Project Management
Simply put, project management is all about setting and achieving
reasonable and attainable goals. It is the process of planning, organizing,
and overseeing how and when these goals are met. Unlike business managers
who oversee a specific functional business area, project managers
orchestrate all aspects of time-limited, discrete projects. For instance, a
project manager who’s overseeing the development of a new product or
service may manage folks from departments as disparate as marketing, IT,
and human resources.
Everyone practices project management to some degree: Farmers plan what,
when, and how they're going to plant; how they’re going to take care of
their crops as they grow; and how and when they’re going to harvest those
crops. Parents plan what they're going to prepare for their children
for dinner. (If they have strong project management skills, of course, they
delegate things like setting and clearing the table to the kids.) And so
on.
In business, project management is an art, a skill, and a demanding
full-time job. Project managers (PMs) are key employees in such industries
as construction, engineering, architecture, manufacturing, and real estate
development, but many opportunities for PMs exist outside these areas. In
high tech, biotech, or pharmaceuticals, for example, project managers are
responsible for launching new products, developing new technologies, and
managing alliance programs with strategic partners.
Large corporations such as insurance companies and banks may also hire PMs
to manage the implementation of new standards or practices in their many
branch offices. Internet companies often look for project managers to
oversee site launches or the development of new applications.
Whether a project involves releasing a product, building out a new office
site, or launching a rocket, PMs make sure everything comes together in a
timely, cost-effective manner—and take the heat if it doesn't. Their
high-profile, high-risk work demands multitasking ability, analytical
thinking, and excellent communication skills.
What You'll Do
The project manager oversees the planning, implementing, quality control,
and status reporting on a given project. He or she manages the project
team, which typically consists of people from all the areas of the PM's
organization. The project manager is responsible for precisely defining the
scope of the project; preparing the project schedule, and updating that
schedule as it evolves; proposing the project budget, and then managing the
project so that it doesn't cause cost overruns; making sure the project
team has the supplies and human resources necessary to get the project done
on time and on budget; identifying and minimizing potential risks to the
project timeline and budget; making sure that all project team members
understand what their responsibilities are; communicating the project's
progression to management; and ensuring the quality of the team's work
and any supplies or materials used by the team.
In most cases, a project is planned down to the daily or even hourly level,
and a formal schedule is developed using the Critical Path Method (CPM), a
precedence-based technique that determines the sequence in which things
must happen. Milestones punctuate most project schedules, indicating the
required completion of various steps.
All project managers are familiar with at least one CPM scheduling software
application, such as Microsoft Project, Primavera, Scitor Project
Scheduler, AEC FastTrack, CA-SuperProject, or Kidasa Milestones. Many
scheduling applications are tailored to specific industries or project
types, but all use CPM precedence methodology. There is also a recent trend
towards using the power of the Internet as a project management tool. A few
Web-based solutions that are quickly gaining momentum include Autotask,
eProject, and Basecamp.
Most scheduling programs also help allocate resources, another big part of
a project manager's job. If you are running a software development
project, for example, you have to know how many engineers will be available
and how many hours they'll need to work. Likewise, if you're
running a construction project involving cranes and excavators that must be
leased on an hourly basis, you'll need to know when to have those
machines on site to get the most work done for the least money. Balancing
limited labor, materials, and other resources is a difficult task that
earns a good project manager top dollar.
Who Does Well
Many project managers cite stress as the main downside to their jobs. PMs
are responsible for their projects' successes or failures, which
determine both their income and their status within a company and industry.
In construction, if a project isn't brought in on time, the builder has
to pay damages for each day's delay, and the project manager will lose
a bonus—and possibly even his or her job.
For some, the black-and-white nature of project management work makes for a
refreshing challenge. Delivering a project "on time and under
budget" can provide great emotional rewards. The job offers the
opportunity to lead, and new projects keep the work fresh. If you have an
analytical mind, good people skills, and the willingness to rise or fall on
the demonstrated success of your work, project management may be for you.
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Educational requirements for project managers vary greatly according to the
type of projects they manage. For construction projects, a civil
engineering degree is usually required. High-tech PMs may need a degree in
electrical engineering or computer science. And in most cases, the most
successful project managers have some type of formal business training,
such as an MBA. Project management has a direct effect on a company's
bottom line, so a PM must be able to evaluate a project's financial
repercussions from a corporate point of view.
Project managers also need strong leadership skills, the ability to set and
stick to a schedule, multitasking ability, analytical thinking, strong
communication skills, and an orientation toward getting things done.
Certification
Professional certification in project management is available through the
Project Management Institute, which bestows the profession's most
globally recognized and respected credential—certification as a Project
Management Professional (PMP). To obtain the PMP credential, applicants
must satisfy requirements involving education and experience, agree to a
code of ethics, and pass the PMP certification examination. Many
corporations require PMP certification for employment or advancement.
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In general, the field of project management is incredibly hot—but the
outlook might be brightest for PMs in the biotech and high-tech arenas. As
might be expected, project management opportunities depend on the number of
projects taking place. When the economy is booming, demand for PMs is
usually high. When the economy is slow, look for opportunities in hot
industry sectors, where a lot of projects are taking place. A wide range of
industries use PMs to handle everything from launching new products to
leading restructuring efforts to converting MIS systems.
The Bureau of Labor Statistics predicts excellent job growth for project
managers in construction through 2014. Increasing complexity of
construction projects could, however, drive demand slightly above average.
The outlook is much stronger for product managers in industries with strong
growth prospects, such as high tech and biotechnology.
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Very few people start in the field as full-fledged project managers. Most
are offered an assistant position on a project management team and are
assigned responsibility for one aspect of the work. As you gain experience,
you may be assigned more and more tasks to manage, until you're ready
to lead others in completing an entire project. Other newcomers start out
with primarily technical jobs, creating, tracking, and updating the
schedule using a software program; reviewing documents, and writing
reports.
Project Coordinator
Project coordinator is an entry-level position that offers exposure to the
work done by project managers. It's usually an administrative position
involving a great deal of paperwork. You generate and distribute the
reports that keep the project management team, owners, company staff, and
others informed of a project's progress. You also schedule meetings and
assist the management team in any way possible.
Project Scheduler
For larger projects, a project scheduler runs the software, inputting the
information supplied by the management team and updating files as needed.
This is a technical position that involves a great deal of computer work
and little actual management.
Assistant Project Manager
Assistant PMs do not necessarily assist the project manager directly.
Rather, they're usually assigned specific tasks to manage. They meet
regularly with the PM to report progress and problems.
Project Manager
In this position, you may run a project yourself or lead a management team,
delegating task management to assistants. PMs report to the
"owner" of a project—whether that's a real estate developer,
government agency, or your company's senior management. You oversee
budget and schedule, and take responsibility for the project's proper
completion.
Senior Project Manager
Many large organizations that tackle multiple projects at once (especially
construction and engineering companies) employ a senior project manager.
The senior project manager supervises a company's various project
managers, coordinating the allocation of company resources, approving
costs, and deciding which projects should take priority.
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Compensation for project managers is always based at least partly on
performance. You are encouraged to "buy in" to the success of
your project, and there are almost always incentives to keep costs down.
Project managers who can complete an assignment ahead of schedule or under
budget usually get a nice bonus. In hard-bid construction, for example, PM
bonuses are based on a company's profit from a project; a good PM on a
multimillion-dollar construction job can make tens of thousands or even
hundreds of thousands of dollars as a bonus.
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Project coordinator: $46,000 to $63,000
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Project scheduler: $37,000 to $56,000
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Assistant project manager: $40,000 to $60,000
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Project manager: $63,000 to $100,000, plus bonus
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Senior project manager: $70,000 to $150,000, plus bonus