Silver Lining: Why the Economic Recession
May be Good for Project Management!

By David L. Pells

What a mess!  The US economy is officially in recession, and apparently has been for the last year.  The economies of Germany and the UK are also close to or in recessions as well, as are the economies of many other European countries.  There are a few exceptions, Finland for example.  But across the globe, the effects of the economic crisis in the United States and other developed countries have been felt by all those engaged in the “global economy”.

Generally speaking, the impact of the global economic downturn is very negative, as financial markets decline with resulting losses in wealth; as markets,  industries and organizations contract; as unemployment grows; and as individuals and families are hurt.  The recession is affecting most local, national and regional economies, at different rates and in different ways.  The big question for those of us in the PM world is how current economic conditions and trends are affecting project managers and the project management profession. 

The biggest negative impact on PM will be the cancellation or delays of capital investment, and therefore in programs and projects, in many industries.  Short term impact will therefore include job losses for project managers and project teams.  The next biggest effect will be on the families of project team members, as more family members become unemployed and as general economic conditions affect everyday citizens.  Other negative effects will include stresses on budgets, schedules, customers, supply chains, and other aspects of project management, and negative pressures on the PM products and services industry.  It’s going to be painful for all of us in the months ahead.

In the long run, however, there may be a silver lining.  Project management may be set to benefit in unexpected ways.  In my opinion, the project-oriented approach and professional project management will be even more seriously and widely embraced in the future by business and government leaders worldwide.  This will lead to increased demand for project management, project managers and PM professionals.  Let me explain why I think this is true.

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