What Is Project Management?
In it's simplest sense, project management involves using skills and experience, together with established processes and methods to deliver a project that meets defined objectives within a specified project scope, time and budget.
Parallel Project Training Director Paul Naybour, a seasoned project management consultant with over 15 years of experience in the project management profession, delves deeper into exactly what project management is and the role of projects within thriving organisations.
What is project management?
The term project management is widely used to cover a whole host of activities, from managing the build of an extension on a house to managing the organisation of the Olympics.
First, it would be useful to distinguish between those activities that we all might use in our personal lives to organise and control tasks, and the project management profession, in which project managers are trained and qualified to employ best practices developed over many years to ensure successful outcomes of projects that implement major change in organisations.
Project management involves planning and managing projects from initiation to completion in any industry and across a range of short, long, simple or complex projects. It requires first a clear understanding of the aims of the project, then developing a project plan to control all the necessary tasks and resources to meet milestones and a final deadline. To be deliver projects successfully, therefore, a project manager needs a diverse set of skills and experience, including:
- Clarifying project objectives with stakeholders
- Scheduling tasks and interdependencies
- Managing project teams, budgets and other resources
- Assessing and managing project risks
- Monitoring progress
- Communicating project status
There are several well-known structured frameworks with defined project management techniques, tools, processes, rules and methodologies that support best practices in successful project management.
The simple view of project management
Let's start with the very simplest view when considering the wide-ranging question "What is project management?". Project management involves the management of a variety of tasks and the people responsible for those tasks. It includes developing a project plan, the scheduling of work activities and the control of the budget associated with the project.
The aim of a project is to deliver an end-product – this may be a physical thing such as a new electronic gadget, it may be an intangible thing such as a new business process within an organisation or it may be a tool such as a new software application.
In the early stages of a project a business case is proposed and assessed, and the requirements of the interested parties are gathered. Experienced project managers are often involved in this initial project management process, which can result in a proposed project being scrapped if no valid business case can be determined, or if the requirements indicate that costs would simply be too high.
Professional project management is not just about managing a series of tasks to deliver a successful end product.
Professional project management is not just about managing a series of tasks to deliver a successful end product; that role could effectively be done by any manager or any individual. It is more about effecting a major change, such as hosting the Olympics or producing a ground-breaking technical gadget or building a state-of-the-art road bridge. Whatever it is, it is distinguishable from straightforward management of day-to-day business activities in that after the project is complete there will be a significant difference within an organisation, in the environment or within the wider world. And there is a clear beginning and end to a project (or there should be) – it is not an ongoing process.
The job of managing a project has, on the one hand, been made easier by the development of a variety of project management software tools that help with administrative tasks. On the other hand, however, projects are becoming more complex as technology becomes more complex and changes at a faster pace.
But it still requires the project management skills and expertise of a human to state goals and assign resources, schedule and monitor tasks and their inter-dependencies and assess and deal with risks. This is particularly true where there are complexities either within the tasks, where, for instance, a project will be using ground-breaking new technology, or within the teams working on the project, such as being geographically dispersed. Effective project management methodologies can make parts of the job easier, but they cannot do the job of a project management professional.
Frameworks and methodologies
There is some confusion, even within the project management profession itself, about the difference between a project management methodology and a framework so it is worth trying to clarify that here. But bear in mind that many people will use the terms inter-changeably within a project environment.
A project management framework is the structure underlying a system or concept, whereas a project management methodology is a set of principles and practices used to deliver a project - essentially a framework is how a project manager can practically implement a system or concept.
All frameworks are intended to help project managers deliver better products or services to their customers with fewer issues throughout the project life cycle. Even though a project might be managed via different project management approaches, they can all help project managers deliver project success.
The APM competence framework
The APM competence framework from the UK-based Association for Project Management is a globally recognised project management framework consisting of a range of competences based on outcomes that project professionals need to achieve to deliver a project successfully. Each competence includes a series of criteria covering specific knowledge and the practical application of that knowledge. These are based on the APM's Project Management Body of Knowledge (BoK).
The PMI framework
The PMI framework from the US-based Project Management Institute is a globally recognised project management framework and is used widely around the globe. It is based on the Project Management Body of Knowledge (PMBOK® Guide), a summary of best practices and processes in five project management process groups: Initiation, Planning, Execution, Monitoring & Controlling, and Closure.
PMI emphasises the importance of continuous improvement of project management skills and adaptability to change. It includes the use of agile methods where appropriate to deliver project success.
Scrum framework
The Scrum framework was created by Jeff Sutherland and Ken Schwaber as an iterative and incremental approach to delivering customer value on projects. It is used as part of the Agile methodology but interestingly it was created 8 years before the publication of the Agile Manifesto that formally defined agile project management.
Note that Scrum is often referred to as a project management methodology but is a framework for use with the Agile methodology. Originally Scrum's point of difference over traditional frameworks was the ability to alter project requirements throughout the project lifecycle. However, in practice this often happens even when using traditional approaches to project management.
Kanban framework
The Kanban framework is also used for agile project management, but project tasks are represented visually to help improve workflows i.e. the sequence of tasks and activities necessary to deliver a project. This clear order of tasks in a project management workflow is important in projects where there are multiple inter-dependencies between tasks in order for project teams to work efficiently. Kanban is an alternative framework to Scrum for implementing agile projects.
Waterfall project management
This is a traditional approach to managing projects and involves a series of tasks and activities in sequence with each task completed before starting the next task. It works well on projects with clear requirements that are not expected to change. Typical approaches to managing projects in this way include PRINCE2, APM and PMI. In practice, there is often an element of iteration involved.
Agile project management
An agile approach to managing projects is highly flexible and iterative but perhaps one of the most defining features is that projects are broken down into short time periods of less than 4 weeks (known as “sprints”) after which feedback is obtained from stakeholders and changes are made to the project plan and requirements as necessary. It works best for projects where there is a high level of uncertainty like developing a completely new product.
Hybrid project management
The hybrid approach uses a combination of traditional and agile elements so that a project manager can decide to use whatever parts of a method suit particular parts of the project. By it’s nature this approach is customised to suit requirements on a project-by-project basis.
Important roles in project management
Project management roles and the responsibilities of each role will be different for different types of projects, different organisations and even vary across industries. However, there are some key roles – and associated responsibilities – that will almost certainly be necessary in all projects.
Project sponsor
The project sponsor is vital for project management success because they allocate resources and budget to the project, make crucial decisions and communicate with stakeholders and senior executives within an organisation. They also drive projects forward in more intangible ways by being an advocate of the project and offering support when needed. Without an active sponsor, there is a risk a project could be side-lined or budget and resources cut.
Project manager
The project manager has overall responsibility for all aspects of a project throughout the whole of the project life cycle. They create plans, define goals, allocate and manage resources and monitor and report on progress. They also need to manage the scope of the project, and identify and mitigate risks. Less formally they need to motivate their team to maintain high productivity levels and boost morale when things aren’t going to plan. During all of this they have to keep lines of communication functioning effectively – both to the team and to stakeholders.
Team members
Without dedicated and motivated team members to complete the project tasks, a project will never be delivered successfully, no matter how well-planned it is. The project team provide expert skills and knowledge, they collaborate with each other to manage task inter-dependencies and meet deadlines.
Customers and other stakeholders
The customer will have been heavily involved in defining the business requirements and the objectives of the project. They will also have helped establish success criteria and provide the final approval of the end product or service. They are major stakeholders in the project but there can be other stakeholders such as external suppliers or regulatory bodies who will also contribute to the success or failure of a project.
The range of tools used in project management
The tools used by a project manager and the project team vary depending on personal preference, organisational needs and the type of project. Some of the most essential project management tools include:
- Gantt charts for scheduling and tracking project tasks and milestones.
- Work breakdown structures (WBS) to divide the project into smaller, more manageable parts.
- Task management tools for documenting and monitoring tasks. There are various software tools available to help create task lists, Kanban boards and project calendars. Examples include Asana, Trello, Basecamp, Jira etc.
- Time management tools to log and track time spent on tasks.
- Budgeting and cost management tools.
- Risk management tools.
When and where are projects used?
A project that is going to be formally managed will be aiming to deliver a significant change within a business. Projects are never the same as business-as-usual (BAU) tasks. So projects are used when some type of major change is being implemented within an organisation. This could be in any area of a business, and within any type of organisation.
Projects are used in start-up and scale-up companies, in well-established companies, SMEs and national or multi-national organisations. Some of the most common areas in which project management tools and techniques will be used to implement a significant change are:
- IT systems
- Software tools
- New product development
- New business development
- Construction, engineering and infrastructure
- Research and development
- Defence
- Transportation
- Energy
Increasingly, project management is being applied across a whole range of new sectors and types of project. As the discipline of project management has matured over the years, it has been proven to be a way to efficiently manage resources, increase productivity and minimise the risks to a business of making major changes - when it comes to both financial and reputational risks.
Fundamental project management processes
Below are the fundamental processes of managing any project, in any industry and with any method. To keep it simple in this summary we have deliberately avoided reference to any of the well-known approaches such as PRINCE2 or Bodies of Knowledge from the Association for Project Management (APM) or the Project Management Institute (PMI). Each of these areas may have many sub-processes, especially when dealing with complex projects:
Defining the requirements
The requirements should define the purpose of the project as accurately as possible. This is the definition of what is needed in order to achieve the business aim, along with any assumptions that have been made, any constraints that have been imposed and any important timescales. Because the requirements are a statement of the aims of the project, they can be used to define individual tasks and to control which tasks are approved as part of a project.
Depending on the type of project, the requirements may be fully detailed and completed prior to any project work beginning or they may be in the form of broad statements of the desired outcome. This is especially true where this is uncertain or unpredictable, such as in the case of new technology or technically sophisticated software which may require an iterative process to achieve the right end product that meets the needs of the stakeholders.
Part of the project management role is to work with other departments or project team members to agree on the requirements definition so that those with a personal stake or the expectation of benefiting from a successful outcome for the project are fully involved in approving the specific activities being undertaken. On some projects, techniques such as brainstorming or prototyping may be necessary at this stage to help clarify what actually needs to be done to achieve the goal.
This analysis of the requirements also needs to be supplemented by an assessment of the benefits of the project together with the likely costs and risks. This assessment normally results in a business case for the project which justifies why the organisation should invest in the project. Typically, this will be a written document, especially if the funding is provided by a third party such as a bank.
Planning the project
The project plan is not just the schedule for the project. More importantly, it is the plan for the management of the project. Typically, this can be broken into three areas:
- A summary which defines the overall project objectives and outlines its assumptions, constraints and summarises the
- Processes and procedures that will be used to control the project including the procedures for change control, risk management, quality and reporting.
- Detailed schedules for the implementation of the project which include the detailed project scope definition, time- based schedule (e.g., Gantt chart), cost plan and requirements.
Of these, the project schedule is critical, documenting the specific activities needed to complete the tasks that will ultimately achieve the desired outcome. This may include people and equipment, time estimates, dependencies between tasks and important milestones that can be used to determine project progress. It will also show the estimated timescale of the project, which may be essential if there is an imperative to get a new product to market as quickly as possible to gain a competitive advantage or because of an immovable deadline (think Olympics again).
Expertise is required to schedule tasks efficiently for the available resources so that the overall time span and costs of the project are minimised while still ensuring that activities can be completed properly and that dependencies between tasks do not create bottlenecks in the schedule. Where possible tasks independent of each other should be allocated resources and scheduled to be done in parallel.
There are many project management techniques and tools available to assist with the planning, monitoring and controlling of the project work, one of the most common being Gantt charts. A Gantt chart is one of the project management tools used for the scheduling, budgeting and reporting of a project.
On a Gantt chart, each task is listed individually with an associated timeline that can be used to visualise how, or if, tasks are dependent on each other; it can also be marked with milestones to show when certain tasks must be completed in order for the project to stay on schedule.
A Gantt chart also helps with factoring in a time contingency – something every project should have because experience shows that project estimates are very often overly optimistic. It is also a useful tool when there is an immoveable fixed end date and the project tasks have to be fitted into the time available.
Allocating and managing tasks
Part of this process is to allocate every task to individuals or project teams that have been assigned to the project in a way that makes best use of the human and financial resources available. The requirements, dependencies and timescales will have to be clearly communicated to the project team, as will the acceptance criteria by which each task is determined as complete.
The role of a project manager is very diverse and is not simply to manage projects. One of the most essential attributes that they can possess, for instance, is good interpersonal skills, including good communications skills. Not only will a project manager allocate and oversee work within the project team to monitor project progress, but they must also ensure project team members are motivated, helped to overcome obstacles and shown that their efforts are appreciated.
Another major part of the role is identifying and managing potential risks as well as managing changes to the schedule and requirements as the project progresses. It is a rare project where the requirements as initially defined remain unchanged or that the first schedule is adhered to throughout the project and the project still delivers what was expected.
Reviewing and controlling progress
It is essential to good project management that estimates, deadlines, milestones and overall progress are regularly reviewed to ensure they are still on schedule and that they will still meet the demands of the stakeholders. Circumstances and goals can, and do, change during the life of a project so all documentation, including the schedule, needs to be kept up to date with new estimates and new tasks. Changes need to be controlled to ensure they do not undermine the original aims of the project.
It is also necessary to notify stakeholders of project progress and any potential problems at regular intervals and get their approval for any changes that substantially impact any aspect of the project.
Typically, a change to any one area, for instance a reduction in budget, will have a negative impact on the scope of the work and the timeframe. Similarly expanding the project scope beyond the originally agreed requirements will increase the costs and time required to complete the work. It is the project manager's job to ensure everyone involved is clear about issues such as these.
Time, budget and scope are the often-quoted fundamental elements of a project that will all impact each other and the overall project if changed. Monitoring and controlling these will go a long way to producing a successful outcome, but they are not the only factors determining success of a project.
A professional project manager will also communicate regularly with stakeholders and clients to ensure that they are satisfied with progress and with the anticipated end product. With the increasingly rapid pace of change in business it is important to deliver a project that meets the client's needs at the point of delivery, and this may be different from the aim when the project was initiated.
Project closure and follow-up
Project management does not cease once the final deliverable is complete. A testing phase should have been incorporated into the schedule and an acceptance process documented in the project plan. The project manager will make sure these steps are completed so that the client receives a working product that meets their needs.
Depending on the type of project, users may have to be trained before the product can be fully implemented and there are almost always areas of the project that were less successful than others. In an ideal project management world, the less successful areas would be documented and discussed so that future projects could benefit from the lessons learned from previous projects in order to avoid making the same mistakes again.
It is easy to talk about schedule, budget, requirements and successful project delivery but, in practice, the most experienced project managers (and the most successful) are prepared for any, or all, of these to go wrong. They also know that there is much more to successfully managing a project than just following a rule book. In many ways, it is dealing with the problems and unpredictability that makes the project management profession exciting and challenging.
Why is project management important?
Project management is important in all types of organisations, in order to develop new products or services, which will increase revenue and meet company goals. Prioritising effective project management will enable a company to continuously improve the products or services they create, or indeed their own internal processes.
By learning lessons from past projects, a business can avoid repeating the same mistakes which cost time and money; and potentially create reputational damage.
A formal project management approach can be used on any type of project to improve outcomes. Examples of project types can include:
- Website development
- Construction of major infrastructure
- Engineering projects
- Healthcare quality improvements
- Marketing campaigns
- IT system implementations
Infamous project failures
If there has ever been any doubt about the importance of project management there have been multiple high-profile project failures down the years from which every project leader can learn a lesson.
Take just these 2 failed projects, for example:
Airbus A380
Boeing’s Airbus A380 plane cost the company more than $30 billion to develop but was based on a mis-guided belief that larger planes that could carry more people would automatically result in revenue growth. On the face of it this might have seemed like a valid assumption to the project initiators. However, what they had not anticipated was that airports could not handle the much larger planes and would have to build new infrastructure such as loading gates impacting any projected revenue increases.
To add to Boeing’s woes, there were technical issues with the A380s and they ultimately failed to deliver on the predicted number of sales. The lesson here is not to make assumptions that are not backed up by solid data about the marketplace you are selling into.
World Athletics Championships 2019 in Qatar
The World Athletics Championships in Doha, the capital of Qatar, is another example not only of an infamous project failure but one where invalid assumptions had been made. In this case that spectators would want to travel to Qatar for the championships and that the hosts would be able to sell enough tickets.
In reality, the greatest athletes in the world ended up competing in virtually empty stadiums. And the lesson here is that a large budget is no guarantee of success. The project sponsors and stakeholders should have invested more of their budget in research before initiating the project.
No single right method
However, there is no single approach to project management that is best for every project. Certain frameworks and methodologies might be better suited to, for instance, software development projects.
Typically an agile methodology is used for IT projects but, equally, there are plenty of other types of projects that can benefit from an agile approach if they require a certain amount of flexibility during the project life cycle or if project requirements cannot be clearly defined at the outset.
On the other hand, major construction projects, for instance, tend to benefit from a more traditional approach such as using the APM or PMI framework. The best approach will, in practise, depend on the specific requirements and constraints of a given project, but often preferred methods, that project teams are familiar with, within an organisation will be used. Some of the factors influencing the chosen approach include:
- Project complexity and scope
- Flexibility of the project teams
- Alignment with existing project framework within an organisation
- Industry regulations
It is not unusual for complex projects to combine different approaches into a bespoke methodology that works best for their particular situation. Whatever approach is taken, successful project management depends on the project manager, team and stakeholders being adaptable to change and being prepared to change the project plan when necessary.
The evolution of the project management profession
The project management profession has evolved over the past 20 years to become a widely recognised discipline that is essential for most businesses and corporations. From major charitable organisations managing the upkeep of historic buildings to energy companies establishing environmentally friendly methods of producing the energy we all need; from building major infrastructure projects such as CrossRail, to developing the equipment our military needs to protect our country and its people.
A series of internationally recognised project manager qualifications and accreditations have developed alongside the profession. These recognise the different levels of knowledge and experience and the continuing professional development (CPD) that is essential for project management professionals.
The pinnacle of a career as a project manager is the Association for Project Management Chartered Project Professional status (APM ChPP), which requires an accurate record of the CPD undertaken during a project manager's career.
The nature of project management means there are fundamental principles that apply irrespective of the industry.
Managing a project to develop cutting-edge computer software, for instance, follows the same fundamental principles as managing a project to relocate an organisation to new premises. The differences lie in the technical details of how the project is implemented, not in the management approach.
At its heart, project management comprises a set of skills, processes and values which can be applied universally to many situations that lead to change.