Whenever there is a specific goal or objective that a business wants to achieve it does so by initiating a project. To do this it starts with putting together a team. Within any team there must be a leader which would be the project manager. Project management is essentially the practice of leading the work of a team to achieve goals and meet success criteria. The primary challenge is to meet the project’s goals within the scope, time, quality, and budget. Additionally, project management requires selecting the most ideal allocation of necessary resources and assets and applying them toward those project goals.
Blockchain has become and is still becoming more prevalent in the business world every day, and in addition to the new opportunities it provides, it has been found to be applicable for traditional careers such as project management. Many people believe that blockchain will revolutionize the project management field for the better. Given the decentralized nature of blockchain, trust amongst team members no longer becomes an issue since team members are able to register their activities and everyone can see their progress, including the project managers. This simplifies team members’ task dependencies, and it ultimately enhances team collaboration which only increases productivity and drive.
Furthermore, blockchain’s adaptability enables project managers to use it for numerous functions such as making payments, allocating funds, and managing tasks. The use of private and public keys can play a significant role in project management as well. For instance, a team member who holds a private key can register transactions in the blockchain, and the manager’s responsibility would be to assign roles and grant permission for team members by assigning each member his or her own private key. And public keys could be used to derive addresses where information will be sent or received.
Time is a significant constraint for project management. According to a report by the Harvard Business Review, as many as one in six projects had a schedule overrun by as much as 70%. Blockchain works in real time and constantly records transactions which makes its technology so appealing to project managers. When blockchain technology helps project managers by addressing task dependencies, defining team members’ roles and responsibilities, ensuring secure transfer of data, and preventing time overruns, many companies will witness a dramatic reduction in cost.
Another appealing facet of blockchain technology for the project manager are smart contracts. Smart contracts are self-executing which means human intervention is not required. When the parties involved in the contract agree upon their particular terms and conditions, the contract is prepared and digitally signed.
What ensures the effectiveness of this concept is that the contract will only be executed when the predefined conditions are met. This enables smart contracts to be greatly useful in project management in that they allow for automatic payments to be made to parties such as vendors and contractors. This is a seemingly simple yet crucial function.