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Why are some companies reluctant to adopt formal project management?

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In my job as a project manager, and when dealing with my clients, I have noticed that many of them (yes, believe it or not) are very reluctant to adopt formal project management. Their argument is that formal project management can present a serious overhead to their businesses and they cannot afford that. I have explained to them many times that project management, if applied properly, can save their companies a lot of money and can accelerate product, but they still don't think that it's good for them.

Does anyone have any idea why a lot of companies are still reluctant to adopt formal project management?
asked 11 years ago by anonymous

1 Answer

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The reason why some companies are reluctant to adopt project management is usually linked to several reasons:

- Management afraid from the project management overhead (both in time and in cost).

- Functional managers afraid for their authority: for example, when a project manager starts managing their resources, they're afraid they'll eventually lose their authority over the resources.

- Functional managers afraid for their jobs: Since many functional managers manage projects (without using "formal" project management) as part of their job, they're afraid that if a project manager comes in, they won't have much to do (hence the reason behind all the conflicts between the functional managers and the project managers, as functional managers try to prove that they are always involved and they have something to do).

- Ignorance about project management: Traditional companies, especially small to medium sized companies (and more especially, the ones that are family owned), have trouble understanding what project management really is and/or they fail to see any benefit from applying project management in their projects. Believe it or not, there are some companies out there that don't even know that there is something out there called "project management".

- Can't afford a project manager: Some companies are just too small that, although they acknowledge the need for project management, they just can't afford a project manager. In the eyes of many, a project manager is more of an overhead rather a productive member of the team.
answered 10 years ago by anonymous

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