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Copyright © 2012–2024 PM World Inc. – All rights reserved · ISSN 2330-4480
Understanding Project Business
COMMENTARY
By Taka Sande
South Africa
What is Project Business
Project business refers to a way of organizing and executing business activities that are based on individual projects. In this model, a company undertakes a specific project or projects or project tasks, completes them, and then moves on to the next one. Project business is a widely used approach, particularly in industries such as construction, software development, and engineering.
Project business is characterized by its unique features such as defined scope, defined timeframe, and a defined budget. Each project is temporary in nature, meaning that it has a specific beginning and end date. Projects require resources such as money, time, and people to be allocated to project teams. The project teams are responsible for planning, executing, and monitoring the projects.
In a project business model, the project managers play a crucial role. The project manager is responsible for defining the project scope, creating a project plan, identifying and managing risks, and ensuring that the project is delivered on time and within budget. The project manager also acts as a liaison between the project team and the client or stakeholders.
A Projects Businesses model can be used in many types of businesses, for example in a home remodelling company, a fitness app development, an event planning business, a financial consulting firm, a business coaching service, a digital marketing agency or a video production company. What these businesses have in common is that the workflow is based on projects.
Benefits of a Project Business model
One of the main benefits of project business is that it allows for flexibility in terms of resource allocation. Since each project is distinct, the project team can be customized to fit the specific needs of the project. This means that the company can adjust its workforce as needed, hiring additional staff for a project and then releasing them once the project is complete. This allows for a more efficient use of resources and helps to reduce costs.
Project business also promotes innovation and creativity. Since each project is unique, it provides an opportunity for the project team to approach problems in a new and creative way. This can lead to innovative solutions and can help to differentiate the company from its competitors.
A project-based business model is much more flexible than traditional business models. It allows companies to dynamically respond to market conditions in a timely manner and create new projects and new opportunities that are tailored to the specific needs of customers.
Since workflow is project based, it is easy to outsource part of the work. By outsourcing certain workflows or tasks in a project-based model, it is possible to streamline a company’s operations and reduce the number of unnecessary steps or lengths of time that is required to complete it.
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Editor’s note: Submission of this article was coordinated by Project Management South African (PMSA) Mr. Sande was a featured speaker at the PMSA Annual Conference in November 2022.
How to cite this article: Sande, T. (2023). Understanding Project Business, commentary, PM World Journal, Vol. XII, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/08/pmwj132-Aug2023-Sande-understanding-project-business.pdf
About the Author
Taka Sande, PMP®, Cert.Dir®
South Africa
Taka Sande, MBA, BSc Hons Civil Eng, is a Project Management Profession® (PMP®) and Certified Director® by the Institute of Directors South Africa (IoDSA) with over 23 leadership experience in executive management and corporate governance. He offers advisory services to private sector organizations, state owned enterprises and government departments, locally and internationally.
He is the Managing Director of Fasford Group. He currently serves on several corporate boards as a non-executive director, as an advisor or committee member. The organizations that he serves range from private companies, state owned companies and non-profit organizations.
Taka is a speaker, mentor, trainer and consultant on corporate governance, board development, director training, board development, King IV Report, ISO37000, strategy, ethics and business transformation, providing services to boards of mid to large sized organizations, public and private, including start-ups, family businesses, and NPOs. He has corporate governance consulting experience with companies in Southern Africa, United States, Canada and the Middle East region.
He can be contacted at taka@fasford.com
Personal Website: www.takasande.com
LinkedIn: @TakaSande
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