The Project Economy Drives Need For More People With Project Management Skills
Last Updated November 2, 2020
As Businesses Shift to a Project Economy, Project Management Skills Gain Importance
Driven by the evolution of technology and rapidly shifting consumer demands, organizations continue to change how they approach problem-solving and accomplish work. Many have discovered project teams are best equipped to handle these changes, clearing the way for what is known as the project economy.
This discovery has made project teams and those with project management skills highly valued in private organizations, government agencies and nonprofit organizations. While strategic vision remains crucial to success, multidisciplinary teams that realize that vision are equally vital.
That’s why more than half of all organizations surveyed for the recent “Tomorrow’s Teams Today” report from the Project Management Institute (PMI) report they have reorganized activities around projects and programs.
What is the Project Economy?
In its 2020 Pulse of the Profession® report, PMI called the project economy a “fundamental paradigm shift” for organizations. Essentially, it involves addressing most major issues a company confronts through projects. These can range from changes in business operations to evaluating new markets.
The project economy requires project managers to lead motivated, multidisciplinary, cross-organizational teams. PMI argued organizations need these teams to foster change or they run the risk of “not just treading water but sinking.”
Projects no longer operate as a sideline to “real” organizational operations. Instead, projects have become the driving force behind accomplishing work, innovation, and expansion. Team membership includes those of various talents who deliver “financial and societal value,” according to PMI.
What Drives the Project Economy?
In an interview with European CEO, PMI President and CEO Sunil Prashara said organizations that see a need to change their business approach have driven creation of the project economy. The rapidly expanding global marketplace also drives the need for projects, he said, especially in light of protectionist policies getting adopted by many countries. Organizations need projects handled by multi-national, multi-ethnic, and geographically distributed teams more than ever.
Another aspect of globalization are the emerging markets in places such as Africa, where a younger generation is embracing project management to handle issues such as infrastructure upgrades and improved access to technology.
According to PMI, project teams also have taken a lead role in addressing climate change, overhauling organizational infrastructure, and incorporating cybersecurity into business strategy.
The high complexity issues have also changed the way projects teams are assembled. While lower complexity teams typically had eight members, high complexity projects bring more resources to the table with an average of 24 core team members, according to PMI.
The Next Generation of Project Managers
One of the distinguishing characteristics of modern project teams is that they involve people with a variety of needed skills moving between functional areas without the boundaries of human resources, finance or legal, according to Prashara.
An increase in core team members, the variety of talent to be managed and the high complexity of today’s projects have led to demand for people with expertise in project management. In “Tomorrow’s Teams Today,” PMI reported that 15% of organizations said the lack of talented people with the right skill sets was the most important factor in project failure.
Project managers also need to move beyond the core focus on keeping projects on time and within budget and scope. Many must now operate as a coach for their team, working collaboratively with people from a wide variety of backgrounds and with different skill sets. PMI reports that organizations now mention empathy, communication and emotional intelligence as essential team skills.
These skills become even more important with virtual teams, where miscommunications and misunderstandings can happen more frequently.
Another important skill for the next generation of project managers is complete confidence in working with artificial intelligence. Companies such as IBM already use AI often on projects for data mining, searching for trends that can help anticipate customer issues and pain points far in advance, according to PMI’s report.
Project management has become more complex and vital than ever before. Expertise in leading projects looks to remain an extremely marketable skill now and in the foreseeable future.
If you’re interested in learning more about project management best practices or how to enhance your project management skills, Villanova University offers a 100% online Certificate in Applied Project Management program, as well as a suite of individual project management courses designed to help make you a more effective project manager.
Pulse of the Profession is a registered mark of the Project Management Institute, Inc.
