Managing any project can become a slippery slope when your organization doesn’t have a solid grasp of all the moving pieces. Project management can be a complex discipline to understand and navigate. After all, there are enough key phases, knowledge areas, and project management-specific terms to fill a glossary.
To simplify the key components of successful project management, CIO has put together this guide to understanding project management — the phases, knowledge areas, tools and more. First, it is important to identify why the formal application of project management skills and knowledge should be a necessity for organizations: because far too many projects fail.
Project management is the application of specific processes, knowledge and skills, techniques and tools, as well as inputs and outputs that project managers and teams utilize to successfully meet project goals and deliverables.
As a high-level strategic body, project management professionals first and foremost help drive, guide, and execute company-identified value-added goals. These goals should include:
Change management and project management are often thought to be the same thing. They aren’t. Here’s how they differ: Change management involves people, processes, and tools to effectively help organizations manage all the changes that occur, whether as a result of project initiatives, or other factors that might impact the business. Project management also involves the use of people, processes and methodologies to plan, initiate, execute, monitor and close activities. But it is designed to meet an organization’s project goals, and hopefully overall strategic objectives.
Choosing the right project management methodology to execute your project is a vital step for success. There are many different and, in some cases, overlapping methodologies and approaches to managing project complexities. Here are some of the most popular project management methodologies (PMMs) in practice today, but it’s important to know more than one methodology (a hybrid) can be adapted to a project:
One of the most utilized methodologies is agile. It uses short development cycles called sprints to focus on continuous improvement in the development of a product or service. Originally it was adopted primarily within the software development industry. Today agile is being utilized in virtually most industries.
A PMO is an internal or external group that sets direction, maintains and ensures standards, best practices, and the status of project management across an organization. PMOs traditionally do not assume a lead role in strategic goal alignment.
An EPMO has the same responsibilities as a traditional PMO, but with an additional key high-level goal: to align all project, program, and portfolio activities with an organization’s strategic objectives. Organizations are increasingly adopting the EPMO structure, whereby, project, program, and portfolio managers are involved in strategic planning sessions right from the start to increase project success rates.
PMOs and EPMOs help organizations apply a standard approach to project management. In setting standard approaches, PMOs and EPMOs offer the following benefits:
Depending on numerous factors such as industry, the nature and scope of the project, the project team, company, or methodology, projects may need the help of schedulers, business analysts, business intelligence analysts, functional leads and sponsors. Here is a comparison of the three key roles within the PMO or EPMO, all are in high demand due to their leadership skill sets.
Effective project managers need more than technical know-how. The role also requires a number of non-technical skills, and it is these softer skills that often determine whether a project manager — and the project — will be a success. Project managers must at least have these seven non-technical skills: leadership, motivation, communication, organization, prioritization, problem-solving, and adaptability.
Successful projects require highly skilled project managers, many with formal training or project management certifications. Some may have project management professional certifications or other certifications from the PMI or another organization. Project management certifications include:
At the highest level, and before jumping into a project, project managers can help organizations set expectations and achieve on-time, on-budget, and goal-based project delivery by following seven steps. By aligning all of these areas, organizations can increase the likelihood of developing a sustainable competitive advantage:
The five project management phases, or life cycle as it is sometimes referred to, intersect with 10 knowledge areas. The knowledge areas include integration, scope, time, cost, quality, human resources, communication, risk procurement, and stakeholder management. The phases and associated knowledge areas provide an organized approach for project managers and their teams to work through projects.
Stakeholders can be any person or group that has a vested stake in the success of a project, program, or portfolio. It can be individual team members, functional groups, sponsors, vendors, and definitely customers. Expectations of all stakeholders must be carefully identified, communicated, and managed. Missing this can lead to misunderstandings, conflict, and even project failure.
Once the project is confirmed and before it is executed, there are steps that can be taken to set realistic stakeholder expectations around achieving identified goals. Here are just some steps.
Within the planning stage of a project, all project details need to be solidified, including goals, deliverables, assumptions, roles, tasks, timeline, budget, resources, quality aspects, terms, and so on. The customer and key stakeholders work together to solidify and agree on the scope before the project can begin. The scope guides the project work and any changes to the scope of the project must be presented and approved as a scope change request.
Budgets play a large role in whether a project progresses, or if it can be completed. Few companies have an unlimited budget, so the first thing project stakeholders look at in determining whether a project succeeded or failed is the bottom line. This fact fuels the pressure project leaders, and their teams face with each passing day. As such, effective budget management is a primary area of focus for project managers who value their careers. The following are five strategies for maintaining control of your project budget before it succumbs to whopping cost overruns: