#Financial & Project Management Convergence – Future Fast Forwarded

Project implementation involves the consumption of resources. The bigger the project, the more complicated it becomes and the larger the resources committed. A programme such as the Titanic ship involves complex engineering, the commitment of time, energies, skills, knowledge and experience to build the ship. As it was in the Titanic, we found many projects' failure have led to the collapse of companies resulting in loss of jobs and taxes. In some cases, this catastrophe was avoided with careful blending of finance and project management under a single silo having bird's view on overall corporate performance.

Financial Management: Mainly, it entails the reporting of stewardship by managers to shareholders. The stewardship reports contain some statutory information which enhances the comparative analysis of performance. Expectedly, the board acting on behalf of shareholders have delegated authority to play an oversight function on strategic direction and policy enactment to improve corporate managers' performance. To produce financial statement; including profit and loss accounts, balance sheet, cash flow statement and sundry notes - the management would have carried out the act of managing the corporate entity. 

Some of the activities carried out by managers include investments & appraisals, human resources management, production & operations, product & markets development, selling/marketing, compliance & risk management, internal controls and asset optimisation. With the careful formulation of corporate policy, the company can meet return on investment objectives, profitability criterion, market expansion and long term goals. Such company remain profitable and able to attract talented employees such as Apple, Walmart and Alibaba.com. In return, corporate leaders get rewarded.

Corporate governance structures enhance corporate fiscal responsibility - with the separation of duties between management and board of directors. Where this golden rule is observed long-term sustainability of the corporate entity is guaranteed.

Project Management: Similarly, projects involve the commitment of enormous resources and are capable of improving citizens' wellbeing, if well delivered. Projects can be undertaken by companies to enhance their earning capacities. Public sector equally undertakes projects to promote infrastructure developments. Whether economic or social infrastructures, the objectives remain to improve living standards of persons.

Financial and project management seem to have similar objectives. Also, both disciplines require the deployment of comprehensive resources. To achieve successful outcomes in a project; these activities are critical – visioning, project selection & screening, conceptualisation, investment appraisal, planning, budgeting, communication, execution, delivery, stewardship reports, profitability and future expansion objectives. Progressively, we observe that the performance matrix in both cases is the same - a convergence.

The Convergence: Corporate entities are restructuring their organisations to capture project & finance under a single silo or the convergence of both or use the same performance matrix to manage financial and project outcomes. Organisations with research capabilities or who use external consultants are adapting their operations management. In most of these cases, the performance of projects' delivery increase where there is convergence between financial and project management practice. We also observe improvements in project communication, relationships, teamwork, cost-reduction, shared strategic direction, able to meet project timescale, budget, specifications/quality & client criteria, meet sustainability goals, improve risk management, quality improvement, constructive engagement, project diplomacy, legal framework, improved project methodologies, value-for-money, data analysis, KPIs, and benchmarking.

Future Fast Forwarded: There will be standardisation in project measurements, reporting formats, risk management criteria, profit & loss reports, and more disclosure requirements on projects as more complex infrastructures evolve. The impacts of projects' success or failure are too-critical to be left to non-standardisation. External project auditors will be required to certify projects at conception, planning, implementation and delivery stages, and this will minimise potential losses, avoid colossal wastages and improve societal wellbeing. Our comprehensive research works can be used by firms to improve performance.

And the future is already evolving in some corporate entities. Chartered accountants with project management skills and experience are helping to shape the future.