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Jun 24
Why Business Owners Make Terrible Project Managers and What Does a Project Manager Do

Why Business Owners Make Terrible Project Managers: What Owner-Led Project Management Is Really Doing to Your Company

Design approvals? You got it.

Comms with both old and new clients? You got those, too.

Tracking backlogs? Workflow queues piling up? Campaign follow-ups? Whatever it is, you, the business owner, have got it all under control.

Or do you really?

This isn’t micromanaging. That’s a whole separate topic, which we talk about in another article (link to micromanaging, etc). What’s really going on here?

It’s that there’s nobody on your team whose main responsibility is to oversee these tasks. By default, you step into the shoes of a “substitute” project manager. Never mind that your business and growth plans have been set aside in place of managing project timelines and workflows.

But being good at running a business isn’t the same as being good at managing projects. And most AU business owners have never tried distinguishing one from the other.

What is owner-led project management costing you, and how is it affecting both your business operations and your team’s workstreams and dynamics? That’s what this article will answer.

What is a project manager?

Key Takeaway / Quick Answer

A project manager is the person responsible for turning business plans into coordinated action. They oversee timelines, priorities, communication, accountability, and workflow movement, so work keeps progressing without relying on the business owner to push every task forward. Their role goes beyond scheduling; they create structure across people, processes, and delivery. When no dedicated project manager exists, those responsibilities often default to the business owner instead.

The Psychology Explained: Why You Keep Doing the Job Meant For Someone Else

You know you’re stretched way too thin. But at the back of your mind, you want to be able to tell yourself you’re giving it everything you’ve got. It’s your business after all. You’ve got skin in the game.

So, you keep at it. Even if the skillset required for managing and coordinating projects is on a completely different page from what defines the role of a business owner.

You snatch every unassigned project. You grab unmet deadlines and stacked tasks. Anything that doesn’t have anybody’s name on it. A lot of them are unowned because, really, the person who should be owning them isn’t there.

Is it a “you” thing? Not quite. Gallup Business Journal study says so:

Only 1 in 4 employer entrepreneurs have high “Delegator talent.” 75% have limited-to-low levels of it.

 

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The Tug of War Between Identity Investment and Delegation

There’s another side to explaining why you feel as though keeping everything moving is your full responsibility, and why stepping back seems like an odd choice to you. Organizational psychologist Michael Watkins identifies it plainly as: identity Investment. A real psychological mechanism.

Would you describe yourself as someone who has to do everything, not because you view others as though they’re incapable, but because letting others do the same tasks for you can feel “off”?

According to Watkins, the reason is that it’s part of your self-concept. So much so that not having all the work on your plate can feel like an identity threat. Whether you’re conscious of it or not.

Though recognizing it is a good thing, it doesn’t change the fact that it’s not beneficial to you, nor to your business.

It’s also less of a “you” issue. The tension is actually more like this: no one’s assigned the PM role (in title or in accountability) to anyone else. To oversimplify it. As the owner, you absorbed it. This continued the next day. Tasks and jams overflowed to the next, and on and on. Until it became routine.

What To Do: Write down all the “project manager tasks” you do. If you’re unsure which is which, think of it this way: if they have nothing to do with growing your business, like making decisions about expansion, investing, or evaluating finances, creating partnerships or collaborating with other businesses, and such, those are PM tasks.

They belong to someone else. Not to you.

Signs You’re Running the Project, and Not the Business

Use this as a checklist as you evaluate how you’ve been “taking over” the role of a project manager. Something you can hold yourself against and encourage yourself to get the right role in your team.

Team members rely on you signing off on whether to start tasks or not
You’re the only one who can give updates on current project statuses
Deadlines are often moved, mainly because you haven’t had time to go over submissions
You get asked the same question more than once, and by different people; there’s no single person who can do the checking
There’s a lot of redoing of work because the instructions are with you; you don’t get the time to disseminate them (or they’re in your head, and you think everyone else gets it the way you do)
You’ve become the point person for communications within the team, within departments, as well as communications with clients who want updates
No shared documentation about workflows, past, current, or future; they’re all stored in your memory
You’ve said “let me handle this one” every week or two

Two or three of these are enough to let you know you’ve crossed over from business owner to project manager stand-in.

Project Management Is Bigger Than Scheduling (Research Shows It)

You may still be hesitating about passing the baton over to a project manager because hovering over your thoughts is this: the PM’s work is “outside” actual business operations.

But coddling this thought subtly suggests to you that they function separately. And if they’re external, why the need to bring the specialist in, right?

You’re not alone in thinking along these lines. Other Australian businesses encounter the same hesitation when hiring PMs. However, the evidence has a different take on it.Project Management Is Bigger Than Scheduling in What Does a Project Manager Do

The Value of a Project Manager/Project Management

Overflowing work and bottlenecks can, every so often, make project management appear nothing more than administration. Not a valuable business function. Yet current management research suggests this:

Project management is among the functions that help push plans into decisions.

Project Management Institute (PMI) recently surveyed more than 5,800 project professionals and knowledge workers globally. Their goal was to understand how delivery becomes successful, and how it folds, then fails in execution.

Only 50% of projects met their definition of success. 37% were in partial delivery. The rest of the 13% outrightly failed to complete.

— Project Management Institute (PMI)
Global Survey of 5,800+ Project Professionals

Executives surveyed alongside the study identified that budget wasn’t nearly the biggest barrier. Not ideas. Not even technology (nor a slow adoption of it). It’s that missing link between planning and execution:

A project manager.

Beyond Tasks & Workflows: PM Case Highlights

Even some of Australia’s renowned companies have reported tangible gains after bringing project leadership, and with that, delivery ownership. Here are a few familiar names:

Goodman Fielder (AU / NZ)

In January 2026, Goodman Fielder, Australia’s large FMCG (fast-moving consumer goods) food manufacturing and distribution company, formalized project management processes throughout its operations.

The move improved coordination in dedicated project planning and delivery practices. The company reported:

  • 3× faster roadmap planning
  • 30% fewer operational errors
  • Improved visibility across teams and decision-making speed

Operational teams stayed focused on operations while PM functions removed coordination drag.

TechnologyOne Limited (Australia)

TechnologyOne is a Brisbane-founded Australian software company, and they’re proof that project management isn’t only for enterprise-level businesses. They started out as an SMB, building ERP and software, and grew into a listed company.

What they did to accelerate growth:

  • Moved away from founder-led coordination
  • Chose to incorporate project management capability, consulting, and structured delivery

This kept the work moving as the business expanded.

PMI’s research was right on the money when it said that successful project management isn’t measured by tasks getting crossed off lists. Today, success is increasingly defined by whether the work created value relative to the effort, cost, and resources invested.

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What Being Your Own Project Manager Is Costing You

In this section, we’re focusing on the dollar value.

What many don’t know about is the financial cost tied to founder/business owner-led project management. It stays hidden. That is, until it detonates into a too-big-to-ignore catastrophe.

It’s tough to ignore payroll or ad spend since they’re highly visible. Software subscriptions have receipts. But there’s no monthly cost report about how much owner time was redirected to reviewing work and chasing after updates.

Still, it’s “labour.” As in any business or enterprise, labour has a cost besides the operational.

Here’s the formula for the annual cost of business owner-led project management:

Calculation Formula
(Annual owner compensation ÷ annual working hours) × (hours spent weekly on project coordination) × 52 (no. of weeks in a year)

Example:

Annual owner compensation = $250,000
Estimated annual working hours = 2,000
Approximate hourly value = $125 (you can change this according to what you think is the right number)

Hours spent weekly on:

  • following up on deliverables
  • reviewing work
  • giving feedback on reviewed work
  • giving instructions for revisions, if any
  • checking statuses
  • coordinating timelines
  • answering task/project questions
  • disseminating updates
  • documentation
  • scheduling
  • This list goes on…

Total = 15 hours per week

Calculation: $125 × 15 × 52 = $97,500 annually

Does that mean the business literally lost $97,500, and it’s missing from your books? No. It means around $100,000’s worth of your owner time was spent on coordination. None of it went to the business owner’s work.

This “perceived” number and “worth” calculation isn’t the end of it. Remember that that means sales conversions don’t happen. Partnership conversations? Not in any discussion. Planning is sidelined. So are hiring plans.

That’s where this second calculation becomes useful.

Value of displaced owner work:

Calculation Formula
(Weekly hours pulled away from growth work) × (estimated value per hour of that work) × 52

Example:

5 hours weekly diverted away from sales and business development
Estimated value = $300/hour

5 × $300 × 52 = $78,000 annually

Combined with the earlier example:

Owner coordination value = $97,500
Growth work displaced = $78,000

Estimated annual cost = $175,500

Over time, these thrust their weight into your business operations and workforce. You might not feel it now. Or maybe you are, in intervals. But you’ll soon witness the full-blown effect of what it’s really doing to your company, when business goals are hollowed out of any part of your daily owner pursuit.

This absorption of PM tasks may seem like the right call. It certainly looks cheaper. But calculate the cost. The real, long-term cost.

Learn How to Calculate Outsourcing Cost in Australia, and use the Remote Staff Free Outsourcing Calculator below to see your own numbers as you plan the PM hire:

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Proof That Owner-Led Project Management Doesn’t Work

Owner-led project management is a pattern. A bad one, to say it out loud. This table exemplifies it across the 6 major sectors in Australia (in which there’s a high demand for industry-focused project managers).

Project Management Impacts by Industry Type
20-person specialty agriculture operation
➔ Open Blueprint

Before a Dedicated PM: Crop planning, supplier coordination, harvest scheduling, and vendor follow-ups sat with the owner. Delays in one area repeatedly affected planting and delivery timelines.

After a Dedicated PM: A PM with agriculture-sector experience introduced recurring planning cycles, centralized coordination, and clearer ownership across seasonal workstreams, reducing owner involvement in daily scheduling.

12-person engineering consultancy
➔ Open Blueprint

Before a Dedicated PM: Project milestones, client updates, and technical review handoffs depended heavily on senior leadership. Project status lived across emails and meetings.

After a Dedicated PM: A PM introduced project tracking, structured reporting, and clearer approval paths, allowing engineers and leadership to spend less time coordinating delivery.

15-person allied health practice
➔ Open Blueprint

Before a Dedicated PM: Billing follow-ups, compliance documentation, and operational coordination accumulated weekly, with the owner fielding staff and client questions directly.

After a Dedicated PM: Workflow ownership shifted to a dedicated PM, reducing administrative follow-up and giving leadership more time for clinical and business decisions.

12-person marketing and creative agency
➔ Open Blueprint

Before a Dedicated PM: Campaign movement between design, copy, revisions, and client approvals stalled unpredictably. Deadlines slipped without clear visibility into blockers.

After a Dedicated PM: Deliverables moved through a documented pipeline with clearer handoffs, reducing rework and making project status visible without owner involvement.

18-person finance and insurance advisory firm
➔ Open Blueprint

Before a Dedicated PM: Client onboarding, compliance checkpoints, and internal approvals were coordinated manually by senior staff, creating bottlenecks during busy periods.

After a Dedicated PM: A PM formalized workflows and ownership across delivery stages, improving visibility and reducing dependency on senior leaders for routine movement.

14-person IT and technology company
➔ Open Blueprint

Before a Dedicated PM: Product requests, implementation timelines, and internal priorities competed for attention, with project decisions escalating back to founders.

After a Dedicated PM: A PM introduced prioritisation systems, reporting cadence, and structured delivery planning so founders spent less time coordinating execution.

Go over our article about the role of a specialised project manager in each of the 6 sectors mentioned above: Best Industries for Project Management.

When there’s a dedicated person who’s an expert at coordinating work and pushing workflows and plans forward, with industry expertise at that, the contrast will immediately announce itself throughout your operations.

Easier Said Than “Hire”: The Local Talent Scarcity

The general project manager has a place in various AU SMBs. But if you’re in an industry where specialisation and compliance are woven in, you’ll need someone who understands the requirements the work has to consistently be held up to.

The problem is that the local market pool is scarce. Yet the demand for project managers? High and growing.

How are Australian business owners dealing with it? They’re hiring offshore. This is where Remote Staff comes in, as we’ve been pairing Australian SMBs with project managers who are the perfect fit for their business workflows, as well as for the industry they’re in.

We carefully screen candidates for hands-on experience and expertise. We process payroll, onboarding, HR administration, and admin work. You just keep your eyes on taking your business where you want it to go.

Read about the Modern Slavery Act Australia and Payday Super 2026 to stay compliant in every corner of your business.

FAQs About What Does a Project Manager Do

What happens if there is no project management? (Are project managers really necessary?)

In SMBs, someone else in the team, and often, it’s the business owner, who assumes the role. Unofficially. Whoever takes the place of a PM sets aside tasks they’re actually skilled at to try to complete the PM work. This means parts of the business will become less productive. Bottlenecks and delays become recurring. And those are just some of the negative impacts of not having a dedicated project manager do the project coordinating work.

How do I know if my business actually needs a dedicated project manager? (Does every company need a project manager?)

Go back to the section of this article with the checklist. Check two or three, or more, of those, and that tells you your business needs a dedicated project manager as soon as possible.

Is a project manager’s job the same no matter the industry? (Can you be a project manager in any industry?)

A general project manager or administrative specialist can fulfill their role in any industry that doesn’t have compliance requirements or industry-related mandates for operations. Industries that do have such compliance requirements are better paired with specialised project managers whose expertise is specific to said field or sector.

What happens if I keep handling project management myself instead of hiring for it?

If you’re a business owner, you will be overwhelmed, along with the rest of your team. Instead of focusing on what matters most for the business, like growth and strategy, you’ll be doing tasks that are better handed off to a project manager whose expertise is in the very same things.

Is hiring a dedicated project manager worth it for a small business?

You won’t feel the cost lift immediately, but you will, in the long run. Note that the value of a project manager in terms of letting business owners focus on their own work far outweighs the PM’s salary. This will be much more evident in the long-run.

Related Read: There’s something brewing in Australia’s renewables. Here what you need to know and where the opportunities are: Agrivoltaics Hubs, Solar Farm Lease Australia, and Solar Panel Recycling Australia.

Building the Business Means Stepping Out of the Workflow

You don’t struggle with ideation. It’s the business owner’s home turf. Brainstorming and strategy come easily to you, too.

But putting workflow priorities in order? Following up on them? Checking what campaigns are current and what needs updating? These require a certain kind of specialisation. The kind that should not displace the owner’s role of leadership and the responsibility to ready the business for every next step.

Taking on a project manager role when you should be deep into your goals won’t move your business forward. Hire the role now. Let the project manager take charge of coordination while you focus on vision.

Find the right PM through Remote Staff. Call us or Request a Callback today.

Vaune Cura
+ posts

Vaune Everis Cura has always been a writer in the truest sense, drawn to the art both as a personal creative pursuit and as a profession. Her experience penning content across digital marketing spaces and collaborating with business owners and market shapers has broadened her craft to include strategic direction and SEO insight. Having spent years with the InterContinental Hotels Group before stepping boldly into freelancing, she understands that at the centre of it all are genuine, meaningful brand–customer relationships built on purposeful, human content.

About The Author

Vaune Everis Cura has always been a writer in the truest sense, drawn to the art both as a personal creative pursuit and as a profession. Her experience penning content across digital marketing spaces and collaborating with business owners and market shapers has broadened her craft to include strategic direction and SEO insight. Having spent years with the InterContinental Hotels Group before stepping boldly into freelancing, she understands that at the centre of it all are genuine, meaningful brand–customer relationships built on purposeful, human content.

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