Andy Murray, Outperform Director, explained that austerity is a government policy that reduces deficits, lowers spending, and reduces the amount of public services and benefits.
Murray spoke at The Austerity Debate in the City about how the current economic climate is affecting project management. All government departments, including development, infrastructure, welfare projects, and suppliers to the government, are being affected. He stated that the shakedown in austerity terms has meant that there is less project management work for most people.
Face a crisis
Trevor Band, of Team Animation, was one the speakers. He said, “I think we’re facing quite a crisis.” He explained that $3trillion per year is being wasted due to poor performance. Project failure is becoming more unacceptable to stakeholders.
Band also noted that organisations often start with the methodology when they attempt to reduce this waste. You may need to add some documents and certification programs for project management. Companies should begin with their strategy. He said, “Start at top.” “For so many years, the focus has been on programme managers and project managers, methodologies and tools. We’re training goldfish and then putting them back into the same bowl.” This means that you can’t give project managers training and then expect them do something different in an organization that hasn’t adapted to them.
Connect projects to strategy
Band suggested moving up a level and linking the methodology to the strategy and organisational culture. You should focus on organisational leadership. This means that you must ensure consistency in decision-making from the top down. He said that managers at all levels should aim for creating an environment where projects and programmes can succeed.
All projects should be linked to values, strategy, and decisions. Project management can help you save money in a decision-driven organization. He said that every project failure is a failure in governance, and every failure in governance is a failure by top management.
