Companies have a lot riding on their most important projects and choosing the right people to manage them is a decision that deserves careful consideration. While there are often compelling reasons to opt for internal project management, many businesses lack the in-house resources for successful execution. Even for well-resourced businesses with experienced project management teams, the liabilities of internal execution can outweigh the benefits of working with an external team of experts who have built their reputation on managing projects to profitable completion.
By choosing the right people outside their organization to manage their most important projects, a business can have the best of both worlds. External project management benefits business in the following ways:
Greater objectivity means better decision making.
Though internal project managers may have ample experience with the nature and scope of the goals the project is intended to meet, they are frequently too close to the project or blindly embedded in unquestioned assumptions to make objective decisions about how to best manage it.
This lack of objectivity results in blind spots and brings unnecessary levels of complexity to projects that those external to the organization are far more likely to identify and to strategically simplify. External project managers also tend to make better decisions since their focus is solely on the project at hand rather than on a multiplicity of (often competing) commitments that characterize in-house execution.
Political “neutrality” means greater agility.
External project managers are not subject to or entangled in a company’s internal politics and organizational dynamics. Because external project managers exist and operate completely independently of these variables, they don’t have to navigate the policy changes or interpersonal issues that tend to plague and prolong internal project execution.
Being politically “neutral” means that external project managers aren’t torn between competing loyalties: they’re not there to climb the organizational ladder or pull rank on any person or department but simply to get the job done as efficiently and effectively as possible. It also means that external project managers tend to be far more agile than those in-house since their organizational independence makes it easier for them to rapidly adapt to changing circumstances and needs.
Dedicated expertise often means a lower cost structure.
Although it might seem that internal project management would be a cost-saving solution, this is often not the case for the reasons already discussed. Internal project managers are often hindered by a lack of objectivity and by organizational politics that complicate and extend projects well beyond their expected deadlines and budgets. There are also longer-term costs associated with hiring and maintaining full-time, in-house project managers.
Depending on their pricing structure, level of service, business model and other factors, external project management is often a more cost-effective solution to successful project execution. Doing the legwork prior to a project’s inception to determine what makes the most sense for your company is well worth your time and can translate to significant cost savings.
When considering external project management, keep in mind that you’ll need to choose a vendor with a track record of absolute commitment and proven performance. Outsourcing your project means that those managing it aren’t internal stakeholders and for this reason, they aren’t impacted by the outcome of the project in the same way as those within the organization. Take the time to research potential outsourced experts to ensure they have a reputation for reliability, integrity, and the highest levels of customer satisfaction and loyalty.
Pivot International is a single-source product design, development, and manufacturing firm that has been earning businesses’ trust for over 46 years by helping them bring their most important projects to successful completion. If you’ve got an idea, product or project that could use specialized support, oversight or production, we’d love to collaborate with your business to make your vision a reality. Reach out to us today for a free, no-obligation consultation with one of our experts. We look forward to hearing from you.