Knowing when to use project management requires some consideration of the situation and getting the stakeholders to support project management as the best solution for a given need. This approach drives the need to understand project management capabilities and when to apply these capabilities. It also drives development of a project management capability within a company.

The situation is that a company with 111 employees provided maintenance service for large residential housing complexes where the residential complexes require common services to retain their operations. Some of the areas that require services are:

• Clean and paint swimming pools: winterize for cold weather.
• Maintain common landscape areas by cutting grass, trimming bushes and hedges, fertilizing plants, trimming trees, and planting replacement ground cover materials.
• Service air conditioning units that serve common areas.
• Service heating units that serve common areas.
• Remove snow during winter months.
• Service plumbing, water, electrical, and gas items when there is a failure.
• Telephone, cable television, and personal items of residents are not serviced.

This company has grown from 8 people 10 years ago to 111 today. The company performs tasks associated with 15 major residential complexes and 5 smaller residential units. Over the years, growth has been steady, but the turnover of technicians has been high. Those who left complained that the amount of work and the erratic schedules hampered their personal lives. Management, consisting of two owners and a general manager, has been frustrated in their efforts to smooth out the fluctuations in the workload. Further, there are several individuals, some former employees, who are starting companies that will directly compete for the work at residential units.

It is recognized that the high turnover rate of the technicians and the emerging competition will probably stop further growth and, if nothing is done, the company will probably lose some of it current customers. A consultant recommends converting to a project-driven enterprise, whereby all work is performed as projects by teams. Management is considering this, but does not know if it will work because they are uncertain as how projects could be used.

Concerns facing the companies are:

• Is the work to be accomplished compatible with a project approach?
• Can the employees work in teams to perform the different tasks?
• What is the cost to change to a project-driven enterprise?
• What is the cost if organization does not adopt project management?
• How soon could the organization change and start delivering service under project management?
• How will a change to project management affect the customers? Positively or negatively?

The company faces a dilemma that it must change. What is the proper direction? Can the company use project management for all its work or just a part of it? One thing is sure, it must change to something that is successful in delivering services and reducing costs for these services to beat the emerging competition.

1. Using the project management situation, identify the benefits and shortcomings for an immediate transition to use project management for all services.
2. Consider the nature of the work being done and the knowledge levels of the technicians (probably 12 grade graduates, some tech school graduates), how long would it take to train them in principles of project teams?
3. What do you see as most challenging if the company decides to convert to a project-driven enterprise?
4. Do the customers have any say in converting to a project-driven and delivered service? If so, what are some potential questions that the customers may ask?
5. Are there any potential savings (such as productivity increase) that you can identify from changing this company to a project-driven company?