Executives Who Don’t Understand Projects Can’t Deliver Results

In this episode, Ricardo explains why executives need to understand the logic of project management to make informed strategic decisions. Projects drive organizational changes, such as digital transformation, new products, entry into new markets, and mergers. Without understanding how projects add value and manage risk, leaders may fail to connect strategy to execution. Many focus only on "normal functioning," but the future depends on "business as change." By understanding the dynamics of projects, executives ask better questions, support teams effectively, and build a results-oriented culture. This knowledge helps them keep pace with the organization, prioritize efficiently, and see failures as learning opportunities. True leadership requires learning to think like a project, not like tools, but like governance, critical thinking, and value creation.

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Hello, everyone. Here is Ricardo Vargas, and this is the 5 Minutes Podcast. And today I want to talk about something I consider fundamental: the relevance for executives like CEOs, directors, and board members of understanding what project management is about. And I'm not saying that every executive needs to be certified or an expert in schedules and risks, but they must understand the logic behind the discipline. Projects are instruments of change; everything that transforms an organization, whether it's digitalization, launching a new product, entering a new market, or merging with another company, happens through projects. If an executive doesn't understand how a project is structured, how value is delivered, and how risks are managed, they lose the ability to make truly informed strategic decisions. Many executives only focus on business as usual. But the future, the future lies in business as change, and that is exactly where project management comes in. Without this vision, the risk is enormous. Strategic decisions that look great on paper often fail in execution. And the reason is almost always the lack of alignment between strategy and project reality. When an executive understands how projects work, they schedule the scope, the resources, and the stakeholders. They start asking much better questions, challenging assumptions, and realistically supporting the team. And this will allow them to foster a culture that values delivery, delivery, and delivery. And this is one of the critical things for us here. Moreover, understanding projects means understanding the rhythm of the transformation, the heartbeat of your organization. The corporate world moves in short cycles. A strategic plan might last five years, but projects that make it real evolve every single quarter or even less than that. Without that awareness, leaders become disconnected from operational or reality. Executives who understand projects lead much better. They know how to prioritize, they grasp the impacts of risks and dependencies, and they recognize when their teams are overloaded. And most importantly, they don't see project failure as a personal issue, but as an opportunity for organizational learning. So my advice is simple. Very simple to explain, not very simple to implement. If you are in an executive position and truly want to lead, invest time in learning the logic of projects. It's not about tools, it's about critical thinking, governance, and value creation. Think about that, and I hope you enjoy this episode and see you next week with another 5 Minutes Podcast.

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