Project Management in SMEs: Challenges, Tools, and Leadership (MK7248)

This report provides a comprehensive overview of project management within Small and Medium Enterprises (SMEs). It begins with an introduction to SMEs, their importance, and the role of project management in fostering growth and innovation, using Giacom as a case study. The report then reviews academic literature, defining SMEs and highlighting critical success factors and common challenges they face. It delves into project planning, including Work Breakdown Structures (WBS) and Statements of Work (SOW), along with project metrics and the use of project tools like PMBOK and mind mapping. The report also explores project leadership within SMEs, contrasting it with leadership in larger organizations, and discusses project risks, potential failures, and critical success factors. The conclusion summarizes key findings and emphasizes the importance of adapting project management practices to the unique context of SMEs. The report's structure follows the assignment brief which requires establishing project objectives and characteristics, project planning, project life cycle, project metrics, project leadership and project management tools, common causes of project failure and its impact on the stakeholder, project risk and critical success factors.

Running head: PROJECT MANAGEMENT IN SME
Project Management in SME
Name of the Student
Name of the University
Author Note

1PROJECT MANAGEMENT IN SME
Table of Contents
Introduction......................................................................................................................................3
Academic literature review..............................................................................................................4
Defining SMEs............................................................................................................................4
Importance of SMEs....................................................................................................................5
Critical success factors................................................................................................................5
Challenges faced by SMEs..........................................................................................................5
Project planning...............................................................................................................................6
Work Breakdown Structure.........................................................................................................7
Statement of Work.......................................................................................................................7
Project Metrics.................................................................................................................................7
Project Tools....................................................................................................................................8
Project leadership.............................................................................................................................8
Project risks and failure...................................................................................................................9
Governance loss.........................................................................................................................10
Failure of isolation.....................................................................................................................10
Protection of Data......................................................................................................................10
Incomplete and insecure completion of data.............................................................................11
Security expectations of the customers......................................................................................11
Critical Success factors..................................................................................................................11

2PROJECT MANAGEMENT IN SME
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

3PROJECT MANAGEMENT IN SME
Introduction
SME is the abbreviation of Small to Medium Size Enterprises. SMEs play an immensely
important role in enhancing the economical graph in terms of the employment aspects and their
potential contributions towards the country’s wealth (Hillary 2017). A vital role in the
contribution is played by innovations as well. SMEs can be stated as the main engine for the
economic growth of a country in the future. The purpose of project management in SMEs is to
manage the growth and innovation. The SME group that has been chosen for this particular
project is Giacom. Giacom is an UK based SME that was founded in the year 1999 with working
specializations in cloud distribution, service hosting, hosted exchange and IT reselling services.
The headquarters of this company is located at Hessle, Kingston upon Hull. It has an employee
base of approximately 200 with Steven Law being the company’s CTO (Giacom Cloud Market
2019). The key purpose of this report is to provide a brief overview on the extent to which SMEs
use projects, management techniques and tools. The report also establishes the key differences in
terms of size of the industry and company. On the basis of surveys conducted, it has been found
that almost all the companies spend an equal proportion of turnovers on their projects. Moreover,
it has also been pointed out that smaller companies are mainly associated with small scale
projects. Also, in comparison to the hi-tech companies, the smaller companies use less tools and
techniques in terms of managing their projects (Zhou 2016). Ironically, lesser amount is spent by
the hi-tech companies for projects but the amount of tools and techniques used by them for
managing their projects are greater. In addition to that, the hi-tech companies also make use of
proper project management gadgets which enhance their productivity as a whole.

4PROJECT MANAGEMENT IN SME
Academic literature review
The environment in which the SMEs work are same as that of its larger counterparts but
there is an exclusion in terms of the associated benefits that consists of extended resources and
adequate capital unlike the larger organizations (Marcelino-Sádaba et al. 2014). Factors such as
legislation, globalization and trade barriers fuel the increasing competitiveness that is
encountered by small and medium sized enterprises. Certain aspects of innovation and emerging
technologies that give rise to market expansion are responsible for an increment in the
competitiveness as well. Often, there is an evident enhancement in terms of their adaptability and
agility, such as their adaptability to new working methodologies and frameworks. Their close
proximity with the customers often sometimes result in emerging and complex challenges. Most
of the times, these challenges are hard to cope with for the SME organizations.
The managers and owners of Giacom need to incorporate proper risk management and
identification methods in order to deal with these challenges (Cerchione, Esposito and Spadaro
2016). If suitable measures are not taken and the risks that are involved are not processed the
right way, Giacom may face catastrophic consequences in the near future.
Defining SMEs
Small and medium size enterprises are often denoted by SME, SMME etc. Although
various terms are used to define it, there is no common explanation for these terms. The
definition is completely based on the country’s location and geographical placement. The act of
national small business which was framed in South Africa use certain logistics for the purpose of
organizational categorizations. In accordance with this act, there are four prime categories, in
which these small organizations can be divided namely: Micro enterprises, small enterprises,
very small enterprises and medium enterprises (Afrifa and Padachi 2016). The categorization is

5PROJECT MANAGEMENT IN SME
completely based on the number of employees comprised in these organizations excluding the
case of micro enterprises that is categorized on the basis of turnover levels.
Importance of SMEs
In 1st world countries, such as the UK and the United States of America, small enterprises
play a vital role in enhancing the national economy. Since Giacom is an UK based SME, it can
be stated that almost one third of the industrial employment gets accounted by it (Sukarmijan and
Sapong 2014). On the other hand, the 3rd world countries where the active economic enterprises
get dominated by the SMEs, have far greater SME prosperity in comparison to the 1st world
countries.
Critical success factors
Small and medium enterprises are often seen as smaller organizational branches of a
larger organization. This is a misconception that is needed to be cleared as soon as possible as
there are no potential resemblances and the working of an SME is completely different to that of
a large organization. Unlike the hi-tech large organizations, SMEs like Giacom have several
scarcity within their organizational framework such as human and financial resources along with
time (MUKUMBA 2014). Several studies have been made and, it has been observed that there
are various factors that affect the enhancement of an enterprise in terms of its productivity.
Elements such as human capital and brain power are some of the key factors.
Challenges faced by SMEs
Although the managers and owners of SMEs are familiar with the working framework of
their enterprises, there are certain vulnerabilities and challenges that are not identified by them.

6PROJECT MANAGEMENT IN SME
These give rise to the factors that immensely affect the working of these enterprises. The
problems have been briefed as follows:
I. Economic problems
The success of the SMEs depend on the local conditions of the economy (Agwu and Emeti
2014). Therefore, if there is a sudden fall in the local economy graph, the SMEs of that area will
also face relative consequences.
II. Enterprise related problems
Internal issues, such as untrained employees, multi-functional management, staff planning,
high turnovers of employees, inadequate human resources etc (Karadag 2015). are some of the
key factors affecting the success of a small enterprise.
Project planning
Several research reports have been published by popular authors highlighting the
‘planning’ aspects of a particular project (Tasevska, Damij and Damij 2014). All these reports
highlighted one main thing that is, “it is not the plan that matters, rather it is the planning which
plays the key role in a successful project completion.” There are various checklist, guides and
toolbox that can be used while planning a project. For instance: PMBOK (Project Management
Book of Knowledge), PMI compendium are some of the popular guides that are often used
during the planning and development phase of the project (Kerzner 2019). A good project plan
might not be large, however it must include all the key aspects of the project. The WBS (Work
Breakdown Structure) and SOW (Statement of Work) are two of the prime tools that constitute
to a successful project.

7PROJECT MANAGEMENT IN SME
Work Breakdown Structure
The WBS of any project can be defined as a deliverable oriented approach which is
needed to be followed by the assigned project team in order to successfully accomplish certain
objectives of a project (Crawford 2014). As in case of Giacom, the management needs to
incorporate several SME management tools and techniques that will help the enterprise to grow
its economic graph thus accomplishing certain objectives.
The estimation chart

8PROJECT MANAGEMENT IN SME
ID Task
Mode
Cloud Modification
for Giacom
Duration Start Finish Predecessors
1 Configuring the
core framework
11 days Thu
8/22/19
Thu 9/5/19
2 Profiles 2 days Thu 8/22/19Fri 8/23/19
3 Accounts of the
staffs
1 day Mon
8/26/19
Mon
8/26/19
2
4 The navigation sets3 days Tue 8/27/19Thu 8/29/193
5 Contacting the
configuration of
management
2 days Fri 8/30/19 Mon 9/2/19 4
6 Categories and
products
3 days Tue 9/3/19 Thu 9/5/19 5
7 Configuaration
based on location
22 days Fri 9/6/19 Mon
10/7/19
8 COS Workflow 4 days Fri 9/6/19 Wed 9/11/196
9 COT Workflow 3 days Thu 9/12/19Mon 9/16/198
10 NC Workflow 2 days Tue 9/17/19Wed 9/18/199
11 Workflow of WB 3 days Thu 9/19/19Mon 9/23/1910
12 POC - COT 3 days Tue 9/24/19Thu 9/26/1911
13 Workflow for
PayGo
2 days Fri 9/27/19 Mon
9/30/19
12
14 Designing the
workspaces
5 days Tue
10/1/19
Mon
10/7/19
13
15 Deploy 6 days Tue 10/8/19Tue 10/15/19
16 Rules for business1 day Tue 10/8/19Tue 10/8/1914
17 Testing 5 days Wed 10/9/19Tue 10/15/1916
18 Enablement 11 days Wed 10/16/19Wed 10/30/19
19 Overview of the
solution
3 days Wed
10/16/19
Fri
10/18/19
17
20 Workshop for
admins
3 days Mon
10/21/19
Wed
10/23/19
19
21 Script workshops
for the admins
3 days Thu
10/24/19
Mon
10/28/19
20
22 Training the
trainers in every
location
2 days Tue
10/29/19
Wed
10/30/19
21
23 Deploying the
agent desktop
9 days Thu
10/31/19
Tue
11/12/19
24 Citrix test use 3 days Thu 10/31/19Mon 11/4/1922
25 Location 1 1 day Tue 11/5/19Tue 11/5/1924
26 Location 2 2 days Wed 11/6/19Thu 11/7/1925
27 Location 3 1 day Fri 11/8/19 Fri 11/8/19 26
28 'Location 4 2 days Mon 11/11/19Tue 11/12/1927
29 Design and
planning
10 days Wed
11/13/19
Tue
11/26/19
30 Defining the
data
requirements
2 days Wed
11/13/19
Thu
11/14/19
28
31 Finalising scripts
and transcripts
5 days Fri
11/15/19
Thu
11/21/19
30
32 Completion of
functional
design
3 days Fri
11/22/19
Tue
11/26/19
31
W S T M F T S W S T M F T S W S T M F
Aug 11, '19 Aug 25, '19 Sep 8, '19 Sep 22, '19 Oct 6, '19 Oct 20, '19
Source- Created by author
Statement of Work
SOW of a project comprises of a brief description of all the services and products that are
required to be delivered to specific clients. It also consists of the contractor requirements that are

9PROJECT MANAGEMENT IN SME
needed to be fulfilled for a successful delivery of those services and products (Harrison and Lock
2017). As in case of Giacom’s cloud modification project, a standard SOW will comprise of a
brief description regarding its cloud related services and the associated modifications along with
the assigned contractors’ requirements.
Taking adequate amount of time to develop the SOW and WBS of a project will help to
ensure that all the aspects of the project have been understood and documented properly. After a
proper framework of the planning is done, the project can be sent to the execution phase.
Project Metrics
Another important aspect that plays an effective role in a project’s success is the metrics
of a project. The key purpose of project metrics is to measure the progress of a project as
performing specific management tasks is not possible without measuring or identifying the
associated risks (Kerzner 2017). Moreover, project metrics comprises of an accurate schedule,
scope, cost and status of completion associated with the project. In this project, where modifying
the cloud base is the prime concern, project metrics plays a vital role by providing proper SOW
and WBS comprising of essential aspects, such as progress measurement, activity scheduling and
compliance of the scope.
Project Tools
For the purpose of simplifying the project management processes in order to perfectly
suit the small enterprises, incorporating effective, simple and scalable tools with less integration
associated with it, is very essential. One of the best tools in the recent times is the PMBOK. It
provides a systematic knowledge for project management purposes. It also acts as a checklist
while choosing an appropriate process for the project. In order to attain further simplification, the

10PROJECT MANAGEMENT IN SME
PMI compendium can be used as well. For this project of modifying the cloud framework, mind
mapping tool can be used to provide scalability, versatility and flexibility to the system
(Remington and Pollack 2016). In the recent times, mind mapping is gaining huge amount of
popularity within the management levels as is also being seen as a project management tool
which is used for the purpose of organizing, capturing, sharing important information and
controlling and monitoring project. Nowadays, some of the mind mapping tools provide features
like milestones, action items, resource and task information, alarms, due dates etc. It is almost
impossible to brief down all the beneficial factors and advantages of mind mapping tools in a
single handbook.
Project leadership
Leadership is a complicated approach in the field of SME as, it requires one to act both
the boss as well as the leader of the enterprise. The role of a leader in a SME such as Giacom is
completely different from that of a mature or start-up organization. In a large and mature
organization, a leader often limits himself in terms of charting the growth of the enterprise.
Contrastingly, in a start-up enterprise, the leaders use the ‘all hands on deck’ approach. The
leader’s role in a SME can be stated somewhere in between these two extremes. They are
required to manage both big and small things related to their enterprises. In order to understand a
leader’s role in a SME, it is required to be viewed from different perspectives.
The leadership of a particular project plays a vital role in its success. Significant insights
regarding this aspect have been provided in several research reports. According to a research
report published by Hoffman, management helps in creating a predictability for a project,
focuses thoroughly on the systems, organizes and provides relays on the control. In addition to
these, management also helps people in complying with the standards thus, accepting the status

11PROJECT MANAGEMENT IN SME
quo. On the other hand, incorporation of proper leadership factors helps in modifying and
changing the current working framework (Nanjundeswaraswamy 2015). It relays completely on
the aspects of trust issues and also helps in aligning people with specific directions. Moreover, a
good leader often motivates his employees to adapt to new and required changes for the
betterment of the enterprise. There are several other positive impacts which constitute towards
the success of a particular project. Proper management knowledge and leadership qualities are
the prime factors which require immense dedication, commitment and hard work. These are
some of the aspects that the leader of Giacom must take into consideration. This will definitely
help in enhancing the efficiency of Giacom in terms of productivity and will also help in dealing
with certain other complexities.
Project risks and failure
Giacom provides various cloud services to its clients. This particular project comprises of
modifying the security related issues associated with its cloud framework (Falkner and Hiebl
2015). However, while modifying a cloud framework several risk factors are to be taken into
deep consideration. These have been briefed below:
Governance loss
While using a cloud infrastructure, a client is often required to give certain confidential
information to the cloud provider that may sometimes result in severe security issues (Al-Ruithe,
Benkhelifa and Hameed 2016). As no firm commitment is provided by the SLAs there are no
potential modifications that can be made to deal with this issue, thus leaving a huge gap within
the security aspects.