Why are projects initiated? As per PMI’s PMBOK6 Guide, a project is initiated to bring about change. What does that mean? Watch this video to understand how projects bring about change to an organization.
If you were Starbucks you have several hundred locations in one specific country and you have decided to change your point-of-sale systems now you’re going to shift from an existing point-of-sale system to another one that allows you to let’s say track some items or maybe some business intelligence like what time of day what product who was you know what type of client is buying this and maybe it has some inventory management features and you want to roll out the system across all of Starbucks.
Well your current state is where you are right now where you don’t have this system and your future state is going to be one where you will have the updated system and your goal now will be to go from this current state up until the future state and by doing so what you’re trying to do is elevate the performance of Starbucks.
So organizations run projects because they want to enhance some aspect of their operations or business so speaking of business projects drive change in organizations, and they enabled business value creation by; let’s go back to the example of Starbucks by; Starbucks implementing this business intelligence based point-of-sale system.
They’re going to have additional abilities and collecting customer data which would allow them in the future to be able to provide better products in the right locations so we say that projects bring about change good change and they help drive an organization from their current state all the way to a future state that is supposed to be more efficient and more profitable and has better value to its own shareholders.