2 management - School of International Business and ...

189 Project Management
SUMMARY
Project management is becoming increasingly important, not only on the national level, but also
in the international scene. Not only large companies, but also small and medium-sized firms face
the challenge of increasing economic growth either through foreign expansion or by modifying
their business areas within the domestic market. The theme of "globalization" is much debated
and discussed, but it is an essential part of our business today.
Our economic relationships have changed significantly. We now find ourselves:
– in global competitive situations for goods and services
– with global financial markets
– with firms acting on a global basis (so-called "global players")
– in a global labor market.
Companies are facing this with expansion strategies in which they initiate international marketing
offensives, build sales networks, or create new production facilities. By modifying their areas of
business in the domestic market companies develop strategies which
– can affect the competitive field, for example, through acquisitions
– effect cost savings through process optimization
– or capture new market segments with innovative products.
These strategies are formulated in business objectives, and are carried out, as a rule, as projects.
The globally-recognized methods for successful completion of such complex projects is called
'project management,' but is handled poorly by most companies and employees. This is due to
a lack of knowledge or standards for project management, but also, to a degree, the inability of
employees and project teams to adhere to standards and rules in their daily work. Nevertheless,
there is a growing acceptance of project management, which is not yet firmly established at many
management levels. One can see in many projects that the project teams which are deployed
cannot fulfill the expected requirements, are unsure, and therefore put the entire project at risk.
Over the past few years, a good deal has changed in the requirements profile for project leaders
and participating employees. While these people were mostly experts in their field, nowadays
there is a greater emphasis on social factors and leadership qualities. These changes show that
the "man in the project" is acknowledged as a success factor. The best expert may not be the
best project leader; but the best leader may be the person with the best integrative capabilities.
There is a need for people who lead the project with those who have different interests, goals,
standards and values, people who use creative communication methods as well as various tools
and project management methods to make the project successful.