Purpose & Value of Project Management (AQA A Level Business): Revision Note

What is project management?

• Project management is the process of planning, organising, coordinating and controlling the resources, tasks and timescales needed to complete a specific, one-off objective, known as a project

• A project differs from a business's normal operations in several ways

  • It has a clearly defined start and end point, rather than being a continuous, repeated activity

  • It works towards a specific, one-off objective, rather than the routine day-to-day running of the business

  • It typically has its own fixed budget and timeframe, set in advance and monitored throughout

  • It often brings together staff, resources or expertise from different departments who would not normally work together

• Most projects are led by a project manager

  • They are responsible for planning the project, allocating resources, monitoring progress, managing risks and ensuring objectives are met on time and within budget

• Managing a project effectively usually involves several stages

  • Setting clear objectives

  • Breaking the work down into tasks or phases

  • Allocating staff, finance and equipment to each stage

  • Agreeing a realistic schedule

  • Continuously monitoring progress against that plan

• Projects can vary in scale and type

The value of project management

• Without effective project management, projects are more likely to run over budget, miss deadlines or fail to meet the quality expected

Benefits of effective project management

Provides clear direction

• Project management ensures everyone involved understands exactly what needs to be achieved and by when

• This reduces confusion or wasted effort

Helps allocate resources efficiently

• Time, money and materials are directed towards tasks that are genuinely necessary for the project's success

Improves the likelihood of finishing on time

• Progress is tracked against a schedule

• Delays are more likely to be spotted and addressed early

Reduces the risk of overspending

• A project's budget is planned in advance and monitored throughout, rather than costs building up unnoticed

Improves coordination

• Between different departments or teams working on the same project

• This reduces the risk of duplicated work or conflicting priorities

Helps manage risk

• Potential problems can be identified and planned for in advance, rather than dealt with only once they have already caused disruption

Increases accountability

• The project manager and team have clearly defined responsibilities and are answerable for meeting agreed milestones

Supports better decision-making

• Structured project management tools, such as Gantt charts or critical path analysis, provide clear information on progress and priorities at each stage

Improves communication with stakeholders

• Investors, customers or employees can be kept informed of progress against a clear, agreed plan