What-Are-Project-assumptions.png

Project assumptions in project management refer to the expectations regarding the stakeholders, resources, and environment of a project. They are frequently made but we often do not get a specific appreciation or acknowledgement for them. Ignoring these assumptions can put the project’s success at risk, much like building on sand. Knowing the tools and steps presented in this guide, you will know what are assumptions in a project plan, how to identify, assess, and handle these assumptions. This will ensure that your projects will have a good foundation and be prepared to face shocks that may occur in the future.

What Are Assumptions In Project Management?

In project management, an assumption refers to a statement that is assumed to be correct without having positive evidence to support it. For instance, the project manager may believe a certain vendor will supply the necessary materials at the expected time owing to previous outcomes. However, there are often unforeseen circumstances that cause delays.

All projects are based on assumptions; the problem is to identify which ones are lethal to the project and then check them.

Tom DeMarco

It is not true that assumptions are merely speculations; they are informed hunches that rely on such factors as experience, research findings, and the opinion of specialists. But they always contain some degree of risk and, therefore, uncertainty. Some people are wrong in thinking that assumptions are small details or even guesswork. In fact, assumptions act as the bedrock of your project plan because they govern various facets of your project, such as resources and time. To me, it is like playing the Jenga game with a blindfold on; at one point or the other, the whole structure will collapse.

Why Are Project Assumptions Important?

Project assumptions play a crucial role in any project since they are the foundation of planning, decision-making, and resource management. A single incorrect assumption can trigger a chain reaction, and soon, several aspects of a project are affected, culminating in expensive complications.

For example, an IT project might plan for a simple software integration, only to encounter compatibility issues that delay the project and increase costs. Compared with this, a marketing campaign may set up a certain expectation of the audience’s reception to a message and end up with the opposite since the marketing message is not received as it was intended.

Thus, project managers can prevent risks and manage resources effectively when they define and challenge the project assumptions early in the project life cycle. This way, the chances of getting caught flat-footed are greatly reduced, and in addition to that, time and money are saved in the long run.

How Are Project Constraints, Dependencies, Risks, And Assumptions Connected

Project-assumptions-venn-diagram.png

Project assumptions and constraints, along with risks, and dependencies are the elements of project management. They are closely related and have a great impact on the project’s course. In particular, assumptions can be considered as the basis for the other three.

Consider assumptions to be the covert stream in a river that shapes the direction of a project. If these currents are not well addressed, they can become problems whereby you are limited in the number of choices you are able to make, and this can also slow down the whole process of the project. For instance, one can assume a technology that will be used in a certain project and later realize that it is not available or has delays.

Project assumptions and risks that are unverified can be lethal. For instance, assuming a certain vendor will supply materials on the required date can be a risk if the vendor has some unexpected problems. These risks have the potential of compromising your project timeline, cost and the outcome.

Even dependencies can be affected by assumptions. For example, if we wrongly estimate the time for a task, it can delay other tasks that depend on it.

Thus, assumptions can be managed in a way that potential risks are minimized, and constraints can be managed actively while dependencies are more realistic and attainable. It is important that one appreciates how these elements are related in order to be able to plan and implement a project.

How To Identify, Manage, And Log Project Assumptions?

Assumption-points.png

Recognizing and overseeing project assumptions is pivotal for project achievement. Here is a systematic approach for how to write assumptions for a project:

  • Brainstorm: Gather your team and have discussions with them to identify the most important and least important assumptions, if any
  • Categorize: Group assumptions depending on their kinds (for instance, resource, timeline, technology)
  • Document: Make an assumption register, where every assumption and its consequences are described, along with the level of risk
  • Validate: In specific contexts do not accept assumptions for what they are. Verify or disprove them
  • Contingency Planning: It is essential to prepare contingencies for assumptions that would be catastrophic if they were proven to be false What if that vendor does not make the delivery at the agreed time? It is not a secret that sometimes talented developers leave the project in the middle of the development process
  • Regular Review: The assumption log should not be forgotten and updated from time to time. This is a common strategy, but as clearly stated ‘things change, and so should your assumptions

Let me remind you that assumptions chosen at the strategic planning stage are one of the basic components of your project plan. That way, you’re not only mitigating risks but creating a project capable of dealing with the unforeseen.

Common Examples Of Project Assumptions

Project assumptions examples come in all shapes and sizes, and can linger in every corner of your project. Here are some basic culprits you'll encounter:

These assumptions are commonly found in a variety of industries and project types. They are often deeply ingrained in our thinking to the point where we may not even be aware of them:

  • Resource Availability: We assume that the people, materials, and equipment we need will be available when we need them. But what if that star developer gets poached by another company?
  • Timeline Estimates: We create project schedules based on best-case scenarios, assuming everything will go smoothly. But what if unexpected delays arise?
  • Stakeholder Engagement: We assume that everyone involved in the project is on board and will cooperate fully. But what if key stakeholders have conflicting priorities?
  • Technology: We assume that the technology we're using will work flawlessly and remain up-to-date. But what if it becomes obsolete or experiences glitches?

These assumptions are more strategic in nature and relate to the overall project goals and objectives:

  • Market Conditions: We assume that the market demand for our product or service will remain stable or increase. But what if a competitor swoops in and disrupts the market?
  • Regulatory Environment: We assume that the legal and regulatory landscape won't change significantly during the project. But what if new regulations are introduced that impact our project scope?
  • Economic Factors: We assume that the economic conditions will remain favorable for our project. But what if a recession hits and funding dries up?

The project charter is a high-level document that outlines the project's purpose, scope, objectives, and constraints. It often includes a section for documenting key assumptions, such as:

  • Project Scope: Assumptions about what's included and excluded from the project
  • Project Timeline: Assumptions about the overall project duration and key milestones
  • Project Budget: Assumptions about the available funding and expected costs
  • Stakeholders: Assumptions about the level of support and involvement from key stakeholders

Project assumptions, although important to make when planning for a project, can be a project’s biggest downfall if poorly managed. Some frequent missteps include:

  • Ignoring Assumptions: It is important to understand that one cannot escape from his or her problems by burying them. These assumptions, if not checked may lead to problems that may cause hitches and set back in the project
  • Blind Faith: The assumption basket should not be relied on. I would like to note that an assumption is not a pledge; an assumption is a statement that needs to be proven. It can lead to wrong decisions and the setting of expectations that are very difficult to meet
  • Lack of Documentation: The phrase ‘if it is not written down, it never occurred’ implies that for something to be considered official or valid, it must be documented. When there are no clear records, it is easy for a team to forget an assumption or even misunderstand it, which results in conflicts
  • Static Thinking: However, it should be noted that assumptions are not set in concrete. Sometimes, when working on your project, you may find new information that may eliminate the assumptions you made before. In any situation, flexibility is crucial, and the only way to maintain flexibility is through the assessment of the situation

Such errors are expensive and result in project delays, higher costs, late delivery, and substandard work. Knowing these typical problems and avoiding their occurrence will allow the project manager to minimize the threats, keep an eye on the main goal, and establish the conditions for project success.

Manage Project Assumptions With These Tools

Project managers might not be aware of this, but assumption management in projects does not have to be all that complicated. There are several entrenched project management solutions with capabilities for managing and tracking assumptions:

  • Jira: Agile project management application enables you to derive assumptions and relate them with unique tasks or stages of any project
  • Asana: However, the same assumptions can be made quite easily observable and recordable throughout your project timeline if you input them into Asana itself as custom fields
  • Trello: Create concrete “Assumption” cards on the board and check them if needed, based on the list above
  • Monday.com: Agile project management application enables you to derive assumptions and relate them with unique tasks or stages of any project

These are just a few examples of the tools, there are many other tools available, and they have the same specifications. There are many options available on the market; try to narrow them down to an option that is most suitable for you and your needs.

How to identify project assumptions is very important for project managers, since they can enable a project to go on, or hinder the process and bring the whole project to a halt. Their nature is such that the project managers should be aware of them, analyze them, and, thus, manage them irrespective of the size of the project and its riskiness.