Tips and Tricks

CRITICAL PATH

Written by MEL | Jan 3, 2020 9:40:00 AM

Railroads connect point “A” with point “B,” with railroad engineers using a construction concept called the “Critical Path.”

But in many cases, the Critical Path is not a straight line: railroads go through woods and rivers, and mountains and deserts, where each section is built with maximum efficiency under the circumstances and conditions of the terrain they go through.

How does the “Critical Path” concept apply to PPM?

Before the advent of the Internet, most business organizations would develop two- to five-year business plans and then move forward to execute those plans. But the Internet changed market dynamics, adding higher volatility, which in turn required organizations to adapt to ever-changing market conditions almost instantly.

In today’s day and age, the only way to develop a successful business plan is to build it using individual Projects, like the sections of a railroad. The ultimate goal for each section is to lay the foundation for being able to react in a timely fashion to market trends and conditions in almost real time (market terrains). As such, the next section will bring the organization closer to its vision and business goals even if the PPM Critical Path is not a straight line.