What Domain Knowledge is Needed to Manage a Project?
A project manager doesn’t have to be an expert in a project’s domain area to serve as PM. But they must possess some domain knowledge to be effective. Here is the general domain knowledge needed to manage a project.
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Processes and regulations. Domain areas have specific approaches to work and standards that must be understood. For example, in the drug industry, processes for introducing new medicines are rigid. These must be understood to deliver project outcomes. In construction, one must know the laws that restrict a building’s design. Without this, the building could become unusable without expensive modifications. In healthcare, managing and sharing data requires both health and technology process knowledge. Without this vital domain knowledge, project managers have reduced foresight. And they are unlikely to gain the respect of their project teams which makes it difficult to succeed.
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Sources of risk. Effective risk management involves understanding the challenges that may present themselves. The project manager must know enough about the domain area to anticipate possibilities. They also should understand the probability of them coming to fruition. While having an expert team member as a management partner can help, it isn’t enough. The project manager needs to interact with key stakeholders without deferring to others. They must also react to situations that occur daily. Having to constantly refer to an expert partner impacts the project manager’s perceived authority. It also brings their abilities into question, reducing effectiveness.
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Ability to assess business value. Projects are all about creating business value. Sometimes that value is obvious, like creating a new drug that cures a disease. Other times, value propositions are more subtle, requiring industry expertise to understand them. For example, the value of a great website is that it is easy to maintain after delivery to a client. So, website construction techniques are important. The project manager should participate in construction decisions to ensure maintenance is straightforward. This requires an understanding of the capabilities of modern coding languages. Knowledge about AI tools and search engine optimization is also useful. Unless the PM has some level of experience in these areas, they could overlook critical project activities.
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Management practices and cultural expectations. Domain areas have varying norms around how decisions are made. The expertise that is most valued, and how clients and their vendors work together also vary between domains. Industry trends might not be easy to identify without domain experience. Understanding these nuances are vital for a project manager to succeed. These can be learned on the job if knowledge gaps aren’t extensive, but that must be done quickly so project success isn’t impacted.
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