Warning Signals Factors of Project Management

Subject: Organizational Management
Pages: 1
Words: 339
Reading time:
2 min
Study level: College

Every project management team should be aware of warning signals to continue its function. The warning signal is any factor that can undermine the expected outcomes of any project, while the related diagnostic signal is following a response to the warning signal (Pascoe, 2021). This essay discusses three warning signals that are product differentiation, cost estimation problem, and sales management plan. Product differentiation is a common problem of goods provided in the markets (Pascoe, 2021). In a competitive market, the goods and services of a company should be distinguishable from the ones of competitors. Often some products are less differentiated than others, and this is one of the early warning signals. For example, in a market, toothpaste can be expensive than other similar products, but if customers do not see the value of paying more for similar toothpaste, sales will decrease. Therefore, effective marketing strategies and promotion are solutions that bring value to the product.

The cost estimation problem is a warning signal when a company cannot estimate how much its products and services should cost. It is a complex process requiring finding the right method of estimation. For example, if a streaming service will cost much more than alternatives, it will probably have fewer customers. Quantitative analysis was found to be the most convenient method to estimate the cost (Sekhar & Rajagopalan, 2012, p. 443). It can be used as a diagnostic signal to identify the problem of cost estimation.

Warning signals can also be found in sales management. The under-performing sales management team should be controlled and monitor constantly. For example, if a product does not show an increase in sales for a long period, it is a sign to look at the sales management plan. As a response to warning signals, finding effective diagnostic signals is critical. Credit monitoring programs and stronger risk management are the best ways of identifying factors affecting the goods and services of a business structure (Pascoe, 2021). Such programs can help to control financial operations and to minimize risks of loss.


Pascoe, M. (2021). 12 Early Warning Signs of a Business at Risk. Stratford Group Ltd.

Sekhar, L. R., & Rajagopalan, A. (2012). Management accounting. OUP India.