The Project Manager's MBA: How to Translate Project Decisions Into Business Success

It is not just about finishing projects anymore, according to the authors Cohen & Graham. Today, successful project managers are also defined by their contribution to the company's financial goals. Some project managers do not have the business background to make decisions on projects that directly reflect on the company's bottom line. This book is designed to assist project managers in making those decisions. Some things that are shared include: · Take an entrepreneurial approach to managing projects. See each project as a minor new business start-up and learn to manage the profitability of this new business. · Understand the basics of accounting and finance. Learn about balance sheets and profit and loss statements, and learn how to apply them to measure the success of a project. · Manage projects for maximum results. Learn important methods to help speed up projects. · Understand the customer. Each project has an end-user or customer and it is important for a project manager to design the project or solution with the end-user in mind. · Calculate project costs and measure project successes. Learn exactly what costs must be measured to start a new project. Learn about direct and indirect costs involved with a project. Most importantly, learn how to determine the life cycle of a project and calculate its return on investment.

Future project managers' success will be graded by their contributions to the enterprise's economic value than their completing a project on time, within budget.The authors argue project managers will function as entrepreneurs or CEOs, assuming responsibility for the ultimate success of their projects. In the business that means they will be responsible for producing a level of customer satisfaction high enough to produce sales generating enough cash flow to cover project and operating expenses, make a profit and pay back the cost of capital used to produce the product. Only at this point will the project produce enough economic value to enhance shareholder value.To accomplish this, project managers will require new skills. They will rely not only on traditionally operational skills, but also knowledge of the enterprise's: 1. Accounting and Finance 2. Organizational Strategy 3. Marketing and Value Propositions 4. Human Relations 5. Internal Processes.This will require, the authors say, a radical change in the measurement and control systems of most organizations. For project managers to act as CEOs, they will have to be treated as CEOs. They will have to be judged not only by detailed assessments of their project outcomes, durations and costs but by new metrics based on increases in shareholder or stakeholder value. If the authors are correct, the Project Manager's maxim of "Make it fast. Make it good. Make it cheap.," is in the process of being replaced "Make it Economically Viable."