Planning Saves Money
In this article we have looked and answered questions like, What is advantage of project management? and also Importance of project management in social work even the Fifth step in the project management life cycle, Failed projects cost money. Even if a company completes a project, it can still consume a lot of unnecessary extra budget.
Poorly planned projects can easily experience delays, unexpected interruptions, as well as scope creep. Scope creep is the gradual increase in project size (and cost) due to unforeseen circumstances or changes.
Project planning provides structure and forecast to the execution phase and helps eliminate wasteful activities and patterns. For this reason, companies that adhere to sound project management practices waste far less money than those that do not.
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Improve Team Communication
Good communication is essential for the smooth execution of projects and this applies to projects of all sizes and types. Even two employees can complete project tasks on time
If a project involves multiple employees or teams, contractors, or even employees in different locations or time zones, it is important to plan how your team members will manage their communications.
A project plan addresses your team’s communication needs and establishes the most effective channels to keep your employees connected: email, chat, virtual meetings, and shared documents.
Ensures Optimal Use of Resources
One of the key components of the project plan is the resource plan. Each project is based on resource usages such as staff, equipment, budget, office space, and time. Without proper planning, it is nearly impossible to ensure that an organization allocates and uses resources most cost-effectively and appropriately.
Various project tasks often compete for limited resources. This includes a cost-benefit analysis for each project task. This enables planners to allocate resources intentionally, rather than blindly, based on intelligent forecasts, taking into account project goals and key performance indicators (KPIs).
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Easily Track Project Goals and Deliverables
Another important part of the project planning process is the definition of project goals and objectives. Well-defined, concrete project goals are easier for team leaders to translate into quantitative measures of success.
Including a detailed mapping of KPIs in the project planning phase will help you measure the actual performance of the project over time and how execution needs to be adjusted to meet those goals.
Planning Drives Accomplishment
Projects are not isolated from a company’s day-to-day operations. They have a significant impact on the organization as a whole. Done right, project management saves resources, reduces costs, improves organizational culture, and boosts employee morale. Also, good project management always begins with project planning. Successful projects are rewarded when the planning phase of the project is targeted and accurate.
Improving Project Performance and Success Rates
Unfortunately, in most organizations, the project failure rate is around 70%. Achieving project goals is often not as easy as it sounds.
Projects can fail for several reasons. For example, 38% of companies say the top reason for failure is that team members are confused about their roles and responsibilities. 37% of projects fail because executives do not clearly define project goals and milestones. 47% of projects fail to meet their goals if team leaders do not manage requirements effectively.
Planning a project involves the complete mapping and organization of project goals, tasks, schedules, and resources before someone assigns project roles and the team begins executing the plan. A good project plan can avoid almost all the problems that cause projects to fail.
Improving Employee Retention
Project planning not only benefits project performance and results but also plays a role in employee retention. Employees are eight times more likely to stay with their employer if they trust their manager to help them with workload management. This makes him feel more connected to his work, and when he feels connected, he is 87% less likely to leave the position.
Involving employees in project planning encourages them to share their perspectives and skills, rather than simply telling them what to do. This ensures more effective execution and makes team members feel like an important part of the organization.
Project planning goes far beyond the actual project. This directly affects how employees feel about their workplace and whether they leave or stay.