PMcrunch

In today’s economy, managers of all kinds are under pressure to right-size their businesses or business units. With the contraction of the economy, sales decreases trigger the need for rethinking, resizing, and reshaping throughout any organization. Projects and programs are no different. Let’s take a look.

In a typical business, while there often is a decrease in sales in a downturn, that decrease is not necessarily even across all aspects of the business. There typically are certain product and service lines that experience a substantial and others either experience a lesser decline or, perhaps, even an increase. The key is to dig deep enough in detail into the essence of the business and the essential segments of the business and they are experiencing, and then work from there. Each segment will have its own customer profile, service needs, sales strategy, and delivery strategy. Digging through these and developing a comfort level with each variable and being confident that you understand the risks and opportunities in each area are key to making the right decisions.

Programs are not much different because they cut across general management lines. They touch many departments and, in the end, will affect a business as a sort of business segment; thus, breaking down the program and the net effects and goals of a program, much as in a business, is very effective. In terms of downsizing or right-sizing, program managers have the option to change the implementation schedule for the program, to change emphasis onto certain areas, to re-prioritize and also, certainly, to cut.

Projects are a bit different because, often, the decisions of go or no-go, or decisions about priorities, are made at the program or general management level. However, any project manager can provide valuable input and information up the line or can develop great information to be utilized for project decisions within the project. The project manager is likely familiar with the details of the cost-drivers around the project, as well as the opportunities around the project, and can suggest alternatives or simply implement them on their own.

Right-sizing is the right thing to do in this environment for everyone. Even if you do not change the structure of your project or program, you will have firmer affirmation as to the value it provides. Going through the right-sizing exercise is a great way to sharpen your focus and take advantage of the opportunity that tough times present. As Thomas Watson, founder of IBM, once said, it’s not the tough times I worry about; it’s the good times. Because in the tough times, we are much more acutely aware of what we are doing and we really sharpen our pencils.

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John Reiling, PMP
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