New year, same energy: how to identify business challenges with project analysis

Friday, 22 December 2023 12:18

New year, same energy: how to identify business challenges with project analysis

By Guest Writer

GUEST OPINION:  Upon developing a project, a company’s management team needs to supervise its development closely to ensure every step is taken to reach the final goal. However, what most omit is evaluating the project’s status as it unfolds to identify possible errors or improvements. Including PA (project analysis) in the development process will most likely lead to success since it keeps you on track of things and offers broader solutions. 

Not using a thorough project analysis method might be the reason for business failure rates that state how 20% of small businesses collapse within the first year. At the same time, half of them don’t reach more than five operating years. Of course, not all fail due to a lack of proper strategies, especially since there’s an industry variance that depends on demand. For instance, healthcare is less likely to fail in the business sector since it’s a vital industry. Still, transportation requires a high upfront investment to ensure success, which is a considerable challenge. 

So, how can project analysis ensure better results? 

Find your best PA 

Generally, project analysis involves consistently checking how the project evolves in terms of budget or initial planning. At the same time, it helps you identify issues on the go. However, there are more types of PA that are best suited for different business models. 

First, the ongoing project risk analysis creates a risk potential framework in advance so you can forecast the impact of the issue and propose a solution. This PA involved creating a specific path for the project that will later help monitor the project’s progress. 

There’s also project cost analysis that focuses on the financial side of the project. It implies you start the job with a budget in mind that includes delays and unexpected inventory losses, so you won’t be taken by surprise by delays. Usually, you add the factor of safety (FoS) of about 20% of the initial budget, but it’s best to work with proper software, like Timesheet Portal, so you can visit to learn more about its products. 

Workload analysis evaluates the task at hand of every team member involved in the project to ensure work is evenly distributed. Finally, process analysis is leveraged to check the efficiency of the project to avoid risks and inefficiencies. 

The benefits of PA 

Monitoring the project's progress as you go is the best way to ensure things go smoothly. Moreover, you’ll be able to rapidly change the course of things in case something slightly wrong happens. Regardless, PA is essential for your company’s growth, but what exactly happens when you use it properly?

PA helps carry out proper risk assessment since you can identify challenges as you go without waiting for them to impact the project. That’s because you’ve already settled the associated objectives and possible risks and only need to choose the appropriate method to overcome these issues. 

PA also ensures you stay under budget and are time-efficient enough to reduce the number of delays. Since you can overcome any issue on the go, it’s likely to reach your goal earlier than assessed and improve your brand image to the stakeholders. 

Finally, analysing your projects constantly sets the tone for the company’s future because you’re able to progress faster and better than your competition, so it’s easier to forecast how you’ll perform in the years to come. 

PA also has its challenges 

Like any other business management step, project analysis has its issues for every company approaching it because it works only if your team is able to determine the right features of the project. For instance, choosing its scope might be significantly complex, mainly because you need to stick with it for the rest of the project and adapt its elements to the business. 

At the same time, despite its scope, the project must also be feasible in the long term, meaning you can support it financially despite the risks associated, such as the lack of skills, poor communication or rising costs. Among other risks, we can count the following:

• Poor planning that decreases competitive advantage;
• Performance that doesn’t meet the budget;
• Operational problems of procurement and distribution;
• Cyber-attacks and data breaches;
• Changing interest rates and liquidity;
• Legal frameworks on contracts and litigations;

It would be easier for your project management team to prioritise risks and link their possibilities with an impact. For instance, data breaches are on the rise, especially for small businesses, so the risk for your company to experience it is considerable, so take proper precautions like security software programs. 

Tools that will help you conduct the best PA 

Project analysis requires different tools and devices depending on every company’s operating sector. However, some are efficient in most industries since they cover the basic steps of PA, such as the following:

• A document used to register all identified risks that include thorough descriptions of likelihood and impact;
• An impact matrix that prioritises risks and probability with low, medium and high scales for a better understanding;
• SWOT analysis through which you identify the strengths, weaknesses, opportunities and threats of the project;
• Frequent brainstorming sessions are essential to encourage creativity from the team’s side and critical thinking;
• Analysis of the Delphi technique through which you collect experts’ opinions of possible risks that can come up;
• Development of a Monte Carlo simulation in which you simulate the risks’ impact on the outcomes;

You can use these techniques individually or together, depending on how fast you want to achieve your goal. Sometimes, it’s best to start the PA in a straightforward way and use only one technique, but if you’re in need of more insights, it would be best to broaden your strategy perspective. Generally, a SWOT analysis is always welcomed since it provides an unbiased perspective, but you may find that a simulation will help more. 

Bottom line

Leveraging project analysis is the perfect way to ensure success in your business because you’re on top of the competition due to considerable efficiency. At the same time, you save resources and allocate every minute and penny to the correct company department while meeting your deadlines. However, you must be wary of cyber-attacks, poor planning and changing legal frameworks. 

Visit to learn more https://www.timesheetportal.com/project/sectors/construction/ 

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