What is project management?
The term project management refers to the planning, management and control of projects. The aim is to successfully implement a product or service within a defined time, cost and quality framework. The coordination of tasks and participants is an essential part of the realization of the project. Depending on the type and scope of the project, project management can take place in a classic, agile or hybrid form.
Why is project management important?
Imagine implementing a project without any management or organization. Chaos is inevitable: Nobody knows what to do and when, so tasks are either not done at all or done twice. The result is dozens of misunderstandings and missed deadlines, which quickly lead to the failure of the project.
Project management is therefore a decisive success factor for implementing complex projects in a structured and targeted manner. Through precise planning and control, project management ensures that everyone involved develops a common understanding of goals and tasks. In this way, the company succeeds in adhering to all defined specifications in the best possible way and meeting the expectations of the stakeholders.
In summary, project management ensures:
- uniform objectives and clear responsibilities,
- the sensible use of resources,
- improved communication and more transparency within the team,
- early risk identification and management,
- adherence to time and budget targets and
- a higher success rate for the completion of a project.
What is the magic triangle all about?
In project management, the magic triangle is a model that describes the tension between the three central dimensions of a project:
- Time – the planned period for the implementation of the project
- Costs – the available budget
- Quality or performance – the requirements and results to be achieved
These three influencing factors are directly interdependent: if one factor changes, this usually has an impact on the others. For example, if quality is to be improved, more time and budget often need to be planned.
In order to keep the project in balance, the project management must therefore always keep an eye on the magic triangle. The project can only succeed if there is a balance between all the variables.
The project management methods at a glance
Project teams can use different approaches to plan and manage a project. These each specify certain rules and techniques that can be used to systematically achieve the project objectives.
1. methods of classic project management
In traditional project management, projects are planned in advance down to the smallest detail. Resources and responsibilities are defined at the start of the project, as are the timeline and budget. The
Classic project management methods are characterized by a linear, step-by-step approach. The project is divided into clearly defined phases, each of which stands on its own. The next phase only begins once one phase has been fully completed.
The phase model of the Project Management Institute (PMI) is often described as the common standard for classic project management. It comprises the following five phases: Initiation, Planning, Implementation, Control and Closure. However, there are numerous other models that consist of other project management phases.
Especially for projects in the IT sector, the steps often deviate from the standard depending on the method chosen.
| Advantages of classic methods | Disadvantages of classic methods |
| High predictability and stability | Low flexibility for changing requirements |
| Clear responsibilities | High planning effort |
| Structured documentation | Limited creativity |
Examples of classic project management methods:
The waterfall model
The project is divided into five successive phases, each of which has a fixed start and end point and is worked through sequentially: Analysis, Design, Implementation, Test and Operation. Like a step-by-step waterfall, each phase flows into the next and is based on the results of the previous phase.
The V-model
The method divides the project into two core phases like a V: On the left is the specification phase, which begins at the top with the requirements analysis and ends at the bottom with the definition of the technical specifications. On the right-hand side is the integration phase, which leads the project team from implementation through the test process to acceptance.
PRINCE2
The acronym is derived from the term “Projects IN Controlled Environments”. The method is based on a process-oriented approach that focuses on controlled project implementation. As PRINCE2 is scalable, the model is suitable for projects of any size and complexity.
2. methods of agile project management
In contrast to the classic approach, agile project management does not follow a rigid concept. Instead, it relies on flexibility and short development cycles so that adjustments can be made at any time. The project process is therefore not set in stone from the outset, but can be adapted to new circumstances at short notice if necessary.
Agile project management methods are therefore particularly suitable for dynamic projects in which requirements can change suddenly. Regular feedback rounds and a lively exchange between all project participants are at the heart of decision-making. However, this requires an open corporate and communication culture on both the supplier and customer side.
| Advantages of agile methods | Disadvantages of agile methods |
| Fast response to changes | More difficult time and cost calculation |
| Continuous improvement of processes | Risk of incorrect prioritization |
| Transparent communication within the team | Dependence on active customer participation |
Examples of agile project management methods:
Scrum
This agile project management framework is based on short, iterative sprints in which the project team completes small parts of the project and makes them directly usable. The focus is on the customer’s wishes.
Kanban
With this method, the project team visualizes the progress of tasks on a Kanban board without fixed deadlines. New tasks from the backlog are only tackled once the team has completed the tasks it has started.
Design Thinking
The aim of this method is to develop creative solutions for complex problems. The focus is on the needs of the users and an iterative project management process with the following six phases: Understanding, observing, synthesizing, brainstorming, prototyping and testing.
3. hybrid project management
Sometimes it makes sense to combine traditional and agile project management. The company can benefit from the strengths of both approaches if the project manager selects the methods to suit the project situation.
For example, it is possible to initially bring a project into a structured framework and later implement small sub-projects in an agile manner. In this way, rapid progress can be made even when strict stakeholder requirements have to be met.
The most important roles in project management
Project management
- assumes overall responsibility for the implementation of the project
- manages all project steps and plans deadlines
- Coordinates the project team and is the link to stakeholders
- monitors the progress of the project and the achievement of objectives
- is responsible for risk management
Project team
- consists of employees who implement the individual work packages
- takes care of the technical development of the project
- reports to the project management
Client
- initiates, approves and finances the project
- sets the strategic direction
- defines the project objectives
- releases resources
Stakeholder
- are all internal and external persons and organizations with an interest in the project, e.g. employees, customers, suppliers and banks
- communicate their demands and requirements
- influence the course and success of the project through their expectations
Scrum Master (for agile projects)
- Moderates meetings and promotes self-organization
- takes care of optimal framework conditions
- coaches the Scrum team
Product owner (for agile projects)
- defines the product vision
- prioritizes the backlog
- communicates with stakeholders
Which project management software is required?
Even in project management today, nothing works without powerful software tools. Both project managers and project team members must be able and willing to use various applications. This is the only way to ensure targeted control and orderly collaboration.
The most important tools include:
- Planning tools for creating schedules and milestones
- Task tools for assigning and prioritizing tasks
- Collaboration tools to promote teamwork
- Resource management software for personnel, budget and material planning
- Controlling and reporting tools for evaluations and reports
It also makes sense to use an ERP solution:
In contrast to the individual solutions mentioned above, a comprehensive project management module in the ERP system enables the project to be viewed in the overall context of the company. By networking processes from different departments, it is much easier to organize the project in the best possible way across departments. Especially for complex projects in larger companies, an ERP solution beats traditional tools hands down.
