By 2027, the project management workforce will have grown by 33%, creating approximately 22 million new jobs. This will result in a demand for around 88 million individuals in project management roles.
But why is this domain growing so quickly?
Project management is a critical discipline that ensures the successful completion of complex initiatives, regardless of their size or industry.
Understanding the fundamental elements of project management is paramount for several reasons:
- It allows project managers and business analysts to establish a solid framework that guides their decision-making and planning processes.
- It helps teams stay focused, maintain efficiency, and overcome challenges throughout the project lifecycle.
This article explores the basics to discover these crucial components, their significance, and how they contribute to overall project success.
Read on to discover the essentials of the world of project management!
Table of contents
What is project management?
At its core, project management is a systematic approach that enables organizations to effectively plan, execute, monitor, control, and close projects.
It involves the application of knowledge, skills, tools, and techniques to meet project objectives within defined constraints of time, budget, scope, and quality.
Despite its benefits, only 58% of organizations embrace project management’s value.
By providing a structured framework, project management enables teams to tackle complex endeavors by breaking them down into manageable tasks, identifying dependencies, and coordinating resources and stakeholders.
It serves as a roadmap, guiding project teams toward successful completion and delivering desired outcomes.
With a clear understanding of project management, we can now explore the key principles that serve as actionable guidelines for project managers to navigate the complexities of project execution and achieve successful outcomes.
What are the key principles of project management?
To excel in project management, it’s essential to embrace a set of actionable principles.
Almost 93% of organizations employ standardized project management practices. Therefore, the key principles of project management are fairly common for all companies and include the following steps:
- Define clear objectives: clearly articulate project goals, deliverables, and outcomes to provide a clear direction.
- Engage stakeholders: actively involve key stakeholders throughout the project, seeking their input and ensuring their satisfaction.
- Create a comprehensive project plan: develop a detailed roadmap with specific tasks, timelines, resources, and risk management strategies.
- Provide strong leadership: lead the project team effectively, setting clear expectations, providing guidance, and resolving conflicts.
- Manage risks: identify potential risks, assess their impact, and develop proactive mitigation and response plans.
- Focus on quality: implement quality assurance processes and ensure that project deliverables meet or exceed established quality standards.
- Communicate and collaborate: establish effective communication channels, and foster collaboration among team members and stakeholders.
- Adapt and be flexible: embrace change, adjust project plans as needed, and proactively address challenges and opportunities.
- Monitor and control progress: continuously track project progress, measure performance against objectives, and implement control measures.
- Promote continuous improvement: capture lessons learned, identify areas for improvement, and apply insights to enhance future projects and practices.
Now that we recognize the meaning of project management and its key principles let’s explore the basic elements of project management, which lay the foundation for successful project planning and execution.
What are the basic elements of project management?
In order to establish a solid foundation in project management, it is essential to understand the basic elements that underpin the discipline.
We begin with exploring the project scope.
What is the project scope?
Misalignment of projects with organizational strategy results in a high failure rate of 44% for strategic initiatives.
To address this issue, project management emphasizes defining a clear project scope based on project assumptions.
The project scope outlines the work that needs to be accomplished and the deliverables that will be produced. It encompasses the specific features, functions, and requirements the project aims to achieve.
Defining the project scope is crucial as it sets the foundation for all project activities, usually within the Statement of Work.
The SOW is a reference document that helps project managers and stakeholders establish project expectations, set priorities, and manage project changes.
A well-defined project scope provides clarity and direction, preventing scope creep, which refers to the uncontrolled expansion of the project beyond its original objectives.
Pro tip: here, you can find a Statement of Work template you can use to simplify your document preparation.
With a clear understanding of the project scope and the statement of work, we can now look at the project schedule.
What is the project schedule?
The project schedule is a crucial element of project management that outlines the timeline for completing project activities and achieving milestones.
It provides a roadmap that guides the project team on when specific tasks should start and finish, helping to ensure that the project progresses on time.
Creating a well-defined project schedule involves identifying the sequence of activities, estimating the duration of each task, and determining any dependencies or constraints that may positively impact the project timeline.
Nevertheless, around 52% of projects still need to meet their scheduled deadlines, as reported by PMI.
To solve this issue, project managers use various tools and techniques, such as Gantt charts in PPM Express, to visualize and communicate the project schedule effectively.
Having a clear project schedule allows project managers to allocate resources effectively, identify critical paths, and manage project deadlines. It enables them to monitor progress, identify potential delays, and take necessary actions to keep the project on track.
Having established the project schedule as a roadmap for project activities, we now focus on another vital aspect of project management: ensuring high project quality.
What is project quality?
Project quality is a critical element of project management that focuses on delivering outcomes that meet or exceed stakeholders’ expectations.
It encompasses the processes, methodologies, and standards employed to ensure that a project’s deliverables are of the desired level of excellence.
Maintaining project quality involves defining quality criteria, setting quality objectives, and implementing quality control and assurance measures throughout the project lifecycle. This includes quality planning, inspections, testing, and continuous monitoring of project processes and deliverables.
However, the Pulse of the Profession survey found that poor project quality leads to an average waste of 11.4% of investments.
Therefore, project managers and teams strive to achieve high-quality results by adhering to industry best practices, relevant standards, and stakeholder requirements. They implement quality management techniques to identify and address potential defects, errors, or deviations from the defined quality standards.
Effective project quality management contributes to customer satisfaction, ensuring the project’s deliverables align with the intended purpose and meet the specified quality attributes. It helps build trust, enhances the reputation of the project team, and fosters long-term relationships with stakeholders.
With a strong emphasis on project quality, we now focus on the equally important aspect of managing project costs.
What is project cost?
Project cost is a fundamental element of project management that involves estimating, budgeting, and controlling the financial resources required to execute a project.
It encompasses all the expenses associated with project activities, including labor, materials, equipment, overhead costs, and any other relevant expenditures.
Project cost management begins with accurate cost estimation during the project planning phase. This involves identifying the necessary resources, determining costs, and developing a comprehensive budget aligning with the project’s objectives and constraints.
Effective cost estimation helps in securing appropriate funding and resource allocation.
Project managers monitor and control costs as a project progresses to ensure they stay within the approved budget. This includes tracking expenses, comparing them to the planned budget, and adjusting or implementing corrective measures.
However, only 43% of companies consistently complete their projects within the set budget.
Important note: you can use our project budget template to create a budget for your project easily.
As we carefully manage project costs, it is equally crucial to address the inherent uncertainties that may arise, shifting our focus to project risks.
What is project risk?
Project risk refers to the potential uncertainties, events, or conditions that can impact the successful completion of a project or the achievement of its objectives.
It is an inherent part of any project and requires proactive identification, assessment, and management throughout the project lifecycle.
According to research, 67.5% of organizations identify poor risk management as one of their organization’s most significant project management challenges.
Therefore, project managers and teams must be vigilant in identifying and analyzing potential risks that could hinder project progress, jeopardize quality, cause schedule delays, or lead to cost overruns.
Risks can arise from various sources, such as technological uncertainties, market changes, resource limitations, external factors, or human errors.
Managing project risks involves a systematic approach that includes risk identification, risk assessment, risk response planning, and risk monitoring and control.
By identifying and assessing risks, project teams gain a deeper understanding of their likelihood and potential impact. This allows them to prioritize risks and develop appropriate strategies to mitigate or address them effectively.
Risk response planning involves defining contingency plans, implementing risk mitigation measures, or devising alternative courses of action to minimize the negative impact of identified risks.
Regular monitoring and control of risks throughout the project enable project managers to adapt and respond promptly to emerging risks or changes in risk profiles.
Handy guide: you can use our PMO Risk Management materials with ready-to-use templates.
After familiarizing ourselves with the basic elements of project management, we now focus on the diverse roles within a project team.
What are the different project management roles in a team?
Only 2.5% of people can multitask with positive results.
Consequently, successful project management relies on collaborating and coordinating various roles within a project team.
Each role on the team brings unique skills, expertise, and responsibilities to ensure effective project planning, execution, and control. Project teams often comprise 6 to 10 people (around 40%) or 1 to 5 people (over 30%), encompassing various roles.
Let’s explore some key roles in project management:
- Project manager: responsible for overall project success. The project manager leads the team, establishes objectives, develops plans, manages resources and risks, communicates with stakeholders, and ensures timely delivery.
- Project sponsor: a senior-level individual or group providing support, resources, and guidance, the project sponsor champions the project, secures funding, and acts as a liaison between the team and organizational leadership.
- Project team members: individuals executing project tasks and contributing their expertise. Team members, such as developers, designers, analysts, or subject matter experts, fulfil specialized roles based on the nature of the project.
- Stakeholders: individuals or groups interested in or affected by the project. Stakeholders include customers, end-users, executives, suppliers, or regulatory bodies. Effective stakeholder management ensures support, requirement gathering, and satisfaction.
- Steering committee: in larger projects, a steering committee comprises representatives from different organizational units, providing strategic guidance, making critical decisions, and aligning the project with organizational goals.
- Project coordinator: assists the project manager in administrative tasks. The project coordinator coordinates meetings, documents progress, and maintains project records, supporting smooth operations.
With a solid understanding of project management roles within a team, let us now explore the project stages, which provide a structured framework for project management from initiation to completion.
What are the stages of a project?
A well-structured project follows a series of defined stages that make up its lifecycle.
Each stage represents a distinct phase with specific objectives, activities, and deliverables contributing to the overall project progress.
This section will explore the stages projects typically go through, providing an overview of their purpose and key activities.
We begin with the crucial initial phase known as project initiation.
What is project initiation?
Project initiation marks the beginning of a project’s lifecycle.
It is a crucial stage where the groundwork is laid, and the project’s objectives and feasibility are assessed.
The initiation stage sets the foundation for a successful project by defining its scope.
During the project initiation stage, the project team focuses on clarifying the project’s definition, which includes outlining the project’s purpose, scope, and desired outcomes.
This involves identifying the project’s boundaries, constraints, and success criteria.
Key activities during this stage may include:
- Baseline schedule: roughly 50% of organizations consistently begin projects with baseline schedules, using them to evaluate performance, allocate resources, and identify areas for improvement. It defines a project’s timeline, milestones, and key deliverables, providing a framework for monitoring and control.
- Stakeholder analysis and engagement: conducting thorough research of stakeholders involved in or impacted by the project. This includes identifying their expectations, interests, and influence.
- Project charter development: creating a project charter that serves as a formal document outlining the project’s objectives, scope, deliverables, timelines, and high-level approach. The project charter acts as a reference point for project decision-making and provides a clear direction for the project team.
Pro tip: feel free to use our project charter template to simplify the project planning process.
Having established a strong foundation through project initiation, we now proceed to the next crucial stage: project planning.
What is project planning?
After the project initiation stage, project planning becomes a crucial next step.
It involves detailed planning and organizing of project activities, resources, timelines, and risks to ensure successful execution.
The project planning stage aims to create a comprehensive roadmap that guides the project team toward achieving project objectives efficiently without any labor losses or ineffective meetings.
During the project planning stage, project managers and teams engage in various key activities to establish a well-structured plan.
These activities include:
- Work breakdown structure (WBS): breaking down the project’s scope into smaller, manageable work packages and tasks. The WBS provides a hierarchical representation of project deliverables, enabling effective project organization and task assignment.
- Resource planning and allocation: identifying the necessary resources, such as personnel, equipment, and materials, required for project execution. Resource planning involves determining the quantity, availability, and skills of resources needed and allocating them effectively to project tasks.
- Schedule development: creating a detailed project schedule that outlines activities’ sequence, durations, and dependencies. The schedule helps manage project timelines, ensuring tasks are completed logically and efficiently. You can use PPM Express to speed up this process.
- Risk identification and mitigation: identifying potential risks that could impact project success and developing strategies to mitigate or manage those risks. Risk identification involves analyzing project constraints, external factors, and uncertainties to proactively address potential obstacles.
With a comprehensive project plan in place, we move forward to the dynamic stage of project execution.
What is project execution?
The project execution stage is where the actual work is carried out based on the project plan developed during the planning stage. It involves implementing, coordinating, and monitoring project activities to achieve the defined project deliverables and objectives.
The project execution stage is characterized by active team engagement and progress toward completion.
During the project execution stage, project managers and teams focus on executing the plan efficiently.
Key activities during this stage include:
- Team management and coordination: effectively managing and coordinating the project team (consider using the RACI framework to ease this task), ensuring members understand their roles, responsibilities, and objectives. It fosters teamwork, resolves conflicts, and maintains a collaborative work environment.
- Task assignments and tracking: assigning specific tasks to team members based on their skills and expertise. Project managers track task progress, ensuring that activities are completed as planned and addressing any issues or delays promptly.
- Communication and collaboration: establishing effective communication channels and protocols to facilitate cooperation between project team members and stakeholders. Regular communication updates, status meetings, and project reporting ensure transparency and alignment throughout the project.
- Quality assurance: implementing quality control measures to ensure project deliverables meet the defined quality standards. Quality assurance activities may include inspections, reviews, and testing to verify that project outputs align with the project’s quality objectives.
As the project progresses through its execution phase, it becomes essential to establish robust project monitoring and control mechanisms.
What is project monitoring and control?
Project monitoring and control is a crucial stage in the project management lifecycle that ensures the project stays on track and aligned with its objectives.
This stage involves continuously monitoring project progress, tracking performance, managing changes, mitigating risks, and addressing issues that may arise during project execution.
During the project monitoring and control stage, project managers and teams focus on maintaining visibility and control over project activities.
Key activities during this stage include:
- Performance tracking and reporting: monitoring project progress, KPIs, and OKRs, and assessing whether the project meets its objectives. Regular progress reports and performance evaluations enable project managers to identify deviations from the plan and take appropriate action.
- Change management: managing changes that may arise during the project lifecycle. This includes evaluating change requests, assessing their impact on the project, and implementing approved changes while considering their scope, time, cost, and quality implications.
- Risk monitoring and response: continuously monitoring identified risks, assessing their impact, and implementing appropriate risk response strategies. This involves regularly reviewing risk mitigation plans, updating risk registers, and proactively addressing emerging risks to minimize their potential impact.
- Issue resolution: identifying and resolving project issues or problems that may impede progress. Project managers collaborate with the project team to address issues promptly, seeking appropriate solutions and implementing corrective measures to keep the project on track.
With a firm grip on project monitoring and control to ensure project success, we now focus on the final phase of the project management lifecycle: project closure.
What is project closure?
The project closure stage marks the formal conclusion of a project. It involves completing all project deliverables, evaluating project outcomes, and wrapping up project activities.
Project closure ensures a smooth transition from project execution to project handover and provides an opportunity to reflect on lessons learned for future projects.
During the project closure stage, project managers and teams focus on finalizing project activities and assessing project performance. Key activities during this stage include:
- Deliverable acceptance and project handover: verifying that all project deliverables have been completed according to the defined requirements and obtaining formal stakeholder acceptance. Project managers ensure that all documentation and assets are handed over to relevant parties per the project plan.
- Documentation and lessons learned: capturing and documenting project information, including project documentation, reports, and lessons learned throughout the project lifecycle. This facilitates knowledge transfer, provides a reference for future projects, and enables continuous improvement.
Short-stop statistics: approximately 20% of project managers think that documentation is a task they want to stop doing. Insightful statistics are also presented in our comprehensive and up-to-date guide.
- Stakeholder satisfaction assessment: assessing stakeholder satisfaction and gathering feedback to measure how well the project met stakeholders’ expectations and objectives. This assessment helps identify areas of success and improvement in managing stakeholder relationships.
- Project evaluation and review: conducting a comprehensive assessment of the project’s performance, including its adherence to the project plan, achievement of objectives, and the effectiveness of project management processes. This evaluation allows for a comprehensive understanding of the project’s strengths and areas that require improvement.
Having wrapped up the project with a thorough closure process, we now focus on project integration.
What is project integration?
Project integration is a critical aspect of project management that ensures consistency and alignment across all project elements, stages, and processes. It integrates various components, activities, and deliverables to create a unified and cohesive project management approach.
Project integration refers to coordinating and harmonizing different aspects of a project, including its objectives, plans, resources, schedules, risks, and stakeholders.
It ensures all elements work together seamlessly to achieve the desired project outcomes.
The importance of project integration lies in its ability to facilitate efficient project execution and enhance overall project performance.
By integrating project elements, project managers can:
- Ensure consistency: project integration ensures that all project elements align with each other and contribute to the overall project goals. It enables project managers to identify and resolve any inconsistencies, overlaps, or conflicts that may arise during project execution.
- Enhance coordination: project integration facilitates effective coordination and communication among project team members, stakeholders, and other elements. It promotes collaboration, minimizes duplication of efforts, and ensures everyone works towards a common purpose.
- Optimize resource utilization: integration enables project managers to optimize the allocation and utilization of resources. By coordinating activities and sharing resources efficiently, project managers can maximize productivity and minimize resource wastage.
- Improve decision-making: project integration provides a holistic view of a project, allowing project managers to make informed decisions based on a comprehensive understanding of interdependencies, risks, and opportunities across different project elements.
Pro tip: use project portfolio management tools like PPM Express to build a “big picture” view and integrate your project into your PPM.
Now that we have explored the stages of a project, let us shift our focus to the role of project management tools and their significance in empowering project managers to excel in their practices and achieve efficient project outcomes.
Do you need a project management tool to excel in PM?
Project management tools have become essential assets for modern project managers, offering a range of benefits that can significantly enhance project management practices.
While project management can be conducted without dedicated tools (with ChatGPT prompts, for example), utilizing these tools can elevate project management capabilities and improve overall project outcomes.
During the development of monday.com, their product team discovered valuable insights from customers about project management software utilization:
- 91% of customers listed project tasks on a board.
- 88% frequently re-prioritized and updated tasks.
- 70% dedicated significant time to tracking deadlines and milestones.
- 42% attempted to manage it all using spreadsheets.
Project management tools provide numerous advantages, including:
- Efficient task management: project management tools streamline task creation, assignment, and tracking, enhancing task management, collaboration, and team productivity.
- Enhanced communication and collaboration: these tools provide communication channels, document sharing, and real-time collaboration features, fostering effective communication and cooperation among team members, stakeholders, and clients.
- Centralized project information: project management tools serve as centralized repositories for project documentation, schedules, milestones, and other project-related information, promoting transparency and facilitating informed decision-making.
- Effective resource management: project management tools offer resource planning and scheduling capabilities, providing visibility into resource availability, leveling, and utilization for efficient resource management.
Pro tip: If you’re on a tight budget, consider the free tools available for all project managers.
As we explore whether a project management tool is necessary for excelling in project management, it leads us to the different types of project management tools available.
What types of project management tools are there?
There are various types of project management software available, each designed to cater to specific project needs and requirements:
- Task management tools: focus on organizing, assigning, and tracking tasks and deliverables within a project—for example, Trello, Asana, and ClickUp.
- Collaboration tools: emphasize communication, document sharing, and collaboration among project team members and stakeholders. For example, Slack, Microsoft Teams, and Google Workspace.
- Project scheduling tools: facilitate creating and managing project schedules, timelines, and dependencies—for example, Microsoft Project and Smartsheet.
- Project tracking and reporting tools: enable project progress tracking, milestone monitoring, and generation of reports to assess project performance—for example, Jira and Monday.com.
- Project portfolio management tools: offer a broader perspective on managing multiple projects within an organization, allowing for strategic alignment, resource optimization, and portfolio-level decision-making—for example, PPM Express, Planview, Clarizen, and Workfront.
When selecting a project management tool, it is important to consider project requirements, team size, complexity, and budget factors.
Evaluating different tools based on their features, usability, integration capabilities, and customer reviews can help you identify the most suitable tool for your project management needs.
While project management tools can greatly enhance project management practices, it’s crucial to ensure that your chosen tool aligns with the project’s requirements and the team’s preferences.
To streamline your project and portfolio management practices, we encourage you to explore PPM Express, a comprehensive project and portfolio management tool.
Try PPM Express to experience its features and capabilities, which can empower your project management endeavors.