PROJECT MANAGEMENT essential for accurate cost accounting and provides management accounting with the necessary data

g and provides management accounting with the necessary data and

profitability analysis. insights to:
PROJECT MANAGEMENT is the application of knowledge,
skills, tools, and techniques to project activities to meet the 3. Performance Measurement and Analysis: • Control project costs and budgets.
project requirements.
• Key Performance Indicators (KPIs): Project • Measure project performance and profitability.
It's a structured approach to planning, executing, and management defines KPIs related to cost, schedule,
controlling projects to achieve specific goals within defined and quality. These KPIs provide valuable data for • Make informed decisions related to project finances.
constraints. management accounting to assess project
performance and identify areas for improvement. • Ensure that projects contribute to the overall
Project management plays a vital role in management
accounting by providing a structured framework for planning, financial goals of the organization.
• Variance Analysis: By comparing planned versus
executing, and controlling projects with a strong emphasis on
actual performance (e.g., cost variance, schedule KEY ASPECTS OF PROJECT MANAGEMENT:
financial aspects. Here's how project management contributes
variance), management accounting can analyze the
to management accounting:
reasons for deviations and provide insights for better • Planning: Defining the project scope, objectives,
1. Budgeting and Cost Control: project control. deliverables, timelines, and budget. This involves
creating a roadmap for the project, outlining the
4. Decision Making and Forecasting: tasks that need to be done, and allocating
• Detailed Cost Estimation: Project management
methodologies, like Work Breakdown Structure resources.
• Financial Forecasting: Project management data
(WBS), help break down projects into smaller,
on costs, schedules, and risks helps in developing • Organizing: Assembling the project team, assigning
manageable tasks, enabling accurate cost
more accurate financial forecasts for the project. roles and responsibilities, and establishing
estimation for each activity. This forms the basis for
This information is essential for management communication channels. This ensures that
a detailed project budget.
accounting to support decision-making related to everyone knows their role and how to work together
project funding, resource allocation, and effectively.
• Cost Tracking and Monitoring: Project
profitability.
management tools and techniques facilitate the
tracking of actual costs against the budget • Executing: Carrying out the project plan, managing
• Investment Appraisal: Project management resources, and tracking progress. This involves
throughout the project lifecycle. This allows for early
provides input for investment appraisal techniques putting the plan into action and ensuring that tasks
detection of cost overruns and enables corrective
like Net Present Value (NPV) and Internal Rate of are completed on time and within budget.
actions.
Return (IRR) to assess the financial viability of
projects. • Monitoring and Controlling: Tracking project
• Earned Value Management (EVM): EVM is a project
management technique that integrates scope, progress, identifying deviations from the plan, and
5. Project Accounting:
schedule, and cost to measure project performance. taking corrective actions. This involves monitoring
It provides key metrics like Cost Variance (CV) and key metrics, such as schedule, budget, and quality,
• Tracking Project-Specific Costs: Project
Schedule Variance (SV), which are crucial for and making adjustments as needed.
management provides a framework for tracking
management accounting to assess project costs specific to a project, which is crucial for
profitability and efficiency. • Closing: Finalizing all project activities,
project accounting. This enables accurate cost
documenting lessons learned, and formally closing
allocation and profitability analysis for individual
2. Resource Management and Allocation: the project. This ensures that the project is properly
projects.
concluded and that valuable insights are captured
• Resource Planning: Project management involves for future projects.
• Billing and Invoicing: In projects with external
planning and allocating resources (human, material,
clients, project management helps in tracking Key characteristics of projects that necessitate project
and equipment) effectively. This ensures that
billable hours and expenses, which are essential for management:
resources are available when needed and minimizes
generating accurate invoices.
idle time and associated costs.
• Temporary: Projects have a defined start and end
Bottomline:
• Cost of Resources: Management accounting uses date.
data from project management on resource Project management provides the structure, tools, and
utilization to calculate the cost of resources techniques for effective financial management of projects. It • Unique: Projects produce a unique product, service,
consumed by the project. This information is or result.
 • Progressive Elaboration: Projects evolve over time, • Quality: This refers to the degree to which the • Cost Performance Index (CPI): A ratio of
with more details becoming known as the project project's deliverables meet the required standards earned value to actual cost, indicating
progresses. and specifications. Quality management ensures cost efficiency.
that the project outcomes are fit for purpose and
Project management is essential for ensuring that projects are satisfy stakeholder expectations. • Resource Utilization:
delivered successfully, on time, within budget, and to the
required quality standards. It helps organizations to: • Resources: This includes human resources (project • Efficient use of resources: Optimizing
team members), physical resources (equipment, the use of human resources, equipment,
• Improve efficiency: By providing a structured materials), and financial resources. Effective and materials to minimize waste and
approach to project execution. resource management ensures that the project has maximize productivity.
the necessary resources at the right time.
• Reduce costs: By minimizing waste and rework. 2. Effectiveness-Related Dimensions
• Risk: This involves identifying, assessing, and
• Increase customer satisfaction: By delivering mitigating potential threats that could impact the • Scope (Deliverables and Functionality):
projects that meet their needs and expectations. project's success. Risk management helps to
minimize negative impacts and maximize • Meeting scope requirements: Ensuring
• Enhance competitiveness: By enabling opportunities. that all project deliverables are
organizations to deliver projects faster and more completed as specified in the scope
effectively. • Stakeholders: These are individuals or groups who statement.
have an interest in the project's outcome.
Project management dimensions are crucial factors that define • Functionality and performance:
Stakeholder management involves identifying
and influence the success of a project. While the traditional Evaluating whether the project outcomes
stakeholders, understanding their needs and
view focuses on the "iron triangle" of scope, time, and cost, meet the required functional and
expectations, and engaging them throughout the
modern project management recognizes the importance of performance criteria.
project lifecycle.
other dimensions. Here's a breakdown of key project
management dimensions: key project performance dimensions: • Scope creep: Monitoring and controlling
changes to the project scope to avoid
1. The Traditional Dimensions (The Iron Triangle) 1. Efficiency-Related Dimensions uncontrolled expansion.

• Scope: This defines the project's goals, deliverables, • Time (Schedule Adherence): • Quality (Meeting Standards and Expectations):
and boundaries. It answers the question, "What
needs to be done?" A well-defined scope is essential • On-time completion: Meeting deadlines • Meeting quality standards: Adhering to
to prevent scope creep, which is the uncontrolled for milestones and the overall project relevant quality standards and
expansion of the project's scope without completion date. specifications.
adjustments to time, cost, or resources.
• Schedule variance: Measuring the • Defect rate: Measuring the number of
• Time: This refers to the project schedule, including difference between planned and actual defects or errors in project deliverables.
start and end dates, milestones, and task durations. completion times.
Effective time management ensures that the project
• Customer satisfaction: Assessing
is completed within the agreed-upon timeframe. • Schedule Performance Index (SPI): A customer satisfaction with the project
ratio of earned value to planned value, outcomes.
• Cost: This encompasses all expenses associated indicating schedule efficiency.
with the project, such as labor, materials, 3. Impact-Related Dimensions
equipment, and overhead. Budget management is • Cost (Budget Adherence):
crucial to ensure that the project stays within its • Benefits Realization:
allocated budget. • Staying within budget: Keeping project
expenditures within the approved budget. • Achieving project objectives:
2. Expanding the Dimensions
Determining whether the project has
While the iron triangle provides a basic framework, it doesn't • Cost variance: Measuring the difference achieved its intended goals and
capture all the complexities of modern projects. Here are some between planned and actual costs. objectives.
additional dimensions that are increasingly recognized:
 • Delivering intended benefits: Evaluating 1. Strategic Projects involve creating something new • Deliverable: A deliverable is a specific outcome you
whether the project has delivered the and innovative. A new product, a new service, a new envision for your project, whether tangible objects or
expected benefits to the organization or retail location, a new branch or division, or even a intangible concepts.
stakeholders. new factory might be a strategic project because it
will allow an organization to gain a strategic • Project scope: Project scope explains your goals and
• Return on Investment (ROI): Measuring advantage over its competitors. objectives, what the deliverables are, what tasks to
the financial return generated by the accomplish and the timeline.
2. Operational Projects improve current operations.
project relative to its cost.
These projects may not produce radical
• Resource: A resource is anything required to
improvements, but they will reduce costs, get work
• Stakeholder Satisfaction: complete a project, such as materials, money, time
done more efficiently, or produce a higher-quality
and personnel.
product.
• Meeting stakeholder needs and
expectations: Assessing stakeholder 3. Compliance Projects must be done in order to • Dependency: This determines project resource
satisfaction with the project process and comply with an industry or governmental regulation allocation and planning for dependencies can help
outcomes. or standard. Often there is no choice about whether you save money, identify potential issues and
to implement a project to meet a regulation, but produce the best possible results.
• Stakeholder engagement: Evaluating the there may be several project options to consider,
level of stakeholder involvement and any of which would result in meeting compliance • Stakeholder: A stakeholder is anyone directly or
communication throughout the project. requirements. indirectly involved in a project, such as sponsors,
executives, project managers, resource managers,
Measuring and Monitoring Performance TYPES OF PROJECTS team members and customers.
To effectively track project performance, it's essential to: There are a few TYPES OF PROJECTS: • Milestone: A milestone is a predetermined
achievement that helps you track your project's
• Define clear metrics: Establish specific and • Manufacturing: These projects involve the progress.
measurable indicators for each performance production of a piece of equipment or machinery
dimension. with specially designed hardware and typically
occur in a factory. Some complex products result
• Collect data regularly: Gather data on project from collaboration between several companies. PROJECT LIFE CYCLE
progress and performance at regular intervals.
The project life cycle is the sequence of phases that a project
• Infrastructure technology: These projects focus on
• Analyze data and identify trends: Analyze the goes through from its initiation to its closure. It provides a
software development, IT infrastructure, information
collected data to identify trends and potential framework for managing projects effectively by dividing them
systems and various aspects of computer
issues. into manageable stages with specific objectives and activities.
technology, and project managers are well-versed in
a variety of PM software. While different methodologies might use slightly different
• Take corrective actions: Implement corrective
terminology or break down the phases in more detail, the most
actions to address any deviations from the plan and • Civil engineering: These occur on-site, with project common and widely recognized project life cycle consists of
improve project performance. managers overseeing the work. They often include these five phases:
new building construction, mining and quarrying.;
PROJECT
1. Initiation:
What is the definition of a project? • Business: These arise when a company relocates its
headquarters, launches a marketing campaign, • Purpose: Define the project at a high level and
A project is a planned set of tasks to attain a particular prepares for a trade exhibition or prior to obtain authorization to proceed.
outcome, such as learning new information or creating implementing a new computer system.
something new. Business projects achieve specific business • Key Activities:
objectives, align with a company's business strategy, and fall KEY PROJECT TERMS
into different categories according to content or purpose. • Developing a project charter or similar
Here are some key project terms:
Unlike business operations, business projects are not document that outlines the project's
repeatable and have a defined end date. objectives, scope, and key stakeholders.

BROAD CATEGORIES OF PROJECTS

 • Conducting a feasibility study to assess • Implementing quality assurance • Sequential: The phases typically follow a logical
the project's viability. measures. sequence, although there can be some overlap or
iteration.
• Identifying key stakeholders and their • Key Deliverables: Project deliverables (products,
needs. services, or results). • Time-bound: Each phase has a defined start and
end point.
• Key Deliverables: Project charter, feasibility study 4. Monitoring and Controlling:
report. • Cost and effort vary: The level of effort and cost
• Purpose: Track project progress, identify deviations associated with each phase varies, typically peaking
2. Planning: from the plan, and take corrective actions. during the execution phase.

• Purpose: Develop a detailed roadmap for how the • Key Activities: • Stakeholder involvement: Stakeholders are
project will be executed, monitored, and controlled. involved throughout the project life cycle, although
• Monitoring project performance against their level of involvement may vary in each phase.
• Key Activities: the plan.
Importance of the Project Life Cycle:
• Defining the project scope in detail. • Tracking schedule, cost, and scope
variances. • Provides a structured approach: It offers a clear
• Creating a work breakdown structure framework for managing projects from start to finish.
(WBS) to break down the project into • Managing risks and issues.
smaller, manageable tasks. • Improves communication and collaboration: It
• Reporting project progress to facilitates communication and collaboration among
• Developing a project schedule with stakeholders. project team members and stakeholders.
timelines and milestones.
• Implementing change control processes. • Increases the likelihood of success: By following a
• Estimating project costs and developing a defined process, it increases the chances of
budget. • Key Deliverables: Progress reports, change delivering projects on time, within budget, and to the
requests, issue logs. required quality standards.
• Identifying and assessing project risks.
5. Closure: Types of Project Management Methods /Techniques
• Developing a communication plan and
• Purpose: Formally close the project and document 1. The traditional approach
other management plans.
lessons learned.
Many people still use a traditional and standard
• Key Deliverables: Project management plan, method of project management. This involves noting the tasks
including scope statement, WBS, schedule, budget, • Key Activities:
within a project that need to get done, and creating a
risk register, and communication plan. monitoring schedule that ensures they get completed on time
• Finalizing all project activities.
and to a high standard.
3. Execution:
• Obtaining formal acceptance of project If you decide on the traditional route as a project
• Purpose: Carry out the project plan and produce the deliverables. manager, it’s likely that you’ll be closely monitoring your staff to
project deliverables. ensure they complete tasks on time, while offering support and
• Conducting a post-project review or resources where necessary, and keeping higher management
• Key Activities: lessons learned session. informed of your progress.

• Managing project resources (human, • Archiving project documents. All of these processes will work in sync to ensure a
material, and financial). successful outcome. If you adopt a traditional project
• Key Deliverables: Final project report, lessons management process, you’ll adopt a cycle of planning,
• Executing tasks according to the project learned documentation. execution, monitoring and conclusion. You’ll need to keep on
schedule. top of documentation, time constraints, budget and priorities,
Key Characteristics of the Project Life Cycle: which can change at any time.
• Communicating with stakeholders.
 While the time available and budget allocated for sequence of milestones that have to be completed in order for decisions as you go, adapting your techniques and tools as you
the project may change, the requirements of that project will the project to be finished. better understand the challenges and successes of a project.
likely remain fixed. The benefits of a traditional approach,
however, is that you have clear control over defined objectives, Any delays in this sequence will delay the entire This type of project management technique is
and more accountability. timescale of the project. Critical path management techniques rooted in change, and is often driven by client feedback. It
were first developed in the 1950s to resolve problems with places the client at the centre of a project, with them taking the
2. An Agile method inefficient scheduling. Since then, they have become a lead and deciding how the project pans out and the next steps
common way for project managers to plan the important to be taken. The client also has the power to change the
An Agile approach to project management isn’t too stages of a project. direction of the project and the goals that need to be
far away from a traditional one, but it cuts down some of the accomplished.
project’s larger goals into smaller short-term ones that team Critical path management helps managers calculate
members can quickly achieve. via a timeline exactly how long tasks will take, helping them to 7. Project evaluation and review technique (PERT)
identify which tasks are urgent or non-critical. This helps to
This approach is more appropriate for projects that speed up efficiency, as teams can prioritise tasks that will take PERT is a method of project management planning
require lots of small goals to be met quickly. The Agile longer, or that require more time and effort. It also helps to that is used to calculate the precise amount of time it will take
method is commonly used in software development, as it prevent bottlenecks, as managers can identify which tasks can to complete a project from start to finish. PERT charts are used
enables team members working on a project to be in charge of run alongside one another, and which ones can’t. in this type of management technique. These charts date back
their own short-term goals and tasks, and make their own to the 1950s, when they were used to manage defence projects
decisions regarding them. 5. Waterfall and the use and creation of weapons within the US Navy.

An Agile method to project management requires A waterfall project management technique involves The private sector then harnessed this type of
flexibility from all team members, and strong teamwork. Rather team members completing each task in turn, ensuring that project management and applied it to businesses. With a PERT
than focusing on tools and processes, it focuses on each their current task is complete before moving on to the next one. technique, you create three time estimates for a project’s
individual in a project and whether they are keeping up with Tasks need to be carried out in a chronological sequence for completion. This includes the shortest amount of time that
their allocated targets. Rather than following a fixed plan, the the waterfall method to work. If tasks aren’t carried out this each task may take, the longest amount of time things may
process responds quickly to change. This enables priorities to way, the technique doesn’t work. take if problems occur, and the most likely amount of time that
change when they need to and forecasts to remain adaptable, each task will take. These time estimates are usually
with greater transparency. Good communication skills are important so that calculated backwards from a final deadline date, taking into
every person working on their own individual task gets things account contractor deadlines, which tend to be less flexible.
3. Scrum done in good time. Waterfall methods are usually used for
projects like software or product development, as everything is Some project managers use PERT alongside a
Based on Agile project management methods, done in fixed stages like analysis, design, implementation and critical path approach to enable them to closely evaluate the
Scrum is a technique that is designed for a small team working testing. amount of time each project is taking and the budgets and
on a project. The project has a lead, known as a Scrum master, resources being used. PERT is commonly used in
who removes any problems and obstacles that may be in the Each phase has to be completed before the next manufacturing, as it helps companies to more accurately track
way of getting the work completed on time. Work is done in stage can begin, so a high level of accuracy is important, and production timelines and costs.
‘sprints’, which are short work cycles that usually last around almost all of the research linked to the project is done in
30 days. advance. With this in mind, it’s harder to change course with a
waterfall-style project than it is with an Agile approach.
Teams often meet daily, with stand-ups to discuss 8. Kanban
work tasks and any problems that need to be addressed by the 6. Adaptive
Scrum master. Scrum methods are usually adopted for A Kanban project management system involves
projects that require testing and development (such as a UX With an adaptive project management style, using a Kanban board, which offers a visual guide to the tasks
project), usually with a small number of team members. This decisions and practices can gradually be improved as a project that need completion within a project, as well as their current
enables a focus on high-priority tasks, to ensure each one is progresses. Teams and managers learn from any mistakes and status and their level of priority. A Kanban board will typically
completed before the next stage. outcomes of the previous stage of a project, and resolve these consist of a number of columns or stacks, which represent
problems so that outcomes are more positive at the next stage. tasks that need doing and their current status – which could be
4. Critical path management ‘pending’, ‘in progress’ or ‘finished’.
As the name suggests, an adaptive project management style
A critical path project management technique adapts to the needs of a project and a company, and can take a Each team member is typically given access of
involves pointing out tasks that are vital for completion of a number of variations. Rather than following a strict set of some kind to the Kanban board so that they can see a display
project, determining flexible schedules in order to meet them. criteria, this management technique enables you to make of their own (and the wider team’s) project tasks that need
A critical path is essentially a plan that outlines the longest completion. Kanban boards also identify any delays or
problems with a project, and enable team members to be There are many more methodologies and types of 2. Conducting Feasibility Studies:
allocated or assigned tasks. project management than listed here, but these are some of
the most common. The type used depends on the preference • Purpose: Assess the viability of the project idea
As tasks are completed, the project entry on the of the project manager or the company whose project is being from various perspectives.
Kanban is moved from one column to another, until it’s within managed.
the ‘completion’ column. Kanban boards are part of Agile • Types of Feasibility Studies:
project management styles, as they focus on efficiency, and 12. Six Sigma Project Management
show what exactly is being worked on in the present moment. • Technical Feasibility: Evaluating whether
Perhaps considered more of a process improvement
the project is technically possible with
9. Rational unified process (RUP) tool, Six Sigma can still be used in project management. Six
available technology and resources.
Sigma is a rigorous and data-driven approach to process
This is a project management tool mainly used by improvement that aims to minimize defects and variability
software development companies. It enables companies to • Economic Feasibility: Assessing the
within organizational processes.
develop beta versions of software so that they can test how the project's financial viability, including
software operates and make several improved versions of it Six Sigma utilizes a structured methodology known costs, benefits, and potential return on
while assessing performance. This ensures that the best as DMAIC: Define, Measure, Analyze, Improve, and Control. In investment.
product available is released to market. the Define phase, project goals and objectives are clarified,
and key metrics are established to measure process • Operational Feasibility: Determining
RUP involves making many changes and performance. The Measure phase involves collecting relevant whether the project can be effectively
adjustments as a project nears completion, usually as a result data and analyzing process performance against established implemented and operated within the
of test results that can help to improve software performance metrics to identify areas for improvement. existing organizational structure and
and user experience. RUP also enables risks to be identified resources.
quickly and clearly, and quality assurance can be tested to In the Analyze phase, root causes of defects or
ensure that a software product is of good quality. variations are identified through statistical analysis and data- • Legal Feasibility: Ensuring that the
driven techniques. Once root causes are understood, project complies with all relevant laws
10. Extreme project management the Improve phase focuses on implementing targeted solutions and regulations.
to address identified issues and optimize process
Despite the name, this project management
performance. Finally, the Control phase involves establishing • Environmental Feasibility: Assessing the
technique is not as stressful and overbearing as it sounds. In
controls and monitoring systems to sustain improvements over project's potential environmental impact
any project, there are often mundane tasks that need doing
time, ensuring that processes remain stable and continue to and ensuring compliance with
that are repetitive in nature. Extreme project management
meet desired performance levels. environmental regulations.
focuses on scheduling as much work as possible to increase
productivity. PROJECT FORMULATION 3. Defining Project Objectives and Scope:

This includes introducing daily, weekly or monthly Project formulation is the crucial initial stage in the project life • Objectives: Clearly stating what the project aims to
routines when mundane and repetitive tasks are completed. cycle where a project idea is systematically developed and achieve. Objectives should be specific, measurable,
For example, software systems may be updated and organised evaluated to determine its viability and feasibility. It's the achievable, relevant, and time-bound (SMART).
at a later point in the day or at night to ease disruption during process of shaping a vague concept into a well-defined project
the working day. with clear objectives, scope, and implementation strategies. • Scope: Defining the boundaries of the project,
including what is included and excluded. This helps
1. Identifying the Project Idea:
to prevent scope creep and ensures that the project
11.Lean Project Management stays focused.
• Problem or Opportunity: Project formulation begins
This methodology is all about avoiding waste, both with recognizing a problem that needs to be solved 4. Developing Project Strategies:
of time and of resources. The main idea is to create more value or an opportunity that can be capitalized on. This
for customers with fewer resources. When managing a project can come from various sources, such as market • Implementation Strategy: Outlining how the
with this approach, the goal is similar to that of the lean research, customer feedback, technological project will be executed, including the project
enterprise production principle. The only resources that will be advancements, or organizational needs. methodology, resources, and timelines.
used on the project are those that directly contribute to its
successful completion. • Idea Generation: Brainstorming and exploring • Risk Management Strategy: Identifying potential
potential solutions or approaches to address the risks and developing mitigation strategies.
identified problem or opportunity.
 • Stakeholder Management Strategy: Defining how pursuing a new project is also responsible for creating the • Is this project related to the work we do on a day-to-
stakeholders will be engaged and communicated project proposal. This proposal generally contains a final goal, day basis?
with throughout the project. cost and time estimates, and a list of tasks and activities that
are contained within the project. • Does this project help further our goals as a
5. Preparing a Project Proposal or Document: company?
What Are the Goals of Project Identification?
• Purpose: Documenting the project formulation • Is our competition currently working on any similar
In project management, the primary purpose of project
process and presenting the project to decision- projects?
identification is to create new, worthwhile projects for your
makers for approval.
organization. The initial project ideas can come from many
different sources, including the following: • Questions like this help you identify project
• Key Components: needs while ensuring that your project is in line with
• Yourself your organization’s current goals, values, and
• Project background and rationale. priorities.
• Your supervisors or teammates
• Project objectives and scope. 3. Allocate and coordinate resources
• Customers and end-users Project identification plays a key role in determining,
• Feasibility study findings.
allocating, and coordinating your project resources. This refers
• Community members to any tools—technological or otherwise—that you’ll need to
• Implementation strategy.
complete the project, any necessary training or certifications,
• Other companies and organizations and the amount of time needed to complete the project at
• Budget and resource requirements.
hand. If any one of these resources isn’t available or if their
Regardless of where the idea originates, the fact remains that
• Risk assessment and mitigation current status can’t be determined, then you might have to
the project identification phase is a crucial step to ensuring
strategies. hold off on your project until everything is ready for use.
project viability.
Importance of Project Formulation: This step also helps coordinate activities between
Most organizations also use project identification to achieve
departments. If your project teammates are waiting for your IT
numerous additional goals.
• Provides a clear direction: It establishes a clear team to perform upgrades or maintenance on certain systems,
understanding of the project's purpose, objectives, 1. Understand problems and identify root causes for example, you can utilize this stage to schedule those
and scope. upgrades and plan for your project to start as soon as the
Project identification helps you understand problems. This maintenance has been completed.
• Reduces uncertainty: By conducting feasibility includes internal issues such as your company’s ability (or
inability) to hire and retain top talent, as well as external 4. Determine organizational goals for the future
studies and developing detailed plans, it reduces
uncertainty and increases the likelihood of project problems that pose a threat to your organization, such as the
Although project identification is often used to identify
success. popularity of one of your competitors.
immediate goals for the project at hand, it can be used to help
When done correctly and completely, project identification determine your organizational goals for the future too. If you’re
• Facilitates decision-making: It provides decision- interested in making your workplace a hybrid work environment
does more than highlight problems—it actually helps you
makers with the information they need to evaluate by the end of the year, for example, you will have to create
determine the root causes of any problems you’ve uncovered
the project and make informed decisions. several projects to help make this a reality.
and address them.
• Attracts funding and resources: A well-formulated 2. Ensure projects align with organizational values While the first project might involve the rollout of a new,
project proposal can help to attract funding and remotely accessible CRM for your staff, the second might
secure necessary resources. It’s also important to make sure that your new projects align involve a test trial that sees one or two employees taking on
with your company’s mission statement, organizational values, hybrid roles. After these projects are proven successful, you’ll
PROJECT IDENTIFICATION? and public image. Projects that could have a detrimental effect be able to start your final project of transitioning your entire
on any of these elements should be highly scrutinized to workforce into hybrid roles.
What is Project Identification?
ensure they’re appropriate for your team and organization.
5 Benefits of Project Identification
Project identification is the process of brainstorming,
To help ensure alignment, ask yourself or your project
analyzing, and selecting a project to initiate as a preliminary
teammates the following questions:
step before the first phase of the project life cycle begins. In
many cases, the individual responsible for identifying and
Project identification provides short- and long-term benefits to You’re probably already familiar with the concept of Every project carries some amount of risk. Some common risks
yourself, your team, and your organization. Depending on your brainstorming, and this is no different. If you’re unsure where to include:
specific project, these benefits could vary. start, it’s usually helpful to identify specific problems that can
be solved through your project. This could be as simple as • Scope creep
1. Helps identify critical success factors trying to solve high turnover rates amongst your staff or even
something that reaches outside your organization. Every idea is • Performance-based risks
Critical success factors is a project management term that
valid during the initial brainstorm session, and you’ll figure out
refers to the various tasks, activities, and milestones that are
which ones are feasible and worthwhile in the following steps. • External hazards
most crucial to the project’s overall success. These are often
presented to key stakeholders when trying to gain their 2. Initiation • Technological risks
approval for a project, and they serve both as a metric for
measuring success and as a key selling point of the project as This is where your project officially starts. Experienced PMs use
• Operational risks
a whole. this stage to develop an initial project brief or scope, but it will
likely undergo some revisions in the latter stages of the
2. Provides basis for determining KPIs • Communication issues
process.
Similar to critical success factors, key performance indicators 3. Feasibility analysis • Budgeting and cost risks
or KPIs provide a quantifiable means of analyzing project
performance. For best results, these KPIs need to correlate Project feasibility analysis is usually performed following its • Lack of necessary skills amongst teammates
directly with the final goal of the project at hand. own multi-step process. Some of the common steps include:
Since every project is different, it only makes sense that some
3. Reduces project risks • Analyzing the validity of the project as a whole of the exact risks involved will differ as well. It’s critical to use
the project identification process to identify specific risks and
Project identification provides an effective means of identifying how they could affect your project.
• Outlining the resources necessary to complete the
and reducing project risks. The risk analysis phase is a crucial
project
part of the process, and it can be carried out by any number of 6. Close-out
risk analysis strategies.
• Researching the market to confirm the need for your This is the final stage before pursuing project approval. Use this
4. Minimizes resources needed project phase to review the resource and time estimations you’ve
made thus far and try to ensure they’re as accurate as
Expert PMs use project identification to minimize the • Organizing individual project tasks, activities, possible. Not only will this make the entire process smoother
necessary project resources, both for the current project and milestones, and goals and more efficient, but it will save you from not having
any future works. Minimizing project resources ultimately lets enough—or having too many—resources assigned to the
you allocate resources elsewhere, either to other projects or • Collecting feedback from team members and project at hand.
day-to-day operations, but you still need to make sure that all project stakeholders
of the project goals can be fulfilled according to schedule. 7. Project approval
• Making a final decision on whether or not to move
5. Keeps employees engaged forward with the project The final step before moving forward with your project is to gain
the approval of key project stakeholders. If you’ve been diligent
The project identification process is also a highly effective The feasibility analysis is an invaluable tool when trying to with the project identification process up to this point, most
team-building exercise. Including project teammates in the determine if it’s worth the time and effort to move forward with proposed projects should be approved with few, if any,
various phases can go a long way in keeping employees any project ideas. unexpected complications.
engaged while waiting for project approval, and it also gives
new hires a chance to get acquainted with their coworkers. 4. Project scheduling How to Conduct Project Identification

7 Stages of Project Identification Once you’ve decided to move forward with a project, the next The exact project identification process takes on different
step is to schedule the individual tasks that comprise the forms depending on the industry, the organization, and the PM
It’s best to split the project identification process into multiple, project as a whole. To do this, create a list of activities that all in charge. If you’re still wondering where to begin or if you’d just
smaller stages. Not only does this make it easier for your team lead to an ultimate goal. Provide an estimated timeframe for like to see an example of project identification in action,
to complete the project according to plan, but it also makes it each task and assign responsibilities to teammates as consider the following steps outlined below. While none of
easier for you—and key project stakeholders—to track their appropriate. these steps are necessarily required, they can help make
progress along the way. sense of the entire process for you and your team.
5. Risk analysis
1. Brainstorming 1. Brainstorm ideas for your next project
The brainstorming process starts as soon as the project • Root cause analysis (RCA): This type of analysis 1. Gantt Charts
identification process does. For best results, try to include as can be performed by outlining the root causes of the
many team members as possible. Not only is this a valid team- Gantt charts are one of the most important project
various problems that are inherent to the project at
building exercise, but it can also help you conceptualize and management tools due to their versatility. Gantt charts can be
hand.
create projects that you never would have imagined on your used throughout the various phases of your projects to help
own. with project planning, project scheduling and project tracking.
• FMEA: Originally developed by the US military, the
failure modes and effects analysis or FMEA is often
2. Initiate your project
used in manufacturing and production.
Once you’ve narrowed down your ideas, it’s time to move on to
Other forms of risk analysis are used as well. The key here is to
the first of the five project management phases: the initiation.
find the method (or methods) that work best for you, your
This is where you’ll create your initial project brief, which
project, and your team members.
involves outlining the general activities, milestones, and goals,
before sharing it with your teammates. However, don’t be afraid 6. Estimate resources
to modify the project brief as you make your way through the
whole process. Now it’s time to estimate your project resources. Double-check
any cost estimates, workforce estimates, and material
3. Perform feasibility and viability studies estimates to ensure their validity. Make sure to include any
contractors and sub-contractors, as well as equipment costs, 2. Work Breakdown Structure (WBS)
Next, perform the pertinent feasibility and viability studies to
in order to estimate your resources as accurately as possible.
ensure that your project is doable. Ensure that the individual
Projects big and small can feel overwhelming at first glance as
project activities all lead to the project’s ultimate goal and that 7. Submit for approval there’s so much to do. The idea of diving in and learning how to
your current staff is equipped to handle their responsibilities.
swim is how projects drown in time and costs. As any
Finally, it’s time to submit your final project proposal and get
4. Complete the project schedule experienced project manager knows, everything requires a
the approval of key project stakeholders. If the project isn’t
plan before its put into action.
approved, you may have to make necessary revisions before
Project scheduling is an art form in and of itself. It’s something
you can begin working on the actual project itself. A work breakdown structure (WBS) is a way to organize work
that gets easier and more accurate the more you do it, but it
can be daunting for novice PMs. Not only will you need to into smaller, more manageable pieces. According to the
PROJECT MANAGEMENT TOOLS & TECHNIQUES FOR
create a roadmap for the allocation of resources, but you will Project Management Body of Knowledge (PMBOK), WBS is a
PROJECT MANAGERS
also need to detail the tasks that must be completed before “deliverable-oriented hierarchical decomposition of the work
the project can be considered complete. What Is the Difference Between Project Management to be executed by the team.”
Techniques and Tools?
5. Perform a project risk analysis The WBS is a graphic representation of every task in the
While tools and techniques sound similar and they’re both project. At the top is the final product with a line that goes
This is the time to perform a thorough risk analysis of your essential parts of successful project management, it’s down the page to a box (or boxes) that represent the larger
project as a whole. There are many different methods your important to be aware of the differences between the two. tasks that lead to that completed project. Each of these boxes
team can use to identify project risks, including: Project management tools are physical resources such as is then attached with lines that go under it to smaller tasks.
software that help manage and execute various aspects of a
• Qualitative risk analysis: This method uses Work breakdown structure diagrams are a very popular project
project. Other examples of tools include Gantt charts, kanban
subjective judgment to analyze and evaluate project management tool, typically used in project management
boards, project calendars, task lists or project management
risks. techniques such as the critical path method (CPM) or the
templates. Think of tools as “how” you manage projects to
Program Evaluation Review Technique (PERT).
achieve goals like improving communication, monitoring
• Quantitative risk analysis: A form of statistical performance or facilitating planning.
analysis that takes a numerical approach to project
risk analysis. Project management techniques, on the other hand, are the
“what” you do in a project on a more strategic level. They are
• SWOT analysis: An acronym that stands for methodologies and processes that help you plan, execute and
strengths, weaknesses, opportunities, and threats, a oversee a project. Some examples of project management
SWOT analysis is very common amongst techniques include the agile methodology, lean project
experienced PMs and their teams. management, waterfall, scrum or the critical path method
(CPM).
 however, the most common are the precedence diagramming
method (PDM) and arrow diagramming method (ADM).

The purpose of the network diagram in terms of project

management techniques is that it helps project managers
track each project element. It also makes it easier to share and
communicate with others on the project team. Network
diagrams are used in various project management techniques
that require a graphical representation of task sequences, such
as PERT or the critical path method. Because of their
simplicity, they’re also considered a helpful program
8. Risk Matrix
management tool as they allow program managers to easily
visualize the estimated timeline of multiple projects side by A risk matrix is another key project management tool that any
3. Cost Breakdown Structure (CBS) side. project manager should know. They’re a simple tool that helps
you to figure out the likelihood and severity of potential project
A CBS, or cost breakdown structure is a hierarchical framework risks. By having the means to access risk this way, you can
that categorizes and organizes the costs associated with a chart their impact on the project. This allows project managers
project. It breaks down the overall project cost into more to assign a priority to the risk and determine the response if it
manageable chunks including labor, equipment and becomes an issue in the project. For these reasons, you should
overheads. always use a risk matrix, risk log or other risk management
tools when planning your projects, regardless of the project
This cost structure tool helps with budgeting, cost tracking and
management techniques you choose.
financial analysis, offering a clear breakdown of where money
is being spent. There are many different types of risks of which project
managers must be aware. Common risks include strategic,
4. Resource Breakdown Structure (RBS)
operational, financial, technical and external risks. Remember,
Resource breakdown structures are another hierarchical not all risks are bad. Some can be taken advantage of and
7. Risk Register
framework that categorizes and organizes project resources to positively impact the project.
ensure the right resources are used properly throughout the Another noteworthy topic in the discussion of project
project. The RBS project management tool looks at different management tools and techniques is a risk register. This tool
details such as personnel, materials, equipment and facilities documents and tracks potential risks throughout a project,
to help identify, track and manage resources. The clarity that a detailing their likelihood, potential impact and mitigation
resource breakdown structure provides to the resource strategies to minimize disruptions.
planning process makes it a very useful tool for project
management offices (PMOs) which need to allocate resources A risk register typically includes information about risk
to multiple projects. descriptions, risk owners, an assessment of risk severity and
any action plans. This simple yet powerful tool allows project
This technique offers a straightforward view of the required teams to keep an eye on risk and reduce their impact on the
resources that lends to better planning, allocation and project.
optimization.
Therefore, you need to systematically track and evaluate the
5. Project Network Diagrams performance of the actions you take to mitigate risk against
established metrics throughout the acquisition process while
Project network diagrams are graphical representations of a developing other options. This is where a risk register template
project. They look like a series of arrows that connect to boxes comes in handy. It provides you with all the places to collect
and they show how activities interact in a project. The boxes the needed data to follow that risk and see how your actions to
are called nodes and they represent an activity in the project, remedy it are working.
while the arrows show the relationship among the activities.

Network diagrams work well as a project management 9. Timesheets

technique as they must have a start and finish, just like a
project. There isn’t one way to draw a network diagram,
Teams need to get paid and timesheets are a tool that helps One of the more common project reports is the status report,
accomplish that. As in any employment, timesheets are a way which is usually weekly or monthly. There are also progress
to track the number of hours a person has worked over the reports and workload reports that are crucial to resource
course of a specific time, usually a week or biweekly. management. There are even reports that look at risk, cost-
benefit analysis and project variance.
In project management, timesheets do more than just facilitate
payment. They’re used as project controls to record the
amount of time that the team member has spent on their
specific tasks, though they can also track time on a project or
for a particular client.

Timesheets can be used in a variety of different modes, from

paper to spreadsheets and software. Online timesheets can
even update in real time. However you use a timesheet, they’re 11. Change Log
vital for payment, meeting deadlines and keeping to your
A change log, as the name suggests, is a diligent record that
budget.
tracks all requested and implemented changes throughout the
project. Typically, this project tool includes information such as
the reason for the change, who requested it, the change
request date, how it impacted the project and the overall status
of the change.
13. RACI Chart
This formal change record helps prevent scope creep,
facilitates stronger stakeholder communication and helps RACI is a project management technique that stands for
teams understand how changes impact the scope, schedule responsible, accountable, consulted and informed, and a RACI
and budget. chart clarifies the roles and responsibilities in a project or
process. “Responsible” identifies the role or individual
responsible for completing the task or deliverable.
“Accountable” is who is ultimately on the hook for the task or
10. Project Dashboards deliverable and makes final decisions. “Consulted” is the
person or people who offer expertise on the task, and
Just as you have a dashboard on vehicles that gauge speed, “informed” is the individuals who should be aware of status
amount of fuel remaining in the tank and mileage, project updates and outcomes.
dashboards track metrics in the project. It’s one page where
you can view the project’s progress and performance at a For example, if the task is to develop a marketing plan, the
glance. responsible party would be the marketing team. The
accountable party is the marketing director who will approve
This is a key tool for getting high-level data on the project or 12. Project Reports
the plan. The sales team will be consulted to provide input on
conducting a project management audit. It’s a visual tool that the market’s needs and the executive team will need to be
Project reports are simply documentation that detail either an
turns hard data into easy-to-read charts and graphs, which informed on progress updates.
overview or details of a project. There are many different types
helps make the information more digestible.
of project reports, each serving a different purpose, but all give
Some of the metrics that dashboards display can be cost- a project manager data on the progress and performance of
related, task-related or about the overall health of the project. their project.
Dashboards can also show workload and other resource
Another aspect of project reporting as a project management
management metrics. They’re an essential part of any project
technique is that it’s a communication tool. As noted, it
management software.
communicates valuable project details to the project manager.
But it also provides the project manager with a means of
updating the project stakeholders, all of whom have a vested
interest in the project’s success.

14. RAID Log

The acronym RAID stands for risks, assumptions, issues and with time estimates. Scheduling is critical to getting a project
dependencies. This project management tool helps capture completed on time but also within the set budget.
and track key areas of project risk management in a
streamlined way to help the project manager maintain control So, how does PERT work? It manages probabilities by using
over the project. network diagrams and simple statistical methods. PERT breaks
down tasks into detailed activities, by using the WBS discussed
It identifies risks, documents assumptions, records issues and above, then adds these to a PERT diagram to identify those
lists dependencies to help teams proactively manage issues activities that are interdependent. From that data, you create
before they snowball into something catastrophic. RAID logs an illustrative map of the network of activities and their
also help improve stakeholder communication and support interdependencies. 18. Cost-Benefit Analysis
decision-making.
On the map, a node represents an event and the activities are A cost-benefit analysis looks at the investment into a project
represented by arrows drawn from one event to another based and what that return might be. This is a valuable project
on its order. From this, the earliest time (TE) and the latest time management technique to help decide which projects are
(TL) for each activity are figured out, as well as the slack time viable and which ones are better off being passed.
for each activity.
The idea is simple: add the costs of the project and then the
value from a business perspective, whether that’s benefits or
opportunities. If the benefits outweigh the costs, then the
project is more likely worth pursuing. If not, you might save
15. Agile Project Management yourself a loss by turning it down.

Agile is a way to approach projects in an iterative fashion with The value of such a project management technique is clear in
short durations of work. These periods are called sprints. Agile terms of making organizational decisions. It helps you view the
sprints begin with planning, which is typically done using task project in terms of its return on investment (ROI) and your
lists and kanban boards. A product owner requests the work organization’s value chain. This is a data-driven way to make a
17. Critical Path Method (CPM)
and the development team decides on what work will be done decision as opposed to betting on your gut.
during the sprint. Critical Path Method (CPM) is a cornerstone of project
management techniques. CPM involves the use of network
The development team has the final say in terms of what work
diagrams, WBS and Gantt charts. CPM consists in using these
will be accomplished during the sprint, while the product
tools to create a project timeline and identify the critical path,
owner defines the criteria by which the work will be considered
which is the longest sequence of activities in the project. The
done and approved.
activities in the critical path are known as critical tasks and
In this process, a scrum master is an expert on the scrum have the highest priority in terms of project schedules. Now
framework and determines the length of the sprint. There are you know what tasks are critical to the project and which have
artifacts that provide information to the scrum team including float or can be delayed without lengthening the project
backlog, burndown charts and user stories. timeline. With this information, you can determine the shortest
time needed to complete the project.
19. Earned Value Management
Not all project management tools can filter the critical path
automatically. But ProjectManager’s online Gantt chart finds Earned value management (EVM) is used in project
the critical path with a click, saving you valuable time. Once management to integrate schedules, costs and scope as a way
your schedule is planned, set the baseline on the Gantt chart to measure project performance. By looking at planned and
view. This allows you to compare your actual progress versus actual values, EVM can help make predictions that allow
the planned effort, which helps you stay on track. project managers to better manage projects. Project managers
use tools like WBS, Gantt charts and project dashboards as
they implement EVM.

16. PERT Predicting the future is never wholly accurate, but according to
studies, once 20 percent into a project, EVM does a pretty good
PERT is an acronym that stands for program evaluation and job. It’s often used to control project costs.
review technique. It’s a project management technique to help
Other benefits include reducing unknowns into quantifiable A feasibility study looks at whether you have the resources to The project planning phase is often the most challenging phase
factors and comparing and benchmarking the current project complete the project and if the ROI makes it beneficial or for a project manager, as you need to make an educated guess
status with the project baseline. It also provides insights into financially advantageous to take on the project. about the staff, resources, and equipment needed to complete
projects and portfolios. your project. You may also need to plan your communications
A feasibility study will commence after the project has been and procurement activities, as well as contract any third-party
20. Stakeholder Mapping pitched but prior to any work has started. It’s part of the suppliers.
planning phase of the project and is done with a SWOT analysis
Stakeholders have a vested interest in the project, but they can or project risk assessment. A feasibility study looks at things The purpose of the project planning phase is to:
also influence your project. Therefore, project managers need such as market opportunities, pros and cons and so forth.
to know who the project stakeholders are and how they might • Establish business requirements
influence the project. 22. Project Pipeline Management
• Establish cost, schedule, list of deliverables, and
That’s where the project management technique A project pipeline is a system that allows organizations to keep
delivery dates
of stakeholder mapping comes in. It’s a visual process that lays track of its current and upcoming projects in their project
out the project stakeholders and lets the project manager portfolio. This project management technique helps project
• Establish resources plans
know how to deal with the stakeholders and which ones need management offices (PMOs) during the process of selecting
to know what and when. and prioritizing new operational and strategic projects for a
• Obtain management approval and proceed to the
business. You can establish a project pipeline management
Stakeholders can be varied. Customers or users of a product next phase
system by using a variety of project management tools such as
are stakeholders, but so are industries and markets, suppliers project portfolio roadmaps, Gantt charts, dashboards and The basic processes of project planning are:
and investors. They can be new or old customers, retailers or more.
even the project team, such as the project manager, developer,
• Scope planning – specifying the in-scope
design or executive. In general, they can be broken up into two
requirements for the project to facilitate creating the
categories: internal and external. Project dashboards and
work breakdown structure
Gantt charts can then be used to report on progress and keep
stakeholders informed.
• Preparation of the work breakdown structure –
spelling out the breakdown of the project into tasks
and sub-tasks

• Project schedule development – listing the entire

schedule of the activities and detailing their
sequence of implementation

• Resource planning – indicating who will do what

work, at which time, and if any special skills are
needed to accomplish the project tasks
PROJECT PLANNING
• Budget planning – specifying the budgeted cost to
Project planning is at the heart of the project life cycle, and be incurred at the completion of the project
tells everyone involved where you’re going and how you’re
going to get there. The planning phase is when the project • Procurement planning – focusing on vendors outside
plans are documented, the project deliverables and your company and subcontracting
requirements are defined, and the project schedule is created.
21. Feasibility Study It involves creating a set of plans to help guide your team • Risk management – planning for possible risks and
through the implementation and closure phases of the project. considering optional contingency plans and
There are many ways to determine if a project is worth The plans created during this phase will help you manage time, mitigation strategies
undertaking. One such project management technique is the cost, quality, changes, risk, and related issues. They will also
feasibility study. It’s a way to evaluate if the project plan is help you control staff and external suppliers to ensure that you • Quality planning – assessing quality criteria to be
practical and will lead to a successful outcome. deliver the project on time, within budget, and within schedule. used for the project
 • Communication planning – designing the Defining the scope of the project means precisely outlining the resource.
communication strategy with all project work the team needs to complete in order to meet the project
stakeholders objectives. A project's scope defines the limits and the
boundaries of the project and serves to prevent “scope creep,”
The planning phase refines the project’s objectives, which were which refers to tasks or products that fall outside of the 7. Complete a risk assessment
gathered during the initiation phase. It includes planning the agreed-upon scope. Project managers use client requirements
A risk management plan is a very important aspect of project
steps necessary to meet those objectives by further identifying and project goals to outline the project scope.
planning, as it addresses aspects of a project that may
the specific activities and resources required to complete the
3. Decide on the major deliverables negatively influence its successful completion. This process
project. Now that these objectives have been recognized, they
involves identifying possible risks, the probability of these
must be clearly articulated, detailing an in-depth scrutiny of
Once all parties have agreed upon the project scope, you can occurring and the impact should they materialize. Once you
each recognized objective. With such scrutiny, our
define the deliverables of the project. Deliverables are the establish the risks and their gravity, develop a risk response
understanding of the objective may change. Often the very act
specific products or services that the project team creates or plan, which outlines responses and contingency plans if a risk
of trying to describe something precisely gives us a better
delivers during the project. These result from the project goals. occurs. Doing so minimizes the impact any major threat may
understanding of what we are looking at. This articulation
Clients often choose the deliverables they want. have on a project.
serves as the basis for the development of requirements. What
this means is that after an objective has been clearly 4. Create the scope statement PROJECT INITIATION
articulated, we can describe it in concrete (measurable) terms
and identify what we have to do to achieve it. Obviously, if we The scope statement document includes important What is project initiation?
do a poor job of articulating the objective, our requirements information like business needs the project addresses,
will be misdirected and the resulting project will not represent objectives, scope, deliverables, assumptions, exclusions and Project initiation is the first step in starting a new project.
the true need. key milestones. Once you create this document, present it to During the project initiation phase, you establish why you’re
the sponsor and all stakeholders, so they can agree with the doing the project and what business value it will deliver—then
Users will often begin describing their objectives in qualitative project details. This helps prevent any chance of use that information to secure buy-in from key stakeholders.
language. The project manager must work with the user to miscommunication. As this is basically a contract between the
provide quantifiable definitions to those qualitative terms. The term “project initiation” comes from a five-phase
project manager and the sponsor, the latter needs to be
These quantifiable criteria include schedule, cost, and quality model created by the Project Management Institute (PMI). PMI
cognizant of, and approve any changes that you may request in
measures. In the case of project objectives, these elements outlines this model in their Guide to the Project Management
the latter stages of the project.
are used as measurements to determine project satisfaction Body of Knowledge, also known as the PMBOK® Guide. The
and successful completion. Subjective evaluations are 5. Create a schedule model divides a project’s lifecycle into these five stages:
replaced by actual numeric attributes.
Create a schedule to determine how to implement these • Project initiation: Broadly define your project and
How to plan a project deliverables. To do this, you can develop a work breakdown secure buy-in.
structure where you separate big deliverables into smaller,
Although different project managers may have different workable tasks. Once you establish all the various activities • Project planning: Create detailed goals and a project
approaches when it comes to planning a project, there are key that your team needs to complete to implement deliverables, roadmap.
considerations that all project managers need to consider. order them in a logical sequence. Then, decide how long each
These include: task takes to complete, as well as the costs involved in • Project execution: Launch your project using
executing them.It's advisable to first create a milestone list, information from the first two steps.
which are the major phases of the project, and use this as a
point of departure when deciding on timeframes for individual • Project performance: Measure effectiveness
1. Set project goals
tasks. Once you have established all timelines, create a project using key performance indicators (KPIs).
When creating a project plan, identify the project sponsors and schedule that clearly indicates when each task begins and
stakeholders, such as the client and end-users, and then meet ends. • Project closure: Debrief with stakeholders.
with them to establish what their expectations and needs are.
6. Assign roles and responsibilities Project initiation vs. project planning
After you document and prioritize all relevant parties' needs,
determine specific project goals that address these needs and Assign specific tasks to team members so that everyone During the project initiation phase, you define your project at a
outline the project objectives. These are the project goals and understands their responsibilities. You may also need to high level in order to demonstrate its business value. Once you
it's important to define these objectives so you can create source external resources and specialists for complex tasks secure buy-in from key stakeholders and prove that your
tasks that ensure the achievement of project goals. that require expertise or that fall outside of the skill set of your project is feasible, you then move on to the project
project team. For clarity, develop a staffing plan that clearly planning phase. That’s when you define your specific
2. Define the project scope
outlines the length of time that the project requires each objectives, deliverables, and project roadmap in more detail.
Think of it this way—you want to provide enough information to • Who: Key stakeholders, project sponsors, and Getting stakeholder buy-in during the initiation phase not only
secure approval during the initiation phase, then spend time project team members helps you secure approval, support, and resources—it also
ironing out project planning details after you get the green increases project visibility and prevents costly roadblocks later
light. Business case on in the project life cycle.

Why does the project initiation phase matter? A business case includes all the components of a project 3. Run a feasibility study
charter, along with these additional elements:
Starting a new project is exciting, but it’s important to make At this point you’ve pitched your project, demonstrating that it
sure your initiative will actually add value before jumping into • A comprehensive financial analysis, including an adds value and fits with your company’s overall strategic plan.
the planning phase. That’s where project initiation comes in—it estimate of the return on investment (ROI) your Now, it’s time to run a feasibility study to confirm your project
offers a structured approach to demonstrate your project’s project will bring is possible with the resources you have at your disposal.
business case and prove that the work you’ll do is feasible.
Project initiation also ensures that you loop in stakeholders Simply put, a feasibility study evaluates whether your project
• An analysis of project risks and a risk management
early on, so you can secure essential resources, gain visibility could be successful. It answers the following questions:
plan
for your project, and prevent costly roadblocks down the road.
1. Does my team have the required resources to
• An action plan that includes how decisions will be complete this project?
The project initiation process: 4 steps to get started
made (such as a RACI chart), a communication
Here’s how to approach this first phase of project management plan, and next steps you’ll take if your business case 2. Will there be enough return on investment (ROI) to
and lay a solid foundation for your new project. is approved make this project worth pursuing?

1. Create a project charter or business case 2. Identify key stakeholders and pitch your project If you can answer yes to both questions, you have a solid
rationale to move forward with your project. If your feasibility
In this first step, you demonstrate why your project is Next up, determine who needs to sign off on your project study concludes that you don’t have enough budget or
necessary and what benefit it will bring. You can do this with charter or business case. This includes key stakeholders who resources, you’ve created a strong case to go back to
either a project charter or a business case. These two have a say in the outcome of your project—for example, stakeholders and request more. And if your project’s ROI isn’t
documents follow the same fundamental idea, since they’re executive leaders, project sponsors, or cross-functional teams up to snuff, you can use that data to tweak your project plan—
both used to outline key project details and pitch your initiative that you’re requesting budget or resources from. If you’re not or pursue a different opportunity entirely.
to stakeholders. The main difference between them is scope— sure who your key stakeholders are, ask yourself the following
you can use a project charter for smaller initiatives, and a questions: Does every project need a feasibility study?
business case for larger projects that require significant
resources. For example, you might create a project charter for • Who needs to approve my project? Feasibility studies are typically used for larger projects that
require significant company resources. You might not need to
a redesign of your company homepage, and a business case
for a company-wide rebrand. • Who will provide resources for my project? run a feasibility study for smaller projects with minimal long-
term impact. You can also skip this step if you’ve managed a
Regardless of whether you use a project charter or a business • Who can influence my project? similar project in the past, your competitors are already
case, this is your chance to demonstrate how your project will succeeding with a similar initiative, or you’ve run a similar
add business value and why you need specific resources like You can also create a project stakeholder analysis to ensure feasibility study within the past three years. Keep in mind that a
budget, equipment, or team members. Here’s a rough you’re not overlooking any important players. This feasibility study takes time and resources to complete, so
template of what these two documents typically include: methodology involves dividing stakeholders into four main make sure it’s really necessary before you dive in.
groups: those with high influence and high interest, high
Project charter influence and low interest, low influence and high interest, and 4. Assemble your team and tools
low influence and low interest. Anyone in the first bucket (high
A project charter demonstrates why your project is important, Now that your project is approved and its feasibility proven, you
influence and high interest) is likely a key stakeholder that
what it will entail, and who will work on it—all through the can finally start to assemble your team, workspace, and tools.
should approve your project during the initiation phase.
following elements: Here are some pointers to get you started:
Aside from key stakeholders, now is also a good time to identify
• Why: The project’s goals and purpose other individuals who may be impacted by or interested in your • A good team can go a long way in making your
project. While these people don’t need to officially approve project a success, and it can take time to find people
• What: The scope of the project, including an outline your initiative, it might be helpful to give them an early heads- with the right experiences and skills. It’s a good idea
of your project budget up, especially if this project will impact their work. They may to start this process as soon as possible once your
also be able to provide additional support in the form of insight project is confirmed—especially if you need to hire
or resources. new employees or onboard contractors. And
 depending on your company’s procedures, you may also feel more confident delivering a quality project knowing 4. Break the project down by phases
need to file a request in advance to reassign existing the entire team understand's its goals, their own
employees to your project. responsibilities and any updates or changes as they arise. If you're executing a larger project, it can be easier and less
intimidating to handle it if you break it down by each phase.
• Consider how you want to organize your team How to create a project execution plan One phase can contain your first few actionable steps to get
structure. For example, do you want a simple the project started and on track. The following phases can
Building a project execution plan allows you to map out a clear include additional tasks and check-ins to ensure it stays on
hierarchical structure with team members reporting
strategy for employees to closely follow. It also increases the task and remains productive. Try to only list around five or six
into single team leads—or does it make more sense
communication between team members to keep the project tasks in each phase to make it easier for employees to plan
to divide your team by geographical region?
productive and on schedule. Follow these steps to create an and work into their upcoming schedules. You can set a goal to
effective project execution plan: complete each phase by a certain deadline and easily shift
• Where you work can influence how you work. If
you’re planning to manage your project remotely, your other phases to later dates if one falls behind.
1. Establish your goals for the executed project
make sure you have the right infrastructure set up to
5. Create and monitor the budget
manage a virtual team. And if your team will work Before you can implement a project plan, you should establish
onsite, keep in mind that you may need to request the goals you'd like to set for the final outcome. Use this time to When you understand the specifics of each task, you can
office space well in advance of your project kick-off discuss with your team why you're executing the project and create an informed budget for the project. Review each phase
meeting. what you'd like to accomplish. Including numbers in your goals and determine the budget needed to complete them. Consider
is a great way to measure achievements and ensure the project holding discussions or meeting with department heads to
• Choose the right tools. Consider how your team will is progressing. Consider using this time to discuss any determine how much funding they may need to complete their
work together on daily tasks—for example, will you challenges you predict to face during the project's execution. individual tasks. This makes it easier to come up with a budget
use email, Google docs, or more robust project You can set proactive steps in place to prevent or react for the overall project. You can also review budgets for similar
management software? You may want to consider a accordingly to problems as they appear to any significant projects previously implemented to make more accurate
tool like Asana, which allows you to centralize team delivery delays. predictions. Try to leave room in the budget for any unexpected
communication in one place, assign tasks with clear expenses that may occur during the project's execution.
owners and due dates, and easily organize projects 2. Select project members
in a way that's tailor-made for your team. Tips for successful project execution
Find team members with the skills and abilities needed to
PROJECT EXECUTION handle each of the project's tasks. Choose the overall tasks As you execute your plan, factor in any unexpected changes
you need completed and reach out to the necessary that could occur and ensure each phase is progressing as
what is Project Execution? departments to work on them. If you're unsure of which needed. Use these tips to successfully execute an impressive
employees to delegate certain tasks to, contact department project:
Project execution is a phase of the project life cycle that heads for their suggestions on the right people to assign.
involves implementing the plans and goals created for a Adapt to change: A client, stakeholder or employee may
project. During this phase, you can put your project plan into 3. Conduct a project execution meeting request a change while you're working on the project or other
action by delegating tasks, building schedules and assigning employees may fall behind unexpectedly. Plan ahead for these
deadlines. You can also schedule regularly check-ins and Once you have goals and tasks lined up, conduct a project
instances and put practices in place to resolve or adapt to any
meetings to review the project's progress and resolve any execution meeting and invite all the team members involved.
changes that could impact the project's delivery.
challenges or setbacks as they occur. Share the project's goals with team members to give them a
defined purpose for contributing their time and assignments. Track progress regularly: Use a task management system and
Why is project execution important? You should also include a list of everyone on the team, key performance indicators to determine whether your project
followed by brief descriptions of what each employee is in is on track. Ask for updates on employees' progress and
Creating and implementing a detailed execution plan is charge of for the project. Share a rundown of the project's conduct regular meetings to discuss their progress and any
important because you can clearly organize all of your timeline and clearly communicate the deadlines for each task. potential challenges that may keep them from completing a
deliverables, tasks and milestones to easily understand if the Leave plenty of time in the meeting for employees to express task on time.
project is on task to meet the company's or client's goals. It ideas, comments or questions about their responsibilities.
allows you to regularly check the progress of the project and Test and verify each phase: Make sure you clearly understand
factor in enough time to adjust schedules and deadlines if any Explain the preferred communication method for this project the project's goals as you review, test and approve of each
unexpected problems appear. as well, to keep everyone informed and updated at all times. completed assignment. Use a strong attention to detail to
Schedule meetings for progress updates and set up group locate and resolve any potential errors as you locate them. This
Project execution plans also regularly include key performance emails or add all members to different assignments on a task ensures you deliver an impressive and high-quality final
indicators to measure your budget and task completion times management app. product.
to make more accurate predictions for future projects. You can
PROJECT CONTROL Project control is a focused subsection of project management 5. Project closure
that concerns itself mostly with project expenses and duration.
What is project control in project management? Anyone in the team might be responsible for developing project Once the team completes every stage, the project manager
controls, or the organization may hire an expert project presents the work to the senior management team or other
Understanding the answer to, "What is project control in stakeholders. Afterward, they present to customers for
controller. The project controller tracks and recognizes
project management?" can help you advance your career in approval and acceptance. Once the client or customer
potential problems affecting the project's budget and schedule
this field. Project managers can use this combination of approves it, they can end the contract and begin a new one.
and relays this information to the project manager and the
strategies and guidelines when choosing functional teams and
team. While project controllers work directly with vendors,
completing several tasks. Project control consists of process 10 steps to set your project control
contractors, IT, and finance departments, they report all
applications and analysis to predict, optimize, and influence
activities to the project manager. You can set your project control effectively with the following
the project's result. It's an aspect of project management that
equips managers with the necessary tools for completing steps:
Project management
projects and delivering effective results that can earn the
1. Determine the project's scope
client's acceptance. Project management is a broader concept than project
controls, as it entails all elements of a project. Project The initial process when setting a project control is
Why are project controls important? management involves everything required to lead a team establishing the project's scope, what it aims to achieve, and
toward a goal by following necessary procedures, how to achieve it. Discuss every component of the project with
Project controls are essential because they usually have a
prerequisites, and budgeting considerations. The vital steps of your teammates to gather valuable insights. Establishing the
direct relationship with the success of the project's
project management are: purpose of a project and informing team members about the
development. For example, frequent status updates that
convey high-quality information on individual team operations process can create a strong foundation for the project to
1. Project initiation
can fast-track the project's completion better than minimal operate effectively.
updates with irrelevant data. Among its other fundamental In this phase, project managers determine if a potential project
2. Assign tasks to teammates
information resources are cost implications and project is viable and realistic. The project manager and project team
duration. Project controls are crucial for adjusting to a dynamic review the project to estimate how profitable it can become for After developing the project's scope, delegate responsibilities
work schedule and managing possible budget restrictions. the company. Based on the results, the project manager may to each team member. You can assign such tasks based on
Project teams focusing on risk management and contingencies accept or reject the project.R individual expertise for different roles to ensure they can
can use project controls to develop structures to manage perform their tasks effectively. Once you divide the duties,
unforeseen events that may delay the project.Project controls 2. Project planning
determine the best way to monitor progress once the project
serve as foundations for project components and enable begins.
Every project requires a focused and detailed plan for
project managers to achieve their goals through structured
completion. The planning phase of project management
schedules and adequate budgeting. It keeps the project 3. Establish risk factors
involves creating the project plan. This plan includes the
focused on the result and connected to relevant stakeholders
agreed schedule, costing, requirements, and vital project This phase involves differentiating risks that can add value to
involved in the project development and the entire
controls. the project from those that may jeopardize the project's
organization. It further enhances the project team's morale and
improves job satisfaction and fulfillment. This can also give you accomplishment. Set a risk management strategy to consider
3. Project implementation
a competitive advantage over companies that don't use solutions to possible challenges before they become project
effective project control. For example, facing technical issues The execution stage of project management centres on the threats. Doing so can save you and other stakeholders from
that might delay the project for several weeks isn't a problem activities at each step of the project plan. This stage involves disappointment.
once backup systems are in place. delegating smaller tasks to team members to achieve the
4. Facilitate adaptability contingencies
overall project goals. It also involves following every project
Differences between project controls and project guideline and requirement as closely as possible. Several internal and external factors can affect a project's
management
development. Establishing all unforeseen but possible
4. Project control
While some may mistake project controls for project elements that can delay, change, or force a project to end is
management, they don't mean the same, just as how a project While accomplishing different phases of the project, this stage vital. After determining possible threats, you can set
controller is different from a project manager. Below are some is where project managers start monitoring project progress. contingency strategies to adjust to such changes.
concepts that you can use to differentiate project controls They do this to ensure the team accomplishes the project per
5. Monitor projects
from project management: the expected outcome. It also helps to identify possible
problems early enough before they pose bigger problems later Set a meeting schedule and determine the meeting method.
Project controls in the project development lifecycle. You can engage in virtual or physical meetings with your team
members, managers, and relevant stakeholders. Alternatively,
you can ask team members to submit written reports to finalize the necessary resources for a successful presentation
monitor the project's progress rate.If you notice that the project process. It's helpful to establish who your presentation is for so
is moving faster than the planned schedule, you can determine you can tailor the information to their best interests or
what facilitates the rapid progress and apply the elements to knowledge level.
future projects. You can also use this strategy when analyzing
why a project went over budget or missed the deadline. PROJECT CLOSING
Learning what causes the delay can help you prepare for
What is Project Closing?
solutions earlier in future projects.
According to A Guide To The Project Management Body of
6. Plan for efficient communication
Knowledge (PMBOK® Guide) – Fifth Edition, “The Project
Create an effective communication framework with your Closing Process Group consists of those processes performed
teammates to convey and receive valuable information to conclude all activities across all Project Management
regarding the project's development. Ensure the Process Groups to formally complete the project, phase, or
communication framework is transparent and flexible to use. contractual obligations. This process group, when completed,
You can also create a communication channel for customers, verifies that the defined processes are completed within all of
clients, and relevant stakeholders. the Process Groups to close the project of phase, as
appropriate, and formally establishes that the project or
7. Plan for budgeting project phase is complete” (2013, p. 57).
Exhibit 1. Examples of project closing oversight.
Create a plan to establish initial project expenses and monitor In other words, Project Closing is the combination of the
any budget adjustments. You can keep in close following when applied to a project:
communication with the finance department to ensure they
disburse project funds promptly. Preparing a contingency plan 1. Assurance that all the work has been completed,
for cases where the finance department fails to release funds
2. Assurance that all agreed upon project management
within the deadline is also crucial. Contingency budgeting
processes have been executed, and
plans help to manage operations and avoid future deadline
failures. 3. Formal recognition of the completion of a project—
everyone agrees that it is completed.
8. Analyze and evaluate
At first, the three points above may seem like “de-facto” or
You can establish a framework to evaluate and analyze how all
natural by-products of the last phase of a project; however,
planning variables contribute to the project's achievement
Exhibit 1 demonstrates how the above may be overlooked on
within the project's scope. It's also helpful to find missing
even the simplest of projects and Exhibit 2 outlines the impact
elements, and determine whether there's a need to disburse
of such oversight:
funds to a specific task, and if the project requires new experts
to manage some responsibilities. Consider other elements and
create a system to answer them in the implementation phase.

9. Create corrective contingencies

Exhibit 2. Impact of project closing oversight
Next, you can highlight any adjustments or corrections the
project might require before implementation. This planning Project closing is further explained in depth throughout this
process also requires you to prepare for corrective paper. A comprehensive project closing process would
contingencies, supposing the adjustments contain different typically include all of the following processes, and may
complexities. You can benefit from imagining the project's include others, depending on the size, magnitude, complexity,
success, and might create control systems to manage every and impact of the project:
possibility.
4. Making sure all the work that needed to be has been done.
10. Plan a project presentation
5. Obtaining approval by the project's sponsor and customer
The final stage requires you to determine all the project's (whether internal or external) for the work completed.
relevant stakeholders to present the final product. Ensure you
6. Reviewing whether or not all organizational governance deliverables of the project by other departments, but rather How project closing can lead to exponential value through
processes have been executed. continues to hold the project management team accountable lessons learned
for such activities.
7. Assessing whether or not the necessary project Because projects are progressively elaborated, project
management processes have been applied. As a result, those who have the necessary skills, tools, means, management teams are not exposed to the whole project until
and capability to “operate and maintain” a project deliverable it is completed. The uniqueness of the experience presents the
8. Administrative closing of any and all procurements, are not tasked to do so, and instead, those who do not have project team with plenty of knowledge, that, if not recorded
reviewing that all work on the contract has been completed such skill, tools, means, and capability (the project may be lost by both the team and the organization. Recording
and that both parties have completed their contractual management team) are required to operate and maintain the lessons learned—a key component of project closing—allows
obligations toward each other. deliverable. This is not an understatement or dilution of the the organization to record, maintain, and reuse lessons learned
skillset of a project management team. The project team for future projects.
9. Formally recognizing the completion of a project and its
typically has the skills, tools, means, and capability to
transition to operations. Some organizations have repetitive projects. For instance,
“develop” the project deliverables, but not necessarily
maintain and operated those deliverables. Therefore, the projects that are undertaken once a year for maintenance or
10. Validating that the project achieved benefits identified in
project team performs a great job in the former and fails to compliance purposes, or projects that are very similar to one
the business case.
deliver on the latter. another, as in the case of a company that builds websites or
11. Capturing of lessons learned: What was done well, and houses for sale. By having a recurrent lessons-learned process,
should be documented so it can be repeated in the future? To further clarify this scenario, consider that you have these organizations will be able to capture and learn from their
What could have been done better? And if so, how can it have purchased a new computer; however, the staff at the store or at experience and create more effective and efficient project
been done better? the manufacturer's call center is incapable of supporting your management processes, which ultimately reduces the time
requests. They transfer your request to the team that and cost to develop their products.
12. Disbanding project resources, freeing them to perform developed the computer. Although they have the capability of
other projects and undertake other tasks as required within the designing and producing cutting-edge hardware, they do not How project closing can support my project management
organization. have the capability of troubleshooting specific software career
drivers.
13. Transitioning project deliverables to the customer Just as any professional, a project manager needs to (1)
organization in a manner that warrants seamless operations A by-product of this scenario is that resources that were establish consensus that their work is effective and complete,
and support. required to manage the project would be consumed in post- (2) avoid unfavorable situations for the organization, and (3)
launch activities, limiting their availability and capability to learn from their experiences. All three can be achieved through
Why Is Project Closing Important? manage new projects, and hence limiting the capacity of the comprehensive project closing. A project manager who fails to
organization to meet its strategic objectives. conduct thorough project closing can leave the organization
Just as any of the other project management processes liable for compliance, or liable to a third party for payment, or
(Initiation, Planning, Execution, Monitoring and Controlling), The Orphan Product even portray an image of incompetence because the project
Project Closing serves an important purpose for the seems never to end. One other important achievement for
organization and helps it avoid unfavorable and adverse Another result of inadequate project closure is the lack of a project managers through comprehensive project closing is the
scenarios. proper hand over or transition of the project deliverables to assurance of complete and adequate transition of the project's
business as usual (or operations). When a deliverable is deliverables to business as usual (operations).
What damage can happen to the time, effort, and credibility produced, the parties involved with operating and maintaining
of the project management team? that product need to receive the appropriate training, What liability can poor closing create to the organization?
awareness, and tools to do their job effectively and efficiently.
If a project is not closed properly, the project management As mentioned above, a project that is not properly closed can
They also need to understand—and commit—to their new
team and the project team's efforts, time, and credibility may leave the organization liable to external parties for incomplete
responsibility. The number of organizations that fail to conduct
be negatively perceived for matters that are not their fault or payments on contracts, liable to customers for incomplete
this process adequately, comprehensively, and in a timely
responsibility. Below are some examples of when such scope, or liable to regulators for incompliant practices and/or
manner, is alarming.
incidents may occur, and how they can easily be avoided. products.
To further understand this example, consider how many
The Never Ending Project When is it time to draw the line?
companies in the past have produced outstanding products
Many organizations have undertaken projects that, despite only to find themselves facing their demise due to their inability
Many practitioners conduct project closing at the end of a
fulfilling all of their scope and quality obligations, have to provide adequate after-sales services and or support for
project, some many times during the life of a project, and
continued to be perceived by the rest of the organization as their products? Imagine buying a new computer that works
others never at all. Before answering the question of when to
projects. In this scenario, the organization does not distinguish perfectly, only to not find anyone capable of fixing it when it
draw the line, the practitioner must first understand the value
between responsibility for maintaining and operating the breaks down?
that the process will create. This paper addresses such value in There are three points in a project where evaluation is most lessons learned from one project can be used in upcoming
multiple sections. needed. To approve and select and prioritize project proposals, projects and programs.
to monitor the health of a project while it’s being executed and
Project closing must definitely occur at the end of the project, lastly, at the project closure phase to document lessons Project Evaluation Steps
and, best practice has it that closing needs to occur at every learned. While you can evaluate your project at any time, these
phase in the project life cycle. Phase definition may be logical, Regardless of when you choose to run a project evaluation, the
are points where you should have the process officially
preferential, or even hypothetical. When devising project process always has four phases: planning, implementation,
scheduled.
phases, three factors need to be taken into consideration: completion and dissemination of reports.
1. Pre-Project Evaluation
PROJECT EVALUATION 1. Planning
The pre-project evaluation is the process of evaluating multiple
What Is Project Evaluation? The ultimate goal of this step is to create a project evaluation
project proposals during the project intake process, in which
plan, a document that explains all details of your organization’s
the project management office (PMO) of an organization and
Project evaluation is the process of measuring the success of a project evaluation process. When planning for a project
key project stakeholders establish a project selection and
project, program or portfolio. This is done by gathering data evaluation, it’s important to identify the stakeholders and what
prioritization criteria to determine which of them have the best
about the project and using an evaluation method that allows their short-and-long-term goals are. You must make sure that
cost-benefit ratio and are better aligned with the larger
evaluators to find performance improvement opportunities. your goals and objectives for the project are clear, and it’s
strategic, operational and business objectives of the
Project evaluation is also critical to keep stakeholders updated critical to have settled on criteria that will tell you whether
organization.
on the project status and any changes that might be required to these goals and objects are being met.
the budget or schedule. In a sense, you’re also pre-evaluating your project when you
So, you’ll want to write a series of questions to pose to the
write your project charter to pitch to the stakeholders. You
Every aspect of the project such as costs, scope, risks or stakeholders. These queries should include subjects such as
cannot effectively plan, staff and control a new project if you’ve
profitability is measured to determine if it’s proceeding as the project framework, best practices and metrics that
first not evaluated it. Pre-project evaluation is the only sure
planned. If there are road bumps, this data can inform how determine success.
way you can determine the effectiveness of the project before
projects can improve.
executing it. By including the stakeholders in your project evaluation plan,
Basically, you’re asking the project a series of questions you’ll receive direction during the course of the project while
2. Ongoing Project Evaluation
designed to discover what is working, what can be improved simultaneously developing a relationship with the
and whether the project is useful. Tools such as project To make sure your project is proceeding as planned and hitting stakeholders. They will get progress reports from you
dashboards and trackers help in the evaluation process by all of the scheduling and budget milestones you’ve set, it’s throughout the project life cycle, and by building this initial
making key data readily available. crucial that you constantly monitor and report on your work in relationship, you’ll likely earn their belief that you can manage
real-time. Only by using project metrics can you measure the the project to their satisfaction.
The project evaluation process has been around as long as
success of your project and whether or not you’re meeting the
projects themselves. But when it comes to the science of 2. Implementation
project’s goals and objectives. It’s strongly recommended that
project management, project evaluation can be broken down
you use project management dashboards and tracking tools While the project is running, you must monitor all aspects to
into three main types or methods: pre-project evaluation,
for ongoing evaluation. make sure you’re meeting the schedule and budget. One of the
ongoing evaluation and post-project evaluation. Let’s look at
the project evaluation process, what it entails and how you can things you should monitor during the project is the percentage
It’s also important to consider what enterprise environmental
improve your technique. completed. This is something you should do when creating
factors are affecting the project’s progress and develop
status reports and meeting with your team. To make sure you’re
strategies to mitigate their effects.
Project Evaluation Criteria on track, hold the team accountable for delivering timely tasks
3. Post-Project Evaluation and maintain baseline dates to know when tasks are due.
The specific details of the project evaluation criteria vary from
one project or one organization to another, depending on many Think of this as a postmortem. Post-project evaluation is when Don’t forget to keep an eye on quality. It doesn’t matter if you
factors such as the organization’s risk tolerance, project you go through the project’s paperwork, interview the project deliver the project within the allotted time frame if the product
management maturity, strategic planning among many others. team and principles and analyze all relevant data so you can is poor. Maintain quality reviews, and don’t delegate that
understand what worked and what went wrong. Only by responsibility. Instead, take it on yourself.
In general terms, a project evaluation process goes over the
developing this clear picture can you resolve issues in
project constraints including time, cost, scope, resources, risk Maintaining a close relationship with the project budget is just
upcoming projects.
and quality. In addition, organizations may add their own as important as tracking the schedule and quality. Keep an eye
business goals, strategic objectives and other project metrics. Post-project evaluation is especially important for project- on costs. They will fluctuate throughout the project, so don’t
based organizations with multiple projects in their portfolio, as panic. However, be transparent if you notice a need growing for
Project Evaluation Methods
more funds. Let your steering committee know as soon as manager. Creating a project evaluation report is very important Effective team collaboration software possesses task
possible, so there are no surprises. to keep them updated. management capabilities that enable users to check the
progress of tasks and milestones across multiple projects
3. Completion TEAM COLLABORATION TOOLS using one screen. This feature provides a quick look at due
dates, conversations, files, checklists and time logs for each
When you’re done with your project, you still have work to do. What are Team Collaboration Tools?
task, enabling users to save time and take control of the
You’ll want to take the data you gathered in the evaluation and
Team collaboration tools -- also known as team collaboration workflow. Users are also able to reassign work, reprioritize
learn from it so you can fix problems that you discovered in the
software -- is a term used to define the different types of tasks and add resources when necessary. The task
process and implement those solutions on future projects,
software and online services available to companies and management feature provides updates on project tasks that
programs and portfolios. Figure out the short- and long-term
individuals that enable them to feasibly work together on the user is responsible for, as well as notifications of tasks that
impacts of what you learned in the evaluation.
common projects, regardless of their physical location. The the user needs to accept or reject. A complete report of the
4. Reporting and Disseminating tools can be as simple as email or as complex as a task should be available in any file format.
sophisticated project management software. The primary goal
Once the evaluation is complete, you need to record the Document management
of a team collaboration tool is to align workers by providing
results. To do so, you’ll create a project evaluation report, a support to a group of two or more individuals and assisting The document management feature enables users to store,
document that is usually stored by the project management them in the accomplishment of a common objective. organize, collaborate on and share any document or media file.
office of the organization as it provides lessons for the future.
This feature includes an option to automatically notify team
Deliver your report to your stakeholders to keep them updated Team collaboration tools are a group of technologies that offer
members whenever someone approves, rejects, views,
on the project’s progress. real-time messaging, group chat, file sharing, shared
uploads, downloads or adds comments to a shared document.
calendaring, project coordination, voice and video for one-on-
How are you going to disseminate the report? There might be a The document management solutions feature also includes
one and group communication. Within enterprise settings,
protocol for this already established in your organization. the ability to quickly and securely drag and drop files into a
these tools can be centrally managed, which streamlines
Perhaps the stakeholders prefer a meeting to get the results folder within a user's personal hard drive, the network drive or a
administrative tasks.
face-to-face. Or maybe they prefer PDFs with easy-to-read team folder.
charts and graphs. Make sure that you know your audience and As the modern workplace moves further away from being a
Group chat
tailor your report to them. physical location, the necessity of team collaboration tools
increases, making them a vital element to an enterprise's Group chat takes collaboration to the next level as it relates to
Benefits of Project Evaluation workflow. The right tool can strengthen the team through working on team projects where workforces are geographically
efficient communication among remote team members and dispersed. This provides team members with messaging, file
Project evaluation is always advisable and it can bring a wide
increased productivity. Furthermore, collaboration history for sharing, virtual voice/video conferencing, virtual whiteboarding
array of benefits to your organization. As noted above, there are
each user can be archived and reviewed through team and workflow tools. This delivers an all-in-one location for
many aspects that can be measured through the project
collaboration tools, enabling users to look back at past project collaboration work that supports a free flow of
evaluation process. It’s up to you and your stakeholders to
communication experiences from a historical perspective. information for all stakeholders.
decide the most critical factors to consider. Here are some of
the main benefits of implementing a project evaluation Features of team collaboration tools Types of team collaboration tools
process.
Team collaboration tools are also beginning to merge with The primary types of team collaboration tools are file sharing,
Better Project Management: Project evaluation helps you easily modern collaboration platforms. Existing project management instant messaging (IM), cloud storage, online whiteboards,
find areas of improvement when it comes to managing your software, for example, offers various features to enhance document synchronization, voice/video conferencing and
costs, tasks, resources and time. collaboration, including task updates, progress visualization calendar sharing:
charts and file sharing capabilities. Combining project
Improves Team performance: Project evaluation allows you to
management capabilities with collaboration tools enables a 1. File sharing tools enable teams to quickly distribute
keep track of your team’s performance and increases
business to incorporate even more specific features, such as and transfer files, as well as provide access to other
accountability.
video conferencing, client-facing portals and live sharing on members. These tools remove the slow and
Better Project Planning: Helps you compare your project collaborative documents. However, the primary features that constrained process of email attachments, relieving
baseline against actual project performance for better project management-focused collaboration tools possess are inboxes from the distracting flood of heavy files and
planning and estimating. task management, group chat, document sharing and notifications. Shared files can be anything from
management. documents to videos or even software.
Helps with Stakeholder Management: Having a good
relationship with stakeholders is key to success as a project Task management 2. IM tools enable teams to exchange instant
messages and online files in real time to one or more
 recipients. Video files, voice communication and • A lack of transparency among team members can
video conferences are supported by most IM apps. negatively impact members whose work depends on
Improved and faster communication for local and remote
others.
3. Cloud storage tools enable data to be stored teams and businesses.
remotely within a telecommunications network --
A clearer exchange of information since all communications, • Pessimistic members can have a negative effect on
typically the collaboration tool service provider. This
files and progress updates are centralized. the rest of the team, impairing the morale of the
creates a centralized location for information that all
team, decreasing productivity, and creating conflicts
team members can easily access.
Faster file sharing without file size limitations, resulting in a and frustration.
4. Online whiteboard tools replace traditional, more efficient feedback process.
physical whiteboards or the need to collaborate • A lack of engagement among team members can
A decrease in miscommunication since all communication is decrease their ability to identify problems or
physically. They provide teams with a place to
recorded and searchable. obstacles and work together to find solutions.
communicate visual information through graphics,
drawings and text, all of which can then be quickly Improved visibility into each team member's and the total
saved or deleted as needed. • Indecisiveness among leaders can create unclear
project's progress.
expectations and delay deadlines. This is frequently
5. Document synchronization tools match two Improved team unity due to the ability of team members to found in projects with multiple stakeholders who are
documents, making all edits in one version effective connect with each other both on a personal level and team not in agreement.
in the second version as well. This ensures that both level.
documents are identical and that employees always Furthermore, it's possible that each department uses a
have the most recent version of the information. Increased productivity resulting from improved teamwork and different process when working with team collaboration tools.
cohesion, as well as access to centralized information that's Therefore, when trying to collaborate across departments, it
6. Voice and video conferencing tools provide a way viewable by all. can be challenging to define a consistent process that
for various people across the internet to matches each team's style.
communicate in a live, visual conversation using Challenges of working with team collaboration tools
voice and/or video. These tools enable teams to Common collaboration tools
benefit from virtual meetings without having to be at Unfortunately, there are still challenges associated with team
collaboration tools. For example, the ease of providing There are dozens of collaboration vendors and respective
the same physical location.
immediate and unrefined feedback could become a bad thing platforms on the market today that are geared toward
7. Calendar sharing tools enable users to schedule if too many people get involved with different opinions, causing enterprises both small and large. Let's look at several of the
appointments without consulting and coordinating the original worker to lose sight of their initial objective. most popular options available and explore their features and
with each person involved. All participants' characteristics that set them apart from the others.
schedules and conflicts are visible on a central Larger problems exist when it comes to businesses and teams
that use differing collaboration platforms. While progress is Microsoft 365/Teams
calendar, enabling the person organizing the
meeting to quickly find a time that works for being made to make different vendor collaboration tools
Microsoft's cloud-based 365 portfolio includes a wealth of
everyone and send an invitation, saving time and interoperable, there's still a distance to go in order to ensure
team collaboration tools depending on the license you have.
fostering teamwork. that all users have access to the same tools or features when
Perhaps the most important is Teams, which provides users
operating in a mixed-platform environment.
with services like one-on-one and group IM, voice and video
Benefits of using team collaboration tools
When integrating team collaboration tools into a business, meetings.
Team collaboration tools have quickly become an invaluable operational challenges may also arise. These can include the
What sets Microsoft's platform apart from the others, however,
addition to most business environments, improving work following:
is the seamless integration with other 365 apps, many of which
processes, organizing projects and working them through their
are used extensively within enterprise environments. Examples
final outcomes. The need for such tools has exploded over the • A lack of team management oversight or the ability
include Word, Excel, PowerPoint and OneNote. Additionally,
past few years due in large part to the growth of remote to define key performance indicators and clear
Outlook's email and calendaring are fully integrated with the
workforces. The combination of multiple collaboration tools objectives can cause roadblocks.
OneDrive cloud storage service. Combined, this creates a
and features supports a more natural and synchronized flow of
single platform for all communications and team file sharing
information compared to using separate tools, such as email, • Competition among employees prevents knowledge
needs.
phone and teleconferencing, which require far more sharing and collaboration.
coordination to use properly. Finally, Microsoft includes its Project and Roadmap
applications within 365, which enables project managers to
Specific benefits that come from using team collaboration
tools include the following:
easily manage and track various business projects, while While most people think of Zoom as a video conferencing tool, The important first step of choosing a team collaboration
providing visibility into project timelines for all team members. the company has incorporated a number of team collaboration platform is having a sound understanding of the types of
services into the platform. Not only does Zoom provide an collaboration tools and features. In some organizations, the
Asana excellent voice and video service for virtual communication, need for voice and video communication is prioritized over all
but it also includes team chat, whiteboarding, email and other functionalities. In others, organizations that request a
Asana is a popular team collaboration tool focused largely on
calendar integrations. Users can also create team workspaces more comprehensive and configurable project management
project management. It combines team communication and
to share messages and files and to track the progress of focus will choose team collaboration tools that cater to those
project management to improve collaboration in small or large
various business projects. aspects.
projects and in projects with recurring tasks. Key features of
Asana include pre-made templates to add workflows, live team Slack It's also important to review what apps and services employees
progress tracking, the ability to customize views to check on already use today and find tools that can easily be integrated
the progress of prioritized projects and the ability to attach Much like Zoom, Slack is often pigeonholed as an application into existing applications and workflows. Examples include the
documents to any conversation. that mostly provides chat and team collaboration features. use of Microsoft's Office suite, Google Workspace and Cisco
However, the service has grown significantly and can now be Webex hardware and software. If, however, the business is not
Atlassian considered a complete collaboration environment. Its key a heavy user of these apps, it's advisable to evaluate other
features include the following: tools that may be a better fit.
Atlassian has developed a popular suite of team collaboration
tools that deliver a host of communication and project
• File sharing and information searching. Finally, the best team collaboration platform is one that can be
management features. Atlassian collaboration tools are
used not only within the organization, but with outside
incredibly popular with tech and software development
• The ability to customize Slack based on business contractors, vendors and clients. Thus, tools must be reviewed
organizations.
requirements. based on interoperability options with other platforms. In some
The Jira app helps teams assign and set work priorities for cases, this type of interoperability is built into the platform
various projects. It fosters effective collaboration and enables • Group channels to help users sort messages and itself. In other cases, third-party services, like Mio, deliver
a team to manage the application development process by discussions by topic, department or purpose. interoperability between collaboration platforms.
guaranteeing that every task and feature is taken care of. Key
Additionally, Slack has voice and video conferencing PROJECT FINANCE
features of Jira include the following:
capabilities to give teams a virtual meeting space from which
they can connect and collaborate on one or more projects. What Is Project Finance?
• A project estimation feature that enables teams to
understand their timeline and capacity. Google Meet/Drive Project finance funds long-term infrastructure, industrial
projects, and public services using a nonrecourse or limited-
• Scrum boards that can be customized For organizations that heavily use Google Workspace apps, recourse financial structure. The debt and equity used to
by Agile teams to provide iterative and incremental such as Google Docs, Sheets and Slides, integrating Google finance the project are repaid solely from the cash flow
value. Meet and Drive delivers a solid suite of team collaboration generated by the project itself.
services that can be managed within a single online platform.
• Reports that show the progress of The Meet voice, video and chat services were previously two In project finance, the loan structure relies primarily on the
both Scrum and Kanban teams. separate apps -- Hangouts and Chat -- that have since been project's cash flow for repayment, with the project's assets,
combined into one. This, in combination with the Drive cloud- rights, and interests serving as secondary collateral. This
• Flexible Kanban boards that provide visibility into based file storage service, gives users everything they need to approach is especially attractive to the private sector because
continuous delivery. discuss and work on projects in a virtual setting. companies can fund major projects off-balance sheet (OBS),
meaning the debt used to fund the project does not appear on
The Confluence app is a team workspace tool that enables Cisco Webex the company's balance sheet and has no impact on its credit
team members to communicate with each other, share project rating or borrowing capacity.
updates and announcements, and create a single source of Large organizations that are heavy users of Cisco hardware and
truth that all team members can access and interact with. software likely use Webex for their voice and video In the U.S., project financing offers businesses a way to secure
communications needs. Beyond that, Webex also offers IM, file funding for large-scale projects like infrastructure,
Finally, Trello is a project management tool that makes using sharing and whiteboarding. Users with access to Cisco video telecommunications, and energy.
project management frameworks, such as Lean or Scrum, conferencing hardware will likely gravitate toward this platform
more feasible. It enables users to easily monitor the progress as it seamlessly integrates video conferencing and webinar How Project Finance Works
of projects and assign tasks to different team members. capabilities with most of the other team collaboration services
“Project finance” refers to financing long-term industrial and
that modern organizations now require.
Zoom infrastructure projects, particularly in sectors like oil and gas,
How to choose the best collaboration tool for your team power generation, and transportation. It's also used to finance
certain economic bodies like special purpose vehicles (SPVs), less fiscal space.4 Fiscal space is the amount of money the recourse loan for the remaining debt. In contrast, the borrower
which are created to manage a single project. The funding government may spend beyond what it already invests in with the nonrecourse loan can't be held liable for any
required for these projects is based entirely on the projected public services such as health, welfare, and education. additional payment beyond the seizure of the property.
cash flows. Governments can create fiscal space by raising taxes, cutting
lower-priority spending, or securing external grants, but they Project Finance vs. Corporate Finance
Some of the common sponsors of project finance include the must do so carefully to ensure long-term economic
following entities: Project and corporate finance are important concepts in the
sustainability.5 The theory is that strong economic growth will
world of financing. Both of these funding methods rely on debt
boost tax revenues, allowing the government to increase
• Contractor sponsors: These sponsors provide and equity to help businesses reach their financing goals, but
spending on public services.
subordinated or unsecured debt and/or equity and they are very distinct.
are crucial to the project's establishment and Nonrecourse Project Financing
Project finance can be very capital-intensive and risky, and it
operation.
When a company defaults on a loan, recourse financing gives relies on the project’s cash flow for repayment in the future. On
lenders full claim to shareholders’ assets or cash flow. In the other hand, corporate finance focuses on
• Financial sponsors: These include investors who
contrast, project financing designates the project company as boosting shareholder value through various strategies, such as
are mainly focused on achieving a big return on their
a limited liability SPV. If the project company defaults, the capital investment and taxation. Unlike project financing,
investment.
lenders’ recourse is thus limited primarily or entirely to the shareholders receive an ownership stake in the company with
project’s assets, including completion and performance corporate financing.
• Industrial sponsors: These are companies with a
strategic interest in the project, as the project may guarantees and bonds.
Some of the key features of corporate financing include:
align with their core business.
A key consideration in nonrecourse financing is whether there
are circumstances under which lenders could access • A company’s capital structure, which is a company’s
• Public sponsors: These sponsors funding of its operations and growth.
shareholders' assets. For example, if shareholders deliberately
include governments from various levels.
breach the terms of the agreement, the lender may have
recourse to their assets. • The distribution of dividends, which represent a
The project finance structure for a build, operate, and transfer
portion of the profits generated by a company and
(BOT) project includes multiple key elements. Project finance
Applicable law may restrict the extent to which shareholder paid to shareholders.
for BOT projects generally includes an SPV. The company’s sole
liability may be limited. For example, liability for personal injury
activity is carrying out the project by subcontracting most
or death is typically not subject to elimination. Nonrecourse • The management of working capital, or money used
aspects through construction and operations contracts. Since
debt is characterized by high capital expenditures (CapEx), to fund a company’s day-to-day operations.
new-build projects don't generate revenue during the
long loan periods, and uncertain revenue streams.
construction phase, debt service begins only in the operations What Is the Role of Project Finance?
Underwriting these loans requires financial modeling skills and
phase.
sound knowledge of the underlying technical domain.
Project finance is a way for companies to raise money to realize
This creates significant risks during the construction phase, as opportunities for growth. This type of funding is generally
To reduce the risk of deficiency balances, lenders typically limit
the only revenue stream might come from an offtake meant for large, long-term projects. It relies on the project’s
loan-to-value (LTV) ratios to 60% in nonrecourse loans.6 As a
agreement or power purchase agreement. Because there's cash flows to repay sponsors or investors.
result, borrowers face stricter credit standards, and the loans
limited or no recourse to the project’s sponsors, company
carry higher interest rates than recourse loans, reflecting their
shareholders are typically liable up to the extent of their What Are the Risks Associated with Project Finance?
greater risk.
investment. This structure keeps the project off the balance
sheets of both the sponsors and the government, minimizing Some risks associated with project finance include volume,
Recourse Loans vs. Nonrecourse Loans
financial risk. financial, and operational risk. Volume risk can be attributed to
If two people purchase large assets, such as homes, and one supply or consumption changes, competition, or changes in
Off-Balance Sheet Projects has a recourse loan while the other has a nonrecourse loan, output prices. Inflation, foreign exchange, and interest rates
the financial institution's actions against each borrower will often lead to financial risk. A company’s operating
Project debt is typically held in a sufficient minority subsidiary performance often defines operational risk, the cost of raw
differ.
and not consolidated on the respective shareholders' balance materials, and maintenance, among others.
sheets. This reduces the project’s impact on the shareholders’ In both cases, the homes may be collateral, meaning they can
existing debt and debt capacity cost, and the shareholders are be seized should either borrower default. To recoup costs when Why Do Firms Use Project Finance?
free to use their debt capacity for other investments. the borrowers default, the financial institutions can attempt to
Project finance is a way for companies to fund long-term
sell the homes and use the sale price to pay down the
Governments may also use project financing to keep project projects. This form of financing uses a nonrecourse or limited-
associated debt. However, if the homes are sold for less than
debt and liabilities off their balance sheets, so they take up recourse financial structure. Firms with weak balance
the amount owed, the lender can pursue the borrower with a
sheets are more apt to use project finance to meet their make compromises later in certain activities and factors are called the basis or criteria of project budgeting that
funding needs rather than trying to raise capital on their own. resources. aid in estimating the cost and ensuring reasonable accuracy.
This is especially true for smaller companies and startups that
have large-scale projects on the horizon. 4. Budget planning in project management eases work Schedule of Project and Resource
prioritization. It contributes to efficient resource
PROJECT BUDGETING allocation and helps in cost control. Works best with While making the project budget, the project management
better planning and efficient decision-making team must better understand the schedules of budget and
What is Project Budgeting? concerning activity prioritization, resource resource requirements during the project. Clarity in schedules
allocation, and possible avenues. The process helps aids in determining the type of expenses needed at distinct
A project budget is a plan of expenditures to run the project levels and time frames of the project, which further eases fund
in cost control throughout the entire progress of the
effectively. Project budgeting is the tool and process that grants.
project without delaying work or affecting quality.
evaluates all possible expenditures a project will incur. It
means that the project budget involves consideration of all 5. Effective project budgeting enables optimized Risk Register
costs that can be included in activities and resources to resource usage by setting necessary limitations and
complete the project successfully. The cost of activities and The Project management team must evaluate enough
boundaries on expenses based on specific standard
resources may involve direct or indirect expenses. Training management reserves and contingency. It helps them to deal
guidelines made during the project planning.
costs, workforce and equipment costs, material costs, and with project risks effectively. Therefore, risk registers are
other associated costs can be incurred suddenly to execute 6. The project budgeting keeps track of the expected required to consider risk factors and take them into account to
the project. and actual project expenses. deliver effective results.

Project budgeting covers cost estimation and offers a How Do You Create Budget Planning in Project Best Strategies For Effective Budgeting
systematic budget plan that aids the project management Management?
A well-developed project enables team management and
team in appropriately implying and handling the cash flow
Making a realistic project budget is essential for better project collaborators to stay within their budget goals and deliver a
without causing loss to ongoing projects.
management. The manager must remember all the critical successful result. Follow the strategies for effective budgeting.
Importance of Accurate Project Budget Management factors influencing the project's expenses. Here are a few
1. All collaborators and investors must be asked to
important considerations to understand the aspects of the
Project budget management is a crucial step to ensure the reveal the nuances that any person could miss.
project budgets for creating an effective plan.
successful completion of the project. Accurate project Furthermore, the involvement of all investors helps
budgeting allows the team to efficiently plan the project Project Scope Baseline to ensure buy-in and due consideration with respect
resource acquisition, activities, and deployment of team to any alteration request.
members, offering standard guidelines based on which project A project baseline is an understanding of the scope of
deliverables in the project. It comprises a project scope 2. Break the project into distinct categories of activities
needs to be evaluated. Furthermore, effective project
statement and work breakdown structure (WBS) where the at different levels. This approach can help in
budgeting allows the team to make informed decisions for
WBS dictionary defines the elements in the WBS. Also referred understanding the micro and major-level tasks in
controlling deviations so no loss will be marked during the
to as the official plan, the project scope must consider all the detail.
project's progress.
activities and resource acquisition needed to complete the
3. Never ignore indirect expenses of the project that
Here are some essential factors that make project budgeting a project successfully. An adequate understanding of the
may include currency conversion fees or tax.
significant component in project management: agreed-upon scope is necessary to create the project budget.
4. Mandatorily associate the budget with project aims,
1. Effective project budgeting offers clarity in guiding Estimation of Activity Cost
goals, and organizational objectives.
the project team and provides visibility for
contributors on the finance requirements of the It is said that last-level activities must be considered when we
5. The best project budget must be created at the
project. start determining the budget. The step ensures that all
beginning of the project. However, a consistent
individual activities are considered in the beginning to estimate
update is necessary to reflect the progress of the
2. Project budgeting empowers team management to the actual cost without getting stuck in an unrealistic approach
project and the changed conditions.
find and understand the uncertainties. It helps them to project budgeting.
encounter problems, respond effectively, and Benefits of Project Budgeting
mitigate budgeting plans. Criteria of Estimates
Effective project budgeting aids project management teams,
3. Project teams can make better and more effective Distinct projects possess different expenses and funding
investors, and collaborators in monitoring the entire project's
planning based on an accurate budget to stabilize availability. Certain assumptions, constraints, and
progress and taking proactive steps quickly when required. It
their progress and not have to alter decisions and organizational guidelines impact project budgeting. These
ensures quality project budgeting, and the project will be
completed successfully with no loss. Here are some benefits 1. The risk event or identification (what could happen Performance Risk
of efficient project budgeting that you should know. to harm the project)
Performance risk is essentially the danger of the project failing
1. Setting clear parameters and expectations of the 2. The risk probability (how likely is the occurrence of to deliver results that meet the project's specifications. The
success of every contributor for their project. The the event) source of this risk is difficult to identify because it might be
project budget aids in acknowledging all types of attributed to a variety of circumstances.
expenditures, the need for funds at distinct levels of 3. The amount at stake ( what could potentially be
the project, and the effective implication of lost). A project team can deliver the project within the budget and
resources. schedule, yet nevertheless, fail to achieve the expected results
Identifying, analyzing, and responding to risk factors and benefits. Additionally, performance risk can contribute to
2. Project budgeting enables project team leads to throughout the project process (and in the best interest of its cost and schedule risk if a team's or technology's performance
secure project funding and requires resources for objectives) is the essence of risk management. causes the project's cost and length to rise. In the end, the
executing the project effectively. organisation wasted money and effort on a project that didn't
A risk factor is a situation that may induce project risks. It
work out.
3. Project budgeting helps collaborators offer clarity in increases the chances of something happening that will stand
reference points and expectations. The process in the way of your project objectives. The impact of a risk factor What is Risk Management in Project Management?
enables making informed decisions on the project's should be calculated in the risk management plan. Each stage
priorities, effective resource allocation, and of a project life cycle can pose new risk factors for your project. Risk cannot be managed, per se. Risk has to do with
potential risk mitigation. uncertainty, probability or unpredictability, hence the term risk
3 Common Types of Project Risks management tends to be misleading. There is no way to truly
Project budgets involve establishing a base for tracking and have control over events happening during the project. Risk
Each project has its own risks that depend on the project's
controlling performance during progress. management must be seen as preparation for possible events
current environment, and each of them needs to have its own
in advance, rather than responding to them as they happen.
Designing and planning a project requires careful project risk management plan. We can split risks into two
consideration of all aspects involved to expect a smooth groups - external and internal. External risks cannot be With more time on hand, it is possible to find alternative action
workflow. The essential requirements are: controlled by an organisation, and include political, economic plans and choose the one that is most in line with the project's
and natural risks. Internal risks are ones that a project manager goals.
• The collaboration of team members. or a risk management team can manage and are the most
common project risks. Because you are not able to control the event itself, you must
• Timely delivery of raw materials. control and regulate how you react to it. As a result, risk
Cost Risk management is defined as the formal process whereby risk
• Provision of the equipment as per the need. factors are systematically identified, assessed, and provided
Cost risk is the growth of project costs that were not
for. In other words, project risk management accounts for
calculated. In other words, it is the risk that the project will
The base of these and all other requirements is a perfectly strategies that ensure a more robust response to risks. Those
cost more than its allocated budget. This is perhaps the most
planned budget. include response planning, mitigation, deflection, and
common of all the project risks, and it happens due to poor
contingent planning.
The significance of project budgeting makes it an essential budget planning, not managing resources correctly, inaccurate
component of project planning. It requires an experienced cost estimation, and scope creep. Cost risk can often lead to Why is Project Risk Management Important?
individual who can take in all the factors to give out a worthy the other two common risks - schedule risk and performance
project budget. Using different tools and techniques assists in risk. Risk management is a very important part of project
delivering the research thoroughly created and easily management because it can exponentially increase the
Schedule Risk chances of a project's successful outcome. Developing and
implementable project budget.
sticking to a project management plan is extremely beneficial,
Schedule risk is the risk of activities taking longer than
PROJECT RISK MANAGEMENT as it:
expected. Typically, this risk is also due to poor planning.
Project Risk Schedule risk is closely related to cost risk because an
• Assists you in avoiding major disasters.
inaccurately planned schedule often leads to increases in
According to PMI, project risk may be defined as the chance of cost, as longer projects simply cost more. Schedule risk also
• Increases your revenue by lowering your costs
certain occurrences adversely affecting project objectives, the leads to delays, which can result in missed timelines and a
degree of exposure to negative events, and their probable loss of competitive advantage. Schedule risk can also lead to
• Ensures successful project completion
consequences. performance risk - missing the timeline to perform its intended
mission.
As a result, the project risk is defined by three risk factors: • Gives you a competitive advantage
 • Increases a sense of accountability and Because not all project risks are equal, an evaluation is needed that they can know what to pay attention to and help prevent
responsibility so project managers know what resources they can gather and manage any risks that may arise in the future.
towards the risk's resolvement. By categorising your list of risks
as high, medium, and low, you can know which ones deserve 5 Tips to reduce risks in project management
• Assists you in discovering new possibilities
to be more thoroughly investigated and which ones are not that
Although it is not possible to eliminate them completely, using
Risk management is inseparable from the cost, schedule, and serious. With a clear perspective like this, you can begin to
the following five tips can be helpful to effectively reduce the
quality of the project. Consequently, it has to be a key plan for how and when these risks will be addressed. Some of
number of risks.
component of the project management process. them require immediate action because they can derail the
entire project, while other risks, though still important, do not 1. Creating a Risk Management Plan
6 Key Steps in the Risk Management Process threaten the successful completion of the project.
Having a detailed risk management plan as a part of an overall
To handling project risk, you need to have an effective risk Assign a Risk Owner for Each Risk project plan is essential to the successful completion of the
management plan. The process of making one usually consists
project. The risk management plan should define what is used
of these six steps: This step in the risk management process is key. All the hard
for identifying and prioritising risk, risk tolerance, how team
work done identifying, analyzing, and prioritising risks would be
Identify the Risk members will respond to the risk, how it will be
for nothing if you don't assign the task of overseeing it to
communicated, etc. Basically, it serves as a guide for you and
someone. A risk owner can be anyone - often it is a team
This is the first step in the risk management process because your team throughout the project execution. So, investing time
member who is the most suited to monitor the risk. Then that
you cannot resolve a risk if you do not know what it is. There are and effort into its development is more than worth it -
person is responsible for identifying risk as well as leading the
many ways you can get the project risk identified, but one of sometimes your whole project depends on it.
work towards its resolvement. Every risk should have a person
the most common ways is by brainstorming together with your
responsible for it. That way, every potential threat to the 2. Keeping Risk Register Up to Date
team and stakeholders. You can also find people with relevant
project's success is covered.
experience to your project and schedule a meeting with them.
The risk register is a list of all possible risk events that have the
Respond to the Risk potential to negatively impact the project. The risk register can
When thinking of all the ways things can go wrong, note them.
List all the ways a potential project risk can grow and even either be combined with your risk management plan or a
In this step, you can put to use everything you have prepared so
check past projects' data. It is important to keep all of the separate document. In it, project managers should track what
far. But first, you need to identify if the risk is positive or
collected data in a risk register so you can reflect on the past risk events have occurred, how the team has responded, and if
negative. A lot of the time, people think of all the potential
and improve future projects. (and which) new risks have surfaced.
events that can occur as a threat - something that will impact
the project negatively. However, that is not always the case. The risk register helps project managers stay on top of
Analyze the Risk
Sometimes events that take place can be good for your project. potential problems. This is why it is crucial for it to be kept up
Risk analysis is a process that is used to identify and analyze Those opportunities are then called positive risks and you to date - so all the information referred to is accurate. By doing
potential problems that could negatively impact the project. should seize them to the best of your ability. so, the project managers, team members and other key
Once you identify risks, you can begin to analyze them. Many stakeholders can always have a clear picture of the project's
For each identified risk, there should be a strategy for its
implications can be proactively addressed, such as avoiding progress.
management and mitigation. Once the strategy (preventative or
future lawsuits, addressing regulatory difficulties, complying
contingency plan) is developed, the next step is to manage risk 3. Understanding the Risk Event
with new legislation, lowering project risk, and minimising its
according to its priority. The manager communicates with the
impact. This can be determined using qualitative and
risk owner and together they decide which action plan to use to Typically, in risk management, people think about the risks in
quantitative risk analysis.
resolve the problem. terms of possible outcomes more than as the risk events
Risk analysis includes analyzing the likelihood, severity, and themselves. Risks should be looked at as "something may
Monitor the Risk occur due to some reason and it will impact something". Those
response plan for each risk you have found. When determining
the project risk's severity, it is important to consider how the "somethings" are what you need to understand. They do not
This step is tracking the progress of the initiative chosen for risk
risk will affect the project's goals; can it cause a delay in its always end up being a bad thing, as risks can also be positive
resolvent. Whoever is in charge of the risk will also be
completion, undermine the budget or other resources, etc. For opportunities. This helps with risk management because by
responsible to monitor and report its progress towards
that reason, the best option is to include the opinions of a looking at risks from this angle, you can understand the risk's
resolution. Project managers have to stay updated and have an
project team or key stakeholders in this step. The response root, what the risk event is, and how to address it.
accurate picture of the project’s overall progress. This enables
plan you come up with for each risk is what the project team them to identify and monitor new risks. Updating is achieved 4. Being Proactive (Instead of Reactive)
will use when the risk arises to quickly address it. with a series of meetings set up to manage the risks.
When unplanned events do occur, it is necessary to
Prioritise the Risk While managing risks, it is important to always be transparent. be agile and react as soon as possible. Controlling a situation
Everyone involved in a project should know what is going on so
is much more important than just responding to it after an Benefits of project procurement management • Delivery date requirements
event has already taken place. Investing time in each step of
the risk management process can prepare you to take There are several benefits of adding procurement management
• Key project milestones and their deadlines
preventative steps and reduce the probability of the risk event to projects of varying size and complexity, including:
occurring. • Legal terms and conditions
Increased quality
5. Developing Project Management Skills
Project procurement management allows organizations to • Industry safety standards of materials and resources
Above all, managing projects and their associated risks negotiate detailed service contracts to best suit their needs
efficiently require a solid foundation of project management and could increase the certainty of high-quality goods and • Researching providers and vendors
skills. Earning a certificate in project management is one of the services. An increase in certainty of quality could help
best ways to enhance these abilities. Managing your projects stakeholders feel more confident in a project's success and • Criteria for partnerships
properly can lead to higher profits, better relationships with may result in future investments and funding.
Most often, managers use a written document as a project
clients, and the ability to grow and expand your business
Decreased risk procurement plan that addresses the above considerations
PROJECT PROCUREMENT MANAGEMENT and details any other important information, such as how to
The process of drafting and negotiating service contracts can handle changes in delivery dates or contract terms.
What is Project Procurement Management? help organizations more clearly understand
their vendor options by outlining costs, processes and service 2. Conducting procurement
Project procurement management is the creation and quality. This can help to decrease the risk of violation of
maintenance of relationships with external resources needed contract terms which could delay or negatively impact a After planning for procurement, project procurement managers
to complete a project. A project procurement manager project's success. assess bids from vendors and select partnerships based on
communicates with vendors to buy, rent or contract products their project needs. Any vendor negotiations often take place
and services needed to achieve project objectives. Most often, Controlled cost during this phase of procurement and all involved parties sign
the selection of vendors occurs after they have placed bids to the agreed-upon contracts. Project procurement managers
Carefully negotiated procurement terms are a great way to may also make payments for products and services at this
partner with businesses seeking their products or services. A
reduce costs and control spending. Procurement management time.
project procurement manager then determines which bid and
may help organizations better understand the costs necessary
partnerships are most beneficial to their objectives. Further
to complete a project and may help them select products and 3. Controlling procurement
negotiation may take place to ensure fair representation of
services from vendors that best fit their needs without
both party's interests. Once contracts become active, procurement control and
exceeding their budget.
management are important parts of maintaining partnerships
with vendors and ensuring the services and products function
Who uses project procurement management? as they're intended throughout the course of the project.
Processes in project procurement management Controlling procurement often includes:
Project procurement management may be necessary for a
There are four key processes involved in product procurement
variety of industries where projects requiring outsourced • Evaluating regular internal status updates
management:
materials or services occur. The following industries commonly
use project procurement management to meet their project 1. Planning procurement • Reviewing contractor agreements
objectives:
Planning procurement involves a series of steps that help • Reviewing progress and performance updates from
• Construction determine which resources an organization needs for project vendors
completion and the extent of its budget. Project procurement
• Manufacturing managers often consider the following aspects when planning • Conducting inspections and audits
for procurement:
• Engineering • Assessing work orders
• The materials and resources required to complete
• Technology the project • Issuing additional payment as necessary

• Finance • The materials and resources they already have and 4. Closing procurement
which need to be outsourced
Closing procurement involves all necessary steps in ending a
• Healthcare
partnership or contract. This often involves a review of the work
• Contract requirements for outside purchases
or services completed, renegotiation of any changes to original Often, multiple vendors may engage in a single project. It's responsible for their designated tasks and outcomes, fostering
contract terms and confirmation of payments issued and important that project procurement managers effectively a sense of ownership and dedication.
received. Organizations may also file a formal release of coordinate the efforts of multiple contractors. During this
liability upon procurement closing. This contract confirms that process, a project manager may create vendor schedules of b) Risk identification and mitigation: By systematically
the vendor has fulfilled the terms of the original contract and is collective meetings or demonstrations and facilitate analyzing project processes, audits identify potential risks,
no longer responsible for any additional involvement in the communication between contractors when necessary. enabling proactive risk management strategies to mitigate
project. these challenges effectively.
5. Communication of progress
c) Quality assurance: Audits assess the quality of work,
As a project evolves and progresses, a project procurement ensuring that project deliverables meet established standards
Project manager responsibilities during procurement manager communicates these changes and advancements to and client expectations, thus maintaining the reputation and
all stakeholders involved. This can help to ensure that all credibility of the organisation.
Throughout project procurement, there are several teams and individuals working on the project remain informed
responsibilities of project managers. These may vary on deadlines and schedule changes. Project procurement d) Resource optimisation: Through evaluation, audits analyze
depending on the project and its objectives, but there are five managers often determine which information is necessary to resource allocation and utilisation, enabling organisations to
common duties of project procurement managers: communicate, collect that information from stakeholders and optimise resources, reduce wastage, and enhance cost-
vendors and circulate it to the appropriate parties. They may effectiveness.
1. Project initiation
also send weekly email updates to inform all team members of
e) Performance evaluation: Audits provide a comprehensive
A project procurement manager may begin the procurement current project statuses.
overview of project performance, allowing organisations to
process during project initiation. They often communicate with assess the effectiveness of strategies, identify bottlenecks,
What is Project Audit?
management, executives and members of the team assigned and make data-driven decisions for future projects.
to the project to discuss objectives and timelines. This may Project Audit is the rigorous scrutiny and evaluation of a
also include discussing the budget, internal capabilities and Project’s Processes, objectives, methodologies, and f) Stakeholder confidence: Well-conducted audits instil
high-level expectations. outcomes. It serves as a strategic tool in the realm of Project confidence in stakeholders, assuring them that projects are
Management, providing a meticulous examination of every being managed efficiently, leading to stronger partnerships and
2. Procurement planning support.
facet of a project’s lifecycle. This comprehensive analysis aims
A procurement plan is an important part of aligning to ensure that the project aligns with organisational goals,
g) Lessons for continuous improvement: Audit findings serve
expectations and organizing processes. During procurement industry standards, and best practices.
as a valuable source of lessons learned, guiding organisations
planning, project managers often create lists and documents in refining their Project Management Processes and fostering a
It acts as a diagnostic check, illuminating both the
that outline necessary resources and materials, timelines and culture of constant improvement and innovation.
accomplishments and the pitfalls, allowing project managers
milestones and potential means of contacting vendors. They
and stakeholders to make data-driven decisions. Through
may also advertise their need for contractors through classified Key components of Project Audit
Project Audit, organisations gain valuable insights into
ads, online networking sites and through their professional
resource allocation, Risk Management, team performance, Here are some key components of Project Audit:
networks.Project procurement managers may also work with
and overall project health. Ultimately, Project Audit empowers
management and executives to discuss vendor requirements
organisations to refine strategies, optimize processes, and Scope and objectives
and post-procurement activities.
enhance project outcomes, ensuring that every project
undertaken becomes a stepping stone toward organizational a) Clearly define the scope of the audit, outlining the specific
3. Stakeholder coordination
excellence. areas, processes, and objectives that will be evaluated.
Projects often involve several stakeholders, including business
Importance of Project Audit b) Establish the goals of the audit, whether it's performance
owners, management, executives, project teams, liability
improvement, risk identification, or compliance assessment.
professionals and consultants. The project procurement
Project Audit holds a pivotal role in the landscape of Project
manager is responsible for coordinating these teams and Audit team formation
Management, ensuring accountability, transparency, and
individuals to ensure mutual understanding of project goals
continuous improvement. Its significance can be outlined
and objectives. To do this, may they identify all important a) Assemble a skilled and diverse audit team comprising
through several key points:
stakeholders and engage them at appropriate times throughout individuals with expertise in project management, analysis,
the project. and evaluation techniques.

4. Vendor coordination a) Accountability and responsibility: Project Audits establish b) Assign roles and responsibilities within the team to ensure a
clear accountability, ensuring that team members are comprehensive approach to the audit process.
Audit process design management. Understanding these types is crucial for tailoring a) Define objectives: The first step in any Project Audit is to
the audit process to meet the unique needs of the project. define the audit objectives clearly. This involves determining
a) Develop a structured and systematic audit process outlining Here are the primary types of Project Audits: what aspects of the project will be audited, such as processes,
the Project Management Methodologies, data collection deliverables, budget management, or compliance with
techniques, and evaluation criteria to be employed. Process audit regulations.
b) Plan the timeline, detailing when each phase of the audit will Process audits concentrate on evaluating the Project b) Assemble the audit team: Formulate a team of skilled
take place and allocating resources accordingly. Management processes and methodologies employed auditors with expertise in project management, financial
during Project Execution. It assesses whether the operations analysis, compliance, and other relevant areas. The team's
Documentation and data collection are efficient, effective, and aligned with industry best composition should be diverse to ensure a well-rounded
practices. This type of audit helps in identifying bottlenecks, assessment.
a) Gather relevant project documents, including plans, reports,
inefficiencies, and areas where process improvements are
financial records, and communication logs, ensuring a
necessary. c) Develop audit plan: Create a detailed audit plan outlining
comprehensive review.
the methodologies, tools, and techniques to be used during
Performance audit the audit. Determine the scope, Project Management Timeline,
b) Collect data through interviews, surveys, and direct
observations, ensuring the information gathered is accurate, and resource requirements for the audit process.
Performance audits provide a comprehensive assessment of
reliable, and representative of the project's activities. the project’s overall performance. This includes evaluating Execution
project deliverables, timelines, budget adherence, and
Analysis and evaluation
stakeholder satisfaction. By analyzing these aspects, a) Data collection: Gather relevant data and documentation
a) Analyze the collected data to identify patterns, Project performance audits offer insights into the project's related to the project. This includes project plans, contracts,
Management Trends, and discrepancies in project effectiveness in meeting objectives and satisfying financial records, progress reports, communication logs, and
performance and outcomes. stakeholders. stakeholder feedback. Data can be collected through
interviews, surveys, direct observations, and document
b) Evaluate the project against predetermined benchmarks, Compliance audit reviews.
industry standards, and organisational objectives, identifying
Compliance audits focus on ensuring that the project adheres b) Interviews and stakeholder engagement: Conduct
areas of success and areas needing improvement.
to legal, regulatory, and organisational guidelines. This is interviews with project team members, stakeholders, and
Reporting and recommendations particularly important in industries with strict regulations, such other relevant parties. Engaging with key stakeholders provides
as healthcare or finance. Compliance audits help minimise valuable insights into their expectations, concerns, and
a) Document audit findings in a clear, concise, and structured legal risks and ensure that the project activities align with perceptions regarding the project.
report, highlighting strengths, weaknesses, opportunities, and established standards and regulations.
threats. c) On-site observations: In some instances, auditors may
Financial audit conduct on-site visits to observe project activities firsthand.
b) Provide actionable recommendations based on the audit This direct observation helps in understanding the actual
results, offering specific strategies for improvement and Financial audits concentrate on the project’s financial aspects.
implementation of project processes.
outlining the potential benefits of implementing these This includes a detailed review of project budgets,
changes. expenditures, financial controls, and adherence to economic Reporting
policies. Financial audits ensure transparency in financial
Follow-up and implementation monitoring transactions, prevent financial mismanagement and verify that a) Analysis of findings: Analyze the collected data and
project funds are utilised judiciously. evaluate it against predetermined benchmarks, industry
a) Establish a follow-up mechanism to track the standards, and organisational objectives. Identify patterns,
implementation of audit recommendations, ensuring that Steps involved in conducting Project Audit trends, strengths, weaknesses, and areas for improvement.
identified issues are addressed promptly.
A Project Audit is a systematic and structured process aimed at b) Preparation of audit report: Document the audit findings,
b) Monitor the progress of recommended changes, assess their evaluating various aspects of a project to ensure its conclusions, and recommendations in a comprehensive
impact on the project, and make necessary adjustments to the effectiveness, Compliance, and alignment with organisational report. The information should be structured, clear, and
project management strategies based on the outcomes of the goals. The audit process involves several key steps, each concise, making it easy for stakeholders to understand the
audit. crucial in providing a comprehensive analysis of the project's audit outcomes.
performance. These are the steps which are involved in Project
Types of Project Audit Audit: c) Incorporate visuals: Utilise charts, graphs, and other visual
aids to present data effectively. Visual representations
Project Audits come in various forms, each designed to focus Planning
on specific aspects of a project’s performance, compliance, or
enhance the clarity of the report and provide a quick overview optimisation often leads to significant cost savings and
of key findings. resource utilisation improvements.

Follow-up Proactive risk management

a) Implementation of recommendations: Provide Project Audits are invaluable for identifying potential risks and
stakeholders with actionable advice for addressing identified challenges early in the project lifecycle. By proactively
issues and improving project performance. Proposals should addressing these risks, organisations can develop risk
be Specific, Measurable, Achievable, Relevant, and Time- mitigation strategies, reducing the likelihood of project delays
bound (SMART). or failures.

b) Monitoring and evaluation: Establish a follow-up Quality assurance

mechanism to track the implementation of recommendations.
Regular monitoring ensures that corrective actions are taken Audits ensure that project deliverables meet established
and improvements are made as per the audit findings. quality standards and client expectations. By validating the
quality of work, organisations can uphold their reputation, gain
c) Feedback and continuous improvement: Gather input customer satisfaction, and establish themselves as providers
from project stakeholders regarding the implemented changes. of high-quality services or products.
Use this feedback to assess the impact of the audit
recommendations and identify further areas for improvement. Knowledge transfer and learning
This continuous improvement loop is essential for enhancing
Audit findings serve as repositories of knowledge and
future project management practices.
experience. Lessons learned from audits offer invaluable
Benefits of conducting Project Audits insights into both successes and failures. This knowledge
transfer facilitates organisational learning, allowing teams to
Project Audits, far from being mere assessments, offer several avoid past mistakes and adopt best practices for future
benefits that contribute significantly to the success of projects projects.
and the overall growth of organisations. Here’s an in-depth
exploration of these advantages: Continuous improvement

Enhanced decision-making Project Audits create a culture of continuous improvement

within organisations. By analyzing audit results and
Project Audits provide actionable insights and data-driven implementing recommendations, organisations foster an
recommendations, enabling Project Managers and environment where learning from past experiences becomes
stakeholders to make informed decisions. By understanding integral to the Project Management process. Continuous
the project’s strengths and weaknesses, organisations can improvement ensures that each project iteration is more
devise strategies that lead to more effective decision-making refined and successful than the last, enhancing the
at various project stages. organisation’s overall effectiveness.

Stakeholder confidence

A successfully conducted Project Audit instils confidence in

stakeholders, including clients, investors, and team members.
When stakeholders are assured that projects are managed
efficiently and transparently, it fosters trust, resulting in
stronger relationships and sustained support.

Process optimisation

Through rigorous evaluation, Project Audits identify

inefficiencies and bottlenecks in project processes. Armed
with this knowledge, organisations can optimise workflows,
streamline operations, and enhance project efficiency. This