Project management is vital for all sorts of businesses. A business or organization must have its project well, meticulously, and methodically handled to be successful in its goal fulfillment. A failed project could mean a disastrous descent of bottom lines. Therefore, every business, in today’s times, is in urgent need of project management teams who understand their role well and are able to carry them out satisfactorily. Take Project Management courses and gain more learning and knowledge on your path to being a great project manager.
To understand what is project and project management in a better way, continue reading our blog. We have provided a comprehensive guide to project management, types of project management, project management phases, and various examples.
What is Project Management?
The project management definition is achieving desired outcomes for the efforts dedicated to creating targeted products, services, and processes. It involves detailed project management stages: initiation, planning, and execution. Every stage has objectives that need a complete pack of methodology, skillsets, knowledge, and experience to fulfill acceptance criteria. This is not a continuous activity or routine work of an organization. Every project is goal oriented and standalone. It is time-bound and has predetermined deliverables. This is what makes it different from just 'management.'
Who Uses Project Management?
Project management is an urgent requirement of any organization looking to create, revamp or restart a product or service. Individually too, a person might need to handle personal tasks as a project. Any way project is characterized by three main components: duration, quality, and resources. And it is the Project Manager who uses his skills to plan, execute and deliver a project.
A Project Manager must oversee a project by outlining the project's scope, staying on course, keeping a strict eye on the assigned budget, managing human resources, documenting each step of the project, handling glitches, and finally, doing a quality check before delivering. To ensure they're equipped with the best practices and methodologies, many Project Managers seek professional certifications. A list of PMI certifications can be a useful guide for those aiming to excel in this field.
A whole gamut of jobs needs to be done well, with all projects different. It is a career that demands challenges.
When Do We Use Project Management?
A project is to be managed when a particular set of deliverables identified by the customer are to be completed. This translates into recognizing and managing risks, operating resources, budgeting, and establishing clear communication with the operational teams. Most of the projects are deadline-driven and budget bound. For this, a set of regulations have to be adhered to. Add to this customer's specific requirement that works out to be functionality and quality. The scope may be absent at the outset of the project.
The client might need something but want something else altogether. So, the client could change his mind midway. But the budget would remain static, and the tasks diverse and multidimensional. Under the circumstances, a project management tool could only handle the entire work within the project.
The knowledge of the techniques equips a project manager to deal with efficiently and triumph over uncertainty, novelty, and the possibility of project failure.
To ensure successful project management, one can be armed with PRINCE2 course that mainly targets boosting productivity. It is one of the most popular project management methodologies globally.
Types of Project Management Methodologies
Every project is unique and requires a methodology to execute it. The scope of project management varies from one project to other. It is not about reaching its conclusion alone. A project manager has to approach a project via a method. This is a block of tested practices, techniques, procedures, and rules applied by people working to execute a project successfully. A few oft-used project management techniques are particularly well-suited to a specific industry or work outline.
1. Scrum Methodology
This type of project management is applied when an organization looks at product development. It is a term from Rugby when the game is restarted after a foul. A market-worthy product can only be created with a concerted team action, and this project management methodology underlines the role of an empowered team. The Scrum process was developed by Easel Corporation in 1993 to be used explicitly in Software development processes. These processes need a combination of tested practices and roles to be successfully executed.
The methodology is flexible, but its prerequisite is that its team members work in cohesion, well within the approved and accepted context. Scrum breaks up the project into small and temporary blocks. These blocks are short and work within a time frame of usually 2-4 weeks. Each block is treated as an independent entity with a result-oriented end, a variation of the final product to be delivered to the client.
An organization working with this methodology has to be very handy with short-cycled product development, for it has to meet customer deadlines without compromising product quality. It is an easy and popular methodology of project management because of the quick turn-around time that it promises.
2. Waterfall Methodology
The waterfall method of project management refers to working on a project in a straight line. It is split into phases. Each phase can only begin when the last one has been completed. The Waterfall system is the most traditional of all methodologies but is also the simplest. The team members are assigned roles and responsibilities, which they are expected to work towards fulfilling an end goal. There are no on-the-way changes. No testing at the end of a phase or adaptation of the rectification is recommended.
Only so many teams are working towards integrating their short-term tasks as the complete project. Waterfall project management is best suited for projects with extended, drawn-out plans and a single timeline. This project management strategy is relatively inflexible compared to Scrum since it is planned linearly and is not enthusiastically recommended for knowledge-based projects. But it is very well-suited for replication workflows.
3. Lean and Six Sigma Methodologies
This is a project management methodology that contrives to eliminate wastage of resources and minimize technical shortcomings, thus improving the ultimate performance of the team working on the project. It combines Lean methodology and Six Sigma strategy. The former methodology was the brainchild of the Japanese automaker Toyota, aimed at making the production process free from non-value-adding activities. It refers to eight kinds of wastes under the acronym DOWNTIME-meaning defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing.
Lean is about any method, measure, or tool instrumental in identifying and eliminating this waste. Six Sigma was the work of the telecommunication company Motorola. Based on Japan's Kaizen model, the strategy seeks to improve manufacturing processes by identifying defects in production techniques and removing them. So, the two, in combination, are directed toward improving a company's operational processes, which can lead to lower production costs and higher revenue.
Going for PMP Training (Project Management Professional) could earn you an edge over people with little or no knowledge of project management. On the other hand, this training/certification will give you knowledge of the industry's best practices and experience to handle seamless execution.
Constraints of Project Management
The bounds within which a project must function are known as project constraints. The six significant project constraints are time, cost, scope, quality, resources, and risks. Managers must balance these restrictions to achieve successful project completion.
1. Scope: The word "project scope" describes the size of a project in terms of its level of detail, quality, and outputs. The project scope determines the time and money needed to execute it; hence, time and money depend on it. Every project stage will require you to be mindful of scope creep and make a concerted effort to stop it. You may avoid scope creep by generating precise project plans and obtaining stakeholders' approval before production begins.
2. Time: Time management is crucial for a project to be successful, and each stage of the project will have different time requirements. Extended deadlines, team schedule changes, or less preparation time will occur if you attempt to prolong your project timeframe. The following time factors in your project could result in constraints:
- Overall project timeline
- Working hours of the project
- Different phases of the project
3. Quality: The quality of your project deliverables is measured by how well they meet your initial expectations. Because project quality is the end product of your project, every project limitation impacts it. Yet, the project's quality can also be a limitation in and of itself because some factors can affect the project's quality that is not necessarily connected to budget, schedule, resources, risk, or scope. These are some examples:
- Communication breakdown
- Inadequate design or development abilities
- There are too many project changes.
4. Cost: Cost limitations include the overall project budget and any financial value necessary for your project. Cost-cutting measures could include the project cost, Salaries for team members, Equipment costs, facilities price, unexpected change expenses, etc.
5. Risk: All unforeseen events impacting your project are considered risks. Although most project risks are wrong, some can be good. For instance, a new technology might be unveiled while your project is still developing. You might employ this technology to complete your project more quickly, but it could also increase market rivalry and lower the value of your finished product. You can use risk analysis and management tactics to keep project hazards at bay. You may face the following risks:
- Strained resources
- Mistakes in operation
- Inadequate performance
- Scope Creep
- Price increase
- Time constraint
6. Resources: Because these projects need money, resources are intimately related to cost limits on your project. Without adequate resource allocation, project quality might suffer, as can budget increases and timeframe delays. Consider the following resources:
- People
- Equipment
- Facilities
- Software
To prevent this constraint from adversely affecting other project areas, use a resource management plan to ensure you have the necessary resources for every project component.
Phases of Project Management Lifecycle
A project is generally deconstructed into phases for ease of management. These stages are:
1. Initiation
It is the green signal for the project to begin. A project will have a feasibility study to guide its purpose and resolution. This is followed by a project initiation document outlining project goals, scope, size, budget, human resources organization, possible constraints and risks, stakeholders, a framework for reporting, and finally, assessment and closure criteria.
2. Planning
A project can only see success if it has been meticulously planned. Planning requires defining and setting goals. There are two approaches to this stage: the SMART method (specific, measurable, attainable, realistic, and timely). The CLEAR method (collaborative, limited, emotional, appreciable, refinable). A well-articulated project scope, a well-thought-out, and developed project plan, and a work breakdown schedule are inevitable parts of project planning. For this, the project manager should be well-equipped to:
- Comprehend timelines and costs involved and identify resources for execution.
- Assign roles and responsibilities for the project.
- Define quality standards.
- Set milestones to signal the beginning and end of phases.
- Ensure and enforce performance measures.
- Make checkpoints for progress.
- Identify risks and allocate resources to resolve unforeseen glitches.
This stage also demands that a communication plan (for external stakeholders) and a risk management plan be implemented.
3. Execution
This stage ensures the project plan is carried out as envisaged. Each activity that has been planned should be faithfully carried out to work towards the desired deliverables of the project.
4. Monitoring and Control
This goes hand-in-hand with execution. It deals with daily issues, measuring and evaluating the project's progress. A project manager may employ key performance indicators (KPIs) to track the progress. The tangible indicators are schedule, budget, completed tasks, and address of issues.
5. Closure
This is when the project is completed and ready to be handed over. It means tying up all the loose ends and closing the project. This involves various steps:
- The desired outcome is handed over to the client.
- The allocated and assigned staff and resources are formally released.
- All the project documents are either filed or given to the concerned person.
- Contracts are finally closed.
- All activities within the project are completed.
- A final report about the project is prepared.
Post closure, a review of project activities scrutinizes every step and analyses its successes and failures. This is how a complete project management lifecycle comes into execution and is successfully delivered.
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Types of Project Managers
Growth opportunities for businesses are not monochromous. Every opportunity is singular, and a unique strategy specially designed alone can have the capital to address it. Within this strategy, the segment about executioners will have project managers with different leadership and managerial qualities to see it through. An organization will need all four types of project managers to encash the available growth opportunities. These project managers are:
1. Executor
This project manager will pursue growth opportunities that uphold the boundaries defined by the organization's business strategy. These have been created or highlighted by growth strategies formulated by the organization's think tank. They come out to be a safe player and works well within the defined structure of the current strategy. As such, he uses quantitative projections to give himself strength.
2. Prophet
The Prophet is the opposite of the Executor. This type of project manager is high on risk as he relies more on his vision of growth opportunity than quantitative evidence. They do not believe in cultivating opportunities within the strategic boundaries laid out by the grand plan of the organization. This type of project manager might challenge existing strategies and pursue opportunities that need to be noticed to be within set parameters.
3. Expert
Such project managers will not subscribe to the prescribed business growth strategy but will adhere to quantitative evidence to convince the organization of their business case. They will garner organizational members to support them in their quest for business growth by citing good, solid, and reliable numbers. They will convince them that a change of strategy is the call of the hour and that a well-supported growth strategy could be the answer, although it is outside the current business plan.
4. Gambler
Gambler is the type of project manager who bets. He convinces the organizational members to support him in his plans to encash opportunities for growth that are well within the organization's predefined boundaries. But he does not have quantitative evidence to help him. His strategy's likelihood of success could be better; he might even incur losses in the bargain. Still, these gamblers must update the obsolete growth strategy to tap the overlooked opportunities.
An organization would require all four kinds of project managers depending on growth opportunities that can be identified. Having only one type could retard the growth of an organization. The existing business environment indicates the project manager's need to take the business organization forward.
A sedate one, unwilling to take risks, could maintain the status quo for years but would kill growth in pursuing safety. A very aggressive one could risk everything and end up making irretrievable losses. So, it depends upon the need of the hour to decide which kind of project manager is needed under the circumstances.
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What are the 7 Cs of Project Management?
Seven components go into making a project success. These have to be actively kept in purview during the decision-making exercise. These are:
1. Customers
A project is planned, keeping customers in mind. Therefore, they are the keystone of the whole project. It can only be done with the involvement of the customer. So, the customer must participate actively in planning and monitoring every project stage. He outlines the need of the project and checks whether all the requirements have been fulfilled at the time of project handover.
2. Competitors
Competitors are significant players in the successful implementation of the project. A competitor is often accounted as a stakeholder in the project. If a rival company introduces a product in the market, its reception and response to it could alter the course of a project. At times the project could even be abandoned.
Project Managers are expected to make serious efforts towards getting inside information about rival projects in competing firms. Another aspect of a competitor's role is learning from lessons that have been created as a result of their business strategies. These could be either positive or negative but serve as guidelines for project managers.
3. Capabilities
These are the skills that a project manager should have to plan, execute and close a project successfully. Project goals result from business strategies that turn an abstract vision into reality. The reality can only happen if the project management capability framework guides the project manager on meeting and dealing with a particular project.
4. Cost
The cost management of a project is essential for keeping the expenses well within the prescribed budget. The whole exercise is about estimating, allocating, and controlling project costs. This is done so that at no point in time and stage is there a budget overrun. As the project proceeds, expenses are documented, and approval is sought. At the completion, the predicted and actual costs are compared for future reference. Every project can function with a detailed budget outlay.
5. Channels
These are communication channels. Several channels required or to be put in place are essential to project management. This would be decided at the time of resource allocation. With every new member that joins the team, there will be a new channel. The flow of information, exchange, and reporting on the project's progress would happen through these channels. These channels would ascertain effective communication and the smooth working of the entire team.
6. Communication
The team of resources working on the project requires them to keep in touch with each other constantly. There has to be a continuous flow of ideas, exchange of information, and updates on milestones achieved. Awareness about goals and expectation has to be communicated to each one of the team members. Types of communication include verbal, non-verbal, and written. Within an organization, it is usually verbal and written communication used for project management.
7. Coordination
This is about hinging the entire project. Daily activities, inter-department communication, performance assessment, assignation of tasks, scheduling phases, and finally, planning budget; all come under the head of coordination. The project manager keeps the entire team in sync so that no step is out of gear with the planning. This ensures that timelines are faithfully kept, and the project is progressing well within the prescribed budget.
Example of Project Management
Examples of it can be cited to explain the concept of project management. Projects could be about developing software, building a bridge, or a building. It could be an online app for healthcare or an online platform for e-commerce, a relief effort for a natural disaster hit area, or a business strategy to launch a new product in the market.
Importance of Project Management in today's Business
When a project is managed methodically, it becomes a powerful tool for business growth. It is broken down piecemeal, and each stage and phase is worked out to the last detail. Starting from budget to resource employment, to risk assessment, communication, timelines, etc., is chalked out. This detailed planning makes it easier for team members to execute their individual goals while saving time in errors and miscommunication.
The course of a project can even be altered depending on market news without many deviations. With everything planned, including possible hiccups, a project is more likely to get completed as desired. More than ever, today's businesses need project management practices.
Job Roles in Project Management
1. Project Manager
a. Role: A project manager is responsible for one or more organizational projects. Here are some roles a project manager plays in the project:
- Project planning and development
- Creating and leading a team
- Seat the project goals and timelines and monitor them.
- Handling the financial assets
- Project and team performance evaluation
b. Salary: Project manager salaries range from $55,000 to $175,000, according to the Project Management Institute. Most entry-level and mid-level managers make between $65,000 and $91,000 annually. Senior project managers, of course, get the highest annual salary.
2. Senior Project Manager
a. Role: A senior project manager develops, simplifies, and nurtures essential connections with project stakeholders while promoting a future-oriented mindset and championing the organization's values. Some roles of a senior project manager are:
- Involve key stakeholders to determine project objectives and important goods to be delivered.
- Create project specifications, and agree on the project plan's fundamental elements, such as its scope, main activities, deliverables, resource needs, milestones, and due dates.
- Use project plans and timetables to keep track of all activities.
- Handle stakeholder relationships by instilling confidence and trust through clear professional communications and consistent expectation management.
- Ensure that team members are informed, have clear goals, and work cooperatively and in partnership with clients and other stakeholders to accomplish the desired results.
- Lead project execution; track delivery; anticipate, monitor, and control change; own change management; seek and address roadblocks proactively.
b. Salary: The average Senior Project Manager salary in the United States is $112,491, with a salary range of $100,335 to $125,892. Pay ranges can vary greatly depending on various things, including education, certifications, skills, and the number of working experiences.
3. Project Lead
a. Role: Project lead roles vary with the industry they are working; some important roles are given below:
- Develop team goals with the help of departmental heads, managers, and other stakeholders. Assign assignments to the right team member.
- Create team schedules and aid with team member onboarding and training.
- Give project team members emotional support and make them feel appreciated by developing and communicating a clear list of objectives and goals to adhere to.
- Keep regular contact to encourage team members, change tasks, and update them on target progress. Create rewards to keep the team engaged and concentrate on daily duties. project objectives
- Give frequent feedback on employee performance, identify flaws or inefficiencies, and offer assistance in closing skill gaps.
- Encourage team members to collaborate.
b. Salary: A project leader's yearly pay ranges from $49,000 to $120,000, with an average annual salary of $81,756.
4. Resource Manager
a. Role: Resource managers assist project managers with staffing and human resource planning. They assess a company's ability to satisfy project staffing requirements, assign individuals to tasks, and hire new employees. Their roles are given below:
- Assigning available personnel to projects based on their qualifications and experience.
- Hire new employees according to project budget.
- They are delivering continuing resource management and related support to project managers.
- Employee utilization, workload, and overtime hours are all monitored.
- Redistributing resources, altering goals, or appointing additional employees to alleviate resource concerns.
- Helping with HR operations such as payroll, compensation and benefit plans, and employee training.
- Process documentation and record keeping.
- Staying up to date on labor laws and resource management trends.
b. Salary: The average Resource Manager salary is $64,659, although the salary range frequently ranges between $58,612 and $73,067.
5. Project Management Office Analyst
a. Role: They are responsible for creating thorough project plans, maintaining project budgets, monitoring progress, and reviewing project data to find areas for improvement. Other roles are given below:
- Project management techniques are planned and implemented using templates and toolkits.
- Assuring that project specifications satisfy the demands and expectations of the clients.
- Keeping an eye on ongoing projects to ensure they are completed on schedule.
- Collecting and analyzing project data to discover its flaws and fix any scheduling or financial issues.
- Coordinating with the project team and, where necessary, offering ideas or fixes for unforeseen problems.
- Creating project progress reports for management evaluation.
- Informing clients of the status and development of their initiatives.
b. Salary: In the United States, the expected total pay for a PMO Analyst is $93,159 annually, with an average salary of $79,959 annually.
6. Steering Committee Member
a. Role:
- Advocate on behalf of programs and projects throughout the entire organization.
- Establish the strategic course for initiatives; offer guidance or direct influence on budgeting, including resources (such as people), cash, facilities, time, hiring, and marketing.
- Define project objectives and scope and how success will be measured.
- Project plans and revisions are evaluated and approved or rejected.
- Choose project managers and professionals to assist with tasks.
- Project deliverables should be prioritized and reprioritized.
- Keep track of project processes and plans.
- Settle disputes between parties
- Create strategies and problem-solving ideas.
- Provide competent advice on challenges and issues concerning projects or the whole business.
- Create policies and processes for governance.
- Project and company risks must be identified, monitored, and eliminated.
- Check project quality and make necessary adjustments.
b. Salary: Steering Committee Members' incomes in the United States range from $16,830 to $91,960, with a median compensation of $20,500. The middle 50% of Steering Committee Members earn $19,310 annually, while the top 83% earn $91,960.
The Scope of Pursuing Project Management as your Career
We are witnessing a competitive business environment demanding increasingly complex projects. There is a growing demand for knowledgeable and mature handling to execute these successfully. Project managers who are well-versed in project management practices are the people who would fill the bill.
It will be them with their skills in managing the multiple aspects of a project who could alone see it through. Projects that have seen the light of day and are successfully off the ground are examples of what a trained project manager could do.
Project Management Certifications
1. Project Management Professional (PMP)
a. Exam pattern
The Exam will include 180 questions (the previous Exam had 200); however, the same number of questions will be graded. One further 10-minute break for a total of two computer-based tests. No scheduled breaks for exams with paper and pencil. There will be various questions, including limited fill-in-the-blank, multiple-choice, multiple responses, matching, hot area, and multiple-choice questions.
b. Exam fee:
PMP Exam First attempt: $405
PMP Re-attempt: $275
c. Duration: The PMP test format gives you four hours to complete the Exam.
d. Prerequisites/Eligibility:
A bachelor's degree or the global equivalent is required, as well as at least three years of project management experience. If you do not have a four-year degree, you must have a secondary diploma (high school or global equivalent) and at least five years of project management experience.
2. Certified associate in project management (CAPM)
a. Exam pattern
There are 150 multiple-choice questions on the CAPM Test. 15 of the 150 questions are classified as pre-test questions. It implies that you will be asked to answer all 200 questions when you take the Exam, but 135 accurate answers will determine your ultimate score. The answers to the pre-test questions will not be factored into your final grade.
b. Exam fee: 300$
c. Duration: The Exam can be completed in three hours.
d. Prerequisites/Eligibility:
To take the Exam, you must meet the following CAPM prerequisites:
Possess a secondary education degree, such as a high school diploma, GED (general educational development), or global equivalent.
Before the Exam, you must have completed at least 23 project management education contact hours.
3. Agile Certified Practitioner (PMI-ACP)
a. Exam pattern: There are computer-based, 120 multiple-choice questions covering the seven agile domains. Out of 150 questions, 20 questions are pre-test.
b. Exam fee: $435
c. Duration: Three hours
d. Prerequisites/Eligibility
- Secondary education
- Training in agile practices for 21 contact hours
- one year's worth of general project experience, including 12 months.
- Eight months' experience with agile projects in the last three years
4. Certified Scrum Master (CSM)
a. Exam pattern: The CSM test style consists of 50 multiple-choice questions, and you must write 37 or more accurate answers to pass the certified scrum master exam.
b. Exam fee: $1295
c. Duration: One hour
d. Prerequisites/Eligibility:
There are no established qualifications for becoming a certified scrum master; nonetheless, it is recommended that you grasp the principles and have some functional knowledge of the complete scrum process. You can take the Exam only after completing the two training days.
5.PRINCE2
a. Exam pattern:
Open book: Total no of 68 questions, and you must get 55% to pass.
Closed book: Total no of 60 MCQs, and you will need 55% to pass the Exam.
b. Exam fee: $ 250-$300
c. Duration:
Open book: 150 minutes
Close book: 60 minutes
Conclusion
It cannot be denied that project managers are in high demand today. Every business organization with a growth trajectory must go via a project. The projects are increasing, and their complexity is defining new levels. Successful execution and completion of a project would mean achieving critical organizational goals and a respectable place in the business diaspora.
It is not exclusive to a particular industry or business size. Anyone desirous of having a business with a healthy balance sheet is sure to be having processes according to project management best practices. One can get a complete run-through of project management with KnowledgeHut's online courses for Project Management.
