Transforming Project Management

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Duane Petersen is a seasoned project manager, and the founder and CEO of UltiMentors. He’s worked extensively in China, where he recently assisted seven provincial governors and scores of bankers in implementing new project-management procedures.

Project managers must balance budgets and schedules, as missing deadlines or exceeding costs can jeopardize a project’s success. Accurate productivity assessments are key, as many workers are only productive for half their paid hours, with additional time lost to breaks, holidays, and sick days. Strategic planning also requires careful prioritization, starting with a clear analysis of the current situation, setting ambitious goals, and assembling a diverse team of no more than 12 members, including senior leaders and dynamic junior staff, to ensure balanced decision-making. Contracts, another critical aspect of project management, demand precision, as vague terms can lead to costly oversights. Among contract types, cost-plus agreements, particularly those with incentive fees, often provide the most reliable framework. Effective project management hinges on skills like budgeting and risk assessment, yet traditional methods often overlook hidden costs and the time value of risk. By addressing these gaps, project managers can better align budgets with real-world complexities, ensuring projects are completed successfully and within financial limits.

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