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The key feature of this activity is recognizing that identifying candidate projects is something that an organization should do on a regular basis, not just once each year. Further, when examining projects for approval, it is vital to also examine the resource capacities and capabilities available for assignment. It is futile to assign a major new project requiring extensive discovery of business requirements if no business analysts are available. Project Identification proceeds Project Initiation.

Helps to keep control of costs: Depending on the scope of the project, some projects can incur organisations significant costs. It is important therefore to keep on budget and to control spending. Project management greatly reduces the risk of budget overruns.

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Due to the triple constraint which project managers face with regards to quality, time and scope, the way in which a PM deals with these constraints on top of all the other aspects of the project that need to be managed means a lot when judging a PM's skill on a project manager resume. Without Project Management there would be chaos in organisations which would induce stress, uncertainty and higher rates of failure, highlighting project management's essential nature to organisations.

Helps to manage change: Today, more than ever, change is something which all organisations face. Projects, during their running, also face changes and must be prepared to face such deviations from the original plan. Project management allows for effective change management and makes it less of a complex task.

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