What is Project Controlling?

Fahad Usmani, PMP November 11, 2024

Project management often encounters challenges (e.g., schedule delays, cost overruns, quality issues, and conflicts). These issues frequently
arise from inadequate planning, ineffective execution, and most critically, insufficient project control.

Effective project control is essential to keeping a project on track, meeting planned goals and ensuring stakeholder satisfaction throughout
the project lifecycle.

As a project manager, you oversee project control to ensure progress aligns with the plan, milestones are achieved, and costs remain within
the approved budget.

In today’s blog post, I will cover project control, its different types, and how it helps keep projects on course.

What is Project Controlling in Project Management?

Project controlling is the process of monitoring and managing a project’s progress to ensure it stays on track. It involves tracking tasks,
budgets, and timelines to meet project goals and satisfy stakeholders.

By comparing actual performance against planned objectives, you can quickly spot issues and make necessary adjustments. Key elements
include scheduling, budgeting, risk management, and quality control.

Effective project control helps prevent delays, cost overruns, and quality problems. It also ensures that the project aligns with the original
plan, achieves its milestones, and stays within budget, leading to successful project completion.

Many project professionals think project management and project control are the same, but they are not. Project management involves
overseeing various processes, many of which are linked to project control.

Project control focuses on applying processes to measure performance against the plan. It identifies and corrects variances to help meet
project goals. While project management coordinates different processes, project control ensures they are executed as planned.

Project control emphasizes the following:

Project Budget
Project Schedule
Project Quality

Controlling a project involves tracking progress, ensuring work meets timelines and requirements, and taking corrective actions. Identifying
deviations from the plan is essential for effective project control.

Importance of Project Control

Project control ensures that the project stays on track, meets stakeholder expectations, and keeps the team motivated. By closely monitoring
progress, you can ensure that the project stays within the budget and on schedule and delivers high-quality results.

It minimizes risks such as scope creep and gold plating, which can strain resources and lead to budget overruns. Effective control reduces
miscommunication and conflicts by keeping everyone aligned on objectives and responsibilities. It also allows for early identification of issues
so corrective actions can be taken promptly.

With robust project control, stakeholders remain confident, and team members stay focused and motivated, leading to a successful project
outcome.

Project Controlling Features

The following are the key features of project controlling:

Forward-Looking: Project controlling can help organizations plan and manage projects proactively. It allows them to identify risks early
and spot opportunities that could enhance project success. This foresight supports better decision-making and preparation.
 Exists at All Levels: Controlling spans from top management to operational levels, thus ensuring that alignment between strategic goals
and daily tasks. For instance, senior managers set strategic objectives, while operational-level controls ensure that these objectives are
implemented effectively, thus optimizing resource use and project alignment.

Continuous Process: Project controlling is ongoing, with project managers continuously monitoring progress against planned
milestones. This continuous oversight enables organizations to manage resources proactively and adjust as needed to stay on track.

Preventive Mechanism: Project control identifies issues early, which allows for corrective actions before problems escalate. Catching
these risks in advance can help you avoid costly delays or resource waste.

Provides Feedback: Effective control offers valuable feedback on the performance of strategies and processes, thus highlighting areas
for improvement. This feedback loop is essential for refining project management practices and achieving better outcomes.

Flexible: Project controlling adapts to changing project needs due to market shifts, new regulations, or other external factors. This
flexibility allows organizations to modify controls and strategies to stay relevant and responsive.

Project Controlling Types

Project controlling can be of the following three types:

1. Feedback Control
Feedback control ensures that project outputs meet defined requirements and quality standards. This involves regularly inspecting
deliverables and providing feedback to the team. If any discrepancies are found, adjustments can be made to improve the outcome. Feedback
control helps ensure that the project meets client expectations and quality criteria.

2. Concurrent Control
Concurrent control is focused on keeping the project on schedule. This involves setting clear milestones and continuously monitoring
progress. By tracking tasks in real time, project managers can identify delays early and take corrective actions to keep the project on track.
This control type is essential for maintaining timelines and avoiding unexpected schedule overruns.

3. Predictive Control
Predictive control ensures that the project remains within budget. This approach involves estimating costs upfront and comparing actual
expenses to the planned cost baseline throughout the project lifecycle.

By monitoring costs closely, project managers can detect budget deviations early and adjust as needed, ensuring that resources are used
efficiently and the project stays financially viable.

Project Controlling Benefits

The following are a few benefits of project controlling:

Promotes Effective Resource Use: Project control can help organizations maximize resource use by tracking work progress and
ensuring that tasks are completed on time and within budget. By monitoring resource allocation closely, it prevents waste and boosts
productivity.

Enables Timely Decisions: Project control enables managers to make informed, timely decisions by providing regular updates on project
progress. It can help them assess whether a task is on track or if resources need reallocation, thus optimizing efficiency and reducing
costs.

Establishes Accountability: Project control sets clear lines of accountability for each task, thus holding team members responsible for
their performance. This develops transparency in resource usage and critical areas (e.g., risk management) while ensuring regulatory
compliance.

Facilitates Coordination: Project control enhances team coordination by improving transparency. It allows team members to collaborate
more effectively, identify issues early, and maintain smooth project progress.

Provides Timely Reports: Timely, accurate reporting is essential for sound decision-making. Project control regularly tracks progress to
provide updated information, which can help managers make well-informed choices.

Assists with Planning and Budgeting: Project control delivers accurate reports and enables managers to create realistic plans based on
actual progress. This enhances resource use, which can lead to higher productivity and cost savings.
 Promotes Efficiency: Project control improves organizational efficiency through improved coordination and communication among
team members. This minimizes waste and contributes to a more productive, cost-effective operation.

Eliminates Scope Creep and Gold Plating: Project control prevents scope creep and gold plating by monitoring changes and
communication carefully. It addresses unauthorized changes (e.g., adding unapproved features or extra unrequested details), which can
harm the project if left unchecked.

Step-by-Step Process for Project Controlling

Step 1. Establish Standards and Baselines

The first step is to set clear standards and baselines to guide the project. Standards may be qualitative or quantitative. For example, a
qualitative standard might ensure that a website design feels well-thought-out for users, while a quantitative standard could require a new
mobile app to achieve at least 500 downloads in its first month.

Baselines represent the approved project plan established in the planning phase. These baselines allow you to track progress and spot
deviations from the initial plan.

Step 2. Take Measurements

With standards and baselines set, the next step is to measure progress against these benchmarks. Project managers use tools such as
checklists, dashboards, and progress reports to monitor project status and track ongoing tasks. These tools provide a clear picture of where
the project stands, helping to identify areas needing attention.

Step 3. Conduct Analysis

In the analysis step, the project manager reviews and interprets the data gathered during measurement. By comparing current progress
against the baselines, they can detect discrepancies or gaps. This analysis provides insight into whether the project is on track and which areas
may require adjustments to meet the established standards.

Step 4. Take Corrective Measures

The final step is taking corrective actions if the project is not aligning with its baselines. This could involve adjusting the plan, reallocating
resources, or communicating with team members to address specific issues. Corrective measures help realign the project with its original
goals, ensuring it remains on track for completion.

The Challenges of Implementing Project Controlling and How to Overcome Them

The following are the key challenges for Implementing project control and strategies to overcome them.
1. Lack of Clear Objectives and Scope
Challenge: When the project scope and objectives are not well-defined, project controlling becomes ambiguous, making it difficult to
establish accurate baselines and control measures. This can lead to scope creep, budget overruns, and delays.

Solution:

Establish a Clear Project Charter: Start with a detailed charter outlining objectives, scope, and deliverables.
Involve Stakeholders Early: Engage stakeholders to ensure alignment with project goals, requirements, and scope.
Baseline the Scope: Use a well-documented work breakdown structure (WBS) to create a clear project plan and baseline.

2. Inaccurate or Incomplete Data Collection

Challenge: Project control relies on timely and accurate data to monitor progress. Incomplete or inaccurate data can lead to poor decision-
making and ineffective control.

Solution:

Implement Effective Data-Collection Processes: Use standardized templates and tools to gather data consistently.
Leverage Technology: Use project-management software to automate data collection, reporting, and analysis.
Conduct Regular Audits: Conduct periodic data audits to identify and rectify errors promptly.

3. Resistance to Change
Challenge: Project controlling often requires changes in workflows and processes, which can face resistance from team members who are
accustomed to existing methods.

Solution:

Promote a Change-Management Culture: Educate team members on the benefits of project controlling and involve them in the
process.
Provide Training: Equip the team with training on new tools, processes, and methodologies.
Communicate Benefits: Highlight how project controlling can improve project success rates, reduce risks, and streamline work.

4. Lack of Resources and Budget

Challenge: Implementing robust project controlling processes can be resource-intensive, requiring investment in tools, software, and skilled
personnel.

Solution:

Prioritize Critical Projects: Focus controlling efforts on high-impact projects in which the benefits outweigh the costs.
Leverage Scalable Tools: Use cost-effective tools that can be scaled based on project size.
Outsource When Necessary: Consider outsourcing any specialized controlling functions to save costs.

5. Ineffective Communication
Challenge: Poor communication among stakeholders, project teams, and managers can result in delays, misunderstandings, and ineffective
project control.

Solution:

Establish Communication Protocols: Establish clear communication channels (e.g., regular status meetings, dashboards, and reports).
Use Collaborative Tools: Use project management platforms that centralize communication and provide real-time updates.
Develop a Collaborative Culture: Encourage transparency and open communication across the project team.

6. Difficulty in Managing Changes

Challenge: Projects often experience changes in scope, resources, or priorities, which can disrupt controlling efforts and baselines.

Solution:

Implement Change-Control Processes: Establish a formal change management process to assess, approve, and document changes.
Create Flexible Project Plans: Use Agile project management approaches that allow for adaptability.
Provide Regular Reviews and Updates: Review project plans and adjust baselines to reflect changes.

7. Lack of Management Support

Challenge: Without buy-in from top management, project controlling efforts may lack the necessary support, resources, and authority.

Solution:

Demonstrate Value: Show management how effective control can lead to better project outcomes, cost savings, and risk mitigation.
Align with Organizational Goals: Ensure that controlling processes align with the organization’s strategic objectives.
Provide Regular Reports: Share success stories and data-driven insights to keep management informed and engaged.

8. Project Complexity
Challenge: Large, complex projects with multiple interdependencies can be difficult to control effectively, especially when using manual
processes.

Solution:

Break Projects into Phases: Use a phased approach to focus control efforts on manageable project sections.
Adopt Advanced Tools: Use integrated project management software to handle complex scheduling, budgeting, and risk management.
Leverage Project Management Frameworks: Apply methodologies (e.g., the PMBOK, PRINCE2, or Agile) to systematically manage
complexity.

Project Controlling Examples

Now, I will provide three examples of project controlling in three industries:

1. Construction Industry
Project control ensures the project stays on budget and schedule when building a commercial complex. It tracks progress with CPM, CCM, or
Gantt charts, monitors materials and labor costs, and ensures compliance with safety standards. Controlling scope changes prevents budget
overruns and delays.

2. IT and Software Development

Project controlling for a mobile app development project uses Agile metrics to monitor sprint progress, manage the backlog, and ensure user
stories are completed on time. It tracks developer hours and cloud services expenses and identifies risks like changing requirements. Regular
code quality checks are controlled to reduce bugs before release.

3. Pharmaceuticals and Healthcare

In clinical trials for a new drug, project controlling ensures compliance with regulatory standards, controls patient recruitment timelines, and
manages costs for lab testing and site operations. It maintains data integrity by monitoring trial data quality, ensuring reliable results for
regulatory approvals.

Role of Control Charts in Project Controlling

Control charts can help you identify when a project process is deviating beyond acceptable limits. When data points fall outside the
control limits, the process is out of control, thus signaling the need for corrective actions to bring it back in line.
 For example, if certain data points appear outside the control boundaries, an immediate investigation is required to determine the
cause and implement corrective measures.

The rule of 7 suggests that this trend should be carefully analyzed if seven or more consecutive data points consistently fall on one
side of the mean. This may indicate an issue that needs to be addressed, even if the points are still within control limits. Project
managers can proactively identify patterns, reduce variability, and keep the project on track using control charts.

Summary
Project control is an essential aspect of project management that ensures work is aligned with the initial plan. Continuously monitoring
progress helps keep projects on track, ensuring they are completed on time, within budget, and meeting all specified requirements. Through
control charts, schedule tracking, and budget monitoring, project control identifies deviations early and facilitates corrective actions to
maintain project performance.

A strong project controlling process is key to minimizing risks, optimizing resources, and achieving project objectives efficiently.

Further Readings:

What is a Project?
What is Project Management?
What Are the Five Phases of Project Management?
What Are Performance Reports?
What Are Project Baselines?

Reference:

Project Controls: Key Elements, Benefits, and Challenges

Fahad Usmani, PMP

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since
2011. To date, thousands of professionals have passed the PMP exam using my resources.