The answer to bringing complex projects to fruition lies in the art of project management. Understanding this art and how to use its various tools to your advantage can be a game-changer. This blog is an overview of the most critical aspects involved in project management, from its five principal phases and methodologies to the most used software and tools that help you stay on track.
What Is Project Management?
Project management is the process of organizing resources in a timely manner to reach a certain objective. The aim is to achieve the project goal within the parameters of a budget, scope, and timeline. Project management encompasses everything undertaken to reach project completion.
The basic purpose of project management is to balance the three main production constraints: cost, quality, and time. To fulfill their role, project managers are provided with tools and techniques to define project scope, manage tasks, and allocate resources, project management helps teams deliver products under budget, on time, and of the desired quality.
Difference Between Project Management And Project Portfolio Management
The difference between project management and project portfolio management is the scope of interest. While the former’s primary focus is individual projects, the latter considers the bigger picture and looks to create a portfolio of projects for an organization. As mentioned above, project management is used for the timely delivery of a project within budget.
The main objective of project portfolio management is to align projects with organizational strategy while maximizing the return on investment (ROI). Where PM is detailed and specific, PPM is more strategic and carried out at a higher level.
5 Steps Of Project Management
The project management process is divided into 5 fundamental steps. These phases outline a project’s lifecycle from inception to completion. Implementing each step makes the execution of plans easier and more organized.
Step 1: Initiation
As the first of the five fundamental phases, project initiation lays the foundation for a successful project. This is the stage where a project's reason and business value are determined. Project initiation focuses on the project purpose, stakeholders, and acquiring the necessary resources to move forward.
Key Components Of Project Initiation
Key components of this phase include:
- Identifying the project need
- Running a feasibility study
- Drafting a business case to outline a project justification
- Defining the project scope to determine deliverables
- Identifying key stakeholders
- Creating a project charter to gain official approval
Step 2: Planning
Where the first step in project management is all about authorization, the second phase charts the course for executing the project. The planning stage is where a clear roadmap for the project to follow is drawn. It is where necessities such as resources, personnel, and schedules are determined. The planning phase is wrapped up in the shape of a project kickoff meeting.
Key Components Of Project Planning
Noteworthy processes during the project planning include:
- Developing a project schedule
- Determining resourcing and staffing needs
- Coming up with a communication plan between teams and members
- Identifying risks and coming up with corresponding mitigation strategies
- Creating a budget
- Drafting a project plan
- Holding a project kickoff meeting
Step 3: Execution
This is the step of project management where all your planning and strategizing yields results. The execution phase is where the project team transforms plans on paper into substantial deliverables. It is the longest and most resource-intensive part of a project’s lifecycle.
Key Components Of Project Execution
The key elements to keep in mind during this phase are as follows:
- Task management and allocation
- Communication and collaboration amongst team members
- Carrying out deliverables
- Execute the project scope
- Keep on top of change management in case of unforeseen circumstances
- Risk management in case of emergencies
Step 4: Monitoring
After successfully beginning the execution of a project, monitoring the outcome becomes crucial. The monitoring phase may include keeping an eye on how the project is progressing, identifying deviations from the plan, and adjusting as needed.
During this stage, the role of project manager is to note any hurdles in the way of meeting time, budget, and quality expectations, and taking corrective action accordingly. The monitoring and execution phase often coincide and take place simultaneously, and therefore share many key elements.
Key Components Of Project Monitoring
Key elements of this phase include:
- Tracking project progress
- Reporting on timesheets, task allocation, budget, and project status
- Risk and issue management
- Change control wherein proposed changes are thoroughly evaluated before implementation
Step 5: Closing
The fifth stage marks the end of a project’s lifecycle. The closing phase signifies the project's official completion where it is ready to be presented to the stakeholders and operational teams. A successful closing includes proper signing off, a clean handover, and comprehensive documentation of processes.
Key Components Of Closing Phases
Some notable components of this phase include:
- Devising a project completion review
- Handing over of deliverables to relevant teams
- Signing off by stakeholders to mark acceptance of the project
- Documenting project closure
What Are Popular Project Management Methodologies?
While the steps discussed above provide a fundamental foundation for your project lifecycle, their implementation varies depending on the methodology you choose to apply. These established frameworks of project management provide specific tools and philosophies to carry out your project.
Each methodology has its strengths and disadvantages and caters to different project types and complexities. Some of the most common methodologies in project management are as follows.
Agile Methodology
Agile methodology gained prominence around the same time as the rise of the internet. Originally designed for the software development industry, the framework looked to deviate from previous methodologies in terms of focus.
Moreover, Agile methodology emphasizes the most on adaptability and flexibility. Project execution phase is done in iterations or short work cycles with adjustments and corrections made side by side production. The core principles of Agile methodology include:
- Value-centric work
- Iterative development
- Flexibility and adaptation
- Collaboration between project team and stakeholders
When To Consider Agile
Agile methodology allows for faster delivery of working features and enhances team collaboration. It is, therefore, best suited for situations where evolving requirements and uncertainties are more common. If your project requires a fixed schedule and strict controls, Agile methodology may not be the best fit for you.
Waterfall Methodology
Waterfall methodology officially precedes Agile by around 30 years, although the concept dates back further. Unlike the methods discussed above, this framework emphasizes a more linear progression of a project’s progress. Instead of having multiple beginnings and ends of work cycles, Waterfall projects only have one start and one end.
Each project lifecycle step is completed sequentially, one after the other. This sort of framework is most suitable for projects with fixed requirements and minimum anticipated changes. Core principles of Waterfall methodology include:
- Upfront planning as opposed to on-the-fly adaptations
- Sequential execution
- Limited flexibility
When To Consider Waterfall
If you require a clear project roadmap, set of deliverables, and easily trackable progress and milestones, Waterfall methodology might be best suited for you. Consider using this theory if your project has strict regulatory requirements. Although it is the appropriate option for when teams need a well-defined development process, Waterfall’s rigidity is not suitable in all situations.
Scrum Methodology
Although Scrum comes under the overarching Agile framework umbrella, it has its characterizations. Scrum methodology uses time-boxed, short work cycles known as sprints lasting 2 - 4 weeks. Meetings play a vital role in this framework, with Scrum using Agile meetings for maximum optimization. Some key aspects include:
- Scrum teams
- Sprint planning
- Daily stand-up meetings
- Sprint reviews
- Sprint retrospective
When To Consider Scrum
Scrum is suitable for projects that are more complex and require iterative development. This framework focuses on rapid delivery with functioning features. While Scrum does honor Agile principles such as agility and flexibility, it requires a high-level committed team with strict discipline.
Lean Methodology
Lean methodology revolves around the philosophy of maximizing value for the customer while also minimizing waste in all senses of the word. When used in the context of project management, Lean aims to remove inefficiencies in the work progress and deliver value as fast as possible. It also focuses on visualizing all processes and distributing work in such a way that it produces value the quickest.
Some core tenets of Lean methodology include:
- Focus on value of the product
- Aim for continuous improvement
- Respect for people
When To Consider Lean
Teams should consider using Lean methodology when they are looking to eliminate waste and increase overall efficiency. If you need to launch your product in the market fast and enhance stakeholder engagement, all while maintaining team morale, this framework is the right one for you. Lean can be used for various project types and industries. For organizations to employ Lean, however, a serious culture shift is required.
Kanban
Kanban is another project management methodology that visualizes workflows for continuous delivery of features. This framework is well suited for environments with frequent change requests. Kanban uses visualization to show different work stages of a project, i.e., To-Do, In Progress, or Done. This methodology also looks to minimize work in progress (WIPs).
- Core tenets of Kanban include:
- Managing workflow through visual representation
- Focus on limiting work in progress (WIPs)
- Continuous flow of work
- Continuous improvement
When To Consider Kanban
Kanban is most ideal for situations where requirements are subject to change. It is also a methodology that supports continuous improvement and refinement. If you need a visual and hands-on approach to your project, Kanban is the answer. However, when it comes to WIP management, the methodology requires discipline. Learning how to use the visual boards for different types of projects may also take time.
Commonly Used Software For Project Management
Project management software has appeared as game changers in the industry. Where project management used to rely on whiteboards, sticky notes, and was not remote-worker friendly, software tools now offer centralized platforms for streamlined workflows and easier collaboration. Below are some of the industry’s most popular project management software.
Wrike Software
Wrike software provides a comprehensive work management platform that can be used by various project types, teams, and industries. It has a robust set of features and supports multiple methodologies, including Agile and Kanban. Notable features of the software include project views, real-time collaboration, task management, customizable dashboards, and reporting capabilities.
- Ideal For – Creative teams in the marketing industry and organizations that require a flexible project management solution
- Pricing – Wrike has multiple pricing plans starting with a free version. Paid plans start at $9.80 with the software offering custom pricing for enterprises and pinnacle workers
Smartsheet Software
Smartsheet software is a cloud-based project management solution that makes use of a spreadsheet-like interface. It also supports multiple methodologies and works to automate repetitive actions while promoting team collaboration. Notable features include collaboration features such as co-editing and built-in chat functionalities and automation tools such as conditional formatting.
- Ideal For – Teams that rely heavily on data and require advanced project management features
- Pricing – Smartsheet also has a free plan with paid plans starting from $7 a month. The software also offers custom pricing for teams and enterprises
ClickUp Software
ClickUp software is known for its high degree of customization and its ability to cater to methodologies such as Agile, Kanban, and Waterfall. It is an all-in-one management platform designed to replace multiple project management tools. Notable features of ClickUp software include tailored views and workflows, lists and Gantt charts, and an automation engine.
- Ideal For – Project teams of all sizes. Suitable for various industries and best suited for teams looking for an all-in-one solution
- Pricing – ClickUp has a free plan with limited functionalities. Paid plans start from $7 a month with custom pricing available for larger teams
Jira Software
Developed by Atlassian, Jira software is a project management tool specifically designed for Agile frameworks including Scrum and Kanban. The software helps teams plan, track, and release software projects. Notable features include Agile project management (sprint planning, backlog management), customizable workflows, and integrations with Confluence and Bitbucket.
- Ideal For – Software development and Agile teams
- Pricing – Jira software provides a free plan with limited functionalities for small teams. Paid plans start from $7.16 per month with custom pricing available for enterprise level teams
Microsoft Project
Microsoft Project is a project management software integrated with all other Microsoft tools. It can be used for project planning and scheduling, resource allocation, and project tracking. Notable features include view of timelines using Gantt charts, assigning personnel, and integration with Microsoft Teams.
- Ideal For – Mid-size to large corporations managing complex projects with detailed timelines
- Pricing – Microsoft Project is not available as a standalone tool, rather it is included in a Microsoft365 subscription
What Are Popular Project Management Tools
Beyond software, there are specific tools for project management techniques that teams can use to plan and execute projects effectively. It is important to delve into essential tools such as Gantt charts to use project management software to their full potential. Mastering these tools can improve work visibility and enhance team communication.
Gantt Charts
Gantt charts are illustrated bar charts that show the amount of work done or completed in a given time frame. Each bar represents a project phase or assigned task, and its length shows its duration. Teams can effectively view their project timelines, dependencies, and schedules using Gantt charts. Aside from enhanced visibility, this tool can also help allocate resources more efficiently.
Work Breakdown Structure (WBS)
A work breakdown structure, or WBS, is a hierarchical chart that outlines major project deliverables before breaking them down into smaller, more manageable tasks. It is useful for complex project work to help identify where your team needs more detailed requirements for a task when identifying the critical path and establishing a reasonable timeline for deliverables.
Risk Register
A risk register is a risk management tool that helps teams identify, assess, and plan for potential risks and issues. Every project has possible threats that, if they happen, will harm at least one of the project's goals. These are project risks, and as the project manager, you should develop a risk register document to keep track of each risk event, the action required to mitigate or eliminate the risk, and the risk's status.
Benefits Of Project Management And Why It Is Important
Effective project management strategies could mean the difference between success and failure for your project. Implementation of these steps could exponentially increase your chances of achieving project goals on time and on budget.
Project management tools and techniques keep teams on top of their timelines, deliverables, and responsibilities. Effective collaboration using communication tools automatically increases efficiency and productivity. The purpose of project management is to work smarter and reach goals with minimum deviation and waste.
