What Is Project Management?
Project management is all of the coordination across personnel, finances,
technology, and intellectual property to make things happen. As to operations
management that focuses more day-to-day activities, project management
oversees larger deliverables (though it often breaks that larger project into
shorter-term tasks).
KEY TAKEAWAYS
On a very basic level, the five main stages of project management
includes the planning, initiation, execution, monitoring, and closing of a
project.
Many different types of project management methodologies and
techniques exist, including traditional, waterfall, agile, and lean.
Project management is used across industries and is an important part
of the success of construction, engineering, and IT companies.
Understanding Project Management
Generally speaking, the project management process includes the following
stages: planning, initiation, execution, monitoring, and closing. We'll discuss
each of those stages in more depth later in this article.
Project management is often associated with fields in engineering and
construction and, more lately, healthcare and information technology (IT),
which typically have a complex set of components that have to be completed
and assembled in a set fashion to create a functioning product.
No matter the industry, project managers tend to have roughly the same job:
to help define the goals and objectives of the project and determine when the
various project components are to be completed and by whom. They also
create quality control checks to ensure completed components meet a certain
standard.
IMPORTANT
From start to finish, every project needs a plan that outlines how things will
get off the ground, how they will be built, and how they will finish.
Every project usually has a budget and a time frame. Project management
uses a type of triage process to keep everything moving smoothly, on time,
and on budget. That means when the planned time frame is coming to an
end, the project manager may keep all the team members working on the
project to finish on schedule. Many types of project management have been
developed to meet the specific needs of certain industries or types of
projects. Three of those types are waterfall, agile, and lean.
Types of Project Management
Waterfall Project Management
This is similar to traditional project management but includes the caveat that
each task needs to be completed before the next one starts. Steps are linear
and progress flows in one direction—like a waterfall. Because of this,
attention to task sequences and timelines is very important in this type of
project management. Often, the size of the team working on the project will
grow as smaller tasks are completed and larger tasks begin.
Agile Project Management
The computer software industry was one of the first to use this methodology.
With the basis originating in the 12 core principles of the Agile Manifesto,
agile project management is an iterative process focused on the continuous
monitoring and improvement of deliverables.1 At its core, high-quality
deliverables are a result of providing customer value, team interactions, and
adapting to current business circumstances.
Agile project management does not follow a sequential stage-by-stage
approach. Instead, phases of the project are completed in parallel to each
other by various team members in an organization. This approach can find
and rectify errors without having to restart the entire procedure.
Lean Project Management
This methodology is all about avoiding waste, both of time and of resources.
The main idea is to create more value for customers with fewer resources.
When managing a project with this approach, the goal is similar to that of
the lean enterprise production principle. The only resources that will be used
on the project are those that directly contribute to its successful completion.
There are many more methodologies and types of project management than
listed here, but these are some of the most common. The type used depends
on the preference of the project manager or the company whose project is
being managed.
Kanban Project Management
Kanban is a highly visual and intuitive project management methodology
designed to optimize workflow and enhance productivity. At its core, Kanban
relies on a Kanban board, a visual representation of the project's tasks and
their status. Tasks are depicted as cards that move through different stages
of the workflow, typically represented as columns on the board, such as "to
do," "in progress," and "done."
As work progresses, team members move cards across the board, providing
real-time visibility into the status of each task and the overall project. By
visualizing work in this way, Kanban promotes transparency, collaboration,
and efficiency, allowing teams to identify bottlenecks, prioritize tasks, and
maintain a steady flow of work.
Six Sigma Project Management
Perhaps considered more of a process improvement tool, Six Sigma can still
be used in project management. Six Sigma is a rigorous and data-driven
approach to process improvement that aims to minimize defects and
variability within organizational processes.
Six Sigma utilizes a structured methodology known as DMAIC: Define,
Measure, Analyze, Improve, and Control. In the define phase, project goals
and objectives are clarified, and key metrics are established to measure
process performance. The Measure phase involves collecting relevant data
and analyzing process performance against established metrics to identify
areas for improvement.
In the Analyze phase, root causes of defects or variations are identified
through statistical analysis and data-driven techniques. Once root causes are
understood, the Improve phase focuses on implementing targeted solutions
to address identified issues and optimize process performance. Finally, the
Control phase involves establishing controls and monitoring systems to
sustain improvements over time, ensuring that processes remain stable and
continue to meet desired performance levels.
Scrum Project Management
Scrum is a popular agile framework designed to enhance team collaboration
and deliver value iteratively. Scrum breaks down project work into
manageable units called sprints, usually lasting between one to four weeks.
Each sprint begins with a planning session where the team selects a set of
tasks from the product backlog to complete during the sprint. Once the sprint
starts, the team works collaboratively to achieve the sprint goal, holding daily
stand-up meetings to discuss progress, address challenges, and adapt as
needed.
Throughout the sprint, Scrum teams focus on delivering incremental value,
often producing a potentially shippable product increment by the end of each
sprint. After the sprint, the team conducts a sprint review to demonstrate the
completed work to stakeholders and gather feedback.
Steps of Project Management
Different project management frameworks may identify more or less steps. In
general, there are five stages of project management, each discussed briefly
below.
Phase 1: Initiation
The initiation phase serves as the genesis of the project, where an idea is
nurtured into a clear vision. It involves brainstorming, feasibility studies, and
refining the project concept to align with organizational goals and stakeholder
needs. In the initiation stage, project objectives are defined, along with the
scope of work and the desired outcomes.
Phase 2: Planning
Planning is the phase where the blueprint for the project is crafted. Planning
involves breaking down the project into manageable tasks, sequencing them
logically, estimating resources, and developing a comprehensive project plan.
Planning usually entails some sort of resource allocation tasks. Resource
allocation ensures that the necessary people, materials, and budget are
available when needed. Risk management identifies potential threats when
those resources may not be available at the right time or quantity.
Phase 3: Execution
The execution phase is where the project plan comes to life, and the project
team swings into action. Tasks are assigned, and the project team members
collaborate to bring the project deliverables to fruition. Quality
assurance processes are implemented to verify that project deliverables meet
the specified quality standards. The execution phase is the period of intense
activity as the project potentially visibly progresses toward its goals.
Phase 4: Monitoring
Once the project is underway, the monitoring phase involves tracking project
performance against the plan, identifying any deviations or issues, and taking
corrective action to bring the project back on course. Change management
processes are implemented to address any changes to the project scope,
schedule, or resources. Project managers use this phase to tackle any
obstacles that come up (i.e. late deliveries, personnel being unavailable,
etc.).
Phase 5: Closing
The closing phase marks the culmination of the project journey. Loose ends
are tied, and hopefully, accomplishments are celebrated. In the closing
phase, the final deliverables are handed over to the customer or end user,
and any remaining administrative tasks, such as contract closure or financial
reconciliations, are completed. It's usually a good idea to debrief on "lessons
learned" to implement better processes or project management techniques
for future similar projects.
Example of Project Management
Let's say a project manager is tasked with leading a team to develop software
products. They begin by identifying the scope of the project. They then assign
tasks to the project team, which can include developers, engineers, technical
writers, and quality assurance specialists. The project manager creates a
schedule and sets deadlines.
Often, a project manager will use visual representations of workflow, such
as Gantt charts or PERT charts, to determine which tasks are to be
completed by which departments. We'll touch on visualizations in the next
section. They set a budget that includes sufficient funds to keep the project
within budget even in the face of unexpected contingencies. The project
manager also makes sure the team has the resources it needs to build, test,
and deploy a software product.
When a large IT company acquires smaller companies, a key part of
the project manager's job is to integrate project team members from various
backgrounds and instill a sense of group purpose about meeting the end
goal. Project managers may have some technical know-how but also have
the important task of taking high-level corporate visions and delivering
tangible results on time and within budget.
Project Management Tools
To help with organizing and staying on top of tasks, the industry of project
management usually leverages a handful of tools. These tools have been
touched on throughout this article, but we'll call them out more specifically
now. Note that projects that differ in size or scope may call for additional
tools, and some smaller projects may be able to do without some of these
tools altogether.
