Prepared by: Raimaa Al-Ghamdi - March 2024
Ulom Association for Research and Development
Management of development projects and the for-profit sector share some similarities and differ in key aspects due to varying objectives and work natures. As non-profit sector workers, we often ponder questions regarding the sector and program management:
- What distinguishes development project management from for-profit approaches?
- How can I manage a development project to achieve intended outcomes?
- What is the difference between a project and a program, or when should projects fall under a single program?
While the for-profit and non-profit sectors differ, they are not entirely dissimilar. When discussing digital transformation in line with Saudi Vision 2030's aims, both sectors likely digitize in parallel ways. Fundamental divergence thus lies more in organizational context and strategy rather than project management itself, which varies for non-profits due to factors like:
Reliance on volunteerism helps reduce costs but lacks sustainability. Strong leadership and motivation aid positively, but senior leadership may struggle reaching high efficiency and quality due to weak skills and inexperience.
Financial sustainability presents a prominent challenge, as funding is sometimes unpredictable for donation-reliant charities. An ideal association balances income sources between internal revenue and external philanthropy to cover operating expenses.
- Certain project management stages differ, e.g. fundraising planning, partnership/sponsorship cultivation to lower expenses, or specialized volunteer training.
- Stakeholder management regarding regulatory bodies like Saudi Arabia's National Center for the Development of the Non-Profit Sector, or unified oversight helping support the organization. The sector relies heavily on reputation and public image to earn funder/supporter trust, making governance standards increasingly important for confidence.
Program and Portfolio Management
Project management involves planning, organizing, and managing resources to successfully achieve project goals and outcomes. Often the terms "program," "project," and "portfolio" are used interchangeably due to a lack of precise definitions, which can create ambiguity in project manager roles and responsibilities.
A project is a temporary effort to create a unique product, service, or output.
A program is a group of related projects or subprograms. Organizations typically divide projects into programs to maximize impact and benefits. Programs allow an organization to achieve goals not possible through individual projects.
Portfolio management encompasses different projects and programs, which need not be directly related or intersect. Portfolio management contributes to achieving the strategic goals, mission, and vision of the organization.
The Project Management Triangle
Successful project management requires maintaining a balance between key constraints: scope, time, and cost. This relationship can be visualized using the project management triangle model.
At the corner points of the triangle are:
Scope: The deliverables and work tasks defined in the project scope.
Cost/Resources: The financial and human resources required.
Time: The scheduled duration allotted for completion.
If anyone constraint changes, it directly impacts the other two, similar to how a geometric triangle cannot alter one angle without changing the others. The project manager's role is to balance all three constraints throughout the life of the project. Understanding how each constraint interrelates aids in controlling the project and developing contingency plans if needed.
Constraints can be either flexible or inflexible:
- Inflexible constraints must be strictly adhered to.
- Flexible constraints allow some modification if circumstances require adjustment.
In the end, project management in the non-profit sector presents unique challenges that demand significant effort and abilities to cultivate a favourable image and standing for the organization. However, by fostering a culture of perpetual improvement, implementing tried and true management frameworks, and optimizing volunteer involvement, the organization can accomplish endurance in its endeavours and make a constructive difference in collaboration with benefactors and partners.