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A Proposal for Establishing a Project Management Department to Accommodate the

Development of RSA and Market Requirements

University of the People

MBA

BUS 5611-01 Managing Projects and Programs

Dr. Shivani Mahajan

25/06/2024
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A Proposal for Establishing a Project Management Department to Accommodate the

Development of RSA and Market Requirements

Project management is an essential discipline in modern business environments, where

successful project execution is crucial for achieving strategic goals (Aston, 2024). As RSD

continues its successful growth trajectory, transitioning from a small retail software design

company to a medium-sized organization, the need for a more structured approach to project

execution has become increasingly evident. While delegating project management (PM) tasks to

clients may have sufficed in the past, more is needed to ensure consistent project success and

client satisfaction.

This proposal outlines the significant value a dedicated Project Management Department

will bring our company. It will address the growing complexity of software rollouts, enhance

client relationships, and ultimately contribute to increased profitability and a competitive

advantage.

Key Benefits of a Project Management Department

Enhanced project delivery and success rates. Improved Project Efficiency and

Effectiveness By establishing a dedicated department, we can implement robust project

management methodologies. This will involve:

Clearly defined project scopes, timelines, and budgets ensure everyone involved

understands project goals and expectations. Effective risk management, a proactive approach to

identifying and mitigating potential risks, minimizes project disruptions and delays. Regular

communication between team members, clients, and stakeholders keeps everyone informed and

fosters a collaborative environment. Resource allocation and utilization optimization, project

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managers will help allocate resources across projects based on skill and project demands (Gupta,

2023). The department can promptly identify deviations from the plan and implement corrective

actions by improving project monitoring and control through regular progress tracking and

performance measurement. These practices will significantly increase project delivery success

rates, on-time completion, and adherence to budget constraints.

Strengthened Client Relationships and Satisfaction. A dedicated Project Management

Department fosters stronger client relationships by:

PMs are the primary point of contact between our company and the client, ensuring

precise and consistent communication. This transparency helps manage client expectations, and

fosters trust. Project managers proactively engage clients throughout the software rollout

process, tailoring the implementation to their specific needs and ensuring a smooth user

transition. Meeting and Exceeding Client Expectations by managing project expectations

effectively, clients are more likely to be satisfied with the outcome. PMs use their expertise to

keep projects on track, avoiding delays that could inconvenience clients and damage our

reputation. Increased client satisfaction enhances client retention and fosters positive word-of-

mouth referrals, attracting new business opportunities.

Increased organizational agility and competitive advantage. The benefits of improved

project delivery, resource optimization, and client satisfaction translate directly to the company's

bottom line. A dedicated Project Management Department will:

Establishing a Project Management Department will increase the company’s

organizational agility, allowing it to respond more swiftly to market changes and client demands

(Conforto et al., 2016). Project managers ensure resources are allocated effectively, reducing
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project costs and minimizing rework due to misunderstandings and delays caused by unclear

communication or resource constraints. By minimizing rework, project delays, and resource

waste, the company experiences increased profitability and financial gains. These savings can be

reinvested into the business, driving further growth and innovation. Our commitment to robust

project management practices will enhance our competitive advantage, differentiate us from

competitors, and establish us as a reliable and client-centric software development firm.

Conclusion

Establishing a dedicated Project Management Department is a strategic investment that

will significantly contribute to RSA's continued success. This proposal aims to provide a concise

overview of the value proposition. A dedicated department will require further planning for

resource allocation, recruiting qualified project managers, and implementing project

management software. However, the long-term benefits outweigh the initial investment. I am

confident that a Project Management Department will be a valuable asset to our company's

future.
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References

Aston, B. (2024, June 10). Why is project management important? 12 simple reasons. The
Digital Project Manager. https://thedigitalprojectmanager.com/personal/new-pm/why-is-
project-management-important/

Conforto, E. C., Amaral, D. C., & Sergio Luis, da S. (2016, May). The agility construct on
Project Management Theory | Request PDF. Research Gate.
https://www.researchgate.net/publication/297605478_The_agility_construct_on_project_
management_theory

Gupta, O. (2023, September 15). A complete guide to resource allocation in project management.
Resources Library. https://www.saviom.com/blog/resource-allocation-a-guide-on-how-
to-apply-it-on-project-management/