How Project Management Principles are related to the success of a business

Abstract

Project management is a significant tool and it has become crucial in the management of organizations, be it profit or nonprofit oriented. The majority of organizations coordinate their strategic objectives according to the nature of their projects. However, the success of these projects is to a large extent depends on the knowledge, skills, tools and techniques apply by the project manager. Facing resources constraints, organizations find ways of utilizing the limited available resources to achieve the most result by coordinating and managing those resources with possible maximum efficiency. This thesis is set to examine how the general application of project management tools and techniques can help organizations to carry out these projects effectively and efficiently. The research question – How Project Management Principles are related to the success of a business- was initially set and carried out using a self-constructed questionnaire, which has been distributed to more 62 Cypriot companies to participate. Findings: This research covered, and revealed a lot of useful information about the Project Management tools and principles used by Cypriot companies, which are engaged in the delivery of various projects. On top of that, according to the results of regression analysis there is a positive relationship between the use of Project Management tools and company’s overall performance, meaning that a company which has a good Project Management System (human resources, natural resources, procedures, methodology) is likely to have a better overall performance than a company which does coordinate its projects according to the Project Management principles and methods. The findings of the current study can serve as a roadmap not only for the companies that are not applying Project Management tools but also for the companies that they are already engaged in Project Management philosophy and they can improve their current operations. Considering that competitive advantage in our modern world is a combination of various parameters, Project Management can be a great force in the continuous efforts of an organization to remain sustainable, profitable and competitive in the market.