One of the top qualities of successful business leaders is decision making. When leaders are able to make the right decisions for a company, then it witnesses positive growth and an increase in profits. Conversely, a company faces huge losses when its leaders do not make good decisions at the right time. What do you think helps the executives in deciding what is best for the company? Well, in today’s age, it’s data that is very crucial for informed decision-making. Without gathering data, organizations would stumble in the dark using the age-old business techniques and may not be able to compete in the aggressive market. Geoffrey Moore, author and consultant quotes – “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”
One of the top managerial positions that shoulders the responsibility of making data-driven decisions is the project manager. They are invaluable to businesses that implement complex, project-based processes involving a team of dedicated employees. Almost every company has project managers who are in charge of the entire project at hand and closely work with the team members during each phase of the project. Project managers, specifically those who hold a PMP certification (Project Management Professional certification), are highly skilled in overcoming all the challenges and delivering the product on time.
A project’s success or failure depends largely on the competency of a project manager. It is because they handle different tasks that take a project completion on the decided timelines. Moreover, project managers contribute significantly in meeting sales and profit goals, productivity objectives, effectively utilizing resources without exceeding the budget, and meeting the expectations of stakeholders. As such, it is imperative for businesses to focus more on project management and hire highly skilled professionals for such roles.
As highlighted by Harvard Business Review, companies across the world waste an average of $119 million for every $1 billion (11.9%) spent on projects due to poor project performance. Here, we can infer that though firms are spending huge amounts of money on project management techniques, there is not much improvement in the accuracy of project plans. What businesses can do in such a case is to utilize the opportunities presented in the form of data collection, doing data-driven predictions, and then make decisions. They can make accuracy estimates based on historical data related to the project’s deadlines and overall costs. These predictions can then be used for forecasting and setting goals of a new project.
Project managers rely on data analysis when they wish to analyze the risks associated with any project and what actions can be taken when there are uncertainties in the project. Data can help in baseline scheduling, risk analysis, and project control and allows project managers to make appropriate decisions for projects associated with high risks. With a data-driven approach, projects are more likely to be completed on time and within the allocated budget. Data analytics also helps project managers to understand how stakeholders react to key decisions. In other words, they can predict the response of their plans for stakeholder engagement management and decide if any corrections need to be made.
It’s high time that businesses focus on collecting data and analyze it to ensure improved decision-making. Along with that, firms need skilled project managers acting as the backbone of successful projects. The Project Management Institute (PMI) realized this need long back and hence offers PMP certification to help professionals understand what it takes to be a successful project manager. Professionals who earn this credential understand the fundamental project management processes, tools, techniques, and methodologies. PMP certification holders can speak the global language of project managers and know the best practices and current trends in project management.
If you know how to leverage the insights presented by analyzing data for any project, you will become a skilled project manager. So why not focus on this area and help organizations make the most of data and excel in project management.