What is Project Management?

Project management is the use of specific knowledge, skills, tools and techniques to deliver
something of value to people. The development of software for an improved business process,
the construction of a building, the relief effort after a natural disaster, the expansion of sales into
a new geographic market—these are all examples of projects.

All projects are a temporary effort to create value through a unique product, service or result. All projects have a

beginning and an end. They have a team, a budget, a schedule and a set of expectations the team needs to meet.

Each project is unique and differs from routine operations—the ongoing activities of an organization—because

projects reach a conclusion once the goal is achieved.

The changing nature of work due to technological advances, globalization and other factors means that,

increasingly, work is organized around projects with teams being brought together based on the skills needed for

specific tasks.

Leading these projects are Project Professionals—people who either intentionally or by circumstance are asked

to ensure that a project team meets its goals. Project professionals use many different tools, techniques and

approaches to meet the needs of a project.

Some projects are needed to quickly resolve problems, with an understanding that improvements will be made

over a period of time. Other projects have a longer duration and/or produce a product or other outcome that will

not need major improvements outside of projected maintenance, such as a highway.

Still others will be a mix of both of these types of projects. Project professionals use a variety of skills and

knowledge to engage and motivate others to reach a project’s goals. Project professionals are critical to the

success of projects and are highly sought after to help organizations achieve their goals.

For a deeper understanding of what it’s like to manage a project, try Kickoff from PMI, a free, 45-minute digital

course and toolkit that guides you through the basics of project management.

Who is PMI?

As the world’s leading authority on project management, PMI empowers people to make ideas a reality.

Through global advocacy, networking, collaboration, research, and education, PMI prepares organizations and

individuals to work smarter in an ever-changing and dynamic world.

Building on a proud legacy dating to 1969, PMI is a “for-purpose” organization working in nearly every country

around the world to advance careers, strengthen organizational success, and enable changemakers with new

skills and ways of working to maximize their impact.

What is project management?

Project management is defined as the process of steering a project from the start through its lifecycle. The main

objective of project management is to complete a project within the established goals of time, budget, and

quality. Projects have life cycles since they aren’t intended to last forever.

A project management life cycle starts when the project is initiated and ends when the project is either

completed or terminated in one way or another.

At the end of each phase, there is a decision point where stakeholders decide whether or not to complete the

project or terminate it and cut losses.

Why is it important to manage projects?
According to a survey by the Project Management Institute (PMI), only 58% of organizations realize the
actual importance of project management and how it allows them to effectively tackle the issues they face.

Apart from stimulating productivity, improving project transparency, and providing a clear vision to the team,
project management can bring the following advantages to the table:

Effective communication

Efficient resource management

Improved customer satisfaction

Flexibility and higher risk tolerance

Improved team morale

Better quality of the output

Retrospective learning
What if all projects were handled on the fly? No plans, no organization, none of that. We just brief the team on
what needs to be done and they jump straight in. Like baking a cake. You wouldn’t draw up an action plan to
bake one, no?

Unfortunately, most projects are complex and multi-faceted, requiring careful planning, organizing, and
monitoring.

Only by having a structured approach, supporting processes, and clearly defined roles and responsibilities for
project managers, they can deliver stellar results while staying within the project constraints. However, despite
global recognition and the obvious benefits and advantages of project management, the field remains
underappreciated.

According to a survey by the Project Management Institute (PMI), only 58% of organizations realize the actual
importance of project management and how it allows them to effectively tackle the issues they face. Similarly,
the percentage of companies that use standardized project management practices across the board is only 23%.

Why is project management important – 10 main benefits

A clear understanding of project management and having an effective project management system can do
wonders for your organization. Project management is important because it sets your project from being out of
the scope. Apart from stimulating productivity, improving project transparency, and providing a clear vision to
the team, these 10 benefits of project management listed below can bring the following advantages to the table.
1. Consistent communication:
No project plan is complete without a solid communication structure. Communication in project management is
an extremely important aspect that can have a significant effect on the performance of a team. A study analyzed
the reasons for project failure in the UK’s finance sector and found that communication breakdown was the
main cause of failure for 57% of the studied projects.
Project managers must ensure that the whole team shares a collective end-goal and work together to achieve it.
The overall efficiency and productivity of the entire team get significantly improved which leads to other
benefits as well.
2. Effective resource allocation:
The biggest resource any project managers have at their disposal is the team members. The project
team consists of people of different backgrounds and departments and they might have other commitments.
Through proper project planning, you can ensure that they are available when needed.
Similarly, other resources like the budget, tools, machinery, and others can be arranged effectively to avoid
project delays during the execution. By properly allocating each resource in the beginning, you can also monitor
the phases that are more demanding and prepare accordingly.
By figuring out a smarter and efficient direction, you can ensure that each prioritized task is optimized to give
you maximum output at the lowest cost.

3. Higher productivity:
The field of project management is interconnected with being productive. Through proper utilization of
resources and having an efficient system in place, a project team can easily get more work done in a shorter
amount of time and increase productivity.

4. Improved customer satisfaction:

Retaining clients is considered more important than acquiring new ones and a guaranteed way of doing it is by
offering unparalleled services. An effective set of operations that focuses on quality and efficiency, would
naturally leave the clients feeling satisfied. This means that they would return with more business in the future.
A satisfied client would also refer your organization to other potential customers, which means free marketing
for you. This can be an extremely effective marketing strategy for businesses.

5. More flexibility:
As you increase your customer base, your organization would be able to gain more capital which it can use to
expand the business and hire new talent.
6. Higher risk tolerance:
Proper planning means that you are ready for potential ‘what-if’ scenarios that may occur. This means that you
are somewhat prepared to tackle any unforeseen occurrences that may negatively impact your project.
7. Improved morale:
With continuous success and effective performance, your team gains more confidence. Effective project
managers inspire their team by incentivizing and regularly rewarding top performers to keep everyone
motivated.
8. Better planning
Planning a project effectively right from the start lays the foundation for a successful project. Project
management includes a phase for a project plan where you can clearly define
It keeps your team from slowing down and avoids unnecessary bureaucracy.
While it may be tempting to dive straight in, project management helps you in the longer run. With a solid
project plan, you can ensure that you have an agreement with the client’s requirements, get all project
stakeholders on the same page, and flag risks in advance.

9. Quality control
Most project managers are under enormous pressure to complete the project on time. When deadlines are
missed, project schedules get tightened, work is rushed, and corners are cut, resulting in poor quality work.
Methodologies like Agile ensure the quality and applicability of the delivered product by creating a separate
phase for examining and testing at every step. Proper project management also gives you control over the
timelines and resources.
10. Learning by retrospection
As a project manager, you can’t afford to make the same mistake twice. It’s also key to do more of what went
right and less of what went wrong. And, projects generate a tremendous amount of knowledge.
Almost every project management methodology includes a retrospective stage at the end of the project to
facilitate this. Frameworks like Scrum include periodical retrospection so you can learn from what went wrong
throughout the course of the project.
Properly recorded documentation allows you to keep track of all activities, enabling the team to learn from
successes and project failures. The learnings from a project can be applied to all future projects. It’s also a great
tool to estimate costs and project timelines.
How does project management come into existence?
The history of project management is that it has been around for as long as humans have existed–from the
invention of the wheel to the construction of the Giza Pyramids to the development of the device you’re reading
this on. All these “projects” required planning, had specific people to oversee them, a sponsor, and people
working on them. We just didn’t call them projects.
Project constraints such as scope and workload weren’t considered back then but there would have been
budgets and project timelines. The practice became more refined in the last 100 years with methodologies being
developed, starting with Fredric Taylor’s The Principles of Scientific Management in 1911.

Henry Gantt introduced the eponymous Gantt charts in 1917. Toyota’s Taichii Ohno implemented the
rudimentary form of Kanban and Lean in their manufacturing units in the 1950s. The Project Management
Institute was formed in 1969. Over the years, as the nature of the market changed, newer methodologies like
Agile were introduced that refined the project management process further.
What are the five phases of project management?
Project management phases are different tasks, behaviors, and skill sets that are essential to creating successful
projects.

Listed below are the five major phases of the project management process:

1. Initiation
The project initiation phase marks the beginning of a project by determining high-level expectations like why a
project is required, if it is feasible or not, and what is needed to complete the project.

Outputs of this phase include required stakeholder approvals to proceed to the next phase, documentation
pertaining to project needs (business case), and rough estimates of time and resources required to complete the
project (project charter), and an initial list of stakeholders.

2. Planning
In the planning phase, project managers detail the project scope, time frame, and risks. Completeness and
continuity are the major components of a successful project plan.

Outputs of this phase include a detailed project plan, a project communication plan (if there is no project plan),
budget baseline, project scheduling, individual project goals, scope document, and updated stakeholder registry.

3. Execution

In the project execution phase, the project team members are coordinated and guided through proper project
communication to get the work done as explained in the approved project management plan.
Additionally, this phase also covers the proper allocation and management of other project resources like
materials and budgets. Project deliverables are the output of the execution phase.

4. Monitoring and Control

During the project monitoring and controlling phase, the time, cost, and performance of the project are
compared at every stage and necessary adjustments are made to the project activities, resources, and plan to
keep things on the right track.

Outputs from this phase include project progress reports and other communications that ensure adherence to
project plans and prevent larger milestones and deadline disruptions.

5. Closure or Completion

The process of finalizing the project, reviewing the project deliverables, and transitioning them to the business
leaders is called the project closure phase in a project management life cycle.

This stage offers time for both celebration and reflection. Outputs from this project management phase include
approved project results and learnings that can be applied to similar projects in the future.

Popular project management approaches explained

Project management approaches offer a collection of processes, methods, and tools to manage and accomplish
project activities. They ensure consistency, simplify complexities, lower costs, and reduce risks. There are a
number of well-established project management approaches available.

Listed below are some of the most popular types of project management approaches:

Phased approach in project management

Lean project management

Iterative and incremental project management

Critical chain project management

Product-based planning

Process-based management

Project production management

1. Phased project management approach

A phased approach is the best choice for big and complex projects that need to be executed in stages due to
external project constraints. In this approach, each phase goes through all five process areas from initiation to
closure. At the end of every phase, all the work is assessed and handed off to the next phase in a sequential way.
The phased approach is often referred to as a waterfall or traditional model. It is an ideal choice for small, well-
defined projects. Ambiguities and risks involved rise up with the complexity and size of the project.

2. Lean project management

Lean project management is a data-driven approach that focuses on improving the process and eliminating
waste through efficient use of resources (cost, time, and people). This project management approach covers
detailed planning, visual-rich documentation, continuous analysis, and frequent process improvements.

A project is considered to be lean if it follows the basic lean principles. Deming Cycle (PDCA), Lean Six Sigma
(DMEDI), Value Stream Mapping (VSM), and kanban methodology are some of the most popular lean project
management approaches.

Most businesses lean towards value stream mapping as it offers them an accurate and detailed visualization of
all steps in the project.
Value Stream Mapping (VSM) is a powerful, two-dimensional tool that documents and directs a lean
transformation from a big-picture perspective. It not only helps businesses understand the total lead time but
also shows individual lead time and cycle time and provides a clear picture of wastes that inhibit project flow.

By observing and understanding the visual flow of a project, organizations can eliminate the wastes of lean,
reduce administrative processing time, and consistently meet project deadlines and objectives.
3. Iterative and incremental project management

The iterative and incremental approach is a change-driven project management methodology that was
developed to handle change and reduce inherent project risks. This project management methodology is a
perfect choice for large-scale, multi-company projects with ambiguous requirements and a high degree of risk. It
is often used for software development.

A wide range of project management approaches like Agile project management, Extreme project management,
and more have evolved from the incremental and iterative approach.
4. Critical chain project management

Critical chain project management (CCPM) is used to plan and manage projects while allowing room for
resource constraints (personnel, equipment, and more). It is based on the theory of constraints (TOC) which
states that a chain is only as strong as its weakest link.

In CCPM, project delays are prevented by adding buffers to the inherent resource and project task
dependencies.

5. PRINCE2 product-based planning approach

Product-based planning is a structured project management approach that focuses on outputs and project
deliverables (including intermediate products), unlike traditional approaches that focus on activities and tasks.

As there are far fewer deliverables than tasks, it is relatively easy to define and arrange them in a logical
way. PRINCE2 methodology is the most common implementation of this approach.
6. Process-based project management
Process-based project management allows project managers to create, manage, and improve projects that align
with the vision, mission, and core values of a business. All project activities and objectives are designed in such
a way that they contribute towards achieving the most important organizational objectives.
Process-based project management includes six stages:

Defining the processes

Identifying process indicators

Measuring performance

Adjusting objectives

Planning improvements

Implementing improvements

OPM3 (Organizational Project Management Maturity Model) and CMMI (Capability Maturity Model
Integration) are some of the most popular process-based project management maturity models.

7. Project production management

Project production management (PPM) is a strategic approach that applies theories and principles of operations
science to better understand and optimize project delivery.

What makes PPM unique is the fact it uses actual data from project activities to predict limits and determine
what can be genuinely achieved. It also helps in designing appropriate control mechanisms to buffer variability.
What are the main reasons for project failure?
Any viable project is prone to failure due to one of the five reasons listed below:

Resource deficiency – insufficient resources to complete the project.

Inadequate time frame – having trouble completing the project on time.

Unclear goals – lack of detailed documentation can lead to inappropriate results.

Poorly managed stakeholder expectations – project scope changes that are not agreed upon by stakeholders
causing varying views of quality, time, or budget.

Inadequate risk management – failing to establish the risk associated with each project can cause your project
to fail.

No one starts a project with the hope that it will fail, yet most projects fail when project managers disregard the
need to streamline their project management techniques.
How to streamline project management effectively?
Projects are filled with a slew of details. In the race to deliver the project on time, it is possible to miss a few
important details along the way. Especially when project management is handled manually, it is hard to note
down every small detail of a project. It results in a heap of paperwork and spreadsheets where uncertainties
thrive driving up the chance for failure.

While it is impossible to harness the chaos in project management overnight, there are a number of ways to
streamline project management effectively.
By following the twelve steps meticulously in their project lifecycle, even non-project managers can
successfully streamline and complete their projects. Additionally, you can also follow the project management
checklist and also look out for the project management challenges to maximize your project productivity.
Various types of project management structures
One of the leading causes of project failure is the misalignment of project teams. They lack guidance as to the
organizational structure that influences the authority of the project manager.

Learn how remote project management is done effectively and how project management teams are aligned as
one.

Project management structure can be defined as the official line of control and authority within project teams as
well as the organization and they tell us how reporting relationships work.

Depending on the nature of the work and the project goals, teams are structured in three ways:

1. Functional Organizational Structure

It follows a hierarchical system where key decisions like budgeting, scheduling, and resource allocation lie with
functional managers, who possess expertise in the same field, leaving the project manager with little to no
authority.

Work is broken down into departmental units likes, sales, HR, admin. Responsibilities are predetermined and
everyone knows who’s accountable. Team members get more skilled at what they’re doing.
 However, there are a few downsides to this structure:

Work can get monotonous

Cross-functional collaboration becomes poor

Higher levels of bureaucracy

2. Projectized Organizational Structure

This organizational structure puts the project manager completely in charge. The project manager has complete
authority over the budget, staffing, and schedule. The project team comprises members from across
departments. At the end of the project, all team members are released to their respective functional departments.

Decisions get made faster as the project team has to navigate a lesser amount of bureaucracy. Communication
becomes easier and more effective. Team members gain experience across a range of areas as they work
on different types of projects.

When team members work on multiple projects, difficulties arise. There might be a clash of priorities between
projects. The tight schedules and deadlines make the workplace stressful.

3. Matrix Organizational Structure

The matrix organizational structures combine the best of both worlds. Reporting relationships are set up in a
matrix or a grid, with dual reporting relationships i.e. every team member reports to both the functional manager
and the project manager. The functional manager reviews the work which helps in improving one’s project
management skills. The project manager prioritizes and gives direction to the work.

This organizational structure facilitates the sharing of resources. It fosters better communication and teams act
as integrated units. It’s one of the toughest structures to form because of the conflicting pulls on team members
and resources. Since team members report to two managers, it can create unnecessary misunderstandings and
conflicts.

10 knowledge areas of project management you need to know

The PMI, in its Project Management Book of Knowledge (PMBOK), divides project management into 10
digestible areas. They coincide with the chronological phases of project management and are the core technical
subject areas.

 Project integration management

 Project scope management
 Project time management
 Project cost management
 Project quality management
 Project human resource management
 Project communication management
 Project risk management
 Project procurement management
 Project stakeholder management
 Roles and responsibilities a project manager should have
Similar to a project passing through a variety of project management phases, a project manager needs to assume
an array of roles and responsibilities with the people involved.

These include,

1. Interpersonal
2. Information
3. Decisional and
4. Management roles.

Interpersonal Informational Role Decisional Role Management Role

Role
1. Work with a 1. Communicate with all 1. Make a range of 1. Recruit and manage
diverse range of stakeholders effectively decisions at each stage employees
professionals
2. Keep people up-to-date 2. Stay clear and focused 2. Manage finances
2. Solve team
disputes 3. Organize team 3. Balance scope, time, 3. Respond well to ambiguity
meetings frequently and resources
3. Build positive 4. Adhere to business
relationships 4. Provide performance 4. Prevent scope priorities
feedback creep and budget
4. Motivate team slippage
members
If most of the responsibilities listed above sound familiar, then you’re a project manager—even if your job title
doesn’t say so. By applying some of the project management best practices, you can improve the efficiency of
your team management as a whole.

How do teams benefit from project management?

Today, all organizations expect their teams to deliver more results with fewer resources. These seemingly
impossible expectations can not only be fulfilled but also be exceeded if they take a project management
approach towards their work.

Some of the teams that would benefit hugely by implementing some of the best project management practices:

1. Marketing teams:
In marketing, there are a number of moving tasks, feedback loops, deliverables, content workflows, and due
dates. With the amount of information involved, it is challenging to find the right file. Processing all of these
without putting a strain on the available resources while ensuring business growth is hard without a predictable
marketing project management process.

See how marketing project management software can help marketing operations and manage creative
projects better.
2. Customer support:
Good customer experience is the most important ingredient for an organization’s success. However, if the
support team is preoccupied with existing chaos and juggling workload, they may not have enough time to
focus on the customer. Incorporating project management approaches can help your support team collaborate
better, manage their workload, and communicate effectively with customers.

3. Product teams:
Once the product strategy is developed and stakeholder approval is received, product managers may need to
track the number of details on a day-to-day basis and work along with a variety of teams. Task management
practices will help product managers translate strategy into discrete trackable tasks and
communicate/collaborate with everyone effectively.

4. Event planners:
To bring an event together is no small feat. It takes a lot of teamwork, frequent budget check, strict deadline
adherence, a little bit of luck, and a whole lot of responsibilities to host an event successfully. Missing a small
detail can make things go wrong spectacularly.

By treating events like projects, event planners can simplify the process of coordinating tasks and people
by visual project management to create an event that people will be talking about for years to come.

Manage your projects with Kissflow Project

Now that you have put a lot of new information about project management into your brain, some of you may
feel overwhelmed. Take a deep breath and look back on your own projects. Everything you’ve learned today
about project management is practical. So, if you’re working on a project and you are already using some of
these concepts, start using Kissflow Project for free.

If not, take a few minutes and reflect on how you can use these things to make your project go as smoothly as
possible. Tuning your project management skills will not only help you complete your projects on time and
within budget, but will also contribute to your own career and your organization’s growth.

Difference Between Software Project and Normal Project

How Software Project Management Is Different

The biggest difference between software and the products of other kinds of projects is it's not physical.
Software consists of ideas, designs, instructions and formulas. Creating software is almost entirely a cognitive
activity. The stuff we can see and measure, from code files They stand in for the real stuff, vs. the other way
around. Still, software only matters when it appears as something real, even as barely real as colored squiggles
on a computer screen. Maintaining that connection from thought stuff to real stuff is one of software's peculiar
challenges.In comparing the management of different projects, the first trap that many people fall into is that
they do not differentiate between managing the technology and managing the project process. Certainly there is
a lot of difference between managing how concrete is placed and how the interface in a software development is
placed on a computer screen.

But how much difference does that make to managing either project in terms of scope, quality, time, cost, risk
and so on?

You can see both, even though you may not be able to see the technological processes behind either.
Nevertheless, yes, there are differences but they have to do with the sophistication of the technology involved
and the types of people needed for the work. For example, construction is considered to be "well established"
while software development is "recent, and technologically advanced", but is certainly not unique in this
regard.

S.No Feature Software Project Ordinary Project

1 Tangible Not Tangible It is tangible

2 End Product Not clearly defined Very clearly defined

3 Production No fixed production plan, Fixed production plan which can

difficult to monitor and track be tracked

4 Productivity Productivity varies greatly with Productivity does not vary much
change in technology or worker

5 Project Methodology Varies widely based on project Typically standard

6 Management Managing a software project is It is more about maintaining

methodology more managing interpersonal schedule and good
communication and less administration
administration.

7 Transfer of Ownership The transfer of software is tricky Transfer is easy as the company
as the organisation doesn’t own own the project till it hands over
the hardware which runs the
software

8 Multitasking Difficult to multitask the Production resources can be

resources used for multiple projects

9 Personalisation It is very easy to change product Can be personalized to a certain

as per customer requirement at extent, but difficult in the middle
any time. of the project

10 Leadership Software Projects need leaders A capable administrator is

 and managers, not just enough to run an ordinary
administrators. project

Many techniques in general project management also apply to software project management, but Fred Brooks
identified some characteristics of software projects which make them particularly difficult :-

Invisibility : When a physical artifact such as a bridge is constructed the progress can actually be seen. with
software, progress is not immediately visible. Software project management can be the process of making the
invisible visible.

Complexity : Per dollar, pound or euro spent, software products contain more complexity than other engineered
artifacts.

Conformity : The 'traditional' engineer usually works with physical systems and materials like cement and steel.
These physical systems have complexity, but are governed by consistent physical laws. Software developers
have to conform to the requirement of human clients. It is not just that individuals can be inconsistent.
Organizations, because of lapses in collective memory, in internal communication or in effective decision
making, can exhibit remarkable,'organizational stupidity'.

Flexibility : That software is easy to change is seen as a strength. However, where the software system
interfaces with a physical or organizational system, it is accommodate the other components rather than vice
versa. Thus software systems are particularly subject to change.

Project Management | Characteristics of

Project
A project is a combination of interrelated activities to achieve a specific objective within a schedule, budget, and
quality. It involves the coordination of group activity, wherein the manager plans, organizes, staffs directs, and
controls to achieve an objective, with constraints on time, cost, and performance of the end product. Project
management is the combination of project and management.
Planning is the strong keys to make the project more effective and well utilization of resources to achieve the
goal. In this, we will focus on characteristics of the project like how objectives are important for achieving the
goal, the total time duration of the project, calculated risk, and uncertainty of the project, the total estimated cost
of the project, etc. are essential characteristics of the project and will discuss some other characteristics of the
project like team spirit, require funds, directions, uniqueness, flexibility, and sub-contracting, etc. Let’s discuss it
one by one.
Characteristics of a Project :
Projects are not homogeneous. Each project is different in itself. The distinctive characteristics of a project are
as follows.
1. Objectives –
Every project is started with some objective or goal viz. time, budget, quality, and quantity, when objectives
are fulfilled project cause existing. You can initially define the objectives of the project what actually need
to achieve. Objectives are the key characteristics of the project where you will see the progress of the
project and time to time analysis will show you the result of how much you have achieved.

2. Single entity –
A project is one whole thing. This means that in a project although different people contribute still is
recognized as a single entity. The teams are often specifically assembled for a single project.

3. Life Span –
No project can be ceaseless and indefinite. It must have one and beyond which it cannot proceed. Every
project is invariably time-bound. At the time of planning, you will see the time phase of the project where
the team can work independently on the project modules. Let’s consider an example project that is divided
into three modules let’s say A, B, and C. If the total time span of a project is 5 months then you can set the
time span for modules independently like A can complete in 2 months and also B can complete in 2 months
and C can complete in 1 month as per requirement.

4. Require funds –
Every project needs funds to reach the endpoint. Without adequate funds, no project can be successfully
implemented. Cost estimation is one of the essential factors for any organization. So, calculating in advance
the required funds for the project will be very impactful.

5. Life Cycle –
Each project has a life cycle with different stages like start, growth, maturity, and decay. A project has to
pass through different stages to get itself completed. Let’s consider an example where the project is related
to software development then you can say SDLC (Software Development lifecycle) will be the life cycle of
the project where you will see many stages like planning, defining, designing, building, testing, and
deployment, etc.
6. Team Spirit –
Team spirit is required to get the project completed because the project constitutes different members
having different characteristics and from various disciplines. But to achieve common goal harmony,
missionary zeal, team spirit is necessary.

7. Risk and Uncertainty –

The project is generally based on forecasting. So risk and uncertainty are always associated with projects.
There will be a high degree of risk in those project which are not properly defined. Only the degree of
control over risk and uncertainty varies with the project being conceived based on information available.

8. Directions –
Project is always performed according to the directions given by the customers with regard to time, quality
and quantity, etc. The convenience of the supply sides of economics such as labor availability ore resources
and managerial talent etc. are all secondary concerns, primary being the customer requirement.

9. Uniqueness –
Each project is unique in itself, and it’s having own features. No two projects are similar even if the type of
organization is the same. The uniqueness of the project can measure by considering the many factors like
objectives, features of the project, application of the project, etc.

10. Flexibility –
Change and project are synonymous. A project sees many changes throughout its life span. These changes
can make projects more dynamic and flexible.

11. Sub-Contracting –
Sub-contracting is a subset of every project and without which no project can be completed unless it is a
proprietary firm or tiny in nature. The more complexity of a project the more will be the extent of
contracting. Every project needs the help of an outsider consultant, engineer, or expert in that field.

12. Cost –
If the quality of the project is to be changed there could be an impact on the cost of the project. The cost
could increase if more resources are required to complete the project quicker.
Problems with software projects
Last Updated on Fri, 07 Jan 2022 | Software Project

One way of deciding what ought to be covered in 'software project management' is to consider what problems
need to be addressed.

Traditionally, management has been seen as the preserve of a distinct class within the organization. As
technology has made the tasks undertaken by an organization moa* sophisticated, many management tasks
seem to have become dispersed throughout the organization: there are management systems rather than
managers. Nevertheless, the successful project will normally have one person who is responsible for its success.
Such people are likely to be concerned with the key areas that arc most likely to prevent success - they arc
primarily trouble-shooters and their job is likely to be moulded by the problems that confront the project. A
survey of managers published by Thayer, Pyster and Wood identified the following commonly experienced
problems:

• poor estimates and plans;

• lack of quality standards and measures;

• lack of guidance about making organizational decisions;

• lack of techniques to make progress visible;

• poor role definition - who does what?

• incorrect success criteria.

The above list looks at the project from the manager's point of view. What about the staff who make up the
members of the project team? Below is a list of the problems identified by a number of students on a degree
course in Computing and Information Systems who had just completed a year's industrial placement:

• inadequate specification of work;

• management ignorance of IT;

• lack of knowledge of application area;

• lack of standards;
Further details of the survey can be lound in Major issues in software engineering project management' in IEEE
Transactions on Software Engineering. Volume 7, pp 333-342

• lack of up-to-date documentation;

Stephen Flower's Software Failure, Management Failure. Wiley & Sons. 1996. is an interesting survey of failed
computer projects

• prcccding activities not completed on time - including late delivery of equipment;

• lack of communication between users and technicians;

• lack of communication leading to duplication of work;

• lack of commitment - especially w hen a project is tied to one person w ho then moves;

• narrow scope of technical expertise;

• changing statutory requirements;

• changing software environment;

• deadline pressure;

• lack of quality control;

• remote management;

Note how many of the problems identified by the students stemmed from poor communications. Another
common problem identified by this and other groups of students is the wide range of IT specialisms - an
organization may be made up of lots of individuals or groups who w ill be expert in one set of software
techniques and tools but ignorant of those used by their colleagues. Communication problems are therefore
bound to arise.

What about the problems faced by the customers of the products of computer projects? Here are some recent
stories in the press:

• the United States Internal Revenue System was to abandon its tax system modernization programme after
having spent S4 billion:

• the state of California spent SI billion on its non-functional welfare database system:
• the £339 million United Kingdom air traffic control system was reported as being two years behind schedule;

• a discount stock brokerage company had 50 people working 14 hours or more a day to correct three months of
records clerically—the report commented that the new system had been rushed into operation without adequate
testing;

• in the United Kingdom, a Home Office immigration service computerization project was reported as having
missed two deadlines and was nine months late;
• the Public Accounts Committee of the House of Commons in the United Kingdom blamed software bugs and
management errors for £12 million of project costs in relation to an implementation of a Ministry of Agriculture
computer system to administer farm subsidies.

Most of the stories above relate to public sector organizations. This may be misleading—private sector
organizations tend to conceal their disasters and in any case many of the public projects above were actually
being carried out by private sector contractors. Any lingering faith by users in the innate ability of IT people to
plan ahead properly will have been removed by consideration of the 'millennium bug", a purely self-inflicted IT
problem. On balance it might be a good idea not to survey users about their problems with IT projects!

All Parties involved in Project

Software projects are difficult and they all take careful planning, a talented development team and
collaboration of a project’s team members, both internally within the company and externally with the
software development company.

Software projects can only move forward when the key stakeholders are all in place.

One of the keys to a successful software project is identifying and documenting the software project roles and
responsibilities for your project. You’ll need to ensure that you define the key stakeholders within your business
that will be involved in the delivery of the software solution.
 Get the right people. Then no matter what all else you might do wrong after that, the people will save you.
That’s what management is all about.
-– Tom DeMarco

Among the key stakeholders of a software project are the following eight key roles in software development and
their corresponding responsibilities.

PROJECT SPONSOR
Project Sponsors play a critical role in all projects. Project
sponsors have the bandwidth to take on the Project Sponsor
role, their day job and no other project role, therefore Project
Sponsors are not Project Managers, Scrum Masters or Product
Owners.

Unengaged sponsor sinks the ship.

-– Angela Waner
The Project Sponsor is the person or group that provides
direction and resources, including financial resources for
the software project. The Project Sponsor works with the
project management team, aiding with wider project matters
such as scope clarification, progress, monitoring, and
influencing others in order to benefit the software project.
The Project Sponsor leads the project through the software
supplier selection process until it is formally authorised. For
issues that are beyond the control of the Product Owner, the
Project Sponsor serves as an escalation path.
The Project Sponsor may also be involved in other important
issues such as authorising changes in scope, phase-end
reviews, and go/no-go decisions when the stakes of the
project are particularly high.
Typically sponsors of projects tend to be senior management
or director level executives.
SUBJECT MATTER EXPERTS (SME)
A Subject Matter Expert (SME) or Domain Expert is a person
who is an authority in a particular area or topic. A Subject
Matter Expert has superior (expert) knowledge of a discipline,
technology, product, business process or entire business
area.
The SME role and responsibilities in software development
could be summarised as follows: they are normally the
people from whom technical requirements are
captured.

If everyone is thinking alike, someone isn’t

thinking.
-– General George Patton Jr.
Subject Matter Experts are the accountants, finance
controllers, salespeople, production managers and so on who
roll up their sleeves each day. They know their roles inside
and out and are rarely technical.
However, their lack of technical knowledge is their strength,
as they are not bogged down in technicalities and instead are
purely focused on business outcomes.
It’s imperative that discussions are held with Subject Matter
Experts at the same time as the software product vision
statement is being created. Feedback from this group of
experts can save a lot of back and forth down the line.
However, given that Subject Matter Experts tend not to be
technical the right amount and type of engagement are
necessary so as not to overwhelm them. One of the ways to
get them involved is to have them contribute to the creation
of early-stage wireframes and prototypes.
PRODUCT OWNER
Product Owner is a software development role for a person
who represents the business or end-users and is
responsible for working with the user group to
determine what features will be in the product
release.
The Product Owner is also responsible for the prioritised
backlog and maximising the return on investment (ROI) of
the software project. Part of this role’s responsibility includes
documenting user stories or requirements for the software
project.
They act as the main point of contact for all decisions
concerning the project and as such, need to be empowered
to perform their responsibilities without the need to seek too
much prior authorisation from the Project Sponsors.
Appointing the right person to this role, with the appropriate
delegated authority to progress the project, is fundamental to
the success of the project, especially if an agile methodology
approach is undertaken.
In particular, the Product Owner is responsible for:

ensuring that the software product vision statement is
adhered to

making the final decision on all scope related decisions

maintaining and updating the product backlog on a
continuous basis by
o
refining new requirements
o
removing requirements that fall out of scope
o
adding new requirements identified as being
required to achieve the software product vision
statement
o
reviewing and setting the priorities assigned to the
product backlog and heading up all project planning
meetings
 
resolving any disputes either with the software
development team or internally

Failure to have a Product Owner in place usually means that

the software project will execute in fits and starts whilst
the software developers are on hold waiting for crucial
feedback.
A slowdown in the momentum of a software project can have
long-term consequences, not least of missed milestones and
deadlines. Don’t ever underestimate the importance of the
Product Owner role in the success of your software
development project.

PROJECT MANAGER (PM)

The Project Manager (PM) is responsible for knowing the
“who, what, where, when and why” of the software
project. This means knowing the stakeholders of the project
and being able to effectively communicate with each of them.
The Project Manager is also responsible for creating and
managing the project budget and schedule as well as
processes including scope management, issues management
and risk management.
Some of the Project Manager duties can include:

Developing a software project plan

Manage deliverables according to the software project
plan

Recruiting software project staff

Leading and managing the software project team

Determining the methodology used on the project

Establishing a project schedule and determine each
phase

Assigning tasks to project team members

Providing regular updates to senior management
It doesn’t matter if you are using an agile methodology or the
waterfall method, once deliverables are defined, it is critical
that the Project Manager starts to actively exercise change
management. Change should not be perceived as negative or
something to be avoided.
Change is inevitable and is acceptable in a software project
as long as it is managed. The impact of any change needs to
be assessed, measured and communicated. The major
factors are typically timeline and budget. If the impact is
deemed acceptable by the Project Sponsor, then the change
can be incorporated.
The Project Manager also oversees software testing,
delivery and formal acceptance by the customer. Then the
Project Manager performs a project review with the software
development team to document any lessons learned from
the software development processes.

TECHNICAL LEAD
This person translates the business requirements into a
technical solution. Because of this responsibility, it is
beneficial to have the Technical Lead involved in the planning
phase to hear the business requirements from the customer’s
point of view and ask questions.
The Technical Lead is the development team leader and
works with the developers to provide technical details and
estimates for the proposed solution. This information is used
by the Project Manager to create the Statement of Work and
the Work Breakdown Structure documents for the software
project.
It is critical that the Technical Lead can effectively
communicate the status of the software project to the Project
Manager so that issues or variances can be effectively
addressed as soon as possible.
The Technical Lead is also responsible for establishing and
enforcing standards and practices with the software
development team.

SOFTWARE DEVELOPERS
The Software Developers (front-end and back-end)
are responsible for using the technical requirements
from the Technical Lead to create cost and timeline
estimates.
The Software Developers are also responsible for building the
deliverables and communicating the status of the software
project to the Technical Lead or Project Manager.
It is critical that the other team members effectively
communicate the technical requirements to the Software
Developers to reduce project risk and provide the software
project with the greatest chance of success.

SOFTWARE TESTERS
The Software Testers ensure that the software solution meets
the business requirements and that it is free of bugs, errors
and defects.
In the test planning and preparation phases of the software
testing, Software Testers should review and contribute to
test plans, as well as be analysing, reviewing and assessing
technical requirements and design specifications.
Software Testers are involved in identifying test conditions
and creating test designs, test cases, test procedure
specifications and test data, and may automate or help to
automate the tests.
Some of the Software Testers duties can include:
 
They often set up the test environments or assist system
administration and network management staff in doing
so

As test execution begins, the number of testers often
increases, starting with the work required to implement
tests in the test environment

Testers execute and log the tests, evaluate the results
and document problems found

They monitor the testing and the test environment, often
using tools for this task, and often gather performance
metrics

Throughout the software testing life cycle, they review
each other’s work, including test specifications, defect
reports and test results

USER ACCEPTANCE TESTERS

You should expect your software solution provider to carry
out a wide array of software testing to ensure that your
new software solution meets various quality assurance
(QA) criteria.
On from that, representatives of your company will need to
perform the final checks to ensure that the software works for
the business across a number of real-world scenarios.
User Acceptance Testing (UAT) is the final step prior to a new
software solution being released to production (live). It’s
absolutely essential that you have the resources to tackle
user acceptance testing in a timely and organised fashion, as
it is often UAT that creates the bottleneck between the
software solution being completed and released to the
business.
It’s often the case that the aforementioned Subject Matter
Experts defined how the new software solution should work
and, given their close proximity to the actual work, they can
make excellent User Acceptance Testers.
 When end users get involved in the final
stages of testing, light bulbs go on, and
they often have an “aha” moment.
Unfortunately, that is often too late.
-– Frank R. Parth
It’s an excellent idea to ensure that those employees
participating in UAT are brought in from the start, and
understand, or perhaps better still contribute to, the design of
the new software solution.
This emotional buy-in and understanding of the software
solution’s objectives reduces the friction that might otherwise
exist in attempting to move end-users from the existing
software systems they know, love and use every day.

SOFTWARE DEVELOPMENT ROLES – CONCLUSION

Whilst it’s important that your software solution provider has
the necessary resources in place to operate your project, it is
equally as important that you as the customer understand
the roles and responsibilities required within your team to
bring your project to successful completion.
The key to project success is clear and effective
communication. A critical portion of this communication is
identifying the stakeholders and their roles.
Whatever labels you apply to the software project roles
above, clear communication of expectations and status to the
stakeholders throughout the life of the software project will
increase the chances of your project’s success.
 What Is A Project Management
Framework? (Must Read)

A Project Management Framework (PM) is a plan to ensure project

completion. All projects have a specific goal with a completion date.

This structured plan enables all involved to keep on track with the project. It
also explains everyone’s responsibility to ensure the success of the project. A
designated project manager manages the project from start to finish.

Project Management Framework includes three major parts: lifecycle, control

cycle, and tools. These are necessary for implementing and completing a
project.
Project Management Framework

What is the framework? It enables the use of more effective strategies. It

establishes a common language to be used so that all can understand one
another.

Framework also allows for more flexibility. As a project progresses, the

possibility of an earlier completion may arise. Working with a variety of
professionals allows the key personnel to better manage the project.

There are a variety of frameworks. Each has its defined methodology. This
article created by our team at TMS, will discuss a few of those available. The
analysis will help project managers to choose the framework that is best for
their project.
Seven Effective Project Management Frameworks

The project management framework chosen depends on the size of the

organization, type of work, budget, industry, and timeframe. Listed below are
seven different types of frameworks.

Prince2

Prince2 is a project management framework program and methodology. It

divides the project into controllable steps. The training module is available in
a variety of languages.

This framework was originally developed as a UK government standard for IT

project management. Its phases consist of business case analysis,
organization, quality, plan, risks, change, and progress.
CCPM

The methodology focuses on people, resources, and physical spacing. The

Critical Chain Project Management program is noted for helping to complete
projects faster. This is due to the rigid scheduling of tasks.

As a result, CCPM cuts back on project costs which is beneficial for those
working within a strict budget.
Lean

The lean project management framework focuses on delivering quality

service by using resources efficiently. Its methodology is derived from the
Toyota Production System (TPS). TPS focuses on creating less waste and
providing quality products to the consumer.
Agile

The agile project management framework aims to provide maximum value to

clients within the desired timeframe and budget. It allows for flexibility.
There is no need for extensive planning before the project starts.

The project manager collaborates with the Stakeholders throughout the

project. This allows them to make adjustments along the way.
Waterfall

The waterfall is a more traditional framework with tasks carried out in

phases. One phase must be completed before starting the next one.
Waterfall outlines a defined planning framework with all phases taking place
in exact order.
Scrum

Scrum project management framework is good for small projects. There is no

complex planning needed before the project starts. The team meets daily to
discuss tasks and any roadblocks to overcome. Tasks are accomplished in
short succession.
XPM

Managing complex projects in complex environments is known as Extreme

Project Management (XPM). XPM is perfect for those who expect unstable
circumstances during the project.

Before starting the project, the project manager invites Stakeholders to a

meeting. The object of this is to discuss the project plans, as well as any
unexpected situations that could arise.

Major Components of a Project Management Framework

The three major components of PM are lifecycle, control cycle, and tools.

The lifecycle consists of five processes. These are: Initiation process,

planning process, execution process, monitoring process, and project closing
process.

 The initiation process is the starting point. Discussion of the project goal
begins. The viability of the business case is determined when the Project
Manager meets with the Stakeholders.
  In the planning process, the project goals are defined. There are two types of
goals: Smart goals and Clear goals. Smart goals are specific, measurable,
attainable, realistic, and timely. Clear goals are collaborative, limited,
emotional, obvious, and refinable. This stage also involves the discussion of
roles and responsibilities.
 During the execution process responsibilities are officially Updates and
project status reports are developed.
 The monitoring process requires the Project Manager to assess the project.
An update is issued to the Stakeholders regarding the project status.
Adjustments to schedules and resources can occur at this point.
 Project closing indicates the project is reaching the completion stage.
Contractors complete their workload.The project manager informs the
Stakeholders of the project accomplishments. The remaining team members
are assisted to complete any loose ends.

The control cycle entails monitoring results and making adjustments as

needed. The use of software aids in this aspect of Project Management.
Stakeholders are informed about the progress of the project. Through good
communication, the Project Manager may discover that adjustments should
be made to keep the project on track.

The tools component of PM includes software that allows you to track the
progress of the project.

What’s the difference between Framework and Methodology?

The framework is a basic structure for understanding project management. It

deals with the processes to accomplish a project, but also allows for other
practices and tools to be used. It also includes phases that may not be
mentioned in the methodology. For example, complex onboarding processes
and assessments may be undertaken.

This allows the structure to develop and become more effective. Prince2 and
Waterfall are examples of frameworks.

Methodology sets defined rules that help direct the project. They govern how
people will interact and communicate with one another.
The methodology also gives organizations a standard to work by. With each
completed project organizations discover which rules work and which rules
do not. This allows them to develop more efficient standards to govern future
projects. As a result, methodology contributes to an increase in successful
projects.

Two examples of the methodology are Lean and Waterfall. The Lean
methodology focuses on reducing waste of both resources and time. The
Waterfall methodology involves planning the whole project and executing it
in phases.

Ending thoughts on the project management framework that

we talked about

The framework is crucial to the success of Project Management. It gives

structure to a project, allowing others to see how they can achieve the
project goal.

Project managers have a variety of frameworks to choose from. The right

framework makes it possible to achieve the goals of the stakeholders.

It can also help an organization see how it can improve its processes. This
contributes to completing the project on time, and to more efficient use of
resources.
UNIT 2
What is project integration management?
Project integration management involves coordinating all elements of a
project, including tasks, resources, stakeholders, and deliverables. The
purpose of project integration management is to ensure that processes run
efficiently and meet predefined goals.
You need project integration management when there are interactions between different
processes and teams. When projects have competing objectives or scheduling conflicts,
project integration management helps you make cost or schedule trade-offs that enable
your team to complete the project and meet stakeholder expectations.

Here’s a project integration management example: Let’s say the marketing team
requires data from the sales team in order to produce a report for stakeholders. Project
integration management is used to ensure that the data from the sales team is properly
handed off to the marketing team and that the deliverable meets requirements.

Project integration management also involves overseeing the five project management
phases that occur during the project lifecycle.
 These five phases include:

1. Project initiation: The aim of this phase is to establish the vision and goals for the
project and secure stakeholder approval through project objectives. This phase consists
of creating the project charter to provide an overview of the project, a clear road map,
and the stakeholder register to specify the stakeholders involved.
2. Project planning: The planning process is where you set up the project infrastructure to
help you achieve the project goals within time, budget, and resource constraints. You’ll
create more detailed project documents to help your team understand the project vision
and what’s required to see it through.

3. Project execution: This is when you’ll put your project plan into action and get the
project underway. Most of the budget will be spent during this phase to produce the
deliverables. It also includes activities such as stakeholder communications and
engagement, quality assurance, and team development.
4. Project performance: This phase involves supervising the progress of the project and
comparing it against the original plan. It means taking corrective action when there are
blockers or delays.

5. Project closure: This is where you formally close out the project by getting approval from
the client or stakeholder. Records and lessons learned from the project should be
archived for future reference.
As one of the key knowledge areas in the PMI’s PMBOK® Guide (Project Management
Book of Knowledge), mastering this practice allows project managers to improve their
processes.
The 7 steps of project integration
management
Project integration management offers a holistic approach to project planning and
execution. The practice consists of seven processes to effectively coordinate project
activities. Let’s break them down.
 1. Create project charter

Projects typically start out with the creation of a project charter, a short document that
provides an overview of the project and identifies the project manager and key
stakeholders.

A project charter includes the following:

 Scope

 Objectives and deliverables

 Project team members

 Project risks

 Benefits or returns on investment

 Budget

 Business case

A project charter essentially acts as a foundation on which you can further plan your
project. It also helps you gain buy-in from stakeholders, which enables you to move
forward quickly and autonomously within the project scope.

Read: 7 common causes of scope creep, and how to avoid them

2. Develop project management plan

The next step involves developing a more detailed project plan, which specifies the
project scope statement, deliverables, timeline, milestones, and metrics to evaluate
success.
 The project plan is used to direct the execution of the project to meet overall
requirements and objectives.

Here are the steps to creating a project management methodology:

1. Meet with stakeholders to set project requirements, deliverables, and

objectives.

2. Define the project scope.

3. Create a work breakdown structure (WBS) to delegate tasks and assign resources.

4. Create a project schedule.

5. Conduct a risk assessment and develop contingency plans.

6. Come up with a performance measurement baseline to assess project

performance.

7. Develop additional plans for any of the following: scope management, cost
management, resource management, change management, stakeholder management, or risk
management.

To help you with this process, you can use a project planning template as a
starting point to build your plan.

3. Direct and manage project work

The next phase is project execution, in which the project manager takes charge of the
day-to-day work that must be done, such as:

 Directing the project team

 Holding stakeholder meetings

 Tracking project progress

This phase ensures that tasks are being carried out effectively according to the project
plan and scope statement.

4. Manage project knowledge

Project knowledge management refers to the process of using existing information or

obtaining additional knowledge to reach project goals. This step ensures team members
have all the information they need to produce the required deliverables.

Any knowledge or expertise gained during this step contributes to the company’s overall
body of knowledge, which is useful for future strategic endeavors.

5. Monitor and control project work

Since processes in project integration management are interconnected, they should be

followed closely to ensure that everything adheres to the project management plan.

The purpose of this step is to keep the project on track. If there are any deviations from
the project plan, they need to be identified and corrected.

There are three approaches to this:

1. Preventive action: an action performed to reduce the negative impact of

project risks

2. Corrective action: an action performed to bring the future project

performance back in line with the project plan

3. Defect repair: an action to repair or replace a documented project defect

A common technique to measure performance is to do an earned-value analysis to
assess the current status of the project’s budget and schedule. If project changes need
to be made and are approved, project documents such as the work performance report
may need to be updated.

Monitoring the project ensures that it is on track to meet objectives.

Read: How to write an effective project objective, with examples

6. Perform integrated change control

Changes to projects can sometimes be stressful if not handled properly, but with
a change control process in place they don’t have to be.

That’s why change requests must be assessed to ensure they don’t exceed the scope
or approach scope creep, which refers to the increase in requirements during the
project lifecycle. Some companies even have a dedicated change control board to
review change requests related to budget, timelines, and resources, for example.

An example of project change is if the client asks for additional assets, in which case
you’ll need to evaluate the level of impact on the project.

Use a change control log to document all change requests, including which ones were
approved, the associated costs and resources, and how they impact the project
timeline. Smooth integration of change requests to current project activities is crucial for
the success of the overall project.

Read: What is change management? 6 steps to build a successful change management

process
 7. Close out the project

After all project work is complete and deliverables are shipped and approved by the
client, it’s time to close the project.

Project closure involves processes such as:

 Holding a final stakeholder meeting

 Conducting a formal review of the project

 Closing the contract

 Organizing and archiving project materials for future use

Project closure serves as a reference for future endeavors and provides insight on how
to improve the project integration management system.

How to implement project integration

management
Performing project integration management requires a combination of technical and
leadership skills. Here are some tips to help you get started with project integration
management.

Have a project manager oversee integrated project management

Projects have many moving parts to keep track of and a project manager plays an
important role in resolving conflicts. A project manager oversees:

 Project schedule
 Costs

 Project deliverables

 Risks

 Project goals

 Resources

Project managers need a thorough understanding of how each factor affects one
another and the overall impact on the project. Integrated project management
specifically involves a process, phase, and output that the project manager keeps track
of.

For instance, if a project has a change in scope, you may run the risk of resource
shortages, budget overruns, and delays. Project integration management allows you to
reorganize teams and redistribute resources as required to minimize impact to the
project and business.
Project integration management can be especially helpful when you have to manage
cross-functional teams and organize their project interdependencies.

Read: 25 essential project management skills you need to succeed

Track time diligently

If you don’t already, implementing time-tracking software could be beneficial, not only
for billing purposes but also for future project scheduling. While team calendars provide
a high-level overview of how time will be allotted, tracking the number of hours spent on
tasks gives you more precise metrics.

Having this data on hand will be useful for scheduling future projects since it’ll help you
make more accurate estimates when planning out specific tasks.

Establish well-rounded project teams

A good project team can make all the difference in project performance. It’s your job to
put together a balanced project team and assign tasks to match team members’ skills
and expertise. Make sure everyone has the resources they need and coordinate
communication between the teams involved.

Use project templates to save time

Creating project plans and materials can be time-consuming, especially given how
many are required for a single project. Rather than making them from scratch, take
advantage of project templates, either from previous projects or premade ones.

For example, project plan templates or meeting agenda templates can be tailored for
various purposes. Templates provide you with a base that you can alter and customize
to suit your needs.
Collaborate with a team communication tool

Each department has their own communication styles and tools, and projects often
require collaboration between different departments.

To prevent miscommunication or a lack of communication between teams, use

a communication plan to establish which channels teams should use to share
knowledge, resources, and project status updates. That way, teams can directly
communicate with one another and you don’t have to act as the intermediary.

For example, team communication tools allow you to create a centralized hub for
projects, enabling real-time communication and feedback. Team communication
tools can also complement the tools you already use since they can integrate with
popular remote work tools like Google Drive and Slack.
The importance of project integration
management
Projects are often dynamic and complex, involving multiple teams and organizational
processes. To ensure all elements are working cohesively toward the end goal, project
integration management is necessary. Here are some benefits of this practice.

Provides coordination and organization throughout the entire

project

Project integration management is like an instruction manual you can use to help steer
the project in the right direction and make sure all the processes are in sync. As the
project moves from phase to phase, it ensures the outputs and documents are in order
for the next phase to go smoothly.

Read: 5 project management phases to improve your team’s workflow

Ensures everyone understands their responsibilities

With project integration management, all stakeholders and team members will have a
clear understanding of their roles and responsibilities. By monitoring the project
diligently, you’ll be able to address questions from teams or stakeholders if there
are any points of confusion or issues.

Keeps project on track

Project integration management keeps projects on track to meet the deadline and
budget. It also keeps the project aligned with the project management plan in order to
get the promised results or returns. Project integration management helps you resolve
conflicts or changes while minimizing the impact on the overall project.
Maintains smooth communication with stakeholders

Integrated project management ensures stakeholders are kept up to date on project

progress. It allows you to create a system for communicating with stakeholders
regarding project changes, whether they’re approved or not. It also emphasizes the
importance of holding a final meeting after the project is completed to get closure.

Read: How to write an effective project status report

Makes decisions more clear

Each step in project integration management has defined purposes and outputs. By
walking through all the steps, you’ll be able to gain deeper insight into the best course of
action for each project phase. Creating thorough project documentation will also allow
you to clearly communicate the reasoning behind the plans.

Overall, project integration management benefits everyone involved in the project—the

project team, project manager, and stakeholders.

Deliver results with project integration

management
Project integration management brings all your project processes and tasks together.
With Asana’s project management software, you have a single source of truth for
planning and organizing projects from start to finish.
What Is Project Scope Management? An Overview

Project Scope Management is a defined process for completing a temporary project. It

is an essential element for the function of any team, ensuring maximum efficiency,
eliminating unnecessary or redundant work, and keeping a team on the same page
every step of the way. Project scope will also help manage the client’s expectations and
keep the project on time and on budget.

What is project management?

Project Scope Management refers to a set of processes that must be completed in
order to deliver a “project,” which could be a product, service or result with specific
features or functions. Scope Management focuses on “how we get there” or perhaps
more accurately “what steps do we take to get there?” These steps are defined and
mapped so that project managers and supervisors can determine the amount of work
needed and where to focus efforts of the team in order to complete the project.
Project Scope Management should not be confused with Product Scope
Management, which focuses more on the functional requirements of the
product/service/result. This type of scope defines what the product is, what it will look
like, and how it will function, whether it is the product as a whole or a component of the
product.
 Project Scope Management includes three processes:
 Planning – The project is defined and the work (or processes) needed to deliver the project
is determined.
 Controlling – This involves tracking, managing and monitoring the progress of a project,
including tracking documentation, scope creep, tracking the work during each phase, and
disapproving/approving any changes along the way.
 Closing – This is the “wrap up” part of the process, which involves an audit of the project
deliverables and accessing the results of the final product against the original defined plan.

Here is an example of a Project Scope Management plan:

Determine your project scope statement

The scope statement is where you will identify the work that needs to be done in order
to complete the project. It defines your objectives and directs the processes for
completing the project. You may also see the scope statement referred to as “the
statement of work” or “term of reference.”
Having a clear scope statement will ensure that everyone knows what to expect, that
each required step is taken, and that the project is successfully completed on time and
on budget.
 The scope statement should include a list of everything needed to create the framework
for the project including: project goals, deliverables, features, functions, tasks,
deadlines, and costs.
The project manager, working together with the team leaders and stakeholders, should
develop the scope statement, ensuring the following:
 It includes only the work (scope) required;
 Each step of the project can be completed on time, and
 That the project can be completed within the allotted budget.

The scope statement should include:

1. The boundaries of the project (what is and what is not included)

2. The responsibilities of each team and the individual team members
3. The procedures for completing each step of the project
4. How each step will be verified and approved

Why the project scope statement is essential

You wouldn’t go on a long road trip without a map. The project scope statement is like a
map used to get from start to finish. Without this statement, team members cannot be
clear on what they are supposed to do and when. You are also more likely to miss
deadlines, make mistakes and run over budget.
The scope statement also becomes part of your essential documentation, proving that
all parties were informed and signed off on the project before any work began. You
need such a statement to protect your interests in the event of disputes with the client,
contractors, sub-contractors or workers.
Here is an example of a project scope statement:
 Project management steps
Project scope management requires a number of steps to ensure the correct processes
are put in place. In general, there are 6 steps, which can be applied to nearly any
industry or type of project, whether it’s a new product, computer network system,
computer software/hardware, engineering project, construction project, or a new
department within an organization.

1. Plan Scope Management

This first step involves planning the process and creating a scope management plan.
The goal of this step is to determine how the scope will be defined, managed, verified
and controlled.
There are 4 primary parts of the scope management plan:
 Requirements
 Scope Statement
 Work Breakdown Schedule
 WBS (work breakdown structure) Dictionary

2. Collect Requirements
This second step will establish what needs to be accomplished during the project. You
will need to collect the requirements of all the stakeholders, which may include the
client, senior management, investors, government regulators, neighbors or nearby
landowners. You will determine the project timeline, allocation of resources, and set the
goals of the project.
There are 5 categories of project requirements:
 Business requirements
 Stakeholder requirements
 Product requirements
 Transition requirements
 Quality requirements
 3. Define Scope
This step involves determining the scope of the work that will be involved in order to
deliver the project. It should outline the steps that will be taken in order to meet the
project’s goals and objectives.
Define the project scope by identifying:
 Project objectives
 Goals
 Sub-phases
 Tasks
 Resources
 Budget
 Schedule

In this phase you will also establish the parameters of the project. In other words, you
must define exactly what is included in the project and what is not. This ensures that the
client, stakeholders, senior management, project manager, and team members are all
aware of what is expected.

4. Create WBS
The Work Breakdown Structure (WBS) involves subdividing the project deliverables into
smaller units. Basically, you break down the project into phases, including the tasks
required in order to complete each phase.
If you were building a house, the WBS phases might include:
 Design – Creating plans/blueprints and making changes to the plans
 Structural – Excavation, pouring foundation, framing, drywalling and roof joists
 Utilities – Plumbing, electrical and HVAC
 Finishing – Painting, windows, roofing, siding and landscaping
A WBS Example:
 5. Validate Scope
This step has to do with formalizing the acceptance of deliverables. This phase is not
concerned with the deliverables themselves, but how they will be accepted and
approved. The point of this phase is to avoid stakeholders deciding that things should
have been done differently after the project has been completed.
Validate Scope should include:
 Whether the project deliverables are accepted?
 Who accepts project deliverables?
 Under what conditions deliverables will be accepted?

6. Control Scope
This refers to the process of monitoring progress and managing changes that come up
during the project. It monitors “scope creep,” which happens when additional tasks are
added/changed, without making the necessary changes to the scope in terms of
schedule, costs and resources. This is an essential part of the process as changes can
result in lost time, cost overruns, and will require the reallocation of assets and
manpower.

10 Tips For Successful Project Planning and Management

Planning any project requires sound project scope management. You must have a clear
plan so that all parties involved know what to expect and what their roles will be.
Here are 10 final tips to have successful project scope management:

1. Understand the project – You must identify and understand the interests, needs, and goals of
the client and have a firm grasp on the objectives of the project.
2. Identify the project requirements – In order to know what resources are needed, you must
identify the requirements to complete the project. You will then need to assemble a team, define
roles and allocate tasks.
3. Hire a qualified project manager – The best plan in the world will fall apart if you do not have
the right project manager. They should be adept at managing a team, with a clear
understanding of how to allocate tasks based on the skills and personalities of each person.
4. Define milestones – In order to complete a project, you must define key phases of a project or
milestone. You must also define how to evaluate and approve each phase/milestone.
5. Maintain communications – You must be able to communicate with the stakeholders, the
project manager, supervisors, contractors, and team members to discuss issues and changes
so that everyone remains on the same page.
6. Identify team members’ strengths and weaknesses – Being aware of the strengths and
weaknesses of team members will make the team more efficient so you can meet the project
requirements.
7. Take advantage of management tools – There are many resources in online project
management software. These tools can be a centralized platform to track, manage, share, and
communicate with everyone involved in the project.
8. Practice risk management – Managing potential risks is essential in order to identify potential
threats, and avoid mistakes and cost overruns that could derail a project.
9. Test deliverables – In order to deliver a project successfully, you need to develop tests at
critical milestones. This will ensure the requirements of each step have been met.
10. Evaluation of the project – After a project is complete, the project manager should review and
evaluate the various components of the project and the project as a whole. The objective is to
identify successes as well as areas where improvements can be made to prevent mistakes on
future projects.
 Why is a Project Scope Statement
Important?
According to the Project Management Institute, a strong project scope statement has
several key characteristics. It should:

 Define the boundaries of the project.

 Define the business need and the expected outcome of the project.

 Identify constraints that limit a project team’s options for developing a solution.

 List assumptions regarding decisions outside the project team’s control.

 Identify business processes impacted by the project.

 Identify internal and external entities with which the project team will interface.

“The project scope statement tries to reduce uncertainty by defining the scope and
ensuring all key stakeholders are on board and have a clear understanding of the
project,” Alexis says. “If you have a strong process, there will be fewer change requests.
If you can do that, then you have a better chance of success.”

As with all project management documents, Alexis adds, the project scope statement
may have a consistent format from one project to another, but it should also be
customizable depending on the size, scale, and complexity of the project. These factors
will also impact the types of stakeholders who must be involved in both developing and
receiving the project scope statement.

How Is a Project Scope Statement Different

from other Project Management
Documents?
While a project scope statement is critical to the success of a project, certain
components of the project are covered in different documents. Here are two important
examples.

Product scope statement. Just as there are subtle differences in the roles of a product
manager and project manager, there are some differences between project scope and
product scope. A product scope includes additional information about the features and
functions of the product, service, or solution that a project will deliver. A project scope
will state, “Ship a new tablet PC by the end of 2020,” but the product scope will provide
details about screen size, type of processor, amount of memory, and so on.

Project master plan. If the project scope statement is the foundation upon which the
project is built, then the project master plan is the rest of the building. The project
master plan provides a detailed project schedule and work structure as well as plans
and procedures for risk management, quality management, and communications
management, Alexis says. Successful execution of the project master plan, however,
depends on the strength of your project scope statement, he adds.

8 Key Steps to Developing a Project Scope

Statement
Alexis has nearly two decades of experience managing major programs and projects
within the manufacturing and power generation industries, with current work focusing on
sustainability initiatives. Based on his experience, he recommends project managers
follow the eight steps below steps to develop an effective project scope statement.

1. Understand why the project was initiated.

Projects are not carried out in a vacuum, Alexis says; they are initiated to meet specific
goals for an organization. For example, an organization may be looking to reduce
operating costs by five percent by the end of next year, improve efficiency by 10
percent, or increase headcount by 20 percent. “As much as possible, the goals of the
organization should be expressed in the project scope statement,” Alexis notes.

2. Define the key objectives of the project.

Once project managers understand what the organization is trying to achieve, they
need to define the objectives of the specific project. The objectives should note why the
project is being done, what will be done, when it will be done, and how much it will cost.
In other words, the objectives describe why executives selected and funded a project
and justify why the project exists, Alexis says. Objectives should be written with
the SMART goal-setting best practices in mind—meaning they should be specific,
measurable, achievable, relevant, and time-bound.
3. Outline the project statement of work.
The statement of work provides a detailed breakdown of the work that a project team
will perform. For a project focused on creating an internal review of new markets to
enter, for example, items in the scope of work might include identifying and prioritizing
targets, analyzing the benefits and drawbacks of each potential target, assessing the
steps the company must take to enter each market, and providing guidance and
recommendations for key decision-makers.

4. Identify major deliverables.

Project managers should work alongside key stakeholders to list the items that will be
delivered at the end of the project, Alexis says. In the project scope statement, these
items can be described at a high level—a new market assessment report, for example,
or a new software feature—but they should still be tangible and measurable targets. A
separate document, the work detail structure, will outline the specific activities
associated with a particular deliverable. One way to remember the difference, according
to Alexis: Deliverables are usually expressed as nouns and adjectives, while work
details are expressed as verbs.

5. Select key milestones.

A key milestone indicates when stakeholders can expect a particular deliverable to be
completed. More complex projects may also include milestones for specific steps
involved in creating or completing a deliverable. Milestones must include a specific
date, Alexis says—not just that a report will be finished, but that it will be finished by
October 15, 2020, for example.

6. Identify major constraints.

The project scope statement should note any limitations that the project team will face
as it works to complete a project. These constraints could include personnel, resources,
schedule, or other requirements.

7. List scope exclusions.

This list consists of deliverables that a project sponsor may assume are included in the
scope of the project but are not, in fact, included. For example, a project sponsor may
assume that a project to develop a management system also includes certification of
that system. The project scope statement should clearly indicate if the project team will
get the system certified or if the sponsor is responsible for obtaining certification after
the project has been completed. This clarity helps project managers avoid “scope
creep,” which occurs when deliverables that were not part of the original scope
statement are added to a project mid-stream.

8. Obtain sign-off.
Requiring key stakeholders to sign the project scope statement offers confirmation that
they are aware of and understand the contents of the scope, Alexis says. This helps
avoid miscommunication that can lead to rework during or after the project—ultimately
saving project managers and organizations frustration, time, and money.
Top 11 Project Selection Methods for
Project Managers
When you have a number of interesting and challenging projects to choose from, finding
a project that is the right fit for your team’s skill set, level of competence, and has the
best chance of success is the first step in effective project management. Project Selection
Methods offer a set of time-tested techniques based on sound logical reasoning to
choose a project and filter out undesirable projects with a very low likelihood of success.
Project selection methods are an important concept for practicing project managers and
aspirants preparing for the PMP® exam alike. And in this article, we will discuss the
following project selection methods in detail:

1. Benefit measurement methods

2. Benefit/cost ratio

3. Economic model

4. Scoring model

5. Payback period

6. Net present value

7. Discounted cash flow

8. Internal rate of return

9. Opportunity cost

10. Constrained optimization methods

11. Non-financial considerations

What are Project Selection Methods?

Consider this scenario: the organization you are working for has been handed a number
of project contracts. Due to resource constraints, the organization can’t handle all the
projects at once, so they need to decide which project(s) will maximize profitability.

This is where project selection methods come into play. There are two categories of
project selection methods:
 Benefit Measurement Methods

 Constrained Optimization Methods

Although time-consuming, employing these methods is essential for an effective

business plan. There are a variety of documented methods for selecting a project, but
the basic thumb rule is: for small projects that aren’t very complex, the Benefit
Measurement Model is useful, whereas if it’s a large, complex project, the Constrained
Optimization Method is a better fit. Let’s take a look at both these methods in further
detail.

Various Project Selection Methods

1. Benefit Measurement Methods

Benefit Measurement is a project selection technique based on the present value of

estimated cash outflow and inflow. Cost benefits are calculated and then compared to
other projects to make a decision. The techniques that are used in Benefit
Measurement are as follows:
2. Benefit/Cost Ratio

Cost/Benefit Ratio, as the name suggests, is the ratio between the Present Value of
Inflow or the cost invested in a project to the Present Value of Outflow, which is the
value of return from the project. Projects that have a higher Benefit-Cost Ratio or lower
Cost-Benefit Ratio are generally chosen over others.

3. Economic Model

EVA, or Economic Value Added, is the performance metric that calculates the worth-
creation of the organization while defining the return on capital. It is also defined as the
net profit after the deduction of taxes and capital expenditure.

If there are several projects assigned to a project manager, the project that has the
highest Economic Value Added is picked. The EVA is always expressed in numerical
terms and not as a percentage.

4. Scoring Model in Project Management

The scoring model in project management is an objective technique: the project

selection committee lists relevant criteria, weighs them according to their importance
and their priorities, then adds the weighted values. Once the scoring of these projects is
completed, the project with the highest score is chosen.

5. Payback Period

Payback Period is the ratio of the total cash to the average per period cash. It is the time
necessary to recover the cost invested in the project. The Payback Period is a basic
project selection method. As the name suggests, the payback period takes into
consideration the payback period of an investment. It is the time frame that is required
for the return on an investment to repay the original cost that was invested. The
calculation for payback is fairly simple:

When the Payback period is used as the Project Selection Method, the project that has
the shortest Payback period is preferred since the organization can regain the original
investment faster. There are, however, a few limitations to this method:

 It does not consider the time value of money.

 Benefits accrued after the payback period are not considered; it focuses more on the liquidity
while profitability is neglected.

 Risks involved in individual projects are neglected.

6. Net Present Value

Net Present Value is the difference between the project’s current value of cash inflow
and the current value of cash outflow. The NPV must always be positive. When picking
a project, one with a higher NPV is preferred. The advantage of considering the NPV
over the Payback Period is that it takes into consideration the future value of money.
However, there are limitations of the NPV, too:

 There isn’t any generally accepted method of deriving the discount value used for the
present value calculation.

 The NPV does not provide any picture of profit or loss that the organization can make by
embarking on a certain project.

 For more details on the NPV and how to use the NPV as a tool to filter projects out, here’s an
insightful article on calculating the opportunity costs for projects.

7. Discounted Cash Flow

It’s well-known that the future value of money will not be the same as it is today. For
example, $20,000 won’t have the same worth ten years from now. Therefore, during
calculations of cost investment and ROI, be sure to consider the concept of discounted cash
flow.

8. Internal Rate Of Return

The Internal Rate of Return is the interest rate at which the Net Present Value is zero—
attained when the present value of outflow is equal to the present value of inflow.
Internal Rate of Return is defined as the “annualized effective compounded return rate”
or the “discount rate that makes the net present value of all cash flows (both positive
and negative) from a particular investment equal to zero.” The IRR is used to select the
project with the best profitability; when picking a project, the one with the higher IRR is
chosen.

When using the IRR as the project selection criteria, organizations should remember not
to use this exclusively to judge the worth of a project; a project with a lower IRR might
have a higher NPV and, assuming there is no capital constraint, the project with the
higher NPV should be chosen as this increases the shareholders’ profits.

9. Opportunity Cost

Opportunity Cost is the cost that is given up when selecting another project. During
project selection, the project that has the lower opportunity cost is chosen.

10. Constrained Optimization Methods

Constrained Optimization Methods, also known as the Mathematical Model of Project

Selection, are used for larger projects that require complex and comprehensive
mathematical calculations. The techniques that are used in Constrained Optimization
Methods are as follows:
These topics, however, are not discussed in detail in the PMP® certification. For the
exam, all that is necessary to know is that this is the list of Mathematical Model
techniques that are used in Project Selection.

11. Non-Financial Considerations

There are non-financial gains that an organization must consider; these factors are
related to the overall organizational goals. The organizational strategy is a major factor
in project selection methods that will affect the organization’s choice in the choice of
project. Customer service relationships are chief among these organizational goals. An
important necessity in today’s business world is to build effective, cordial customer
relationships.
 Project Selection Methods

Introduction
One of the biggest decisions that any organization would have to make is related to the
projects they would undertake. Once a proposal has been received, there are
numerous factors that need to be considered before an organization decides to take it
up.
The most viable option needs to be chosen, keeping in mind the goals and
requirements of the organization. How is it then that you decide whether a project is
viable? How do you decide if the project at hand is worth approving? This is where
project selection methods come in use.
Choosing a project using the right method is therefore of utmost importance. This is
what will ultimately define the way the project is to be carried out.
But the question then arises as to how you would go about finding the right
methodology for your particular organization. At this instance, you would need careful
guidance in the project selection criteria, as a small mistake could be detrimental to
your project as a whole, and in the long run, the organization as well.

Selection Methods
There are various project selection methods practised by the modern business
organizations. These methods have different features and characteristics. Therefore,
each selection method is best for different organizations.
Although there are many differences between these project selection methods, usually
the underlying concepts and principles are the same.
Following is an illustration of two of such methods (Benefit Measurement and
Constrained Optimization methods):
As the value of one project would need to be compared against the other projects, you
could use the benefit measurement methods. This could include various techniques, of
which the following are the most common:
 You and your team could come up with certain criteria that you want your ideal
project objectives to meet. You could then give each project scores based on
how they rate in each of these criteria and then choose the project with the
highest score.
 When it comes to the Discounted Cash flow method, the future value of a project
is ascertained by considering the present value and the interest earned on the
money. The higher the present value of the project, the better it would be for
your organization.
 The rate of return received from the money is what is known as the IRR. Here
again, you need to be looking for a high rate of return from the project.
The mathematical approach is commonly used for larger projects. The constrained
optimization methods require several calculations in order to decide on whether or not
a project should be rejected.
Cost-benefit analysis is used by several organizations to assist them to make their
selections. Going by this method, you would have to consider all the positive aspects of
the project which are the benefits and then deduct the negative aspects (or the costs)
from the benefits. Based on the results you receive for different projects, you could
choose which option would be the most viable and financially rewarding.
These benefits and costs need to be carefully considered and quantified in order to
arrive at a proper conclusion. Questions that you may want to consider asking in the
selection process are:
 Would this decision help me to increase organizational value in the long run?
 How long will the equipment last for?
 Would I be able to cut down on costs as I go along?
In addition to these methods, you could also consider choosing based on opportunity
cost - When choosing any project, you would need to keep in mind the profits that you
would make if you decide to go ahead with the project.
Profit optimization is therefore the ultimate goal. You need to consider the difference
between the profits of the project you are primarily interested in and the next best
alternative.

Implementation of the Chosen Method

The methods mentioned above can be carried out in various combinations. It is best
that you try out different methods, as in this way you would be able to make the best
decision for your organization considering a wide range of factors rather than
concentrating on just a few. Careful consideration would therefore need to be given to
each project.

Conclusion
In conclusion, you would need to remember that these methods are time-consuming,
but are absolutely essential for efficient business planning.
It is always best to have a good plan from the inception, with a list of criteria to be
considered and goals to be achieved. This will guide you through the entire selection
process and will also ensure that you do make the right choice.

13 Top Project Selection Methods

It requires strong leadership, superior communication abilities, meticulous

planning, and a number of other essential characteristics as well.
But there’s one skill that doesn’t get enough emphasis in the world of project
management – strategic and effectual Project Selection.
In fact, a recent Six Sigma-focused study of 43 different companies found
that an astounding 75% didn’t even follow the project selection methods.
“Ultimately,” writes Six Sigma Qualtec, “if you don’t have a Project Selection
process in place – one that is rigorously followed – you will falter.”

An informed and experienced approach to Project Selection allows your

company to more effectively manage prospective projects, identify key
efforts with more substantial ROIs, and leverage the skills already in place to
select projects well-suited for your company’s particular competencies.
In most cases, the final decision on which proposals are accepted generally
will fall to executive leadership rather than project managers (PMs).

However, a good project manager should be able to use their experience to

help guide decision makers towards choosing an ideal project while still
keeping risk and cost estimates realistic.

Importance of Project Selection Methods

Before jumping into an examination of the two main methods of Project

Selection as well as their various techniques, it’s important to first
understand just why Project Selection is so important for your business.

In addition to using the right project management methodology for your

company, selecting the right projects can mean the difference between one
year in the black or several in the red. An unreasonable project scope,
loosely defined deliverables, and unrealistic goals can all lead to an
enormous drain on your budget and critically damage productivity as well.
But picking the right projects isn’t as easy as just trusting your gut.

Instead, selecting the right project for your company’s skills and available
resources requires a bit of pretty important calculation on your part. These
calculations can be done in two different ways: using the Benefit
Measurement Methods or the Constrained Optimization Methods.
Method #1: Benefit Measurement Methods

The Benefit Measurement Methods are likely going to be the only methods
you’ll be using directly as a project manager. While less complex than the
Constrained Optimization Methods, they often don’t require an advanced
degree in finance to be able to understand them.

They’re great for smaller projects that aren’t especially complicated.

Benefit Measurement Methods, as the name suggests, rate potential projects

according to a specific model and compare those results between the project
candidates. Below are the most common Benefit Measurement Methods
you’ll be using as a PM.

1. Cost Benefit Ratio

The simplest of the Benefit Measurement Methods, the cost benefit ratio is
an effective way of communicating the potential value of a project in easily
understandable terms. It measures the costs of investing in a project against
the value of the return once it is completed.

A project that requires $280,000 in resources to complete with an expected

$420,000 return would have a 4:6 (or 2:3) cost benefit ratio. Essentially,
every $2 invested in this project would yield $3 in revenue. Projects with a
lower cost benefit ratio (or a higher benefit cost ratio) should be selected if
evaluated only by this method.
2. Economic Model
The Economic Model, also known as the Economic Value Added (EVA), is
similar to the Cost Benefit Ratio technique in that it describes the difference
between costs invested and revenue generated in one number – profit.

Investopedia aptly defines EVA as “net operating profit after tax – (invested
capital X weighted average cost of capital).” This model provides a clear
representation of the quantifiable benefits of a project once it’s completed
and can help give you a solid idea of what kinds of returns to expect for each
project.
3. Payback Period
The Payback Period Technique takes a look at how long it will take your
company to recoup its expenses with a particular project. If our $280,000
project were to bring in $20,000 a year once it’s completed, the total
payback period would be 14 years.

It’s worth remembering though, that any time you try to factor in returns
over time you should be looking at the present dollar value of the future
revenue as inflation and interest will all come into play.

4. Discounted Cash Flow (DCF)

The Discounted Cash Flow Analysis handles the problem of calculating the
present value of future earned dollars. This is one of the best ways to
calculate value of returns that occur over a long period of time rather than
immediately after completion.

While the Payback Period Model is easy to calculate and simple to

understand, the Discounted Cash Flow (DCF) model incorporates the
time value of money. This concept helps translate future earnings into
present day dollar values since a dollar in hand has more earning potential
than one promised for later.
5. Net Present Value (NPV)
Using Discounted Cash Flow, the Net Present Value (NPV) model helps put
the whole lifecycle of the project into perspective in terms of earnings.

For instance, calculating the earnings for year one of the project may return
a net loss of, say, $800. Year two may see a loss of $200, while years three,
four, and five may result in gains of $500, $1000, and $1500. All of these
values would of course be informed by the DCF concept to translate future
values into present dollars.

The Net Present Value of the project, then, would be the combination of all of
these numbers ($3000 minus losses of $1000) and would equal $2000.
While there are a number of essential free tools at a project manager’s
disposal in general, the easiest one for calculating NPV is Excel by far.
For help in determining how to calculate NPV using Excel, head over
to Microsoft’s help page dedicated to the subject.
The equation for determining Net Present Value according to Finance
Formulas is:

6. Scoring Models
Scoring Models may be the most flexible way of comparing projects to one
another. Rather than focusing purely on financials, Scoring Models let you
determine which qualities of a project are most important to you, your team,
and your company at large.

You may, for example, choose to look at profitability, overall risk, support
from stakeholders, and difficulty of the project.
Once the criteria are chosen, you’ll want to weight them according to your
priorities and rank each project in terms of these four measures using a
consistent scale. The total numbers for a single project are then combined
and used to reflect the project’s total value, making it easy to compare your
projects to one another.

7. Internal Rate of Return (IRR)

The Internal Rate of Return (IRR) incorporates the Net Present Value into its
calculation by setting the NPV to zero. Essentially, this means that all cash
flow from a project (both negative and positive) even each other out.

Using the same equation as NPV where the NPV is set to zero, the IRR of a
project is determined by solving for the variable “r” rather than NPV. If the
Internal Rate of Return for a project is lower than the company’s required
rate of return (RRR), then that project can be eliminated entirely.
8. Opportunity Cost
The concept of opportunity cost is crucial to understand for any certified
project manager worth their salt. Essentially, Opportunity Cost comes down
to what you’re missing out on by choosing one project over another.
More a supplemental technique than a standalone method itself, Opportunity
Cost can be a great way to put a certain project choice into perspective. If,
for example, Project 1 and Project 2 are worth $75,000 and $85,000
respectively, going with Project 1 would have an opportunity cost of $10,000
since that’s how much your company would miss out on.

Method #2: Constrained Optimization Methods

While the Benefit Measurement Methods are generally the most widely used
Project Selection methods for project managers, Constrained Optimization
Methods may also come into play. These methods are great for larger, more
complex projects where a number of intricate mathematical calculations will
need to be performed.

In fact, the Constrained Optimization Methods are also known as the

Mathematical Model of Project Selection.

Given their complexity though, many project managers will likely choose the
Benefit Measurement methods to meet their Project Selection needs. What’s
more, the Constrained Optimization Methods are not covered in-depth in
the PMP certification exam but are provided here for supplementary
purposes only.
For more information on the methods below, Testing Brain provides quite a
comprehensive look at each.
1. Linear Programming
This programming method involves bringing down the cost of the project
through reduction of the time required to complete it.
2. Nonlinear Programming
Nonlinear Programming aims at solving optimization problems within
projects wherein some of the constraints or functions are nonlinear.
3. Integer Programming
This method focuses on integer values rather than fractional ones. Some
products, like tables for example, can never be fractional.
4. Dynamic Programming
This method involves simplifying a complex problem by separating it into a
number of simpler problems.
5. Multiple Objective Programming
The Multiple Objective Programming approach focuses on making a decision
for a number of problems using mathematical optimization.

Project Selection: A Variety of Tools at Your Disposal

As a project manager, you’ll undoubtedly have the opportunity to influence

key decision makers when it comes to project selection. Your expertise,
institutional knowledge, and skills in the field can in fact be instrumental in
ensuring your company picks out only the most promising of projects.

And with the variety of Project Selection methods and tools to choose from,
you can be sure you’ve made the right choice each time.
 Work Breakdown

Structure (WBS)

 What Is a Work Breakdown Structure (WBS)?

 Why Use a WBS In Project Management?
 Work Breakdown Structure Example
 Types of WBS


 WBS Elements
 How to Create a Work Breakdown Structure In Six Steps
 WBS Software
 Must-Have Features of WBS Software
 How to Create a WBS in ProjectManager

 Work Breakdown Structure Template

 Work Breakdown Structure Best Practices

What Is a Work Breakdown Structure

(WBS)?
A work breakdown structure (WBS) is a visual, hierarchical
and deliverable-oriented deconstruction of a project. It is a
helpful diagram for project managers because it allows them to
break down their project scope and visualize all the tasks required
to complete their projects.

All the steps of project work are outlined in the work breakdown
structure chart, which makes it an essential project planning tool.
Project managers use a WBS for many purposes, such as finding
the critical path or creating a Gantt chart.

Project managers make use of project management software to lay

out and execute a work breakdown structure. When used in
combination with a Gantt chart that incorporates WBS levels and task
hierarchies, project management software can be especially
effective for planning, scheduling and executing projects.

ProjectManager is an online work management software with industry-

leading project management tools like Gantt charts, kanban boards,
sheets and more. Plan using WBS levels in our tool, then execute
with your team via easy-to-use kanban boards and task lists. Try it
for free today.
Why Use a WBS In Project Management?
Making a WBS is the first step in developing a project schedule. It defines
all the work that needs to be completed (and in what order) to
achieve the project goals and objectives. By visualizing your project
in this manner, you can understand your project scope, and allocate
resources for all your project tasks.

A well-constructed work breakdown structure helps with

important project management process groups and knowledge areas such as:

Project Planning, Project Scheduling and Project Budgeting

Risk Management, Resource Management, Task Management and

Team Management

In addition, a WBS helps avoid common project management issues such

as missed deadlines, scope creep and cost overrun, among others.

In other words, a work breakdown structure serves as your map

through complicated projects. Your project scope may include several
phases, or smaller sub-projects—and even those sub-projects can be
broken down into tasks, deliverables, and work packages! Your WBS
can help you manage those items, and gain clarity into the details
needed to accomplish every aspect of your project scope.
Work Breakdown Structure Example
Now that we’ve gone through the definition of a WBS and learned
why they are a great project management tool, let’s take a look at a
work breakdown structure example.

The final project deliverable, as well as the tasks and work packages
associated with it rest on top of the WBS diagram, and the WBS
levels below subdivide the project scope to indicate the tasks,
deliverables and work packages that are needed to complete the
project from start to finish.

For our WBS example, we’ll be creating a work breakdown structure

to guide a commercial building construction project. This is
potentially a complex project, but a WBS chart will take that
complexity and boil the project scope down to simpler tasks to make
the project manageable.

Study the phase-based work breakdown structure example of a

construction project below:
At the top of the work breakdown structure is your final deliverable
(in this instance, the construction project). Immediately beneath
that is the next WBS level, which are the main project phases
required to complete the project. The third and lowest level
shows work packages. Most WBS charts have 3 levels, but you can
add more depending on the complexity of your projects.

Each of those five project phases—initiation, planning, execution,

control and closeout, also act as control accounts and branch off the
main deliverable at the top. Once decided, they are then broken
down into a series of deliverables. For example, the initiation
phase includes site evaluation work and creating the project charter.

You’ll also need a work package to go with each of those project

deliverables. In the execution phase in our construction example, we
can look at the interior work deliverable. That deliverable is divided
into two work packages, which are installing the plumbing and
setting up the electricity.

The WBS, when created as thoroughly as possible, is the roadmap to

guide you to completion of what would seem to be a very
complicated project scope. However, when broken down with a
WBS, project planning, scheduling and resource planning suddenly
become much more manageable.

Types of WBS
There are two main types of WBS: deliverable-based, and phase-
based. They depend on whether you want to divide your project in
terms of time or scope.

Deliverable-Based Work Breakdown Structure

A deliverable-based WBS first breaks down the project into all the
major areas of the project scope as control accounts, and then
divides those into project deliverables and work packages.

Here’s an example of a deliverable-based WBS that’s taken from

our free work breakdown structure template. Download the
template today to practice building your own work breakdown
structure in Excel.
An deliverable-based WBS example showing control accounts, work packages and tasks.

Phase-Based Work Breakdown Structure

The phase-based WBS displays the final deliverable on top, with the
WBS levels below showing the five phases of a project (initiation,
planning, execution, control and closeout). Just as in the deliverable-
based WBS, the project phases are divided into project deliverables
and work packages. Our previous graphic in the “Work Breakdown
Structure Example” section contained a phase-based WBS example.

Types of WBS Charts

Once you’ve chosen a deliverable-based or phase-based WBS, you
can also choose between different types of WBS diagrams. Let’s
take a look at the main types of work breakdown structure charts.

Work Breakdown Structure List: Also known as an outline view,

this is a list of work packages, tasks and deliverables. It’s probably
the simplest method to make a WBS, which is sometimes all you
need.

Work Breakdown Structure Tree Diagram: The most commonly

seen version, the tree structure depiction of a WBS is an
organizational chart that has all the same WBS elements of the list
(phases, deliverables, tasks and work packages) but represents the
workflow or progress as defined by a diagrammatic representation.

Work Breakdown Structure Gantt Chart: A Gantt chart is both a

spreadsheet and a timeline. The Gantt chart is a WBS that can do
more than a static task list or tree diagram. With a dynamic Gantt
chart, you can link dependencies, set milestones, even set a
baseline. This is the most common version in project management
software.

Build a work breakdown structure Gantt chart diagram in

ProjectManager in just a matter of minutes. Get started for free
today.
 A Gantt chart with WBS codes in ProjectManager. Learn more

WBS Elements
A typical project work breakdown structure is made up of several
key components. We’ll use our WBS example above to identify each
of the main WBS elements.

 WBS Dictionary: A WBS dictionary is a document that defines

the various WBS elements. It’s an important component of a
WBS because it allows the project participants and stakeholders
to understand the work breakdown structure terminology with
more clarity.

 WBS Levels: The WBS levels are what determines the hierarchy
of a WBS element. Most work breakdown structures have 3
levels that represent the project’s main deliverable, control
accounts, project deliverables and work packages.
 Control Accounts: Control accounts are used to group work
packages and measure their status. They’re used to control
areas of your project scope. In our example the execution project
phase could be a control account because it has several
deliverables and work packages associated to it.

 Project Deliverables: Project deliverables are the desired

outcome of project tasks and work packages. In our WBS
example, we can observe some examples of project deliverables
such as the project budget or interior work. Both of them are the
result of smaller tasks and work packages.

 Work Packages: As defined by the project management

institute (PMI) in its project management body of knowledge
book (PMBOK) a work package is the “lowest level of the WBS”.
That’s because a work package is a group of related tasks that
are small enough to be assigned to a team member or
department. As a project manager you can estimate costs and
duration of these work packages, which makes them an essential
WBS element.

 Tasks: Your tasks make up your work packages and therefore,

your project scope. A WBS will help you define each task
requirements, status, description, task owner, dependencies,
and duration.

If you prefer a visual and verbal explanation of this information on

work breakdown structures, watch this video.
How to Create a Work Breakdown Structure
In Six Steps
To create a WBS for your project, you’ll need information from other
project management documents. Here are six simple steps to create
a work breakdown structure.

1. Define the Project Scope, Goals and Objectives

Your project goals and objectives set the rules for defining your
project scope. Your project scope, team members, goals and
objectives should be documented on your project charter.

2. Identify Project Phases & Control Accounts

The next level down is the project phases: break the larger
project scope statement into a series of phases that will take it from
conception to completion. You can also create control accounts,
which are task categories for different work areas you want to keep
track of.

3. List Your Project Deliverables

What are your project deliverables? List them all and note the work
needed for those project deliverables to be deemed successfully
delivered (sub-deliverables, work packages, resources, participants,
etc.)

4. Set WBS Levels

The WBS levels are what make a work breakdown structure a

“hierarchical deconstruction of your project scope”, as defined by
the project management institute in its project management body of
knowledge book (PMBOK). You’ll need to start at the final project
deliverable and think about all the deliverables and work packages
needed to get there from the start.

5. Create Work Packages

Take your deliverables from above and break them down into every
single task and subtask that is necessary to deliver them. Group
those into work packages.

6. Choose Task Owners

With the tasks now laid out, assign them to your project team. Give
each team member the work management tools, resources and
authority they need to get the job done.

WBS Software
Work breakdown structure software is used to outline a project’s
final deliverable and define the phases that are necessary to
achieve it.

Software facilitates the process in several different ways. Some use

a network diagram and others use a Gantt chart. All of them,
however, are a visual representation of the project, literally breaking
down the various stages and substages needed to assemble the
final project deliverable.
Must-Have Features of WBS Software

There are many types of work breakdown

structure software available, so when you’re
looking for one to help you plan your project, be
sure it offers these features:

Subtasks

Dependencies

Project Scheduling

Task Management
 Tracking

Reporting

Break Tasks Down

Deliverables are important to define, as are the tasks that get you
there—but most tasks require being broken down further in order to
complete them. That’s where subtasks come in. They’re part of a
more complex task, and you want that feature in your WBS
software.
How to Create a WBS in ProjectManager
The purpose of work breakdown structure software in project
management is to organize and define the scope of your project.
Using ProjectManager’s online Gantt charts to build your WBS is not
only more efficient, it dovetails into every other aspect of your
project, because of our robust suite of project management
features.

Here’s a quick summary of how to create a WBS using a Gantt

chart. Sign up for a free trial of our software and follow along!

1. Identify Project Deliverables

There are 5 stages in the project life cycle, initiation, planning,

execution, monitoring and closure. Each of them produces
deliverables that are required to produce the final deliverable, which
is the completion of your project.

Identify the phases in your project to create more than a mere task
list. Set them apart with our milestone feature on the Gantt chart
tool. They can also be color coded to better differentiate the phases.

2. List Subtasks, Describe Tasks & Set Task Owner

Subtasks are part of a larger, more complex task. In this case, your
WBS work packages are perfect for this feature. Add summary tasks
or work packages above the related tasks, which can be your project
phases or project deliverables, depending on your WBS type
preference and indent them. The image below shows our WBS
example represented on a Gantt chart, showing the project phases
and work packages associated with them.
3. Link Dependencies

Task dependencies are tasks that cannot start until another is

finished or started. Link tasks that are dependent on one another by
dragging one to the other. We link all four types of task
dependencies. By identifying these tasks at this stage, you’ll avoid
bottlenecks during execution.
4. Set Resources & Costs

Resources are anything that you need to complete the project

phases, deliverables and work packages. They range from the
people on your team to materials, supplies and equipment. Your
WBS allows you to break down your project scope into work
packages so that you can estimate resources and costs.
5. Add Start & End Dates & Estimated Completion

Every task has a start and an end date. Add the date when the task
needs to start in the planned start date column and when it should
be completed in the planned finished date. There’s also an
estimated completion column for the amount of time you plan for
the task to take.
6. Track Status of Control Accounts & Work Packages

Tracking is how to know if a project is performing as planned. That’s

why a WBS has control accounts and work packages. When
speaking of tasks, tracking tells you multiple things: logged hours,
costs, priority, new communications, the percentage complete and
how its actual progress compares to your planned progress.

7. Write Notes

Having a section in which to jot down notes is always advisable.

While the WBS is thorough, there might be something you need to
address that doesn’t fit into its rigid structure.
8. Generate Reports

Project reports pull data from the project to illuminate its progress,
overall health, costs and more. Generate a report on your WBS by
using our reporting tool. Our reports summarize your project data
and allow you to filter the results to show just want you want.
Reports can also be shared with stakeholders.

Work Breakdown Structure Template

If you’re not ready to take the plunge and use
ProjectManager’s work breakdown structure software, but you’re
still interested in seeing how using this tool can help you construct a
sturdier plan for your next project, don’t worry. We have an
intermediate step you can take.

We also have a library of free project management templates,

including a free WBS template, to get you started off right.
If you decide to try out our project management software, we offer a
free 30-day trial. You can upload the project work breakdown
structure template into ProjectManager, and it automatically creates
a new project in our software. Now you can use that template to
plan, schedule, monitor and report on your project.

Because our software is cloud-based, all your data is collected and

displayed in real time. This makes us different from on-premises
project management software like Microsoft Project. We take your
WBS and make it more dynamic with our online planning tools.

Work Breakdown Structure Best Practices

As you’re working on your WBS it is helpful to maintain some best
practices. Here are some things to keep in mind.
 100% Rule: This is the most important guiding principle to
construct a WBS. It consists in including 100% of the work
defined by the project scope, which is divided into WBS levels
that contain control accounts, project deliverables, work
packages and tasks. This rule applies to all the levels of the
WBS, so the sum of the work at a lower WBS level must equal
the 100% of the work represented by the WBS level above
without exception.

 Use Nouns: WBS is about deliverables and the tasks that will
lead to your final deliverable. Therefore, you’re dealing more on
the what than the how. Verbs are great for action, and should be
used in your descriptions, but for clarity, stick to nouns for each
of the steps in your WBS.

 Be Thorough: For a WBS to do its job, there must be no holes.

Everything is important if it’s part of the course that leads to
your final deliverable. To manage that schedule, you need a
complete listing of every task, big and small, that takes you
there.

 Keep Tasks Mutually Exclusive: This simply means that

there’s no reason to break out individual tasks for work that is
already part of another task. If the work is covered in a task
because it goes together with that task, then you don’t need to
make it a separate task.

 Go Just Deep Enough: You can get crazy with subtasks on your
WBS. The WBS has to be detailed, but not so deep that it
 becomes confusing. Ideally, think maybe three or five at most
levels.

All our tools are geared to making your project more efficient and
effective. See for yourself by starting your free 30-day trial of our
software.