Understanding the Change Components and the Projects

In this podcast, Ricardo talks about projects as change agents. How can a project help us to improve the way to run our business or to change the business components in the face of a new competitor?

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Episode transcript

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Hello everybody welcome to the five minutes PM podcast today, to talk about the relationship between Change and the project. We need to understand that the project is a changing agent is the way you implement change in a why you should implement the change. Basically for two reasons, the first one, this one is to run the business. This is how you can improve the way you run your business. For example, you have the performance index or the KPIs, and you want to implement the project to improve this KPI.

So for example, let's suppose that you are and now to manufactured. And for some reason you think that you don't have the right production flow and you will have some work in progress or, or something that you need to improve. So you create a project to revisit your production online, to make some changes in order to deliver the production of the car faster. So this is the kind of product that improves your way to run the business in New York, our group, we have the change, the business component.

So you create a project because the market changed. There is a market downturn, for example, or there is a new product, a new competitor, or because of legislation or because of the Change in the workforce. So let me give you some examples. So let's suppose that you are a website or you work on the hotel industry. So what is your job? You book hotel rooms and receive a fee for this booking, and then suddenly someone creates the Airbnb and then you immediately face a new kind of competitor in this kind of competitive is not a nodder hotel provider, but it's a site that network people that are willing for rent their homes or they're one spare room at night, their place.

So you need to create a project to revisit your way of doing business. So this change in the business agent that will make you move. This can be also legislation. So let's suppose that the government create restrictions or create incentives to some kind of products or services. Then your, you created the project to take advantage of this restriction or to take advantage, or this new marketplace. There is also the change in the workforce.

So let's suppose you have varsity of engineers or scarcity of any of them or resource. This we'll change the way you do business. And this is not, we only related to technology know this can be a different, a, a war can generate this. A peace process can generate this, a change in the government can generate is this. So it's very important that we understand that this changed business component and the run, the business component are by far the main drivers on why you do projects.

And it's very, very important that you understand that doing projects is not only delivering on time on budget, but it's very important that you understand which kind of benefit I'm aiming to obtain from this project, which kind of benefit is this benefit or that benefit. Because if you don't know the benefit, you are just looking into a very short term. So for example, if you meet your deadline, if you deliver on time or something that does not address the changing business that you were looking for, when you started the project, you are delivering on time on budget, something that is pointless for your business.

And this is what we want you to think. It's not only on the project component on the output, but thinking in the more broader concept of program management and portfolio management, where you add the component of benefit realization, and this will drive you to a whole new perspective, when you do projects in how the Projects will address the change. Think about that and see you next week with another five minutes PM. Podcast.

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Understanding the Change Components and the Projects

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