What Is a Project Management Process?
According to the PMBOK® Guide, a project management process includes five steps:
initiating, planning, executing, controlling, and closing a project. This process outlines
the stages a project goes through from start to finish. It offers a framework to organize
and manage project tasks and functions, coordinating resources and timelines to meet
specific goals within a set timeframe and budget.
Project management processes can be more structured or more adaptive depending on
an organization's project management approach.
The Waterfall model, for instance, is a stage-gate project management technique where
reviews are conducted before each stage. Organizations ensure that deliverables are
completed successfully by following this linear approach, where each phase must be
completed before moving on to the next.
On the other hand, the Agile project management process is characterized by its
iterative nature, allowing for ongoing adjustments based on continuous feedback,
organizational needs, customer input, and evolving project requirements, fostering a
more adaptive and flexible approach to project execution.
Whether the project management approach is more structured or flexible, it’s equally
important for project managers to have a clear understanding of each phase and
engage stakeholders appropriately throughout the lifecycle to ensure successful project
delivery.
Understanding the 5 Essential Stages of Project
Management
Regardless of the industry in which a business operates or its primary priorities, project
management processes include five stages: initiation, planning, execution, monitoring
and controlling, and closure. Each stage has its own set of objectives, deliverables, and
outcomes that are critical to the project's success.
Let’s break it down and take a closer look at the specifics of each stage.
1. Project Initiation
The project management process begins with the initiation stage. It’s the phase when
an idea becomes a meaningful business plan. This stage involves defining the project
and its objectives. Before kicking off the project, there are a few questions that need to
be answered:
What is the purpose of the project?
What are the project’s objectives?
What kind of resources will be required?
Are there any potential constraints down the road?
How much time would it take for the project to be finished?
Does it have a budget range?
Who are the stakeholders?
The purpose of this questionnaire is for managers to clearly outline the project's
objectives and reasons through a set of formal documents. Some important PM
documents include:
Business case:a business case explains how a business will benefit from this
project. It also justifies various aspects, such as potential obstacles and
expenses.
Feasibility study: a feasibility study assesses whether the project can be
completed within a specified timeframe, considering various factors contributing
to its successful completion.
Project charter: a project charterfocuses on all necessary information about the
project – what value it is going to deliver, what needs to be done, what is the
expected timeline, what is the budget for the project, who is the assigned project
manager, etc.
Clarifying these questions and setting the ground basis for everyone involved is a
crucial step for the project’s success. Unclearly defined objectives and their rationale
pose a threat, increasing the risk of project failure and failing to meet stakeholders'
expectations.
2. Project Planning
Once the project is defined, it enters the planning stage.
The primary goal of this stage involves creating a detailed project plan, which should
include the following information:
setting project goals,
identifying the deliverables and creating a breakdown structure,
estimating the time and resources required to complete each task,
creating a project schedule.
During project planning, you should also create a risk management plan to outline the
strategy if any risks occur associated with the project.
Whether you take a more traditional project planning approach or follow some of the
Agile methodologies’ guidelines and plan in an Agile way, setting achievable, specific,
and measurable goals can be advantageous. To help with that, you can explore some
goal-setting methods such as S.M.A.R.T. (Specific, Measurable, Achievable, Realistic,
and Timely) or C.L.E.A.R. (Collaborative, Limited, Emotional, Acceptable, and Refined).
3. Project Execution
After the planning stage comes execution, the backbone of a project's lifecycle. In this
phase, you carry out the tasks and activities identified during planning.
During the project execution, project managers need to manage resources, address and
resolve any shortcomings, build efficient workflows, and carefully monitor progress.
Moreover, maintaining open communication among project stakeholders ensures that
everyone stays informed, promoting smooth project execution and staying on track.
Balancing multiple responsibilities simultaneously can become overwhelming and
hinder productivity. To keep up with everything going on, project leaders rely on project
management tools to help them track work and collaborate seamlessly with everyone.
4. Project Monitoring and Controlling
The distinction between the project monitoring phase and the project execution stage is
subtle, as they often overlap. During monitoring, regular reviews of the project's status
are essential to promptly identify and address issues, ensuring timely corrective actions
are taken when needed.
Additionally, monitoring the project’s progress against key performance indicators
(KPIs) or OKRs (objectives and key results) informs if the project is going in the right
direction and is on track.
While in this stage, managers can still make all necessary adjustments to ensure the
project is completed successfully and track the project timeline, budget, and quality
requirements.
5. Project Closure
At this stage, you want to ensure the stakeholder is satisfied with the project's
outcomes. As a final to-do, you can conduct a last project review to identify any lessons
learned and document the project results.
The project closure phase marks the formal conclusion of a project and involves several
key activities. Firstly, there is a comprehensive review of project deliverables against
initial goals and objectives to ensure all requirements are met. Additionally, the closure
phase involves releasing project resources, such as team members or equipment, and
closing out financial accounts associated with the project.
As a final to-do, project closure includes a final project review to identify any lessons
learned and create a final document summarizing key achievements and challenges
and outlining the overall project performance.
Example of a Project Management Process in a
Banking Environment
Let’s illustrate the steps of the project management process with a practical example.
1. Initiation: A bank plans to launch a new online banking platform. During this phase,
project objectives, scope, stakeholders, and initial resources are identified. Key
documents include a business case, feasibility study, and project charter.
2. Planning: A detailed plan is created, outlining the tasks, timeline, budget, risk
management, and deliverables. This includes setting up project milestones and defining
the project team’s roles and responsibilities.
3. Execution: Development teams start building the platform, following the project plan.
Resources are managed, progress is monitored, and adjustments are made as
necessary to stay on track.
4. Monitoring and Controlling: Regular status reviews and performance checks
ensure the project remains aligned with its objectives. Any issues or deviations are
addressed promptly to keep the project on course.
5. Closure: Once the platform is developed and tested, it is launched. Final reviews are
conducted, project documentation is completed, and lessons learned are recorded.
Resources are released, and the project is formally closed.
Most Common Project Management Techniques
Three of the most popular project management approaches include Agile, Lean, and
Waterfall.
Waterfall is a traditional methodology that follows a linear, sequential approach
to project management. In other words, each phase must be completed before
the next begins. This method is well-suited for projects with precise and stable
requirements.
Lean methodology is an approach to project management and production that
emphasizes the elimination of waste, continuous improvement, and delivering
maximum value to the customer with minimal resources.
Kanban is a Lean-derived workflow management method that helps teams
visualize work through kanban boards, optimize work delivery processes,
maximize efficiency, and encourage teams to improve continuously.
Agile is an iterative and flexible approach focusing on continuous value delivery
and emphasizing adaptability, regular feedback, and collaboration. Agile project
management is the most effective approach for projects with changing
requirements and a need for regular adjustments.
Scrum is an Agile framework that uses short sprints to release products faster
and adapt to changing customer requirements. At its core are cross-functional
teams and regular review meetings.
10 Tips to Build a Successful Project Management
Process
Here are ten key insights to foster a successful project management process.
1. Clearly define project objectives and deliverables.
2. Align project deliverables with project objectives.
3. Keep communication channels open and transparent among team members and
stakeholders.
4. Regularly assess and manage risks to prevent potential issues from derailing the
project.
5. Establish a realistic project timeline with achievable milestones to track progress.
6. Ensure that necessary support and resources are provided to team members.
7. Regularly monitor resource usage and adjust plans as required.
8. Track project performance by implementing an effective monitoring and
evaluation system.
9. Document lessons learned, including successes and areas for improvement.
10. Foster a culture for continuous improvement.
In Summary
Successful project management involves a strategic blend of well-defined processes,
appropriate methodologies, and ensuring that all aspects of the project are covered.
This includes aspects such as scope, schedule, budget, resources, risk management,
communication, and stakeholder engagement.
By understanding the main stages, choosing the right approach, and implementing key
tips for success, organizations can navigate the complexities of projects and emerge
with successful outcomes.
The five-step project management process includes:
1. Project Initiation
2. Project Planning
3. Project Execution
4. Project Monitoring and Control
5. Project Closure
