Implementing project work with the right contractor

Introduction

: A Project work that delivers the desired result depends on the quality and efficiency of the raw materials supplied by the vendors. He cannot afford to shun away quality vendors just because they charge more than the others. This type of approach backfires most of time as the raw materials used for the project work are of inferior quality. He may be reluctant to go for the expensive vendors who would provide better quality of raw materials because it would exceed his budget. But it is advisable for the project manager to consider all factors before initiating a contract with the vendor.

Keeping all options open

Depending on a sole vendor for providing resources is not an ideal scenario for a project manager. Because a vendor may not deliver the desired results set by a project manager. So the project manager must keep all options open in case if things don’t materialize with a particular vendor. He can terminate that and initiate a new contract with other vendors. A project manager cannot afford any delays in completion of the project work as per the schedule. Having several options at Project Managers desk will keep the principal vendor focus on completion of his client’s job first. As there is a tendency of some vendors giving priorities to different clients while ignoring on few others.

Not leaving it too late

A project manager should set a definite timeline in the performance delivery of a contractor and constantly monitor before it is too late. Any decisions taken during the midway of an ongoing project work will seriously affect the completion of the project. A further delay may even lead to termination of the project work by the client. It is imperative for the project manager to set up the rules and time frame within which a vendor will have to produce the quality resources.

Being flexible

While there must be a well-defined set of instructions under which a vendor has to comply, a project manager should also be aware that it must be understood by the vendor. Otherwise it will be beyond the vendor’s ability to deliver results. At the same time a Project Manager should not yield to a vendor’s corrupt practices.
For an establishment to provide the best project work to its clients, it has to procure the right resources at a required quantity from best vendors.

Averting risk through proper financial management

Importance of Financial Planning

Introduction: Financial Risk is unavoidable. It is prevalent in all aspects of our life. Same is pertinent in business field as well. An individual or an entity venturing into the business field should be prepared for the financial uncertainties. They need to keep certain safeguards in order to avert financial crisis. A wise spending will ensure economic stability during crisis. Over spending might lead to excess borrowings from bank in the form of loan or selling assets to repay the debts.
These can be negated with proper financial management. Top companies around the world have appointed financial advisors with years of experience in handling huge investments. They provide various methods in which the management can invest in those areas where there is a sustainable profit generated. When there is economic boom, there is a tendency to over expand or invests in more capital that are not required. Also the governmental factor can play a major role where the company is unable to reduce the expenditure.
Benefits of sound financial management.
It plays a vital role in helping the business establishment to have a sustainable profit. It can take care of its daily expenses and achieve financial objectives. This helps the business entity to be
1.) Better prepared for all the uncertainties rather than wait for the bad times to occur in the economy.
2.) Get more loans approved because of good repaying capabilities
3.) A strong financial structure will attract investors who want to do long-term business deals with them
4.) Being operationally efficient
5.) Rely on ERPs for taking sound business decisions
There are methods in which one can apply different steps to ensure proper financial management. They are Financial Goal Setting, Budget Creation and Budget Maintenance.

Financial Goal Setting

Without a proper goal set it is equal to lack of vision. In financial management, it is vital to set a mission and vision statement. Mission statement defines the reason why an organization exists. While a vision statement defines how they are going to achieve them. This can be done by creating a list of financial goals in accordance to your earnings and expenses and formulating a plan to achieve those goals.
Examples of financial goals can be a company looking for profit gain or an individual wanting to start an emergency fund.

Budget Creation

Allocation of financial resources for the right portfolio will help them get on the right track. A budget should list all income sources and expenses each month. A sum of money should be allocated for repaying the amount borrowed from banks or other money lenders. Every organization must keep in mind of the business life cycle. As nothing remains constant, it is not wise on their part to over spend.
Maintaining a regular balance between expenditure and savings will ensure that the business entity or an individual won’t become broke. Also, it keeps people focused on their financial goals.

Mantra for Success in Project Management

Converting an Abstract Thought into Concrete Action is the Mantra for Success in Project Management

Introduction: If one can transmute his/her well-defined thought into concrete action then success to them is not that far. During that giant leap there are many risks required to be taken. Everyone’s growth in career will depend on what strategy and tactics they use to overcome these risks. Even in Project Management there is lot of uncertainties which a Project Manager has to guard from. Despite the risk factor visible, still the project manager has to execute the project work. Because a thought not turned into action is just an empty dream. It would be an opportunity missed. There are more chances of a competitor surpassing them and become more profitable.

In any economy, there are several wants and needs that arise amongst the government organization, people or other clients. They include demand for infrastructure, new product or services, scientific machines etc. These projects can be of varied strengths and limitations of an organization. An organization has to abide by the project description given by its clients. It cannot go by its own set of demands, because there is a chance of losing the client’s confidence. The end product produced by an organization on its own, may or may not be according to their client’s expectations. Hence it would be a big risk taken by the management to implement the project plan.
Throughout the process, there is several Project Risk Management faced by an organization. Each decision maker should be well prepared for any outcome and take the risk. Certain Risk factors include costs, delay in schedule, shortage of raw materials, shortage of human resources, lack of infrastructure and political uncertainties. Amidst all this, a Project Manager must implement the project work as it is critical for a company’s reputation. They cannot back off from this assignment.
In short, business is all about taking risks. If an individual or an entity has an idea that they feel it’s going to be beneficial to the client and provide better revenue, then they must not hesitate in implementing them.

Financial Planning & Controling

Financial planning is very important for all the companies & individuals. Without planning most of the companies go under loss.

Budget Maintenance

Monitoring across all spectrums is the key to maintain the financial stability in an organization. Traces of irregularities in spending in certain departments may cause problem to other departments after a point of time. There are many different ways to track expenses- one of which is via bookkeeping. For individuals, they may use personal finance management software for their budget maintenance needs.
Firms looking for a long term stay in the business should have a strong financial base to take care of government imposed expenditures and operational expenditures. However, this does not imply for those interested in selling their firm or merge with other firms after a short period of time. They will look to experiment with their capital.

Information translated into expected results is equal to effective communication

Importance of Project Management Courses

Information translated into expected results is equal to effective communication
Introduction:One day a Project Manager was speaking to one of his team member, instructing him on the work flow. He expounded on things needed to be done by his team member to make the project work successful. During the process he used different technical terms. His team member could not understand what he was trying to say. So the concerned person completed his task based on his understanding and showed it to the Project Manager. The Project Manager was disillusioned by his subordinate’s lack of awareness about what he was told to do. He was frustrated with his attitude towards his work. Feeling dejected, he summoned him to the management.
Project Manager requested the management to transfer him to another project team. He spoke in detail about the conversation he had with his project manager. After a careful deliberation, the management favored the team member instead of the manager. The Manager was shocked and disputed their verdict. He asked them that why he was at fault when his team member actually did not execute his task. The management explained to him that you did not communicate to him well. To this the Project Manager said that he explained to his team member all the technical details that were required. According to the management it was good but not good enough. The Project Manager was baffled and was pondering as to why the management was not on his side. He thought he had communicated well to his team member.
Well folks, to those reading this article, even you all will be wondering why justice was not given to the Project Manager. The answer to this is that the project manager did not communicate well to his team member. Project Management courses are very important to handle & proceed in right direction.

Project Management

How is that possible?

Well it is not about using the grand terminology or explaining at an exhaustive length to put across your point of view to another person. It is all about keeping it short and simple so that the receiver will understand what is been spoken about. It is all about effective communication. Like the saying goes “All fingers are not same”. It is applicable in this case as well. Here the team member was a junior and not well verse with few advance terms or the language used by the Project Manager. It would have been better if the Project Manager had kept it simple and monitored closely during the implementation process.

Project Managers with Professional Certification

Introduction: Project Managers working in different sectors look for to improving their skills and earn better payment in this evolving field. Project Managers are really important for taking the projects very high. Now you may wonder how an economic problem that occurs in one nation affects other nations as well. The answer to this is that we are living in an Interconnected World. No country is self-dependent for any goods and services. Thereby nations that were dependent on certain imported goods could not afford them because of the higher prices and its local companies could not produce the finished goods. This eventually trickled down to the economically less developed nations.
From an understanding of this topic, professionals who have more qualifications will demand higher salaries. So project managers who are PMP certification will obviously ask for more which the management will be forced to decline. This is primarily because of increase in the project cost, lack of revenue and delaying in completion of projects.

PMP Certification

Government bailout
Most of the MNCs like Ford, General Motors, Financial institutions and other companies were depending on their respective Government Bailouts. Government injected various simulation packages into these sectors, only on the condition that they had come up with a revival plan that would bring them back on green arrow. This meant that the management had to use these funds judiciously. They could not spend any amount of money on research or starting a new project. This meant that management did not require hiring more project managers. In particular, project managers who were PMP certified. There were project managers who were willing to work for a lesser pay. This cannot be expected from a PMP certified project managers.
All these factors mentioned above clearly highlights 2 things:
1.) Company can afford to pay attractive sums to an over-qualified professional only when they are financially strong
2.) Secondly, Project Managers should look at the prevailing economic conditions and then decide on enrolling for a professional certification course. Because there are no guarantees in the industrial world that you will get better paid if you have more certifications in your Curriculum Vitae.