each task.
Also, many things can happen while people are working on the tasks, and good project managers make room for necessary adjustments, so they can still meet the deadlines.
3. Budget Creation and Cost Estimation
It is essential to stick to the budget, and good project managers can create the budget and review it regularly to ensure that the team will not overspend. The project may be delivered on time, but it will be considered a failure if the client finds out that the budget went substantially over estimates.
4. Risk Management
Issues are normal, especially for large projects. Good project managers know how to identify potential risks and mitigate them before the start of the project. They also know how to avoid risks and manage the impact in case they occur.
5. Reports management and documentation
Proper documentation is essential. Good project managers document all requirements that were met, tasks, people involved, budget, issues, and recommendations on how future projects could be done better.
How Much Do Project Managers Earn?
Regarding compensation, here are the median salaries of project managers based on tenure and PMP certification status:
Related Readings
CFI offers the Financial Modeling & Valuation Analyst (FMVA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following CFI resources will be helpful:
