Project Management During a Recession

Article Critique

As Grgurich (2019) points out, tasks and objectives are what matter most when budgets are constrained. Project managers have to be especially mindful of the goals and objectives of the company and how far new or existing projects will go to support those goals and objectives. Grgurich’s (2019) points are not industry specific in terms of their value; on the contrary, they can be applied generally speaking to every sector because the ultimate point is a valid one: budgets are cut during recessions, and companies have to be smart about how they spend if they want to survive economic downturns.

The article uses Target as an example, but the same lessons that apply in the retail industry also apply in the tech industry, as the author notes. There is nothing that is specific to individual companies in this research: it is based on fundamentals of good project management during times of economic uncertainty. It lays down principles that any project manager can follow: be transparent and insist upon it with one’s team, do not jump into any decision but take things slowly, and prioritize risk. Good project management is often about good risk management (Willumsen et al., 2019).

For project managers, one of the most important considerations is how to prioritize risk. Should they emphasize transparency and caution, or is it more important to focus on the schedule? Unfortunately, there is no easy answer, as each situation is unique. However, some general principles can be helpful in making this decision.

First, it is important to consider the potential consequences of each type of risk. For example, a schedule delay may cause some inconvenience, but it is unlikely to result in serious harm. On the other hand, a safety hazard could have devastating consequences. As a result, it is usually more important to prioritize risks that could have a major impact on the project and the company’s aims and objectives—as well as its financial condition in downturn.

Second, project managers must also consider the likelihood of each type of risk occurring. A low-probability event such as a natural disaster may not be worth spending time and resources to prepare for. By contrast, a high-probability event such as a software glitch can be much more dangerous—and almost all industries rely on software today so this is not industry-specific.

Finally, project managers need to balance the needs of different stakeholders. For example, shareholders may be more concerned with maximizing profits, while employees may be more concerned with ensuring their safety. In the end, there is no single right way to prioritize risk. However, by carefully considering the potential consequences and probability of each type of risk, project managers can make informed decisions that will help to ensure the success of their projects.

Taking it slow is also important: for example, when scheduling a project, it is often tempting to try to cram as much into the timeline as possible in order to meet deadlines. However, this can often lead to problems later on if there are unforeseen delays or disruptions. By taking a more leisurely approach and building in some extra time for contingencies, project managers can reduce the chances of their projects running into major problems further down the line. In short, while taking it slow may not always be the most efficient option when higher-ups are looking for outcomes and effects immediately, in some cases it can actually be the best strategy for ensuring a successful outcome.