Project management conventionally covers the organized completion of specific and concrete goals that serve a function or several functions. It can be business-related such as the construction of a manufacturing plant or non business-related such as a goat-dispersal project to provide sustainable food sources for a poor and starving community.
For simplicity, project management can be defined as a management action for a concrete goal done for the first time by or for a project owner. A project can be executed by the project owner himself or herself or contracted to a company doing business in a knowledge area requiring special skills.
On the other hand, operations management will be defined as a series of management actions that are done many times in the pursuit of an overall goal. This goal will usually be for profit. Moreover, since the activities are done repeatedly, the operations owner continuously builds expertise in such activities.
Business Project Management
As an introductory concept, business project management will be defined as management actions done for the first time during the course of running a business. Meanwhile, business operations management will be management actions done several times to ensure profits for a business.
Note that business project management goals will not always be about making a profit. Goals can be troubleshooting an oil spill; experimenting and building expertise in a new field or technology where initial losses are likely; or providing service to a community such as revitalizing a polluted river or building a cancer research facility as part of a business owner's corporate social responsibility.
Business Project Management Mode
For a better understanding of the concept, critically analyze the following business actions done for the first time. Some of these projects will be made by the business owner himself or herself, contracted to a specialist consulting team or projects company, or even by a new team formed by the business owner recruiting and hiring members who have prior experience in the specialized activity.
- Start-Up
- First Branch Expansion
- Franchising
- Going Public
- Starting Global Operations
- First Time Spin Off, Acquisition or Merger
- Execution of Exit Strategy such as Initial Public Offering or Divestments
Business Operations Management Mode
To differentiate from business project management, take a careful note why the following activities are classified under business operations management.
- Business Activities Management such as market research, selling, procurement of raw materials, and so on.
- Multiple Branch Operations Management
- Franchise Management
- Public Corporation Management
- Global Business Management
- nth Time Spin Off, Acquisition or Merger
Contracting to Project Management Companies or Project Companies
To minimize charge-to-learning costs for first time activities, business owners will traditionally contract project companies such as construction firms, consulting firms or systems integrators. Some will contract project management companies to oversee the implementations of project companies.
Moreover, some business owners will hire a professional project manager to manage several project companies to implement a big project consisting of several inter-related specialized fields. For instance, in building a hydroelectric dam surveying will be a separate project in itself, winning the support of the local communities that will be affected will be another project, and so on.
Of course, there is a first time for everything including contracting to a projects company.
The following activities will usually be made by project management companies or project companies:
- Building or Facility Construction or Renovation
- Business Process Automation or Information and Communications Technology Thrusts
- Instituting a Quality Management System
- Operating Globally and Locally per Country
Advantages of Employing Specialized Skills in Business Project Management
Finally, consider the advantages of utilizing specialized skills in business project management which are:
- Minimal charge-to-experience costs
- Minimal risk of failure as experts with solid track records of success are employed
- No reinvention of the wheel
- Higher quality of projects and better efficiencies in project execution.
Recommended Readings:
- Basics of Setting Up a Small Project Management Business
- Selling a Project and Selling Project Management Expertise
- Small Business Innovation and Global Strategy
Melvin Tandoc - Melvin currently works for the project management software company that makes 2-plan Desktop and 2-plan Team.
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