Taking the cue from an article "When VCs pull the plug" by Mary Anne Tan (The Edge Malaysia, Feb 3 - Feb 9, 2003 issue), I feel I must write in this column, a few misconceptions on the part of the Investees regarding Project Management. True to the call of VCS seeking out good investees and pumping funds into them, the bottom line is on the Return On Investment (ROI) of projects undertaken by the investees. It is unfortunate that some investees do not realise the need for good project management of their projects, resulting in their project team struggling to meet its deliverables. There are more to just meeting deliverables because there are many factors which results in good project management - there are nine areas to look into:

Time Management
Cost Management
Quality Management
Scope Management
Communication Management
Human Resource Management
Procurement Management
Risk Management
Integration Management

A common system of project management methodology, control processes, documentation and communication channels need to be created in both the Investor and Investee companies so that communication tools like documentation, reports, kinds of information, and language are standardised to enhance communication between the Investor and Investee. Also, project Key Performance Indicators (KPIs) can be readily identified with a system like this, and this helps the investor to keep tabs on the project progress and performance; whilst the investee uses the KPIs to help plan the project, implement and control the project. But none of this is going to materialise if both Investor and Investees do have the right people with project management skills and knowledge.

In 2003, I had been approached by a local VC Investor to propose a project management training for its Investees. This I feel is in the right direction for an Investor to come up with this initiative to assist Investees to manage their projects better; and for the Investor to monitor the health of their project investments - a win-win situation. My thoughts on such a programme is not just provide the training, and then disappear on my part or the Investor, but to build a mentoring programme to enhance the value of the knowledge transfer. I call it a "Project Champion Programme" where the Investor identifies Investees having good project management track record and make them mentors to other Investees. There is no conflict of interest in doing so, and the programme needs to be executed with a culture of shared vision and understanding to improve each other through lessons learned, "on-the-field" advice, and best practices. Ideally the Investor should develop this programme to be a project knowledge pool and help desk (or sometimes called Project Management Office).

Hopefully Malaysian VC Investors and Investee companies take up to promote project management; and make it a compulsory management requirement before funds are disbursed to the Investees, because like I had said, at the end of the day a good ROI of a project is determined on one part to the management of the project.