Project management

How to improve project management in a medium-sized company?

Virtually all companies—small, medium, and large—carry out specific projects. Small companies often manage projects informally, without formal planning or monitoring methods. In such organizations, owners or managers often “keep projects in their heads.” On the other end of the spectrum, large companies have developed advanced methodologies over the years to manage projects efficiently. Medium-sized companies fall somewhere in between. Let’s define medium-sized companies as those with annual revenues ranging from about 50 million to several hundred million PLN.

 

Insights from working with medium-sized companies on project management challenges

As a co-owner of a company that develops and offers the FlexiProject project management system, I frequently analyze incoming inquiries. Most of these inquiries come from medium-sized companies. During initial interactions with potential clients, we discuss which system functionalities they prioritize and the current issues they aim to resolve by implementing such a system. We engage in more in-depth discussions with clients already using our system, focusing on how to develop the system further to enable more effective project execution and understanding of their persistent challenges. Based on these experiences, here are the most common project management issues faced by medium-sized companies and potential solutions to address them.

Below, I present the most common organizational issues that hinder effective project execution.

1. Too many aimultaneous projects lead to loss of control

Medium-sized companies in Poland are growing rapidly. This dynamic growth, coupled with ambitious business goals, necessitates an increasing number of projects. These can be cross-functional or department-specific. However, rapid development often results in employees and management recognizing a straightforward issue: the organization is not effectively managing its project portfolio. When the company’s leadership also acknowledges this problem, steps toward improvement begin to take shape.

2. Lack of or unimplemented project management standards

One reason for project management “chaos” is the absence of documented project management standards. Another issue arises when standards exist but are not applied in practice. As a result, projects may be handled by randomly or poorly assembled teams. It’s evident that individuals often excel in specific areas, and failing to effectively leverage the potential of skilled project managers can hinder success.

3. Lack of dedicated project management tools

Many companies still rely on self-developed tools for planning, executing, and monitoring projects. For example, they often use Excel for project schedules and PowerPoint or Word for reporting. Slightly more advanced organizations might use MS Project. However, when managing many projects, these tools become inefficient. They lack integration, and no one in the company has a comprehensive overview of project progress or areas requiring intervention. These tools are often created by individuals without substantial project management or IT experience.

4. Absence or ineffective operation of a PMO

A significant challenge for effective project management is the absence of a Project Management Office (PMO) or a dedicated individual responsible for overseeing the company’s project portfolio. Without such a role, no one takes ownership of understanding and improving the project management landscape systematically. In some cases, PMOs exist but operate ineffectively because their role is poorly defined or not promoted internally. This situation can lead to frustration among PMO staff and diminish their impact.

5. Organizational culture does not promote effective project management

Another issue is the organization’s lack of a shared commitment to improve project management practices. Steering Committees are not organized, Sponsors are nominal and disengaged, and the management team does not conduct regular project reviews. Project teams do their best, but without proper tools or procedures, their efforts may not yield optimal results. While many agree that changing people and their attitudes is critical, few organizations take meaningful steps to foster this change.

 

How to improve project management in medium-sized companies?

1. Establish a Project Management Office (PMO)

A PMO is essential for improving project management. Invest in hiring the best-qualified individuals with the right competencies, experience, and interpersonal skills. Cooperation with the rest of the organization is crucial; initial conflicts can lead to the PMO being sidelined. Beyond setting up project management standards and reporting project statuses, the PMO should align its efforts with the company’s strategy, ensuring a strong connection between projects and strategic objectives.

2. Implement Dedicated Project Management Tools

Effective project management tools are available, reliable, and reasonably priced. Implementing such a tool can significantly streamline processes, as it often involves training sessions that align competencies and clarify reporting and decision-making pathways. Centralized tools ensure that all project information resides in one place, serving as a single source of truth. For example, the FlexiProject system provides integrated, multi-language solutions tailored for project management needs.

3. Foster a Strong Project Management Culture

With a well-functioning PMO and dedicated tools, the organization must actively promote a strong project management culture. This starts at the top, with the management team demonstrating genuine commitment. When project teams see that their efforts are recognized and valued, they will likely go the extra mile. Regular project reviews conducted by senior management can drive significant improvement. The management team must also empower the PMO to operate effectively across the organization.

Conclusion