This article looks at the impact of Blockchain on project management. While we have touched upon impact of Blockchain technology on brokerage services, what is its impact on project management?
The decentralized public ledger, synonymous with blockchain finds application in Project Management, where there is a possibility to establish private “Permissioned Blockchains”. Privately held and run by a distributed administration, these could be used for setting up rules of governance, smart contracts, defining project scope and budget and monitoring deadlines and deliverables.
The Working Methodology Behind PM Blockchain Technology
Most projects management cycles undergo much filtering and focusing on key issues in building phase for successful completion. A similar approach is taken in PM blockchain where transactions are registered only at mutually agreed and legally binding moments. Take for instance the time at which a work is approved and delivered. The contractor will transact an invoice (registered on the blockchain) that will be approved by a project manager/developer which will cause another transaction/payment log on the blockchain.
The Many Benefits of Blockchain in PM
Other than transparency in transactions, blockchain also makes managing project scope easier due to fewer errors and lack of miscommunication. With all stakeholders including developers and project managers on the client side and contractors and subcontractors on the supplier side; able to view the ledger simultaneously, instances of project overruns are reduced. Since all transactions are registered in real time there is no lag between completion of tasks and assigning new ones. This builds efficiency in the workflow and leads to faster delivery.
Integration of blockchain into project management could very well be the answer to combating project administration fatigue.