A business may launch a new product, create a roadmap of its operations, or organize an event. Regardless of the activity, project management plays an important role in helping it succeed. With project management, everything from planning tasks to implementing them is done effectively while also reducing risks.
Here’s everything you need to know about project management. We’ll discuss why every business needs it, its key components, five stages, and common project management styles.
What is Project Management?
Project management is a way of organizing tasks — planning, coordinating, and overseeing parts of a project from beginning to end — to reach specific goals. In other words, project management is all about getting things done.
One important aspect of project management is time management, which is why project managers create detailed schedules to make sure that every task starts and ends on time.
Why is Project Management Important?
Project management helps business tasks run more smoothly. It means that the project is progressing according to plan, and although disruptions or delays may happen, these challenges are only minimal. Moreover, resources — such as people involved in the project, budget, tools, and other materials to carry out the tasks — aren’t wasted.
When it comes to the people involved, project management allows team members to clearly communicate with one another. They know their roles and responsibilities, and how their efforts can positively affect a project’s success.
What are the Benefits of Project Management?
Now that you have an idea of what project management entails and its purpose, here are five advantages teams and organizations should know if they plan on using it:
Helps organize tasks and responsibilities
In project management, a project will be broken down into smaller and more manageable tasks. Every task is then given to a team member who has certain roles and responsibilities to fulfill. This way, everyone involved knows what needs to be done and the task deadline. This is important to prevent misunderstandings.
Clear communication
Another benefit of project management is transparent communication, in which team members provide updates about task progress and openly discuss challenges so that they get resolved. Clear communication can sometimes involve managers or executives who would like to stay informed throughout the project.
Improved efficiency
Efficient teams accomplish more in less time while also providing high quality results. Project management increases efficiency by doing two things: identifying inefficiencies or bottlenecks and strategically allocating resources.
Helps identify risks
Different risks can arise throughout a project. For example, resource constraints, in which human resources or materials are not enough for the project requirements. This may result in delays. Knowing which risks are present and addressing them is an important part of project management, which increases a project’s success.
Increases project success
Speaking of success, project management leads to desirable outcomes. Success can be measured in different ways — such as whether the final deliverable meets or exceeds expectations, the budget was properly managed, and the needs of the end users or customers were met.
What are the Key Components of Project Management?
Certain elements need to be present for a project to stay on track and reach its outcome. Every project manager should keep the following in mind:
Scope
This refers to the deliverables or work that needs to be done to meet the project’s objectives. There are boundaries to be set so that the project doesn’t expand beyond its initial goals. In that regard, a project manager has to set boundaries — clarifying what’s within the scope and what’s outside of it — so that teams stay focused and do not take on additional work.
Time
Time represents the schedule for completing the project, and it includes setting deadlines and allocating time for a task to be completed. Effective time management helps keep the project on schedule and prevents delays, which can lead to missed opportunities.
Cost
Cost refers to the financial resources allocated to the project. This includes labor costs, material costs, equipment costs, and other expenses associated with implementing the project. Proper cost management prevents overspending and makes sure that resources are used efficiently.
Quality
Quality refers to the standard of work produced by the project. In project management, the outcomes or deliverables are closely reviewed against certain criteria to make sure that they meet expectations. To maintain quality, project managers may make use of checklists and control charts, which help identify opportunities for improvement.
What are the Five Stages of Project Management?
Project management involves five key stages that guide the progression of a project from initiation to closure. Follow these stages to keep every project organized:
Stage 1: Initiation
Initiation marks the “official start” of the project. It’s the point where a team defines the project’s objectives (specific goals or outcomes) as well as identifying stakeholders — people who are involved in or will be affected by the project, such as customers, sponsors, and department heads.
Stage 2: Planning
In the planning phase, a detailed roadmap for the project is created. This roadmap mentions the scope, allocation of resources, risk management, communication plan, and more. In other words, planning is what guides the execution of the project by making sure that everything the team needs and has to know are in place.
Stage 3: Execution
During the execution phase, the project plan is put into action. This stage involves assigning tasks to team members, coordinating activities, and monitoring progress closely so that the project stays on track. It’s important for team members to keep everyone informed about their progress, including proactive problem-solving in case any issues arise.
Stage 4: Monitoring and controlling
This is the second to the last stage of project management where project managers focus on tracking the project’s progress. This is to see whether they are being completed according to plan. To evaluate performance, key performance indicators (KPIs) are used. These KPIs look into aspects such as schedule, costs, quality, and resource utilization.
Stage 5: Closure
Finally, closure marks the end of the project where deliverables are finalized, and the project is formally completed. This stage involves reviewing project outcomes, documenting lessons learned, and transitioning any remaining tasks or resources. It’s important that expectations are met before a project is formally concluded.
What are Common Project Management Styles?
Project management styles refer to different approaches used to plan, execute, and complete projects. Here are some common styles to know:
Waterfall
Waterfall is a traditional project management style where tasks are completed sequentially, with each phase dependent on the completion of the previous one. This style offers clarity and structure but may lack flexibility.
Some notable advantages of this style include predictability in terms of the project scope and budget, which means there are fewer surprises involved.
Examples of projects that use the Waterfall approach include:
- Construction – building roads, bridges, dams, etc.
- Manufacturing – producing consumer goods
- Pharmaceutical – developing drugs, clinical trials, etc.
Agile
Agile is a flexible project management style that emphasizes collaboration, adaptability, and collaboration. In the Agile approach, a project is divided into sprints so that frequent feedback and adjustments are made. Each sprint would last from 1-4 weeks.
Examples of projects that use the Agile approach include:
- Software development – mobile apps, ecommerce websites, and other web platforms
- Marketing campaigns – social media, email marketing, and digital marketing
- Event planning – product launches, tradeshows, and conferences
Related: Agile Work Environment: Definition, Benefits, and Purpose
Scrum
Scrum is one of the Agile methodologies for complex projects, and is most relevant to software development. Sprints lasting 1-4 weeks are also used to allow for continuous feedback, and there are 3 roles involved: the product owner, scrum master, and development team.
Examples of projects that use the Scrum approach include:
- Software development – new mobile apps, enhancing existing software, etc.
- Product development – ew hardware, household appliances, electronic devices
- Educational projects – online courses, educational apps, elearning platforms
Kanban
Kanban is a visual project management style that emphasizes workflow visualization, which is a great option for maximizing a team’s efficiency. It’s easier for team members to understand the state of a project and identify issues that arise since they use color-coded cards, visual boards, and icons.
Examples of projects that use the Kanban approach include:
- IT operations – support tickets, system maintenance, etc.
- Marketing campaigns – content creation, social media marketing, email marketing
- Manufacturing and production – inventory management, quality control, defect tracking
Project Management Matters
No matter the size and complexity of a project, its success relies on project management. Some of its biggest benefits include keeping tasks organized, maintaining clear communication, and being able to accomplish more.
If you decide to incorporate project management into your business — understand that it’s not a one-size-fits-all approach. Since projects vary in their requirements, think carefully about the style you’re going to use.
Hopefully, this guide has provided you with helpful information to get started and experience a smoother project execution!