The Conditions for establishment of Enterprise Project Management
At present, business environment is changing rapidly, a product has the characteristics of the project in the whole process from idea to exit the market (Hofstede, G. and Bond, M.H. 1988). While the production process of the organization also can be used as a project to manage for customer personalized demand and foreign co-production adoption methods.
The project has been expanded in various fields, each corner. Each enterprise cannot do without project management (Martinsons, M.G. 1994). But the project management is established on certain conditions, it is not applicable to any business in any case. The following are several necessary conditions:
First of all, the enterprise project management must take enterprises a number of distinctive value-added (Martinsons, M.G. and Hempel, P.S. 1995). Enterprise project management is not a saint Code, assume either the short or the long-term development effectiveness, if companies use project management, project cannot give more value than traditional methods, or even bring some negative effects to the enterprise, then the adoption of the project management is clearly inappropriate. Enterprise project management must be used integrated with enterprise's own situation and flexible application, thus it can lead to more attached to the enterprise value.
Secondly, in the external environment with the accelerated pace of change, the original management model is not suitable for the development businesses now, so we need to use new management methods, to make the organization have an internal rapid response capability. View from the process of the modern organization practice, the structure of functions had long been used in a large number of companies. Division system is an innovation of functional structure, then the concept of cross-functional teams is founded, and finally the matrix organizational structure is created too (Sinclair, J. and Collins, D. 1994). The trends of organizational structure design are closely related to enterprise environmental uncertainty, modern enterprise should face the multiple moving targets. Due to the market changes faster, companies cannot determine the business goals based on existing market (Sohal, A.S., Samson, D. and Ramsay, L. 1998). So traditional management can’t keep up with the pace of change, enterprise project management can solve these problems in time for its dynamic, flexible feature and so on.
Thirdly, enterprise project management must corporate with enterprise strategy. American scholar David Cleland said: In dealing with global market changes, strategic management and project management will play a key role. The future development of enterprises should be three pillars as strategic management, project management, marketing management, strategic management orients future, marketing management orients results, and project management orients process. Project management without corporate strategy is clearly inappropriate.
Fourth, project managers play an important role. Project manager should assume a primary role in enterprise project management in the enterprise's internal project, in the project ,the manager should control the time, cost, quality, human resources (Yeung, I.Y.M. and Tung, R.L. 1996). In the virtual enterprise or partnering operations, because it is composed of several partners to the contract or agreement as a link, that is the organizational form of contractual (Tse, D.K. 1998). The fundamental purpose of these partners is to pursue their own interests to maximize. However, some seek long-term benefits and some pursue short-term benefits, while others seek competitive growth and so on. At this point, the complex, comprehensive, objective interest of diversity is difficult to judge at the initial stage of cooperation. it is difficult to measure the contribution of the partners for cooperation projects, so some opportunistic behavior may occur in these partners in the process of cooperation, this causes the instability of virtual enterprise, which leads to failure. Project managers should also act as a coordinator's role that must be given certain rights to ensure the normal operation of the work, to determine and control the possible risks. When the member in enterprises don’t co-ordinate, it is necessary to communicate with them. Therefore, manager is important for conducting the enterprise project management, and the manager selected and evaluation is also particularly important.
Fifth, the project flow is the vitality of enterprises, enterprise growth must be based on project growth (Wong, S.L. 1985). In some companies, there is only a handful of items in one year, the adoption of the project management have increased the complexity of enterprise management, the project management demands on the individual managers is relatively high, so the traditional enterprise management approach may be more suitable for their actual. Therefore, adoption of the project management in enterprises must be based on projects. Adoption of the project management can not only simplify the management, and make management more standardized、systematic, more conducive for the development of enterprises.