A beautiful project is nothing without effective execution

This has caused the management to rethink about the strategic approaches for both short-term and long-term plan execution. It seems harder to accurately forecast the future even within the next few months. On the other hand, there are also new opportunities to be opened up for anyone with ambition and willingness to take some risks. There is plenty of room for new players to compete more fiercely in the growing business region in Asia. Consequently, this has lured business decision-makers to invest their resources and energy in the new markets. It’s possible that an increasing number of new projects will be initiated. The question is how to ensure that these project plans will be successfully implemented. 

In principle, new projects such as building a production facility in another country, developing a new product, launching a new business, engaging in a joint venture, and so on, have to be studied and evaluated according to the company’s policy and procedure. A business plan has to be developed, justified and supported with a financial feasibility study. This process would normally start with some key assumptions for the financial model. The important part is the review process of brainstorming, analysis and assessment of the viability of the project. A financial return indicator review such as IRR (internal rate of return), payback period, and NPV (net present value) are key elements in the review process.  Both positive and negative factors must be taken into account before a conclusion can be drawn. It’s possible that some reviewers may be too optimistic whereas others may be too conservative – logical thinking is the key. Once the proposed project passes decision-makers and gets the green light, the next important step is implementation.   

No matter how attractive the project may seem, it means nothing if the beautiful plan cannot be turned into reality. Sometimes the time between proposing the project and obtaining approval can be more than a year, soaking up valuable resources. But the project can fail at any stage, due to a number of reasons:

No ownership – To ensure a new project progresses properly, a person or team has to be clearly designated to take full responsibility. If the management cannot identify who is in charge, operations can come to a standstill. This is one of the major causes of project failure.

No monitoring, follow-up and control – During the start-up phase, it is necessary to hold regular reviews with all concerned on the development of the project so that any issues arising can be acted on quickly. 

Lack of effective communication – The matrix organisational structure is often used for project development. Representatives from related functions form a team to carry out the new project. This requires extremely effective communication to ensure that information is shared among members and everyone is on the same page. Otherwise misunderstanding and non-alignment can happen. 

Inability to deal with uncertainties – During the process of implementing the new project plan, a number of unexpected incidents can arise that require proper response. Sometimes, waiting for clear understanding of every factor involved can prolong decision-making until it becomes too late to prevent damage.  

Ineffective execution of critical-path action plan – There could be several actions that depend and flow from one central path of action or decision-making. Without implementation of the central path of action, the project can be delayed or stop altogether. For example, if an agreement with a construction company to build the production facility is not signed, no one can start doing anything on the facility.  

In order to execute the new project successfully, team members need to acquire a different mind-set from conventional practices of routine business. It includes dealing effectively with emerging factors that require urgent and appropriate action. It’s important to try different ways in getting things done. A new project may not necessarily need a whole new team to make it successful, but it does require new skills and attitudes from existing people to deal with new challenges. Thus, effective execution of the plan is just as important as finding and selecting the right project.  

 

Yanyong Thammatucharee is senior vice president for Accounting and Finance at Central Marketing Group.