Innovation is always about doing something different. It can be a new product, service, or even a new process to support one of those. The problem with innovation is that it requires the innovator to step into the unknown. If one is to be innovative, they have to take risks and there is a chance those risks do not payoff. Being innovative requires one to take a gamble on something with hope that it will pay off. The difference between gambling and innovating is innovation management.   The process of decision-making and innovation are similar in the sense that each process should have structure and a method of selection based off of risks. However, they are overly different as it relates to how it should be done.   The process of decision-making should, for the most part, be strategically aligned with the organization’s objectives. As briefly mentioned in Managing Innovation , general decision-making process can be thought of as “a simple matter of selecting amongst clearly-defined options” (Bessant, 2016, p. 330). Depending on the culture and management structure of an organization decisions can be made by using risk assessments/analysis. Of course, if there is a project with high uncertainty decision-making gets to be more difficult. Top management or leaders can make better judgements, in a general sense, when a risk (positive or negative) exists and it flows through an already established decision-making process.   The process of innovation is much more complex. Innovation is change. Innovation is uncertainty. Therefore, building a climate and culture within an organization that is designed to adapt to those constant changes either before, during, or after compels an organization to develop the capabilities and capacities to keep up. Depending on the innovation type, whether it be ‘incremental’ or ‘radical’, organizations should develop the capability to manage both kinds of innovation (Bessant, 2016, p. 74). For example, if a decision needs to be made for a ‘do what we do better’ (incremental) project then the risk in making a decision can be easier because the information would be there as it may be a more routine situation. As opposed to a ‘do different’ (radical), hardly any information is available at the outset and comes in as the project begins and progresses. This is a totally different ‘animal’ (if you will) than just having a simple, generic decision-making process or flow chart to help managers or leaders follow when they need to make a “general” decision.   To keep the balance of managing risk while continuously innovating, innovation management should be established. It becomes critical for the process of innovation if an organization is to be successful in the long-term. One way is to build a portfolio and spread the risk. It is stated “…the question of which  projects and the subsidiary one of ensuring balance between risk, reward, novelty, experience and many other elements of uncertainty” (Bessant, 2016, p. 338). So, portfolio management and project management skills, tools and techniques along with innovation management would prove to be more effective than just general management practices. Risks are something that can be calculated. Even in gambling, there are odds to just about anything. Innovation management is about calculating those risks and making wise decisions on whether to move forward with an idea or if it is time to cut ties and move on to another project.   The role of external contacts (or external networks) becomes critical for many reasons. External contacts provide an option for an organization to develop a relationship by partnership; collaboration; and competitiveness. Even in business, external contacts or networks can share and compete in the same breadth. Networks can allow organizations to share the risk by sharing resources; information systems; knowledge; and expertise. If the appropriate agreements are made, they can share the benefits of their working together by means of being innovative. Outside sources of input can be a better tool than a research and development department. “In a recent IBM survey of 750 CEOs around the world 76% ranked business partners and customer collaboration as top sources for new ideas whilst internal R&D ranked only eighth” (Tidd & Bessant, 2016, pg. 277). Going out and getting new ideas from outside of the normal operating space is going to produce better results than just sitting inside trying to think of something without outside input. References Bessant, J. (2016). Managing Innovation: Integrating Technological, Market, and Organizational Change.  John Wiley & Sons Ltd. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

Why Budgeting is Essential for Organizations Budgeting is a critical component that all organizations cannot afford to ignore. Information collected to develop a reliable budget comes from various parts of an organization. Data from human resources, operations, marketing, research and development (R&D), finance, and accounting management all contribute to the creation of a credible budget. At its core, budgeting serves as a tool for both personal and business finance. Without this essential tool, unfounded estimations can lead to poor financial decision-making. Establishing goals that are Specific, Measurable, Assignable, Realistic, and Time-related (SMART) to a cash budget can empower decision-makers to make better short-term and long-term financial and strategic decisions. How Budgeting Impacts Cash Flow A firm creates value for shareholders or owners by generating more cash flow than it needs to pay bills and invest in new current and fixed assets (Zutter, 2019, p. 156). Therefore, if an organization can identify and invest optimally and sustainably in marketable securities or assets equivalent to their fixed assets, they can potentially see significant benefits. Particular attention is given by financial managers and decision-makers to planning for cash deficits and surpluses. The cash budget, often referred to as the operating budget, typically covers a period of one year or less. Preparing three-year cash budget plans is an impressive goal! Although uncommon, this strategy is an effective financial approach sought by some organizations. It goes beyond the basic concept of maintaining 'six months of emergency funds' , offering financial stability and flexibility. This enhanced strategy enables better decision-making regarding the quality of life for individuals or organizations. The Evolution of Financial Planning In summary, cash budgeting helps decision-makers project and better manage their capacity to meet obligations. While some individuals believe that having six months of emergency funds is sufficient, today's economic landscape suggests otherwise. It may now be prudent to start retaining enough resources to cover all expenses for one full year. Challenges in Budgeting Wise managers often agree that budgeting can be both challenging and frustrating. However, finding an effective solution tailored to the organization's needs is essential for success. It is crucial to create and implement a budgeting plan with SMART objectives, aligned with both short- and long-term goals. Doing so can yield significant profits and create added value. Tips for Effective Budgeting Gather Input from All Departments : Ensure collaboration across all areas of the organization. Each function can provide insights that contribute to a more informed budget. Monitor and Adjust Regularly : Budgets should not be static. Regularly review and adjust based on performance and changing circumstances. Set Clear Objectives : Establish objectives that are both achievable and measurable. This clarity will help guide financial decisions. Utilize Technology : Leverage budgeting software or tools that can streamline the budgeting process and improve accuracy. Communicate with Stakeholders : Keep lines of communication open. This transparency is key to successful budget implementation. By following these tips and strategies, organizations can improve their budgeting processes. This will lead to better financial management, permitting enhanced growth and stability over time. Conclusion In conclusion, budgeting is more than just a number-crunching exercise. It is a strategic tool that can positively influence an organization's future. With careful planning, collaboration, and regular review, organizations can better navigate economic uncertainties. Remember, the right budgeting practices foster not only profit but also tangible value for your stakeholders. References Zutter, S. B. (2019). Principles of Managerial Finance, 15th edition. New York, NY: Pearson. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

While the concept of setting goals seems straightforward, it can be challenging for leaders and managers. SMART goals are often confused with SMART objectives, but they have distinct differences. Goals are typically long-term, while objectives are usually short-term. Both must adhere to the SMART criteria. Understanding SMART Goals and Objectives Specific. A specific goal defines an observable action, behavior, or achievement. It should also include a rate, number, percentage, or frequency for better clarity. Measurable. There must be a system or method for tracking and measuring the specific actions or achievements the objective focuses on. Assignable. Objectives should be structured so that individuals can realistically achieve them. They must also be clear and delegated properly within the team. Realistic/Relevant. Employees must view the objectives as significant to the organization. It's crucial that they feel they can influence or change the outcome. Time-related. Every objective should have a specific deadline for completion, such as a particular date or timeframe within which the goal should be reached. Specific Measurable Assignable Realistic/Relevant Time-Related Examples of SMART Goals in Action For instance, consider a construction company aiming to build a new home. While "building a home" may be a goal, it lacks specificity. A clearer goal would specify whether it will be a single-family home, multi-family dwelling, townhouse, or condo. The measurable aspect would detail that it needs to be a two-story building with three bedrooms and two bathrooms. Such a project is assignable to the construction team, realistic in terms of demand, and time-related, requiring completion within a year. Setting Personal and Professional Goals Another example can pertain to personal development goals, such as becoming more punctual at work or school. This goal is simple but important. It can be made SMART by specifying the steps to achieve punctuality, measuring improvements in attendance, assigning goals to oneself, ensuring that the need for punctuality is relevant, and setting a timeframe for improvement. Benefits of Implementing SMART Goals Clarity and Focus : By clearly defining goals, teams can focus their efforts on what truly matters. Motivation : SMART goals can motivate team members to achieve their objectives by providing them with clear benchmarks. Enhanced Performance : With measurable steps outlined, it's easier to track performance and adjust strategies as needed. Improved Accountability : Assigning specific goals enhances personal accountability among team members. Long-term Success : When goals are realistic and time-bound, they contribute to the long-term success of an organization. In summary, SMART goals are instrumental in shaping the strategic direction of an organization. When challenges arise, revisiting these structured goals can help management stay aligned with their overall objectives. Conclusion SMART goals set the foundation for all initiatives within an organization. They clarify expectations and drive performance. By adhering to these principles, teams can not only achieve their targets but also foster an environment of success and collaboration. References Zutter, S. B. (2019). Principles of Managerial Finance, 15th edition. New York, NY: Pearson. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

Risk management might sound a little intimidating at first, but it’s actually one of the most helpful—and even exciting—parts of running a project or business. Why? Because risks are part of everyday life. Some bring challenges, and others bring great opportunities. The key is learning how to handle both. What Is Risk Management? At its heart, risk management is about being prepared. It means looking ahead, thinking about what might go wrong or  right, making a plan, and protecting the project’s success. Most teams have a dedicated person for this role—a risk manager—who helps guide the team through any bumps in the road. What Does Risk Management Involve? Risk management includes: Identifying risks  – the good (opportunities) and the bad (threats) Evaluating how likely they are and how much they could affect the project Making a plan  to deal with those risks Taking action  to reduce problems or take advantage of opportunities Keeping track  of everything and making changes as needed As stated in the PMBOK® Guide – Seventh Edition , a “risk management plan is a component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed” (Project Management Institute, 2021, p. 186). In simple terms: the goal is more success, fewer setbacks. It’s a Team Effort Risk managers don’t work alone—they team up with everyone involved in the project. Some risks are: Accepted (you live with it) Avoided (you prevent it from happening) Reduced (you lessen the impact) Transferred (you hand it off, maybe to a legal team or insurance company) And not all risks are bad! Positive risks—like a new chance to grow sales—can turn into big wins if planned for properly. Why Team Input Matters One of the smartest parts of risk management is listening to your team. The people doing the work often spot potential problems early or offer simple solutions. Including their feedback from the beginning can save time, money, and stress. It’s also smart to include contingency planning—a backup plan in case something unexpected happens. Why Learn Risk Management? In a fast-changing world, knowing how to manage risk helps you stay calm, think clearly, and make smart choices. It’s a skill that can boost your confidence and help you grow your career—especially in jobs where things change often. Want to learn more? Explore certificate and degree programs at your local community college or university. And if you want to go even further, consider earning the PMI Risk Management Professional (PMI-RMP)  certification to strengthen your skills and stand out. References A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Seventh Edition and the Standard for Project Management.  (2021). Newtown Square: Project Management Institute. PMI Risk Management Professional (PMI-RMP)® . (2025, June 30). Retrieved from Project Management Institute: https://www.pmi.org/certifications/risk-management-rmp Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

Budgeting is a component that all organizations cannot afford to avoid or ignore. Information collected to develop a reliable budget comes from various parts of an organization. Information from the human resources, operations, marketing, research and development (R&D), finance, and accounting management functions all play a part in the creation of a good, reliable budget. At any rate, it is used as a tool to help in personal and business finance. Without this tool, unfounded estimations can be made. Establishing goals that are specific, measurable, assignable, realistic, and time-related (or SMART) to a cash budget can be performed which will allow decision makers to make better short-term and long-term financial and strategic decisions. By generating more cash flow than it needs to pay bills and invest in new current and fixed assets, a firm creates value for shareholders or owner’s (Zutter, 2019, p. 156). So, if an organization can identify and invest in an optimal, sustainable amount in marketable securities that are equivalent to their fixed assets that are contribute to their core competencies they can potentially see benefits. Particular attention to planning for cash deficits and surpluses is given by financial managers and other decision makers. Which places a spotlight on the opportunity to also plan the budget to include a way to address fixed expenses. In fact, some may argue this is the better of the two between regarding the marketable securities approach. Either way, the fixed assets or fixed expenses concept, has the potential to improve working capital among other things. And the marketable securities concept can be applied in both personal and business finance. The cash budget, or operating budget, is generally one year or less. Estimating total income and expenses for a full 12-month period may seem like a daunting task but favor leans to eliminating if not reducing waste. And waste includes time, not just money. Good financial decision-making warrants exploration of the12-month budget forecast approach for any organization or individual. Taking it further, preparation of 3-year cash budget plans is something to be achieved! In most organizations, it is required at the C-suite level. While it is not unheard of, it is an effective financial strategy that some organizations seek beyond the ‘six-months of emergency funds’  concept. Which may provide an individual or organization the financial stability and flexibility to make better decisions regarding the quality of their life or organization. In summary, cash budgeting helps decision makers better manage their ability to satisfy their financial and strategic obligations. Some have heard six months of emergency is sufficient. But, as we know, times have changed. It may now be reasonable to begin retaining enough money to pay all expenses for one full year. Wise managers can agree budgeting can be challenging and even frustrating but having an effective solution that best fits the organization’s needs is tantamount! Create and execute a budgeting plan with SMART objectives that are aligned with the organization’s short- and long-term goals. This will bring benefit in the form of value or profit…or both!   References Zutter, S. B. (2019). Principles of Managerial Finance, 15th edition.  New York, NY: Pearson. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

Project team member describing a project A passing grade on an exam, an increase in profits, championship celebrations, vacations, cruises, colonizing Mars, improved quality, family gatherings, newly built venues, or residential buildings—all these are outcomes or results of projects. But what exactly is a project? What Is a Project? According to A Guide to the Project Management Body of Knowledge’s 7th edition , a project is defined as “a temporary endeavor undertaken to create a unique product, service, or result” (PMBOK Guide -- Seventh Edition and the Standard for Project Management, 2021, p. 4). Projects have a clear start and end date and are not ongoing. They can last from several weeks to several years and may consist of one phase or multiple phases. Strategic management (projects) cannot be implemented without business management (operations). While top-down and bottom-up approaches can be used independently, they work best when aligned, especially from an organizational perspective. The top-down approach often relates to project direction and strategy, while the bottom-up approach is closely tied to business operations and day-to-day decision-making. Together, they create a more balanced and effective way to manage both projects and the overall business. In the context of family, projects are a spouse to operations, and operations are a spouse to projects. They are married and in it together. One is not more important than the other. The Nature of Projects Projects imply action. You can think of projects as verbs. Developing, designing, testing, identifying, modifying, expanding, and divesting represent actions taking place. These verbs are utilized in a temporary context against a requirement, task, or responsibility. Examples of Projects Projects can encompass a wide variety of activities. Here are some examples: Executing a strategic plan Identifying and targeting a market segment Developing a new mobile app Implementing a new methodology Finding a new doctor Completing coursework towards a degree Selecting a new business location Hiring new staff Shopping Constructing a new residential condominium Creating a new division within the organization Projects can be anything. However, the level of detail in a project can be a game-changer. Projects can lead to high or low morale, happy or unhappy stakeholders, wealthier clients, satisfied customers, reduced waste, and lower costs. “Projects drive change in organizations. From a business perspective, a project is aimed at moving an organization from one state to another state in order to achieve a specific objective" (PMBOK Guide Sixth Edition, 2017, p. 6). Figure 1-1: From Current State to Future State Figure 1-1 illustrates an organization at its current state with only three divisions seeking to undertake a project to create a new division, its future state. The perceived benefit is that the new division will bring value (or generate revenues) and better efficiency for the organization and its affected stakeholders. Project Activities and Deliverables Project activities, also known as work packages, are the tasks needed to achieve the project deliverables. Project deliverables can be thought of as pieces of a puzzle. Like a puzzle, all pieces must fit for the puzzle to be completed. The same concept applies to projects. Completing deliverables on time and under budget is considered a project success. In the case of the new division project, success would mean launching the division by the agreed-upon deadline without exceeding the allocated budget. Meeting both time and cost goals is a clear indicator that the project was effectively managed and achieved its objectives. However, does a completed project guarantee excellent or even good quality? Of course not. That’s where the triple constraints theory becomes crucial. Figure 1-2: Triple Constraints Theory Understanding the Triple Constraints Theory See Figure 1-2 for the Triple Constraints Theory. What you do or do not do in a project (scope), project budget (costs), and how long it takes (time) all influence the quality of a project. These three elements are known as the triple constraints, and they impact the quality of results, services, or products. Trade-offs must be made. An extension of time may require additional funding; lowering the project budget may mean reducing the scope; or low quality may necessitate additional scope. These decisions depend on the client or customer's requirements and budget allocated for the project. Projects can be a match made in heaven, a total nightmare, or somewhere in between. Good strategic planning and execution lead to effective selection and implementation of projects. Careful consideration of these relevant constraints during projects is critical for success. The Importance of Quality Quality brings value. Business value creation is derived from projects. Value can be strategic, financial, tangible, or intangible. Most organizations strive for a combination and a healthy balance between them all. Many factors can spark a project. External drivers, macroeconomic conditions, the need for improvements, regulatory and legal requirements, demands from clients or customers, political changes, social needs, environmental considerations, or economic changes can all be factors in deciding to launch a project. The key point is that projects are initiated to address issues, resolve problems, execute plans, meet social or regulatory requirements, satisfy stakeholder needs, or respond to what 'sparked' the project in the first place. Resources and Time Management Projects utilize time and resources, such as money and people. Because projects are temporary and have a defined start and end point, the time and resources needed are also temporary. Once the project is finished, these resources are released back to operations. A common misconception is that the same people in operations work on projects with the expectation of at- or above-average performance results. In practice, projects are separated into project teams with specific roles and responsibilities. Day-to-day titles and responsibilities are non-existent on a project team, while project roles and responsibilities govern the culture and norms of projects. The reality is that humans can reach burnout sooner than machines or automation. Low morale and declining mental or physical health can also be significant issues. Projects help to support, attack, protect, and improve situations that need attention. They can be predictive or uncertain. The Role of Project Management Projects can be conceived and executed by any individual, team, or organization. The effectiveness and efficiency of these projects can determine success or failure. Project management is essential and naturally comes into play during the project process. The application of project management is where the fork in the road becomes most apparent. “Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements" (PMBOK Guide Sixth Edition, p. 10). Most organizations seek certified project professionals who can apply project management knowledge, tools, and techniques to support or drive change. Stakeholder buy-in, understanding roles and responsibilities, governance, and oversight are crucial for a successful project. Certified project professionals initiate, plan, execute, monitor, control, and close out projects, increasing the likelihood of achieving success. Transitioning to Operations Once the project is finished, the results can be incorporated into the organization’s operations as seamlessly as possible, and the resources are released back to their normal duties. As we progress into the second half of the decade, we are likely to see an increase in projects. More projects are being implemented to find and reduce waste, achieve cost savings, and improve business processes. While operations are here to stay, automation is being pushed by organizations, freeing up resources for projects. The best thing organizations can do is embrace this inevitable change and find a way to coexist with the onset of artificial intelligence and automation. After all, projects that focus on optimizing automation and artificial intelligence alongside human resources will have greater leverage than organizations focusing solely on one area. Conclusion Understanding the intricacies of projects is essential for any organization aiming for success. Projects are not just tasks; they are strategic endeavors that drive change and create value. By effectively managing projects and considering the triple constraints, organizations can achieve their objectives and thrive in an ever-evolving landscape. References A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Seventh Edition. (2021). Newtown Square: Project Management Institute. A Guide to the Project Management Body Of Knowledge Sixth Edition. (2017). Newtown Square: Project Management Institute. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

Setting goals is a fundamental aspect of leadership. However, it can often be challenging for leaders and managers. Understanding the difference between SMART goals and smart objectives is crucial. While they are similar, they serve different purposes. Generally, goals are long-term aspirations, while objectives are short-term targets. Both, however, should adhere to the SMART criteria. What Are SMART Goals? A SMART goal is defined by five key characteristics: Specific : The goal must clearly define what is to be achieved. It should describe an observable action, behavior, or achievement linked to a rate, number, percentage, or frequency. Measurable : There must be a method in place for tracking and recording the specific action or achievement. This allows for assessment of progress. Assignable : Goals should be set in a way that individuals or teams can realistically achieve them. Realistic/Relevant : The objective should be seen as important by those involved and something they can influence or change. Time-related : A specific date or time frame should be established for achieving the goal. For example, consider a construction company aiming to build a new home. While this is a goal, it lacks specificity. See Figure 1.1. Specific Measurable Assignable Realistic/Relevant Time-Related Single unit, one story home 2,000 sq/ft 1 acre of land XYZ Construction Co. Yes, will provide shelter to a homeless family Completed within 12 months from start date Figure 1.1: Example of a SMART Goal for a Construction Company The Importance of Specificity in Goals A clear and intentional goal provides all stakeholders with the information they need to succeed. In our construction example, the company must specify whether it will build a single-unit home, multi-family dwelling, townhouse, or condo. The measurable aspect could include the square footage on one acre of land. This goal is assignable to XYZ Construction Company, realistic for its intended purpose, and time-related, as it requires completion within one year. Stakeholders immediately understand that a new 3-bedroom, 2-bathroom home is expected to be built within 12 months. They also know it will not be a multi-family unit, townhouse, or condominium, but rather a one-story, single-unit home constructed by XYZ Construction Company. If issues arise, such as delays, builders are aware of the specific deadline they must meet to avoid additional charges. Establishing SMART goals allows stakeholders to quickly assess their alignment with the intended objective. The Role of Leaders in Setting SMART Goals Organizational leaders and managers play a critical role in setting SMART goals and objectives. They establish the tone for all actions and decisions within the organization. These goals should be implemented at all management levels and across various departments. SMART goals serve as a management tool, guiding stakeholders when conflicts or opportunities arise, whether related to market conditions, customer needs, or supplier relationships. Conclusion: The Path to Effective Goal Setting In conclusion, setting goals without a means to verify progress can lead to ambiguity. By breaking down goals into specific, measurable components, leaders and managers can make informed decisions about the organization's direction. This structured approach not only clarifies expectations but also enhances accountability and performance across the board. Additional Resources For further insights into effective goal setting, consider exploring resources on project management and leadership strategies. Understanding the nuances of SMART goals can significantly impact organizational success. References Zutter, S. B. (2019). Principles of Managerial Finance, 15th edition. New York, NY: Pearson. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

A risk manager conducting a team meeting on potential risks and opportunities for the company. Risk management might sound intimidating at first, but it’s one of the most helpful—and even exciting—parts of running a project or business. Why? Because risks are part of everyday life . Some bring challenges, while others present great opportunities. The key is learning how to handle both effectively. What Is Risk Management? At its core, risk management is about being prepared . It involves looking ahead, considering what might go wrong or right, making a plan, and protecting the project’s success. Most teams have a dedicated person for this role—a risk manager —who helps guide the team through any bumps in the road. What Does Risk Management Involve? Risk management includes several critical steps: Identifying risks – the good (opportunities) and the bad (threats) Evaluating how likely they are and how much they could affect the project Making a plan to deal with those risks Taking action to reduce problems or take advantage of opportunities Keeping track of everything and making changes as needed As stated in the PMBOK® Guide – Seventh Edition, a “risk management plan is a component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed” (Project Management Institute, 2021, p. 186). In simple terms: the goal is more success, fewer setbacks. It’s a Team Effort Risk managers don’t work alone—they collaborate with everyone involved in the project. Some risks can be: Accepted (you live with it) Avoided (you prevent it from happening) Reduced (you lessen the impact) Transferred (you hand it off, perhaps to a legal team or insurance company) Not all risks are negative! Positive risks—like a new chance to grow sales—can lead to big wins if planned for properly. Why Team Input Matters One of the smartest aspects of risk management is listening to your team . The people doing the work often spot potential problems early or offer simple solutions. Including their feedback from the beginning can save time, money, and stress. It’s also wise to incorporate contingency planning —a backup plan in case something unexpected happens. Why Learn Risk Management? In a fast-changing world, knowing how to manage risk helps you stay calm, think clearly, and make smart choices . It’s a skill that can boost your confidence and help you grow your career—especially in jobs where things change frequently. The Benefits of Effective Risk Management Effective risk management can lead to numerous benefits, including: Increased Project Success Rates : By identifying and addressing risks early, teams can enhance their chances of project success. Improved Resource Allocation : Understanding risks allows for better allocation of resources, ensuring that time and money are spent wisely. Enhanced Team Collaboration : Engaging team members in the risk management process fosters collaboration and strengthens team dynamics. Greater Stakeholder Confidence : A well-managed project instills confidence in stakeholders, leading to better relationships and support. How to Implement Risk Management in Your Projects Establish a Risk Management Framework : Create a structured approach to identify, assess, and manage risks throughout the project lifecycle. Conduct Regular Risk Assessments : Schedule periodic reviews to evaluate new risks and reassess existing ones. Engage Stakeholders : Involve stakeholders in the risk management process to gain diverse perspectives and insights. Document Everything : Keep detailed records of identified risks, assessments, and actions taken to manage them. Review and Adapt : Continuously monitor the effectiveness of your risk management strategies and make adjustments as necessary. Conclusion In conclusion, risk management is an essential component of successful project management. By understanding and implementing effective risk management strategies, teams can navigate challenges and seize opportunities. Want to learn more? Explore certificate and degree programs at your local community college or university. If you want to go even further, consider earning the PMI Risk Management Professional (PMI-RMP) certification to strengthen your skills and stand out. References A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Seventh Edition and the Standard for Project Management. (2021). Newtown Square: Project Management Institute. PMI Risk Management Professional (PMI-RMP)® . (2025, June 30). Retrieved from Project Management Institute: https://www.pmi.org/certifications/risk-management-rmp Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .

For starters, project and operations management are not the only management applications experienced in organizations. Portfolio and program management are among others. See Figure 1.1 Relationship Between Strategy, Portfolio Management, Program Management, Project Management, Operations Management, and Business Value.  Our focus is on project and operations management. It is important to note right off the bat that one is not better or more important than the other. Truth is, they need each other even though the argument can be made that they both can hold their own in their respective management disciplines.   Figure 1.1. Relationship Between Strategy, Portfolio Management, Program Management, Project Management, Operations Management, and Business Value. To understand project management, understanding what defines a project must be understood. A project  is “a temporary endeavor undertaken to create a unique product, service, or result” (A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition., 2017, p. 4). In short, there must be a starting point and an end point. This is distinct and different from something that is ongoing, or operations. “Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements” (A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition., 2017, p. 10). Project management brings an idea to life in a deliberate, concerted fashion in a way that brings value in the shortest amount of time at the lowest possible cost in an integrated, systematic way. Project management is not just an application of knowledge, skills, tools, and techniques, it is also a strategic competency. Projects can be executed in the realm of portfolios, programs, or stand-alone projects altogether. But, by definition, they are temporary and will end. Whereas operations management “focuses on the efficient, effective production of products and/or services” (A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management, 2025, p. 9). See Figure 1.2. A Basic Illustration of the Symbiotic Relationship Between Operations and Project Management . Project managers “perform a variety of functions such as facilitating the project team’s work to achieve the intended outcomes and managing the processes to bring about those outcomes in order to enable value delivery” (A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management, 2025, p. 5). Project managers are the central point of a project. Additionally, they provide oversight and collaboration, solicit and manage feedback, facilitate support, perform work, apply expertise, provide organizational direction and insight, and provide resources to projects. Projects are temporary, dynamic, and non-routine. Figure 1.2. A Basic Illustration of the Symbiotic Relationship Between Project and Operations Management. Project management and operations management can work separately and independently of one another but when they come together it creates a type of business value that could not be achieved if executed separately and independently of one another. Project and operations management have, or should have, a symbiotic relationship. They work, in tandem, together. Or should. If all management levels of an organization work together to plan and execute their strategic and financial goals by successfully integrating project and operations management well, the likelihood of success increases, and they will have satisfied stakeholders. Operations management, at the other end of our focus, makes sure the operations that the business undertakes are done as accurately as possible and as fast as possible at the lowest costs while meeting the demands of its customers or clients/etc. It is defined as "activities that relate to the creation of goods and services through the transformation of inputs to outputs" (Jay Heizer, 2017, p. 4). Operations are continuous, not dynamic, and are routine. Operations managers perform the basic functions of the management process: planning, organizing, staffing, leading, and controlling towards the ten (10) operations management decisions they must make. Ten (10) Strategic Operations Management Decisions (Jay Heizer, 2017, p. 8): 1.      Design of goods and services 2.      Managing quality 3.      Process and capacity strategy 4.      Location strategy 5.      Layout strategy 6.      Human resources and job design 7.      Supply chain management 8.      Inventory management 9.      Scheduling 10.   Maintenance Tying the two together, if an idea is thought of it is planned and executed at the project-level before it is considered successful and passed on to operations to ensure that the necessary resources are optimally utilized to maintain the expectations/results of the project. An impactful, goal-oriented organization has less of a chance at achieving their objectives without an appropriate level of both project and operations management. It is becoming more necessary and common for organizations to enable change and business value through projects. Operations management help sustain or “finish” what projects have started. Change is not going anywhere. In fact, change is accelerating at a quick pace. Project managers (aka change makers) are a starting point for organizations to begin their pivots to embrace change in a way that is best for themselves while operations managers attempts to align the above mentioned operations management decisions in alignment with the project and the business value generated from the project(s). Long story short, project and operations managers working collaboratively and effectively can be developed to be competence for an organization, leading to a higher success rate of initiatives, improved value delivery, and better returns. References A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition. (2017). Newtown Square: Project Management Institute, Inc. A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management.  (2025). Newtown Square: Project Management Institute, Inc. Jay Heizer, B. R. (2017). Operations Management: Sustainability and Supply Chain Management, Twelfth Edition.  Pearson. Project Management Offices: A Practice Guide.  (2025). Newtown Square: Project Management Institute, Inc. Meet Nikia Smith , Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com .