Project Management Basics: Everything You Need to Know

Project management basics involve effectively planning, executing, and delivering projects aligned with strategic goals, focusing on efficient use of resources, risk management, and collaboration. Understanding these fundamentals helps professionals enhance organizational performance and success.

Introduction

An essential part of the business world, project management seems almost ubiquitous within it. From the simplest tasks to the most complex undertakings, nearly everyone nowadays is involved with some kind of project that requires planning and execution. For most people and organizations, these are not just ostensible rules; they are taken as gospel. A successful project adheres to these tenets, and almost—if not, then by definition—a failed project does not.

“97% of organizations consider project management critical to business performance and success.” – PWC Study

You can trace the beginnings of project management back to the military and government. Its foundations were carried into the private sector since the late 1950s, when businesses started to see the usefulness of managing jobs and work with military precision. Individuals like Henry Gantt played key roles in this transformation. Today, a study by PWC indicates that 97% of organizations consider project management critical to business performance and success.

Project management in today’s business climate revolves around a few core tenets:

• Efficient Planning and Execution: By setting clear goals and objectives, project management ensures that a project’s scope, timelines, and resources are well-defined, paving the way for successful delivery. Tools like Gantt charts often visualize these plans, aiding in tracking progress and making adjustments as needed.

Tip

Using Gantt charts can help you keep track of project progress and make timely adjustments.

• Resource and Risk Management: Optimizing resources ensures efficient use, while proactive risk management helps in identifying and mitigating potential obstacles that might derail project objectives.

• Time and Cost Management: Organized scheduling minimizes delays and overruns, while budget tracking keeps expenses under control, preventing projects from exceeding financial limits.

• Quality Control and Collaboration: Quality management is essential in maintaining standards throughout the project lifecycle, leading to consistent and high-quality results. Collaboration tools enhance transparency and teamwork, crucial for remote and in-house team coordination.

• Leadership and Alignment: Effective project management promotes leadership skills, holding teams accountable and motivated. It aligns projects with strategic organizational goals, fostering growth and competitiveness.

Establishing robust project management practices not only aids in delivering impactful outcomes but also enhances communication and cooperation among team members. Understanding these fundamentals equips business professionals to navigate the complexities of project management, ultimately leading to enhanced organizational performance and success.

What are the project management basics?

In the rapidly changing sphere of business, the basic principles of project management have become an essential skill for anyone who wants to effectively organize and run projects of any sort—and to do so on time and within the often-constricted budgets that are part of daily business life. Project management is all about using various skills and tools in a well-coordinated manner to meet the kinds of requirements that specify a “project” from a more nebulous “work” category.

At the heart of project management lies the notion of the project lifecycle. This encompasses the way in which professionals across all sorts of industries lead their projects through the various phases each one must undergo—initiation, planning, execution, monitoring, and closure. It’s not enough just to know the phases, however; you must also understand how they fit together and what keeps the project from derailing along the way.

Fact

Most projects follow a lifecycle: initiation, planning, execution, monitoring, and closure.

Smooth project flow is most likely when a project’s triple constraint—cost, time, and scope—is in balance.

Project success is primarily a function of good project management. There are four elements—scope, time, cost, and quality—that a project manager must control to direct a project to success. A project manager defines the project’s scope—what is to be done and, importantly, what is not to be done. Then, the project manager prepares a schedule that times the performance of specified activities so that they lead to the achievement of the project’s goals—on time and within budget. The project manager must also control the project’s costs. To do that, he or she must control the use of project resources—human, physical, and capital resources. The project manager has leadership and organizational responsibility; and the good project manager is also a good communicator.

A selection of tools and software are used for real-time collaboration and activity tracking in the hands of management. While these tools are used across the board in business applications, not all serve a project manager’s best interests. Why? Because project managers need precise controls to ensure that schedules and resources are correctly allocated and used, and the more precise a tool is in serving that end, the better it is for project management.

“Successful project outcomes require established and practiced project management processes. Equally important is the presence of skilled individuals leading the projects and the teams doing the work.”

It is not merely processes that one must master to truly understand the principles of project management; it’s also essential skills that lead to efficiencies and strategic alignment with business goals. Research we undertook a few years back pointed us toward certain clear facts: courses focusing on project management “equip individuals and teams to deliver projects successfully,” laying the groundwork for effective planning and execution. By acquiring these skills, professionals position themselves for enhanced productivity and successful project delivery that resonates well with organizational objectives.

What is a project?

In the realm of project management, it’s absolutely necessary for business professionals who are pushing for productivity to understand what a project really is. At a fundamental level, a project can be boiled down to three things: it’s temporary, it has a specific set of goals, and it seeks to create something unique—something that did not exist before and that most people either could not or would not do if they weren’t part of a project. Products, services, and other results (like a new business model, way of doing things, or turning an idea into a concept that can be marketed) are what projects deliver.

“A project is a unique process consisting of a set of coordinated and controlled activities with start and finish dates.” – ISO10006

One key element of projects is their temporary state, which has a clear boundary that serves as a point of demarcation for the project’s initiation and conclusion. A project is said to have a life cycle that ends once the objectives are fulfilled—when what was requested is delivered—or when the prime contractor decides that the project has simply run out of technical or financial steam and shuts the whole thing down. Think, for example, of the end-of-life cycle for an upgrade (of any sort) to a computer system.

Example

Upgrading an outdated system to a cloud-based ERP is a typical project with clear goals and resources.

Business problems or opportunities often find resolution in projects that have well-defined objectives. Consider, for instance, the effort required to upgrade an outdated software system to a modern, cloud-based enterprise resource planning (ERP) system. To achieve this objective, project personnel must focus the project’s limited resources on the several tasks that must be completed in a planned sequence to enable a successful outcome.

When it comes to how projects are carried out, projects can stand alone or be woven into the fabric of something larger, like a program or portfolio. This allows for a certain kind of elegance in how projects fit into—and even serve as building blocks for—a business’s overarching strategy. Projects certainly provide a way of structuring an otherwise unwieldy, complicated mass of tasks. But even when a project doesn’t collapse under the weight of resources and time and is finished on or ahead of schedule, can one really say it was a success if it doesn’t contribute in some meaningful way to the business’s goals?

To conclude, the ISO10006 standard emphasizes that a project is a “unique process consisting of a set of coordinated and controlled activities with start and finish dates.” This definition underlines the demand for business professionals to organize and execute what we might call “value activities.” These are activities that have a high likelihood of producing outcomes that are valuable to the business. In effect, these professionals must transform strategic business visions into results that can be perceived as “business value.”

What is project management?

The basic components of project management occur in the software used for productivity. This project management almost defines our concepts of modern business. Its rudiments stretch back to olden times, but it began to take on serious form in the 20th century. When we talk about using tools for the component tasks of project management, we usually think in terms of working with the methods that guide our actions.

Historical Development

Early Beginnings: Before 1958, project management was informal, relying on basic tools like the Gantt Chart, introduced by Henry Gantt in the early 1900s. Such tools laid the groundwork for large-scale projects like the Manhattan Project, even though formal methodologies were scarce.

Modern Advancements: The post-WWII era saw significant progress. The emergence of methodologies like the Critical Path Method (CPM) and Program Evaluation Review Technique (PERT) provided structured approaches to managing complex projects. By the 1960s, project management was recognized as a distinct function, propelled by the formation of organizations such as the Project Management Institute (PMI).

The Agile Shift: The late 20th and early 21st centuries brought the internet revolution and the rise of Agile methodologies, reshaping project management paradigms. The publication of the Agile Manifesto in 2001 emphasized flexibility and iterative processes, which are now integral to many industries, particularly software development.

Tip

Understanding different methodologies, like Agile and Waterfall, helps choose the best approach for your project.

Application in Modern Business

Today’s business landscape mandates project management as an aligning force that brings together the myriad functions of an organization to work in concert with its strategic aims. Between the initiation and closure of any given project, the essential activities of project management must maintain a delicate balance of the fundamental forces of cost, time, and scope—the triple constraint.

In the real world, project management varies across industries. Classical methods such as the Waterfall model follow linear, step-by-step processes, while Agile accommodates adaptability through iterative cycles. In any method, a project manager oversees the “3 R’s”: sequencing the various tasks in the right order; allocating resources to the right tasks at the right time; and managing risks so that tasks can be done without too many hitches.

“The ideal project manager is a diplomat, a psychologist, and a taskmaster rolled into one.” – Henry Gantt.

This reflects the multifaceted nature of project management today. Understanding its evolution provides a solid foundation for anyone looking to thrive in the modern business environment, where effective project management is often equated with achieving increased efficiency and productivity.

What are the stages of project management?

Steering the intricate waters of project management requires a solid grasp of the five process groups as defined by the Project Management Institute (PMI). Each of these groups directs project managers through different phases of a project’s life cycle, ensuring that a project is not only initiated but also carried through to completion. Let’s take a look at the five process groups in detail.

1. Beginning the Project: This is where we make the project official. We do this primarily by writing a Project Charter, which is like a miniature version of the project plan. It’s also where we identify stakeholders—those who have an interest in the project’s outcome—and evaluate what we need to achieve in order to consider the project a success.

“Creating the Project Charter is crucial as it commissions the project and authorizes the project manager,” – Bernie Roseke

1. Planning: The planning phase is an exacting one in which the Project Management Plan is developed. This plan lays out the project scope, defines the project cost and timeline, and sets forth the project’s risk management and communication strategies. The planning process is necessary to avoid the cost and schedule overruns that too many projects experience.
2. Executing: This is where the project manager leads the team as they work to deliver the project objectives. However, it’s more than just steering the team to accomplish the stated goals. It also involves allocating resources, coordinating actions, and managing the challenges that inevitably arise when working on large projects.

Example

During execution, ensure resources are well coordinated and actions aligned with project goals.

1. Monitoring and Controlling: This group works with the project manager in the execution phase and helps the project manager make decisions. Staff in the monitoring and controlling group ensure that baselines (for scope, budget, and timeline) are not only maintained but also continuously checked against the established project plans. When a project starts to go off-track, this group helps the project manager identify the root cause and use corrective actions to restore the project to its original state or guide it to a new satisfactory state.
2. Closing: The formal closing of the project happens in this group. The final work of the project is finished, and the deliverables are turned over to the client. Any contracting issues are settled, and then the whole team participates in a reflection on what went well and what could be improved. The insights gained in this process are supposed to make the next project even better.

Grasping these stages provides a solid foundation from which to manage projects effectively. It is all too easy to let a project amble along without a clear sense of direction. At best, such a project consumes resources that could be better employed elsewhere. At worst, it threatens the very integrity of the project manager’s office in the eyes of the team members who have been assigned to follow it.

Why is project management important?

Project management is more than just a function. It is a strategic asset essential for anyone hoping to excel in today’s mercurial business world. You use it not to just push a project along but to set it on a course toward specific, decided-upon ends. Project management helps your business become not just a well-oiled machine but a less risky one. In this sense, it improves efficiency and collaboration both by virtue of what it is and by what it can avoid.

To start with, project management enhances organizational efficiency. There are two typical project approaches: the Agile methodology and the Waterfall method. When using either of these methods (or aspects of them, as certain kinds of projects require a mix), a project manager has a clear framework to work within. The methods provide not only structure but also a kind of logic to follow that keeps the team and the project moving toward a predefined set of goals. That is project management at its best.

Fact

Agile is ideal for projects needing adaptability, Waterfall suits projects with clear, linear stages.

Another crucial aspect that project management improves is collaboration. It assembles teams from various departments or locations and provides an environment where communication and cooperation are not just necessary but integral to the success of a project.

“When teams collaborate well, they innovate. They solve problems. They achieve better project outcomes and stakeholder satisfaction.”

An example of this can be seen in various project management apps that streamline communication and organization within teams.

Project management provides a principal benefit of risk control. It allows for the plans laid to detail the components of risks that are certain to arise in any given project. Most importantly, it helps the project manager figure out when and how those risks can be controlled with a minimum amount of rework. Failing to do any of these five things (not planning well, not monitoring what is happening in the project, not identifying emerging risks, not forming risk control strategies, and not using good judgment to steer the project toward successful completion) is what causes projects to go off the rails.

Another fundamental element of effective project management is the control of project scope and budget. When a project begins, it is crucial for the project manager to establish a clear and well-defined project scope and budget. These two components set up the guardrails that keep the project on a straight path. If the project manager cannot maintain these two components, the project may well become a “runaway project,” much like those seen in the notorious 1980s and 1990s, with the escalation of costs for the Pentagon’s so-called “whiz kids” at the RAND Corporation and elsewhere.

It is critical to engage with stakeholders regularly to ensure their and our customers’ satisfaction. Continuous communication is the golden key that aligns expectations with the clarifying of deliverables and the reducing of misunderstandings. If we proceed to engage with stakeholders and customers only when we feel like it’s “time” for an engagement, we run the risk of complicating the decision-making process and deriving too late a stakeholder satisfaction outcome from our project.

In conclusion, if you follow a good structure in project management, what you get are not only completed successful projects but also overall business success, measured in resource investments and their returns. As the methodologies of project management become more accessible, the discipline itself becomes more democratized. Professionals across sectors can efficiently harness its benefits. By adopting some essential practices, you can lead complex projects through to successful conclusions with much greater confidence, ultimately enhancing stakeholder and customer satisfaction.

What do project managers do?

The driving force behind a project’s success is its project manager. The project manager ensures that all stakeholders stay focused on the objectives that align with the business goals. The project manager gets involved at the front end of the project and stays with it all the way through to delivering the end product.

Planning is one of the important parts of a project manager’s job. They set up the kind of project goals and objectives that require a detailed project plan. A good project plan is a document that not only states the obvious—what the project is, who it’s for, and when the project’s supposed to be done—but also forecasts paths through the inevitable forks in the road when the project could go off course. One of their key responsibilities is meticulous planning.

Building a strong team is a significant part of any project manager’s work. They assemble talented individuals from various backgrounds, give them a well-defined vision, and let them work together to achieve project goals. The project manager knows that an effective team is a delegable team—that is, a team the project manager can trust to accomplish its task with minimal interference. Project managers are heavily focused on team building. Coupled with this is the art of delegation, where understanding team strengths and weaknesses is crucial to assigning tasks appropriately.

Communication is a key competency in their toolkit. They act as the main point of contact for not just the internal workings of the team but also for external stakeholder interactions.

Tip

Regular updates and meetings are vital for maintaining effective communication.

“Effective communication remains a staple in their rolodex of skills.”

They hold and attend regular meetings. They also maintain written communication in the form of status updates. They do all of these things because clear communication keeps everyone aligned and reduces the risk of parties working at cross-purposes because they don’t understand some essential aspect of the project that has been poorly communicated to them.

Another basic element is risk management. Good project managers identify potential risks early and ensure that contingency plans are in place to address them quickly if those risks should occur. This state of security allows project managers to adapt to any unforeseen circumstances that require another level of risk management to solve and keep solving, thus upholding the integrity of the project’s timeline and budget.

Resource management remains a vital skill for project managers. During any given project, a project manager is responsible for ensuring that both human and nonhuman resources are allocated and utilized optimally. Of course, optimal use also means keeping to a budget, and good resource management relies on the project manager maintaining constant access to pertinent information. They continuously monitor project progress and make adjustments as necessary, a dynamic process crucial for meeting deadlines and milestones.

In the final stage, it is the project manager’s job to complete everything. The project manager conducts post-implementation reviews and documents lessons learned to inform future projects. This reflective practice is undertaken because it helps organizations continually improve their project management processes.

Finally, project managers are invaluable no matter the kind of industry, be it construction or IT. Their managerial skills are needed in myriad roles that employ diverse strategies and demand different kinds of skills. One common thread that binds project managers together, as a group, is that many of them earn the Project Management Professional (PMP) certification to signal their qualifications. Nonetheless, even the best project managers can struggle if the folks above them and below them in the organizational hierarchy are not also adequate leaders and team members.

Project manager certifications

In the field of productivity software, obtaining a project management certification can greatly enhance a person’s career opportunities. For business people, these certifications provide evidence of their skills, experience, and comprehension of the fundamental project management methodologies on which successful projects are built.

“The Project Management Professional (PMP) certification offered by the Project Management Institute (PMI) is one of the most sought-after credentials,” confirming a professional’s expertise in managing people and processes.

One of the most sought-after credentials is the Project Management Professional (PMP) certification offered by the Project Management Institute (PMI). This globally recognized certification validates a project manager’s expertise in managing people and processes. Candidates seeking this credential must have 35 hours of formal project management education and meet specific experience criteria. The certification demonstrates knowledge of the Project Management Body of Knowledge (PMBOK), which can lead to a significant salary increase—up to 44% higher than their non-certified peers.

Fact

PMP certification can result in a salary increase of up to 44% compared to non-certified peers.

The Certified Associate in Project Management (CAPM) is an excellent initial certification for people new to project management. This entry-level certification has relatively low requirements in terms of both hours of education and project management experience and is therefore accessible to individuals with limited exposure to the field. Yet, despite its lowly perch on the project management certification totem pole, the CAPM provides not only a decent way to test one’s knowledge of project management but also some good prep for the next steps in both the project management and the certification pathways.

The ascent of agile methodologies has also sparked the development of certain certifications. One of the handiest for project managers is the Certified ScrumMaster (CSM). Another is the Agile Certified Practitioner (ACP). Both are useful for managers hoping to manage in iterative and adaptable ways.

Finally, the PRINCE2 Foundation and Practitioner certifications offer a systematic path to navigate the project management landscape. The methodology of PRINCE2 is most often employed within UK borders, though it has found favor in other locales too. It suits organizations that wish to ingrain project management principles into their very fabric—especially those in need of a well-oiled, efficient, and resource-saving engine.

When contemplating which certification to pursue, consider your current career stage, experience, and the specific methodologies you wish to master. Every plan offers unique advantages that enhance a project manager’s credentials, playing a pivotal role in career advancement in today’s competitive market.

Streamline your projects with Any.do

Any.do is an ideal tool for business professionals who need to be more connected and productive. This award-winning application is not only a task manager but also a collaborative project management tool. When used properly, it can facilitate much better team communication and efficiency. Any.do works on virtually any platform, including mobile, and has a very user-friendly interface.

Any.do has gathered much praise for how it manages to deal with both individual and collective projects. One of its key features is its Kanban-style project management tool, which allows users to visualize workflows and task progress in a clear manner. The app’s interface is so intuitive that users are even allowed to choose between three different views—Kanban, Calendar, and Table—when engaging in project management.

Example

Use Any.do’s Kanban view to efficiently manage project stages and track progress.

One of Any.do’s standout features is its workflow customization. Users can create workflows that are completely tailored to their projects (planning sprints, for instance, or managing in an agile manner) and to their particular part of the Any.do platform (the mobile app, the web platform, or the browser extension). Any.do also integrates with over 6,000 apps, connecting effortlessly with project management tools like Trello and communication platforms like Slack and WhatsApp to enhance its functionality and your productivity.

One of the main attractions of Any.do is that it allows for collaboration in real time. The team has to communicate about the project somehow, and Any.do provides an organized way to do that by offering a chat feature and a central inbox that can be shared by all team members.

“Everyone stays informed and aligned with undertaking a project and with execution over coordination.”

Any.do isn’t merely concerned with functionality; it is dedicated to user-friendly accessibility. It can be found on a multitude of platforms, including Android, iOS, and a featured Desktop app. On all of these, business professionals are encouraged to use the service to manage their tasks in any and all situations. The app’s design is such that one could almost complete an entire to-do list while waiting at a red light.

Any.do is a highly adaptable and feature-rich platform that makes project management feel effortless. When you step into the realm of Any.do, you find that it’s somewhat like entering a virtual office, but one that feels quite real. And in that office, the first thing you notice (and probably the last thing you’d want to notice) is the thin line between chaos and order.