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There is a tremendous amount of planning that goes into any successful project. When you're a project manager, you'll have a lot to remember at all times. As a result of your project plan, you will know precisely what to concentrate on at each stage of the project, where to allocate resources and time, as well as what to watch out for in case things run over schedule or over budget. 

In order to get the most out of a project, you need to put in a lot of effort upfront to create a project plan that will serve you well throughout the project's lifespan. Here are five reasons why project management planning is essential.

It Serves as a Starting Point for Your Project

Your project plan, based on the agreed-upon scope, timeframe, and budget, will be developed in accordance with the authorized project charter. Having these baselines in place, specified, and authorized by the project owner will allow you to compare the actual progress of your project to how it was expected to be achieved.

This is very beneficial since it allows you to rapidly assess whether or not your project is progressing according to plan and, if it isn't, what needs to be done to fix the situation.

The Project Is More Organized

There are no alarms or surprises when your project is written out in a clear project plan. To make sure there is no space for misunderstanding or miscommunication, your thorough project plan will lay out all of the deadlines and deliverables in great detail so that everyone involved is aware of exactly what is expected of them.

It Lays Down the Project’s Scope in Detail

Another advantage of this alignment is that it prevents scope creep. When the project plan document clearly defines the stakeholder's expectations and all agreed-upon deliverables, it's easy to identify when anything is out of scope.

In addition, it makes it simpler to deal with these issues. As a result, everyone can be persuaded of what they initially committed to, and there is no doubt about what is (or isn't) within the scope of the project, owing to a written contract or project planning sheet.

It Provides for More Efficient Project Management

Breaking down the project's work into digestible parts like deliverables, goals, or tasks makes it much simpler to figure out what resources you'll need to get it done.

Once again, you may have begun to explain this in the scope statement at a basic level, but your project management plan would be where you become more specific about how you're going to utilize the resources you have available.

It Instills Confidence in Your Endeavor

Project sponsors, stakeholders, and the project team (and, if you're feeling really down, even yourself) might be comforted by knowing where you're heading and why.

When you have a project plan document, everyone can understand how your expertise as a project manager is advancing the project's and the organization's objectives in unambiguous terms.

 You need to know these five things before you begin developing a project plan.

Determine the Project’s Baselines

The first step in creating a project strategy is to ensure you understand the fundamentals. Start with establishing the project's scope, timeline, and cost baselines, since these restrictions will dictate the remainder of your project planning.

Aside from the project charter, here is the place where you truly begin to map out these baselines and establish reliable estimations. Because you'll be comparing them to other projects to see how well yours does, be as specific as possible.

Determine the Repercussions of Your Project’s Failure to Meet Its Goals

Alternatively, you may ask yourself: what must happen first in order for the next step to be possible? Establishing your project's dependencies early on allows you to better manage your timetables, identify possible roadblocks, and minimize delays.

Select Key Players in the Undertaking

There are likely to be additional project stakeholders as you go through the project management plan as well as go through each step in more depth than you identified during your stakeholder analysis.

During this time, you should also consider which stakeholders have to be informed and engaged at which stages of the project in order to create a more thorough stakeholder management plan.

Identify the Project’s Key Milestones

What are the most important signs that your project is moving forward? Your project may be broken down into a series of smaller, more manageable parts, each with a clearly stated objective. This keeps the team engaged, enables you to celebrate your successes, and shows how the overall development is moving along.

Establish the Responsibilities of Everyone Involved in the Situation

With a clear picture of the labor and resources required, you can begin choosing who should be doing what. Each item must have a designated owner to ensure that it is completed.

As per the PMBOK® Guide , the project management plan is an output of the Develop Project Management Plan process in the Project Integration Management Knowledge Area.

The Project management plan is not created all at once. It is progressively elaborated, which means it is developed, refined, revisited, and updated. Since the project management plan integrates all the knowledge area management plans into a cohesive whole, it needs to be assembled after all the component plans have been created.

Most of the components of the project management plan are created in various processes defined in the PMBOK® Guide; for instance, the Communications Management Plan is developed in the Plan communications process.

However, the Schedule Management Plan, Cost Management Plan, and Scope Management Plan are created in the Develop Project Management Plan process. When a project charter is created in the initiating process group, it contains a summary of scope, budget, and a summary (milestone) schedule.

Since you already have these things at the time you begin developing the project plan, you can go ahead and develop the scope management plan, cost management plan, and schedule management plan. Later, when you perform the Plan Scope, Estimate Costs, and Develop Schedule processes, you can revise the components of the project plan with more detail to reflect a deeper understanding of the project.

Step 1 - Create a High-Level Template for Project Planning

When it comes to your company, what does a project plan appear like? Starting with any existing resources that you can use as a reference, such as project plan examples or project plan templates, is a good place to start when developing a project strategy.

Make use of whatever resources your company makes available, such as a high-level template for planning projects, a project planning worksheet, model plans, or a calendar for preparing projects

Step 2 - Define Your Project Objective 

There are many free templates and examples available to lend a helping hand with your preparation, but remember to choose the proper one for your project type when using one.

Your project management plan should be personalized to your project type, workforce type, and specific demands. IT project plans for new equipment rollouts, for example, are likely to vary from agile project plans, which in turn are likely to differ from more comprehensive strategic project plans.

Gantt charts, task lists, and other project management elements may help you ensure that your plan is effective.

Step 3 - Identify All Stakeholders

Once your project outline is ready, you have to identify the key stakeholders in the project success. Hence, it is important to collect all your requirements. Once you have collected this information, you need to define the scope of the project for each stakeholder and mention clear deliverables. To ace this step of project management good communication skills are required. 

Step 4 - Get Feedback From Your Customers, Project Stakeholders, and Team Members

A strategy written in a vacuum is less likely to acquire the support it needs when the time comes. Your stakeholders will feel more involved in the project planning process if you include them, and it sets the stage for an integrated team atmosphere that will benefit your project.

Make sure you gather feedback from the project's leading characters when you establish a project plan, whether it's a planning meeting, a brainstorming session, or a one-on-one interview. Also, as an additional perk? It's an excellent chance for you to continue establishing connections with key stakeholders that you began developing throughout the stakeholder and project charter and analysis.

Step 5 - Any Previous Project Management Planning You’ve Done Should Be Included

If you've already completed stages 1-5 of project planning, you should include the results of those steps into your project management plan, as well as any research you've done up to this point. 

The Project Management Institute's Project Management Body of Knowledge Guide and Standards recommend the following strategies for your project management plan:

• Plan for scope management
• Plan for the management of requirements
• A strategy for time management
• A cost-cutting strategy
• Plan for quality control
• A strategy for managing resources
• A strategy for managing communications.
• A strategy for risk management
• The procurement strategy
• Stakeholder outreach strategy

While the PMBOK suggests implementing these 10 strategies as a baseline, you may discover that various projects need different methods.

Each of these areas should be covered at some point in your project management planning, even if they aren't comprehensively documented.

Step 6 - Choose a Central Location for Your Project Management Strategy

Your project management plan, including your project charter, should be kept centrally so that all parties involved, including stakeholders, the team members, management, and clients, can easily access it.

Using a project management tool, you can bring your defined project management strategy to life, ensuring that you remain on schedule, hold your team responsible, and promote openness throughout the project.

Since the project management plan is a formal document that is used to manage the execution of the project , it must receive formal approval. Who grants the approval for the project management plan depends on the organizational structure and a number of other factors.

Usually, the customer or the senior management of an organization does not approve the project management plan document. The customer signs the contract but often leaves the internal workings of the organization delivering the project. Typically the project plan is approved by the project manager, project sponsor, or the functional managers who provide the resources for the project.

It becomes less difficult for a project manager to get the project management plan approved, if:

• All the stakeholders are identified along with and their requirements and objectives.
• The project manager handles conflicting priorities in advance.

Project Management involves all the practices required for managing a project to maintain its activities from its initiation till its termination, ensuring that the organizational goals and stakeholder demands are met. 

Financial Management is all about managing resources and financial operations to increase profit while achieving the organization’s and stakeholder’s objectives as soon as possible in a satisfactory manner.

1. How can I write a project management plan?

Writing a project management plan requires you to identify your project baselines. Write an executive summary and create your timeline/ team charts. Next, you will have to perform and write a risk assessment. Note down your communications and resource sub plans. Lastly, present your project management plan to the stakeholders. Collect their insights, feedback, and suggestions. You must try to incorporate the relevant ones before finalizing your plan.

2. What are the six parts of a project management plan?

A project management plan comprises an executive summary, Gantt chart/ timeline, stakeholder or team chart, risk assessment, communication sub-plan, and resource sub-plan.

3. What is the purpose of a project management plan?

With all the details and necessary steps laid, a project management plan reduces confusion, boosts confidence, and prevents obstacles during project execution. It provides a clear outline and value proposition, assigning essential roles, identifying and preventing risks, outlining milestones, and ensuring clear communication and availability of essential resources.

4. What is project management methodology?

A project management methodology comprises a set of principles, processes, and values that gauge how a team will complete a project. It structures several factors that would influence the project competition, including planning, design and documentation, communication methods within and outside of the team, timelines, and assessment modes. 

5. How can project planning software help plan projects?

Project planning software lends a helping hand and simplifies project planning from the beginning to the end. It supplies much-needed project management features and transparency in the planning and execution. It facilitates effective communication among and within teams, helps track key performance factors, store data in a central location, generate reports, and overcome any other project management challenges. 

To understand how to build a career in project management, and how certification training prepares you for project management job roles in any industry, watch this video on PMP Certification Training.

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Examples of Project Management

In order to better conceptualize what project management is, it’s helpful to understand how project management plays out in real-life applications. Here are a few examples of how project management is used across various industries every day: 

Example One: Project Management in Construction

In 2005, BAA Airports Ltd. was presented with an enormous task: remodeling Terminal 1 within Heathrow Airport, the busiest international airport in the world while keeping the terminal open to the 20 million annual travelers that pass through the airport. The project was extremely complex, and made even more challenging by a strict deadline and significant public health concerns, given the construction project was taking place within an active terminal. 

Throughout the project lifecycle, David Buisson, PMP, and the project manager in charge of the Heathrow renovation project, encountered many unexpected obstacles, including asbestos in the ceiling and inconsistencies with the floor level. Buisson and his team were able to properly navigate project challenges, operational risk, and communication management with key stakeholders. They successfully delivered the project on time and on budget—without any major mishaps—utilizing the PMBOK Guide from the Project Management Institute, the standard guide for project management professionals.

The 2005 renovation of Heathrow Airport Terminal 1 is widely considered one of the most successful case studies in construction project management to date. 

Example Two: Project Management in Healthcare

During the Covid-19 pandemic, pharmaceutical and biotechnology company, AstraZeneca partnered with the University of Oxford to address the international need for a vaccine. The research partners at Oxford University had begun showing promising research around an early vaccine option. Paired with AstraZeneca’s manufacturing capabilities and global supply chain experience, it was a no-brainer for the two entities to pair up to address the pandemic. 

However, the partnership would face numerous challenges throughout the project lifecycle, including, most notably, a highly unpredictable and rapidly evolving public health crisis. Adaptability had to be the name of the game, and the structured guidelines of project management provided a baseline for the team to work from. Ultimately, the project was an overwhelming success, with over 1 billion doses of the vaccine delivered to over 170 countries.

Example Three: Project Management in Aerospace Technology

The Mars Pathfinder Mission began in 1996 as a result of budget cuts within NASA, shifting the organization’s focus to projects that could be completed “faster, better, and cheaper.” The goal was to spend less than $150 million dollars on the project in total and implement it within 36 months. Based on the initial goals established by NASA, just getting the spacecraft to Mars and landing it in one piece would have been a success. 

Instead, by the time the project reached completion in September 1997, the Mars Pathfinder returned 2.3 billion bits of information, including more than 16,500 images from the lander and 550 images from the rover, as well as more than 15 chemical analyses of rocks and soil and extensive data on winds and other weather taking place on Mars. Ultimately, the project was such an exemplary example of project management at work that it won the Project Management Institute’s coveted ‘‘Project of the Year Award’’ for 1998. 

What is a Project Manager?

One of the most coveted roles for anyone seeking to build a career in project management , project managers are the ones who take ownership over the entirety of the project lifecycle from start to finish, from directing team efforts to navigating day-to-day challenges, implementing project management strategies, and more. Ultimately, they are responsible for the successful competition of the project and the distribution of key deliverables and project outcomes. 

Responsibilities of a Project Manager

Project managers are responsible for a wide range of project-related duties, including but not limited to:

• Establishing and managing the project timeline  
• Assigning project tasks and delegating responsibilities to team members
• Communicating with key stakeholders
• Executing each phase of the project
• Facilitating team adaptation of project management aids and tools (such as project management software, and Gantt charts)
• Monitoring the project budget and project scope, preventing cost or scope overruns
• Troubleshoot and mitigate potential roadblocks and issues 
• Establishing set meeting schedules and facilitating team discussions
• Monitoring ongoing project progress
• Concluding the project lifecycle with relevant end-of-project responsibilities, including facilitating project reviews , and turning over deliverables

Essential Project Manager Skills

Project managers handle a wide variety of project-related responsibilities and duties, and understandably, need to wield a broad and flexible skillset. Some of the essential skills a project manager should possess include the following:

Soft Skills

Hard skills, phases of project management .

Check out the video below for an in-depth walkthrough of the five phases of the project management lifecycle. 

Read more: 5 Phases of Project Management Life Cycle You Need to Know

1. project initiation.

The project initiation phase focuses on establishing a high-level vision for the project while securing approvals from sanctioning stakeholders. This phase is not meant to dive into excessive detail, but rather to get the ball rolling and get the team thinking about what is to come.  Read more about the initiation phase .

2. Project Planning

During the project planning phase , teams build upon the vision established in the initiation phase in much more detail. First, teams must answer a few essential questions surrounding what the project will aim to accomplish, how the project will be carried out, when it will begin, on what timeline, and how project success will be measured. Once those initial questions have been answered, teams can dive into building out project infrastructure, covering essential topics such as:

• Project scope
• Deliverables
• Key stakeholders
• Goals and milestones
• Resources needed (internally and externally)
• Project timeline
• Potential risks or roadblocks
• Dependencies
• End of project outcomes

3. Project Execution

The project execution phase is the starring act of the project, and where most of the deliverables come from. During this phase, the project manager coaches and guides the team to present essential project deliverables while keeping stakeholders in the loop and monitoring progress against key milestones and KPIs. Throughout the project execution phase, project management systems, such as project management software, can make life easier by keeping track of deadlines and deliverables, serving as a platform for team member collaboration, and more.  Learn more abou t project execution.

4. Project Monitoring 

During the monitoring phase, the project manager(s) keep tabs on the progress of the project overall and the status of the team. Whether teams are on track and delivering stellar results or struggling with roadblocks and challenges, the project manager can help eliminate stressors, solve problems, and communicate updates with key stakeholders. Read more about project monitoring .

5. Project Closure

The closing phase of the project lifecycle is a time for wrapping up project activities, delivering project deliverables and outcomes, and reflecting on the wins and losses of the project overall. Communication is key within this final phase, where team members have an opportunity to reflect and celebrate. Learn more about the project closure phase .

Download Our FREE Project Lifecycle Guide

Project management methodologies.

Project management methodologies establish a guiding set of rules and principles that teams can implement in order to achieve greater efficiency while maximizing positive project outcomes. Each methodology approaches project management through a slightly different lens, providing teams with a specific set of repeatable steps to follow throughout the project lifecycle. Methodologies are rigid and cannot be used in combination with other methodologies.

Project management frameworks can exist within methodologies, providing a more focused view of how a methodologies guidelines can be applied and implemented. While the structure and rules follow the teachings of the methodology, frameworks can color in detail how and when those rules are applied in a project setting. 

Agile project management focuses on an iterative and highly flexible approach to project management that focuses on delivering the project in pieces throughout the project lifecycle, rather than all at once at the project’s conclusion. In Agile project management, teams have more flexibility to adapt to challenges and redirections than in more structured methodologies, such as Waterfall.

Best for: 

• Software development teams
• Teams dealing with high levels of uncertainty
• Teams who are creating prototypes that need multiple levels of edits and changes
• Teams working closely with external parties and stakeholders

Waterfall project management is a traditional approach to project management that involves rigid, sequential project phases. In the waterfall model, each phase of the project must be fully completed before the next phase can begin, and project deliverables are turned over only at the conclusion of the project.

• Projects with a well-defined goal
• Projects with concrete timelines
• Teams who need to define rigid project requirements early on

Project Management Frameworks

Scrum project management, as the name suggests, is inspired by the camaraderie and teamwork of a Rugby team within the Agile methodology. Led by a Scrum master, Scrum teams are encouraged to learn through their experiences, self-organize as they problem-solve, and progress throughout the project lifecycle. 

• Smaller teams tackling numerous unknowns and ever-changing variables

The Kanban framework is a subset of the Agile methodology that emphasizes continuous improvement and flexible task management. In the Kanban framework, teams utilize Kanban boards, vertical boards that separate individual task cards into categories based on their status in the project lifecycle (for example: “not started,” “in progress,” and “completed”). 

• Teams who are new to project management and looking for a simple, organized framework
• Projects with numerous individual tasks and assignments
• Teams who need quick access to a high-level view of task overviews and completion status

Critical Path Method (CPM)

Critical Path Method is a project management framework within the Waterfall methodology that identifies critical and non-critical tasks, prioritizing them based on their importance—eliminating bottlenecks and roadblocks. The CPM method emphasizes the importance of calling out relationships between tasks and task dependencies. 

• Teams managing large, complex projects
• Projects that require a large number of tasks with subtasks and dependencies
• Teams who want to maximize efficiency and prevent roadblocks from the start of the project (especially for projects that have a high likelihood of complication) 

PRojects IN Controlled Environments, or PRINCE2, is a framework within the Waterfall project management methodology that emphasizes organization and control. Frequently used in the UK and internationally, The PRINCE2 model breaks down projects into smaller, more manageable chunks in order to manage risk and resources while clearly defining team roles and responsibilities. 

• Teams who have less experience in project management (PRINCE2 follows clearly defined, easy-to-understand steps)
• Teams who need more clarity around specific role-based responsibilities
• Compartmentalizing project steps and actions

Project Management Tools

Project management software.

Project management software helps teams organize all project essentials in one place, while streamlining and simplifying the project management process overall. At every phase of the project lifecycle, project management software supports teams’ ability to assign tasks, manage deadlines, view task dependencies, track team progress against goals, access data insights, and much more. 

Read more: 10 Best Project Management Software for 2023

Project management charts , gantt charts.

Gantt charts are one of the most common planning tools in project management. In a timeline-inspired format, Gantt charts highlight tasks against the project timeline, task dependencies, and designated assignees. Gantt charts are useful for teams who want to visualize projects at a high-level view while avoiding resource overload. 

Best for: Visualizing project timelines and task dependencies

Burn-Up/Burn-Down Charts

Burn-up and burn-down charts visually represent how project tasks have been completed across a predetermined timeframe. This type of chart is popular with Scrum teams for tracking work across sprints, as it can easily reveal the total scope of work against items that have been completed or left unfinished. 

Best for: Tracking project progress

Read more: Best Project Planning Software & Tools

Collaboration tools.

Slack is a communication-focused collaboration software that enables teams to communicate asynchronously through messaging, audio calling, and video conferencing. While many project management software offerings include collaboration features, Slack is a faster solution for teams who need to communicate efficiently as project updates come up.

Miro is a collaborative mind-mapping software that can help teams brainstorm throughout the project lifecycle in real-time. The application functions as a virtual whiteboard for teams to map ideas, add digital sticky notes, and plan out timelines.

Read more: Best Collaboration Software and Tools in 2023

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A project is a temporary, time-bound sequence of tasks that aim to achieve a particular goal. Projects bring together the talents of multiple team members in order to deliver a tangible result or outcome over a predetermined span of time. Often, projects involve the work of multiple individuals, across numerous areas of expertise, requiring an upfront investment in time and resources. 

Project management provides structure and accountability to the project process while providing ongoing support to your team by way of a project manager. Here are just a few of the top benefits of project management: 

Project Management Keeps Projects on Track

According to data from Wellingtone, only 43% of projects are finished on time and within budget, and only 29% are on time. Project management structures a plan for teams to stay on time and budget ahead of time, so projects are more likely to go as planned. 

Eliminate Scope Creep

Scope creep occurs when project requirements and frame of work expand over time—and it’s one of the most significant threats to project success, with the Project Management Institute reporting that half of all projects experience scope creep. Projects that adhere to best practices in project management are more likely to stay focused on the initial objectives of the project and, ultimately, experience success. 

Enhanced Resource Management

Project management involves planning and accountability—and that can make resource management much easier. During the initial phases of project planning, teams clearly outline team roles and responsibilities while monitoring individual workloads as work progresses, ensuring that resources are allocated appropriately.

Team Coaching and Coordination

Project management efforts are traditionally led by a project manager, or at the very least, a dedicated team member who oversees team efforts while providing support throughout the project lifecycle. Having a dedicated individual who can monitor project progress, troubleshoot problems, and promote team accountability can help the project process move much more smoothly. 

While every organization’s approach to project management is different, taking stock of your goals can help guide your next move. Take time to reflect on the projects your team has completed previously. What went well? What could have been improved? 

If you don’t have the budget to hire a dedicated project manager, implementing smaller steps, such as taking advantage of a project management software solution, can help your team make big strides toward a strong project management strategy. 

Most teams will require a toolbox of project management aids, rather than a single solution by itself. In order to determine which tools are the best fit for your team, testing is key. A majority of project management software solutions offer free trials and plans, making it easy to test out a variety of options. Other tools, such as charts, planning aids, and mind maps, are free tools that can easily be tested and explored. 

Interested in learning more? Check out our FREE guide on how to choose project management software. 

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How to Create a Realistic Project Plan with Templates & Examples

As a project manager, a huge part of your role is to write project plans that help you keep projects on track. But that’s not all a project plan should do. 

A project plan is arguably the most important document you’ll create for a project. At its core, a plan should communicate your project approach and the process your team will use to manage the project according to scope.

Let’s take a closer look at how you can develop a rock-solid planning process that guides your team and projects to success.

What is a project plan?

Project plan example: what to include, why you should always write a project plan, 5 steps to an effective project planning process, how to create a project plan in teamgantt, free project plan templates.

A project plan is a document that maps out the tasks, effort, timing, and resources needed to meet project goals within a predefined scope. It’s often presented in the form of a gantt chart because it’s easy to visualize the project timeline and ensure work stays on track.

Any solid project management plan should answer the following questions:

• What are the major deliverables?
• How will we get to those deliverables and the deadline?
• Who’s on the project team, and what role will they play in those deliverables?
• Which stakeholders need to provide feedback on deliverables, and when?
• When will the team meet milestones?

A project plan communicates this information in a simple, straightforward way so everyone clearly understands the objectives and how they contribute to project success. It may also be accompanied by other planning documents, such as a project charter , risk assessment , or communication plan .

While no two project plans are alike, they all share the same common building blocks. Be sure to include the following components in any project plan you create:

• Project tasks : A detailed list of work to be done organized by project phase, process step, or work group
• Project schedule : A visual timeline of task start dates, durations, and deadlines, with clear progress indicators
• Key milestones : Major events, dates, decisions, and deliverables used for tracking forward progress
• Dependencies : A line connecting tasks that need to happen in a certain order
• Resources : Assignments that indicate the person or team responsible for completing a task

Here’s a simple example of what a project plan looks like with these basic elements highlighted:

Some people don’t understand the power of a good project plan. If you feel pressured to skip the plan and jump right into the work, remind your team and stakeholders that having a plan benefits everyone by making it easier to:

• Build consensus before work begins : A detailed project plan ensures everyone has a clear understanding of—and agrees on—the overall process, scope, staffing, and even communications from the outset. That goes a long way in keeping project confusion and pop-up requests from gumming up the works.
• Avoid scheduling conflicts : Project plans enable you to organize tasks so it’s clear who's responsible for what and when. If your team is juggling multiple projects, you can cross-reference other plans to see who’s available to take on new work before committing to a timeline.
• Monitor project goals and scope : When new tasks creep in, it’s easy to lose sight of the original objectives. Spelling out the work you need to complete in a time-based plan keeps project goals front and center so you can ensure project scope stays intact.  ‍
• Hold your team and stakeholders accountable : A good project plan sets expectations around the process and pacing you'll follow each step of the way. When plans are shared with teams and stakeholders, it keeps folks honest about what is—or isn’t—happening and forces you to resolve issues in a timely way.

Easy drag and drop features with templates for faster scheduling. Plan a project in minutes, collaborate easily as a team, and switch to calendar and list views in a single click.

Poor planning can lead to some pretty ugly consequences—from missed deadlines and budget overages to team burnout and client frustration. That’s why it’s important to establish a solid process you can use to plan any project. 

Planning a project doesn’t have to be difficult. These basic project planning steps can help you write a plan that’s both realistic and on target.

• Start with project discovery & definition
• Draft a rough outline of your plan
• Formalize your project management plan
• Present & confirm your plan
• Execute your plan & adjust as needed

Step 1: Start with project discovery and definition

A project plan is more than a dry document with dates. It’s the story of your project, and you don’t want it to be a tall tale! So make sure you know all the facts before you start creating a project plan.

Understand the project scope and value

Understanding the ins and outs of the project will help you determine the best process and identify any snags that might get in the way of success. Conduct your own research to dig deeper on:

• Project goals and outcomes
• Partnerships and outlying dependencies
• Potential issues and risks

Review the scope of work , and dive into any documents or communications relevant to the project (maybe an RFP or notes from sales calls or client meetings). Be thorough in your research to uncover critical project details, and ask thoughtful questions before you commit to anything. 

Interview key stakeholders

If you want to dazzle stakeholders with a stellar project delivery, you’ve got to know how they work and what they expect. Schedule time with your main project contact, and ask them some tough questions about process, organizational politics, and general risks before creating a project plan. 

This will give project stakeholders confidence that your team has the experience to handle any difficult personality or situation. It also shows you care about the success of the project from the start.

Be sure to discuss these things with your stakeholders:

• Product ownership and the decision-making process
• Stakeholder interest/involvement levels
• Key outages, meetings, deadlines, and driving factors
• Related or similar projects, goals, and outcomes
• The best way to communicate with partners and stakeholders

See a list of sample interview questions to ask stakeholders so you can develop better project plans.

Get to know your team

The last step in the research phase is to take time to learn more about the people who’ll be responsible for the work. Sit down with your team and get to know their:

• Collaboration and communication styles
• Availability and workload

Understanding these basics about your team will help you craft a thoughtful plan that takes their work styles and bandwidth into consideration. After all, a happy team delivers better projects.

Step 2: Draft a rough outline of your plan

Now that you’ve gathered the basic project details, the next step is to knock out a rough draft of your plan. Take some time to think about the discussions you had in the pre-planning phase and the approach your team might take to meet the project goals.

Sketch out the main components of your project plan

Sit down with a pen and paper (or a whiteboard), and outline how the project should work at a high level. Be sure you have a calendar close by to check dates.

If you’re at a loss for where to begin, start with the who, what, when, and how of the project. A first outline can be very rough and might look something like a work breakdown structure . Make sure your project outline includes the following components:

• Deliverables and the tasks required to create them
• Your client’s approval process
• Timeframes associated with tasks/deliverables
• Ideas on resources needed for tasks/deliverables
• A list of the assumptions you’re making in the plan
• A list of absolutes as they relate to the project budget and/or deadlines

Considering these elements will help you avoid surprises—or at least minimize them. And remember, you’re doing this as a draft so you can use it as a conversation-starter for your team. It’s not final yet!

Get input from your team on process, effort, and timing

You don’t want to put yourself or your team in an awkward position by not coming to a consensus on the approach before presenting it to your client. That's why a project manager can’t be the only one writing a project plan.

Once you’ve created a basic project outline, take those rough ideas and considerations to your team. This enables you to invite discussion about what might work rather than simply dictating a process. After all, every project must begin with clear communication of the project goals and the effort required to meet them. 

Be sure to get input from your team on how they can complete the tasks at hand without killing the budget and the team’s morale. As a project manager, you can decide on Agile vs. Waterfall approaches , but when it comes down to it, you need to know that the team can realistically execute the plan.

You can also use this review time to question your own thinking and push the team to take a new approach to the work. For example, if you’re working on a digital product, could designers start creating visual concepts while the wireframes are being developed? Or can you have two resources working on the same task at once?

Running ideas by the team and having an open dialogue about the approach not only helps you build a more accurate project plan. It gets everyone thinking about the project in the same terms. This type of buy-in and communication builds trust and gets people excited about working together to solve a goal. It can work wonders for the greater good of your team and project.

Step 3: Formalize your project management plan

You should feel comfortable enough at this point to put together a rock-solid project schedule using whatever tool works for you. 

Build out a detailed project schedule that’s easy to read

Any good online project planning tool will help you formalize your thoughts and lay them out in a consistent, visual format that’s easy to follow and track. (Ahem, TeamGantt works nicely for a lot of happy customers. ) 

Make sure tasks have clear start and end dates so there’s no question when work needs to happen to hit project deadlines. Organize work into phases, and use labels and/or color-coding to improve scannability. The easier your project plan is to understand at a glance, the better!

See how to create a project plan in TeamGantt

Consider how your team likes to work

Be as flexible as possible when it comes to how your project plan is presented. There's no absolute when it comes to how to format your plan as long as you and your team understand what goes into one.

Remember, people absorb information differently. While you might be partial to a gantt chart, others might prefer to view tasks in a list, calendar, or even a kanban board. You can make all of those variations work if you’ve taken the steps to create a solid plan.

For example, here’s an Agile project plan we built that lists each sprint as its own task group with milestones for sprint planning and deployment.

And here’s what that same project plan looks like if you turn it into a kanban board in TeamGantt. Simply click the Board tab and set up your columns so your team can manage their daily workflows more easily.

If your team currently prefers spreadsheets and isn’t quite ready to use TeamGantt yet, try our free Excel gantt chart template .

Step 4: Present and confirm your plan

You’re almost finished! Now it’s time to do your due diligence. It’s easy to throw stuff in a plan, but you have to make sure you get it right.

Run your final plan by your internal team

Your team needs to know the reality of your plan as it stands after you’ve built it out in TeamGantt. And you want to be sure they’re comfortable committing to the details. If they don’t, things will quickly fall apart!

Always review your final plan with your team before delivering it to stakeholders. Why? Because things like dates and tasks—and even assignments—will shift as you formalize the rough sketch of your plan. 

Here are a few things you’ll want to discuss with your team as you review the final plan together:

• Review times
• Team work times
• Dependencies
• Time off, meetings, and milestones
• The final deadline
• Any assumptions you’ve made
• Major changes since your last talk

There’s nothing more embarrassing than delivering a plan with an error or a promise you can’t keep. Taking a few minutes to get buy-in from your team will give everyone peace of mind about your plan.

Review your project plan with stakeholders

Once you’ve confirmed the plan with your team and have their full sign-off, you’re ready to share your project plan with stakeholders . 

When delivering your project plan, make sure you provide an executive summary. This might come in the form of a project brief . A short recap of the overall methodology, resources, assumptions, deadlines, and related review times will help you convey what the plan means to the project and everyone involved.

Project plans can be daunting, so schedule time to present your project plan to stakeholders at a high level. Here are some things you’ll want to point out about your plan during this review:

• Overall process and pacing
• Major deliverables and timing
• The time they’ll have to review deliverables
• Overall timing for task groups or phases
• How far off you are from the deadline
• Wiggle room on the final deadline

If a stakeholder is interested in the day-to-day details, feel free to walk them through the plan line by line. Otherwise, start by explaining overall sections or phases, and be sure to come back to your plan at intervals throughout the project to remind them of tasks, next steps, and overall progress.

Step 5: Execute your plan and adjust as needed

Some projects are smooth and easy to manage, and others are a complete nightmare that wake you up at 3 a.m. every other night. Thankfully, having a solid project plan is your best defense against project chaos once work gets underway.

Keep in mind that project plans are living documents. Projects change constantly, and someone has to stay on top of—and document—that change. Remember to:

• Update your plan regularly as work progresses and things change
• Communicate changes to your team, partners, and stakeholders
• Monitor and communicate risks as your project evolves

Ready to plan your project in TeamGantt? Follow these easy steps to build a plan that’s structured well and includes the elements you need for project success.

1. Enter your basic project details.

To create a new project plan in TeamGantt, click the New Project button in the upper right corner of the My Projects screen. Then enter your project name and start date, and select the days of the week you want to include in your plan. Click Create New Project to move on to the next step.

2. List out your project tasks and milestones.

Now the real planning fun begins! Enter all the different tasks it will take to get the job done. If there are any key meetings, deliverable deadlines, or approvals, add those as milestones in your project plan.

3. Organize tasks into subgroups. 

Scrolling through one long list of tasks can be mind-numbing, even to the best of us. Break tasks down into phases or sections to ensure your project plan is easy to read and understand. 

4. Add task durations and milestone dates to the project timeline.

A visual project plan makes it easy to see exactly what needs to get done by when. Make sure every task has a start and end date so nothing falls through the cracks. TeamGantt’s drag and drop feature makes this planning step quick and easy.

5. Connect related tasks with dependencies.

Adding dependencies between tasks ensures work gets done in the right order and also helps you plan for delay risks. If your plan shifts and you need to move tasks around, dependencies speed up the process.

6. Assign responsible team members to tasks.

That way there’s no confusion about who’s doing what, and your team can update and manage their daily tasks . Don’t forget to check team availability along the way to avoid overloading anyone with too much work.

7. Use the RACI chart to define task roles more clearly.

This feature takes accountability one step further by letting you assign more specific roles to each task: Responsible , Accountable , Consulted , and Informed . Learn how RACI charts work and what each role means.

8. Add hourly estimates and/or points to each task. 

This makes it easy to see the lift each task involves at a glance. Including hourly estimates in your project plan also enables you to manage workloads and track overages more accurately.

9. Color-code tasks for better scannability.

You can use colors to categorize tasks by project phase, priority, department, or team member—whatever makes visual sense to you and your team.

10. Add notes to clarify tasks or spell out important details.

There’s no such thing as too much information if it means your team has what they need to deliver quality work on time. Use the Notes section of your Discussion tab to enter any pertinent details your team will find helpful.

11. Upload important documents to the project.

This ensures project files are accessible to everyone in a centralized hub.  For example, you might attach your creative brief to the project so your content and design teams have clear direction for completing their deliverables.

If you’re planning a project for the first time or taking on a totally new type of project, you might be struggling to get your plan off the ground. We created a simple project management plan template to help you get started.

TeamGantt gives you the ability to quickly and easily build and adjust your plan using drag and drop scheduling. Plus, it comes with customizable views to fit every team member’s work style. 

Try our basic project plan template for free!

Looking for more specific project plan examples to jumpstart your process? Use these project planning templates to generate ideas and save time building out your plan:

• Construction project plan template
• Event planning template
• Strategic marketing plan template
• Tactical marketing plan template
• Software development plan template
• Video production schedule template
• Website project plan template

Plan your next project in minutes

Discover just how easy project planning can be with TeamGantt. Create your first gantt chart for free!

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Project Management Plan: Definition, Elements, Steps, And The Main Purposes

Written By : Bakkah

Table of Content

What Is a Project Management Plan?

What are the main elements of a project plan, how to create a pm plan, project management plan according to pmbok, what are the 7 components of a project management plan according to pmbok, how long does the project planning phase take, techniques for the project planning process, what is the purpose of a project management plan, enroll now in bakkah's premier training programs to establish an improved project management plan:, popular articles.

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The Project Management Plan is a cornerstone document that lays the foundation for successful project execution. This comprehensive guide serves as a roadmap, providing project managers and their teams with a structured approach to navigating the complexities of project planning, implementation, and control. 

Understanding the intricacies of the Project Management Plan is key to aligning project activities with organizational objectives, ensuring success, and fostering effective communication throughout the project life cycle.

This comprehensive guide serves as a roadmap for project managers and teams, facilitating effective planning, implementation, and control. In this overview, we explore the definition, essential elements, step-by-step creation, and main purposes of the Project Management Plan.

The Project Management Plan (PMP), is a comprehensive document that outlines the planning, execution, monitoring, and closing phases of a project . It outlines the approach, methodologies , processes, and strategies that will be employed to ensure the successful completion of the project.

The Project Management Plan serves as a roadmap that helps project managers and team members understand and communicate the various aspects of the project to stakeholders . It helps ensure that everyone involved is on the same page regarding project goals , timelines , and expectations.

It is also a dynamic document that is updated throughout the project life cycle to reflect changes, lessons learned, and evolving circumstances. Regular updates to the plan help adapt to changes, manage risks, and improve overall project performance.

A project plan is a comprehensive document that outlines the details of how a project will be executed, monitored, and controlled. While specific project plans may vary depending on the nature and complexity of the project, the following are the main components of the project management plan:

1. Project Overview

A project overview provides a brief description of the project, including its purpose and objectives. It serves as an introduction to the project's context and importance. Additionally, it identifies key stakeholders involved in or affected by the project.

2. Project Scope

Project scope involves defining the boundaries of the project, and outlining what is included and excluded. The scope statement provides clarity on the project's limits and helps prevent scope creep, ensuring a clear understanding of project deliverables.

3. Work Breakdown Structure (WBS)

The Work Breakdown Structure (WBS) is a hierarchical decomposition of the project into phases, deliverables, and work packages. It serves as a visual tool that helps organize and understand the project's structure, breaking it down into manageable components for better planning and control.

4. Schedule

The project schedule outlines tasks, milestones, and dependencies, providing a timeline and deadlines for project activities. It serves as a roadmap for project execution, helping manage time effectively and ensuring that the project stays on track.

5. Resource Management

Resource management involves developing a human resource plan that specifies roles, responsibilities, and staffing requirements. It also addresses physical resource requirements, such as equipment, facilities, and materials, ensuring efficient resource allocation.

The project budget details estimated costs for labor, materials, equipment, and overhead. It includes cost control measures and financial considerations, providing a foundation for financial management throughout the project.

7. Quality Management

Quality management establishes quality standards and metrics for project deliverables. It includes processes for quality assurance and quality control, ensuring that project outcomes meet predefined criteria.

8. Risk Management

Risk management involves the identification of potential risks and uncertainties. It includes risk assessment, the development of risk response strategies, and the creation of a risk register to proactively manage and mitigate risks.

9. Communication Plan

The communication plan outlines stakeholder communication strategies, channels, and frequency. It also defines reporting formats and mechanisms, ensuring effective and timely communication throughout the project.

10. Procurement Plan

The procurement plan details the procurement strategy for acquiring goods and services. It includes vendor selection criteria and a contract management plan to ensure efficient and effective external resourcing.

11. Stakeholder Management

Stakeholder management involves the identification of project stakeholders and the development of a stakeholder engagement plan. This plan addresses communication and involvement strategies to manage relationships effectively.

12. Change Management

Change management includes procedures for handling changes in project scope, schedule , or budget . It outlines change control processes and documentation to manage modifications systematically.

13. Monitoring and Control

Monitoring and control involve defining key performance indicators (KPIs ) for tracking project progress. It includes control mechanisms to address deviations from the plan and ensure ongoing project success.

14. Closure Criteria

Closure criteria specify conditions for project completion and closure. It outlines procedures for the handover of project deliverables and documentation, ensuring a systematic and well-documented project conclusion.

15. Documentation

Documentation outlines procedures for maintaining project records. It includes version control and archiving processes, ensuring a comprehensive and organized record of project activities.

16. Assumptions and Constraints

Assumptions and constraints address factors that may impact the project. Assumptions made during project planning and constraints are documented to provide context for decision-making throughout the project life cycle.

17. Approvals

Approvals involve defining procedures for obtaining formal approvals for the project plan. It includes sign-off mechanisms from key stakeholders, ensuring commitment and alignment with project objectives.

The elements of a project plan collectively provide a comprehensive guide for project managers and team members, ensuring clarity, control, and successful project delivery. The specific content and emphasis on each element may vary based on the project's requirements and industry standards.

Creating a Project Management Plan involves several key steps. Below is a general guide that you can follow. Keep in mind that the specific details of the plan will depend on the nature and requirements of your project. Here are the typical project planning steps involved in project planning:

1. Define the Project

When creating a Project Management Plan, start by clearly articulating the purpose and objectives of the project. Identify key stakeholders and their roles to establish a foundation for effective project management and collaboration.

2. Develop a Project Charter

Create a formal document that authorizes the project's existence. This Project Charter should clearly encompass what is included and excluded from the project scope, measurable objectives, constraints, assumptions, and initial risks.

That provides a comprehensive overview and authorization for project initiation and ensures a shared understanding among the project team and stakeholders.

3. Create a Work Breakdown Structure (WBS)

Break down the project into smaller, manageable tasks and sub-tasks. Organize these tasks into a hierarchical structure using a Work Breakdown Structure (WBS), a visual tool that aids in understanding and organizing the project's components.

 4. Define and sequence Activities

Develop a detailed list of activities required to complete each task identified in the WBS. This step includes specifying dependencies and sequencing activities and providing a roadmap for task execution.

5. Develop a Project Schedule

Create a timeline that includes project milestones, deadlines, and dependencies. Utilize tools like Gantt charts to visualize the schedule, aiding in effective project time management.

6. Estimate Resources and Budget

Identify and allocate necessary resources, including human, financial, and equipment resources for each activity. Define roles and responsibilities for team members. Develop a plan for team development and training to ensure that the project team is adequately prepared and equipped for their roles.

Develop a budget that encompasses costs for personnel, materials, equipment, and other relevant factors, ensuring realistic financial planning.

7. Risk Management

Identify potential risks that could impact the project and assess their likelihood and impact. Develop mitigation strategies, particularly for high-priority risks, to proactively address and manage uncertainties.

8. Quality Management

Define quality standards and metrics for project deliverables. Establish processes for both quality assurance and quality control, ensuring that the project meets predefined quality criteria.

Identify key stakeholders and understand their communication needs. Develop a communication plan that outlines channels, frequency, and methods, fostering effective and transparent communication throughout the project.

Identify items or services that need external procurement. Develop a procurement strategy and establish vendor selection criteria, ensuring effective and efficient external resourcing.

11. Monitoring and Control

Define metrics and key performance indicators (KPIs) for monitoring project progress. Develop mechanisms for controlling and addressing deviations from the plan, facilitating ongoing project success.

12. Develop and Document the Project Management Plan

Compile all the information into a comprehensive Project Management Plan document. This document serves as the primary reference for project execution, monitoring, and control.

13. Review and Approval:

Review the plan with key stakeholders for input and feedback. Obtain formal approval before implementing the plan, ensuring alignment and commitment from all relevant parties.

Remember that the Project Management Plan is a living document and should be updated regularly to reflect changes, lessons learned, and evolving project requirements. Regular monitoring and control activities ensure that the project stays on track and meets its objectives.

The Project Management Plan (PMP) according to the Project Management Body of Knowledge (PMBOK) is a comprehensive document outlined by the Project Management Institute (PMI). This globally recognized standard provides project managers with a detailed roadmap for planning, executing, monitoring, and controlling projects. According to PMBOK, the plan covers key elements such as project scope, schedule, cost estimates , risk management, quality standards, and communication plans.

It serves as a dynamic document that evolves throughout the project life cycle, adapting to changes, addressing risks, and incorporating lessons learned for continuous improvement.

PMBOK encourages a flexible approach, allowing project managers to tailor the plan to the unique characteristics of their projects. This adaptability ensures that the Project Management Plan remains a relevant and practical tool, enabling project managers to effectively navigate the intricacies of their projects and achieve successful outcomes.

The Project Management Plan according to PMI and PMBOK serves as a valuable resource for professionals seeking to adhere to industry best practices, navigate the complexities, and enhance project management competency.

According to PMBOK, there are seven key components of a Project Management Plan:

• Scope Management Plan
• Requirements Management Plan.
• Schedule Management Plan.
• Cost Management Plan.
• Quality Management Plan.
• Resource Management Plan. 
• Communication Management Plan.

These seven components collectively provide a comprehensive guide for planning, executing, monitoring, and controlling a project.

The duration of the project planning phase can vary widely depending on the size, complexity, and nature of the project. The planning phase is a critical stage, and the time it takes to complete is influenced by factors such as project scope, objectives, team expertise, stakeholder involvement, and the industry in which the project is taking place. Here are some general considerations:

1. Small Projects

For small projects with relatively simple scopes, the planning phase may be completed in a short period, such as a few days to a couple of weeks.

2. Medium-Sized Projects

Medium-sized projects with moderate complexity may take a few weeks to a couple of months for thorough planning. This includes defining objectives, creating schedules, identifying resources, and developing other key components of the project plan.

3. Large and Complex Projects

Large and complex projects, especially those involving significant uncertainties, intricate dependencies, or multiple stakeholders, may have a more extended planning phase. This could range from several months to even a year or more.

4. Industry Factors

The industry or field in which the project is taking place can influence the planning phase duration. For example, projects in industries with strict regulatory requirements, such as construction or healthcare, may require more detailed planning and documentation.

5. Iterative Nature

The planning process is often iterative, meaning that it may go through multiple cycles of review and refinement. This iterative nature can extend the overall duration of the planning phase.

6. Stakeholder Involvement

The level of involvement and collaboration with stakeholders can impact the planning phase. Engaging stakeholders in discussions, reviews, and decision-making processes may require additional time.

7. Project Management Methodology

The chosen project management methodology also influences the planning duration. Agile methodologies, for instance, often involve iterative planning and may have a more ongoing and adaptive planning approach.

8. Team Expertise

The experience and expertise of the project team can affect how efficiently planning activities are conducted. A team familiar with the project's domain and skilled in project management may complete planning more efficiently.

9. Project Urgency

Urgency and time constraints for project delivery can also impact the planning phase. In some cases, projects may need to accelerate the planning phase to meet tight deadlines.

It's important to note that while the planning phase is crucial for project success, it should not be overly prolonged. Balancing thoroughness with the need to initiate project execution promptly is essential. Regular reviews and updates during the project life cycle allow for adjustments to the plan as needed.

The project planning process involves various techniques to ensure effective and thorough planning. These techniques help project managers and teams in defining project scope, scheduling tasks, allocating resources, and managing risks. Here are some commonly used techniques in the project planning process:

1. Work Breakdown Structure (WBS)

Description: Hierarchical decomposition of the project into smaller, manageable tasks.

Purpose: Helps in organizing and understanding the project's structure, breaking it down into more manageable components.

2. Gantt Charts

Description: Visual representation of the project schedule with tasks displayed along a timeline.

Purpose: Provides a clear overview of task durations, dependencies, and project milestones.

3. Critical Path Method (CPM)

Description: Identifies the longest path of dependent tasks, determining the project's minimum duration.

Purpose: Helps in scheduling and resource allocation by highlighting critical tasks.

4. PERT (Program Evaluation and Review Technique)

Description: Uses three estimates for each task (optimistic, most likely, pessimistic) to calculate task duration probabilistically.

Purpose: Provides a more realistic and probabilistic approach to task duration estimation.

5. Resource Histogram

Description: Graphical representation of resource allocation over time.

Purpose: Helps in identifying periods of resource constraints or overloads.

6. Earned Value Management (EVM)

Description: Integrates project scope, schedule, and costs to assess project performance and progress.

Purpose: Measures project performance against the planned baseline and forecasts future performance.

7. SWOT Analysis

Description: Evaluates project strengths, weaknesses, opportunities, and threats.

Purpose: Facilitates risk identification and strategic planning.

8. Risk Assessment and Management

Description: Identifies potential risks, assesses their impact and likelihood, and develops strategies for mitigation.

Purpose: Minimizes the impact of uncertainties on the project and enhances risk management.

9. Stakeholder Analysis

Description: Identifies project stakeholders, assesses their interests, and determines their level of influence.

Purpose: Guides communication and engagement strategies based on stakeholder needs and expectations. 

10. cost-benefit analysis.

Description: Evaluates the costs and benefits associated with project alternatives.

Purpose: Assists in decision-making by weighing the financial implications of project choices.

11. Mind Mapping

Description: Visual representation of ideas, concepts, and tasks in a hierarchical structure.

Purpose: Aids in brainstorming and organizing project ideas and tasks.

12. Benchmarking

Description: Comparing project processes and outcomes against industry standards or best practices.

Purpose: Identifies areas for improvement and sets performance standards.

13. Procurement Planning

Description: Develops a procurement plan outlining how external goods and services will be acquired.

Purpose: Guides the procurement process, ensuring efficiency and adherence to project requirements.

These techniques can be used individually or in combination, depending on the project's requirements and characteristics. Applying a mix of these techniques enhances the overall effectiveness of the project planning process.

Project management planning is a critical and foundational phase that significantly influences the success of a project. The purpose of the Project Management Plan is to provide a roadmap and a structured approach to guide project managers, team members, and stakeholders throughout the project life cycle. The importance of project management planning can be understood through various key aspects:

Guidance and Direction

The Project Management Plan clearly articulates the project's objectives, goals , scope, and deliverables, providing a roadmap for the entire project team and stakeholders.

Scope Clarification

The Project Management Plan delineates what is included and excluded from the project scope, minimizing scope creep and ensuring that the project stays on track and within defined limits.

Work Organization

The Project Management Plan organizes project tasks, activities, and responsibilities through tools such as the Work Breakdown Structure (WBS).

Resource Allocation

It identifies and allocates resources, including human, financial, and material resources, Maximizing resource utilization, minimizing wastage, and enhancing project efficiency.

Risk Management

It outlines strategies for identifying, assessing, and mitigating risks throughout the project life cycle. That enables proactive risk management, reducing the likelihood and impact of negative events on the project.

Quality Standards

A Project Management Plan involves quality standards and metrics to ensure that project deliverables meet predefined criteria.

Communication Strategy and Stakeholder Management

The Project Management Plan defines a clear communication plan, ensuring transparency and facilitating efficient communication to keep stakeholders informed and engaged.

Time Management

The Project Management Plan involves a realistic project schedule, ensuring that tasks are completed within the allocated time and preventing delays.

Cost Estimation and Control

The Project Management Plan helps create a detailed project budget that helps in accurate cost estimation, prevents budget overruns, and allows for effective financial management.

Monitoring and Control

Project Management Plan provides key performance indicators (KPIs) for monitoring and controlling project progress, deviations, and performance against the plan. It includes procedures for handling changes in project scope, schedule, or budget.

Procurement Strategy

The Project Management Plan outlines the procurement strategy if external goods or services are required for the project.

Human Resource Management

The Project Management Plan defines roles, responsibilities, and the overall management of the project team .

Documentation and Learning

The Project Management Plan serves as a central repository for project-related information and lessons learned, providing a single point of reference for all team members and stakeholders.

Project Closure Criteria

Project Management Plan defining criteria for project completion and closure, ensuring a systematic and well-documented project conclusion and allowing for proper handover and evaluation.

Approvals and Sign-off

It provides a formal document for obtaining approval and sign-off from key stakeholders, demonstrating commitment to the project plan .

Unlock your potential and elevate your project management skills with Bakkah's Premier Training Programs. Whether you're a seasoned professional or just starting out, our comprehensive courses are designed to equip you with the tools and strategies needed to establish an improved project management plan.

Gain insights from industry experts, learn best practices, and enhance your capabilities in areas such as planning, execution, risk management, and more. Our dynamic training approach ensures that you not only grasp theoretical concepts but also acquire practical skills that can be immediately applied in your professional endeavors.

Don't miss this opportunity to take your project management expertise to the next level. Enroll now in Bakkah's Premier Training Programs and embark on a journey towards achieving greater project success.

Here are the top Project Management Courses :

• Certified Associate in Project Management CAPM Course
• PMI-ACP® certification
• PgMP certification
• PMI Scheduling Professional - PMI-SP certification

Risk Management Courses And Certifications:

• Risk Management Professional - PMI-RMP Course
• MoR Certification and course

PRINCE2 Courses

• PRINCE2 Certification
• PRINCE2 Agile.

Project Management Tools:

• Primavera P6 Course
• MSP Course - Managing Successful Programmes
• Microsoft Project training course  

Portfolio Management

• P3O Foundation certification
• Management of Portfolios MoP
• The Portfolio Management Professional – PfMP certificate
• Lean Six Sigma Yellow Belt Course
• Lean Six Sigma Green Belt Course
• Lean Six Sigma Black Belt Course

Overall, the purpose of the Project Management Plan is to ensure a structured and well-managed approach to project execution, leading to the successful completion of the project within the defined constraints.

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The Complete Guide to Project Management

Get more projects across the finish line (with less stress)

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What is project management? Project management is the coordination of your processes, tools, team members, and skills so you can deliver projects that exceed your goals.

You and your team are getting ready to conquer a major project. It’s like a long stack of dominoes — it’s so cool when it works, but a big ol’ disappointment if a single piece is even slightly out of place. 

These types of projects can be both daunting and exciting, and you might be tempted to start as soon as possible. Do you cross your fingers that everything magically falls into place? Rub a lamp and hope a wish-granting genie arrives to lend a helping hand? 

Those would be nice (and let us know if you find a way to make them work!). But, in reality, the secret to success for your big, hairy projects is effective project management.

What is project management, and why is it important?

Project management is the practice of coordinating processes, tools, team members, and skills to deliver projects that meet goals and satisfy requirements.

It empowers your team to complete projects by rallying them around clear objectives, increasing transparency and visibility, streamlining communication, and establishing the project scope. Need more convincing? Consider that  Project overruns are frighteningly common. In the IT industry alone, McKinsey found that on average, large IT projects run 45% over budget and 7% over time. 

Project management methodologies

Have you heard that old adage “more than one way to cook an egg”? There’s no one strategy for completing a kick-ass project. That’s where a project management methodology comes into play. It’s a set of rules, principles, and processes for managing a project.

Methodologies might sound formal, but you have some room to innovate here! It’s important to note that many teams and companies use a combination, rather than relying exclusively on one. Regardless of which approach you choose, it should help promote a strong culture of transparency .

1. Waterfall project management

When you think of traditional, sequential project management, you’re picturing waterfall project management . With this method, you break your project into different phases. When one phase ends, the next one begins — there’s no overlap between them. 

When to use : For long projects that require a single timeline and a sequential order.

Commonly used in : Construction. Building a house or structure requires a successive order. You can’t put on a roof before you’ve poured a foundation, for example. 

2. Agile project management

Agile project management is an iterative approach and is much more flexible than waterfall project management. It's a DevOps best practice that breaks projects into chunks that are tackled in short bursts (called sprints). After each sprint, your team reevaluates the work you’re doing to make any necessary changes and ensure you’re staying on target.

Scrum project management is one of the most popular Agile  methodologies used by project managers. Like Agile, scrum is centered around continuous improvement . You can use a framework like scrum to help you start thinking in a more Agile way and practice building Agile principles into your everyday communication and work.

When to use:  For projects that aren’t yet well-defined and require a lot of adaptability. 

Commonly used in : Software development. This profession pioneered agile, and this approach allows developers to build higher-quality software because they’re able to test and review at regular intervals.

3. Lean project management

If you’ve heard of lean manufacturing, those same principles apply to lean project management . The goal of this methodology is to increase output and value while reducing waste. To use it, you’ll need to map a value stream, which is the sequence of project activities. Then, you take a magnifying glass to that stream to identify and eliminate work that doesn’t add value. This means your project process will be as streamlined, optimized, and efficient as possible.

Kanban is a specific implementation of Lean project management. Project tasks are represented visually on a Kanban board , allowing team members to see the state of every piece of work at any time.

When to use : For projects that need to be delivered quickly. 

Commonly used in : Manufacturing. When you’re producing physical goods, you want as little waste as possible to minimize spend and maximize profit. That’s why this approach is popular in manufacturing, especially in the automotive industry .

The 5 stages of the project management process

Imagine that you’re starting a project from the very beginning. Project management doesn’t come into play only when you actually start checking off tasks — you need to lay the groundwork first.

With that in mind, the Project Management Institute (PMI) established five distinct stages of project management .

Stage #1: Initiating

Think the first step of the project management process is planning? Not quite. Before you can map out a strategy for your project, you need to get stakeholder buy-in. This is where a project charter comes in to outline the business objective of your project for approval. We recommend using a project poster instead, as a more digestible format that’s faster and easier to read. In this stage, you should answer questions like:

• What’s the business case for this project? Our strategic plan template can help!
• Is this project feasible?
• Should we pursue this project?

To put it simply, in this stage you’re trying to decide if this project is even worth tackling before you invest too much elbow grease. 

A great way to help facilitate this discussion is a premortem , a thought exercise in which you imagine what could go wrong and decide how to prevent it.

Stage #2: Planning

If you decide to move forward, you’ll next head into the planning stage. This is where you’ll develop a detailed project plan that your entire team will follow––and thank you for! Planning is essential for avoiding scope creep . Our to-do list template can help! . Questions to answer in this stage include:

• What is the goal of this project?
• What are the key performance indicators (KPIs)?
• What is the scope?
• What is the budget?
• What are the risks?
• What team members are involved?
• What tasks are involved?
• What milestones need to be met? 

This step is to ensure you and your team all have shared expectations before you get started. If you think you’re getting too caught up in the minutiae, you aren’t. And strategic planning frameworks can help!

Stage #3: Executing

Grab your coffee and get your power cable, because it’s go-time. This is where you and your team will roll up your sleeves and start conquering project tasks with your project plan as your guide. In the execution stage , you’ll need to: 

• Allocate necessary resources
• Ensure assignees carry out their tasks
• Host status meetings
• Set up tracking systems

The bulk of the work happens in this stage, and it’s also where you’ll start to see your project really coming together. See? All that planning was worth it.

Stage #4: Monitoring

Just because you have a project plan doesn’t mean things will run smoothly on their own. It’s like setting a budget for yourself — having the budget doesn’t do anything if you don’t keep a close eye on how you’re managing your money. 

That’s why you need to monitor project progress to ensure things stay on track. You should evaluate your project against the KPIs you established in the planning stage.

What should you do if your project feels like it’s strayed from the path or fallen prey to scope creep? Take a moment to reevaluate. You can decide if you need to realign things, or if your original plan needs to shift. That’s the great thing about monitoring — you have regular checkpoints to course correct.

Stage #5: Closing

The closing stage is about wrapping up loose ends. This includes:

• Hosting a postmortem or retrospective to evaluate the project
• Preparing a final project report
• Collecting and storing necessary project documentation somewhere safe. A collaborative documentation space like Confluence is great for this, by the way.

Not only does this give your team the chance to officially wash their hands of the project, but it also makes it easier to refer back to it when necessary.

7 Tips for successful project management

Even if you follow all of the above steps, effective project management isn’t a set-and-forget scenario. There are a few other best practices you’ll want to implement to help your project run as smoothly as possible.

Host a project kickoff meeting

Your project kickoff meeting is when you’ll establish goals, break down your timeline , and generally get everybody on the same page about your project. Our team meeting agenda template can help!

Regardless of how excited your team is to get to work, don’t skip this sitdown. You’ll proactively clear up confusion and rally your team around a shared goal.

Be mindful of task and resource dependencies

Remember when we talked about projects that feel like a string of teetering dominoes? That’s especially true for large, cross-functional projects. Maybe Daisy can’t start creating graphics until Joel has drafted the content (that’s a task dependency). Or maybe Choua can’t use a piece of software while Derek is using the shared license (that’s a resource dependency).

Your project tasks don’t happen in a vacuum, so it’s important that you account for these dependencies using a Gantt chart template . 

When all of your tasks and resources are connected, you need to understand how they fit together, or you run the risk of watching in horror as your whole line of dominoes comes toppling down.

Identify your critical path

Identifying your critical path is a great way to prevent schedule overruns. While it might sound like something out of an action movie, your critical path is just your longest string of dependent project activities. If you hit a snag or delay on that path, you know the whole project is at risk of coming in late. 

Finding your critical path allows you to know where you have some wiggle room in your schedule, and where you need to stick as close to your timeline as possible.

Be realistic with your timeline

It’s common to underestimate the time it takes us to complete tasks, and it can be a real detriment to your project timeline.

Keep yourself in check by referring back to timelines for previous projects. Consult your time-tracking software (if you have it) to see how long typical tasks take, and ask your team to gut check their schedules.

Use project management software

If your team members need to dig through endless email threads or folders to find what they need, your project is bound to drag behind. 

That’s why it’s helpful to use project management software (like Jira ) to store your documentation and organize your project in a knowledge management software (like Confluence ). It increases visibility into all project steps and tasks, centralizes communication, and gives your project team one single source of truth .

Establish clear roles and responsibilities

To get the best output from your team, people need to know exactly why they’re involved. What is their role and what are they expected to contribute? 

Not only does this instill a sense of purpose and accountability in your project team members, but it also prevents them from stepping on each other’s toes and allows you to play to everyone’s strengths. A RACI   framework is a popular way to assign roles and responsibilities . The acronym RACI stands for responsible, accountable, consulted, and informed. Confluence slightly tweaks this framework, calling it DACI , with “D” standing for “driver.”

Make it a collaborative process

Managing a project can be stressful, and you don’t have to do it all alone. Your team will have a lot of great insight into your project plan , including if your timeline is realistic or if you’re forgetting about dependencies.  Team brainstorming is a great way to share and hash out ideas. Here are some tips for running an effective brainstorming session .

Even if you’re part of a hybrid or remote team , resist the temptation to plan projects in isolation. Involve your team to hash out a more reasonable plan and boost their sense of ownership over the project. Our brainstorming template can help!

Key members of a project team

Every project must begin by identifying r oles and responsibilities . Knowing your role upfront sets everyone up for success in staying on track to meet project deadlines. Potential project roles include:

• Project manager : Person who oversees the entire project and is responsible for the project’s success.
• Project sponsor : Senior manager who champions the project and works closely with the project manager.
• Team member : People who actively work on the project tasks.
• Supplier : People who provide goods or services for a project.
• Primary stakeholders : People who actually do the work and are actively involved in the project.
• Secondary stakeholders : People who might come to meetings and play a small part but aren’t key decision-makers in the project.
• Interested stakeholders : People who are in the loop on the project but don’t play an active part or have a lot of influence.
• Client : Person who receives the final project, if it’s a client-facing project rather than an internal one. 

What to look for when evaluating project management software

Choosing the right project management software can be tricky. To ensure your team gets the most out of its project management tool, we recommend that you look for a solution that offers the following capabilities:

• Create a shared calendar to track project milestones and deadlines
• Share files and documents for easy access and collaboration
• Create task lists and assign tasks to team members
• Track project progress and generate reports
• Facilitate and streamline communication between team members and stakeholders
• Estimate project duration and budget
• Allow team members to comment on tasks and provide feedback
• Generate automated reminders and notifications
• Set up project templates to streamline project creation
• Manage resources and workloads
• Track issues and risks
• Manage change requests
• Create detailed reports
• Monitor project performance

Why use Confluence for project management

Confluence sets itself apart as a collaborative knowledge hub to supercharge project management with thousands of templates , plays , and integrations for maximum flexibility and scale.

Consolidate tools and centralize work

With Confluence you have knowledge, task, and project management combined with team collaboration. Embed a Trello board for Kanban-style project management, like Sprout Social . Or, integrate Confluence with Jira  for an Agile approach to project management, like Castlight Health . Jira makes it easy to plan, track, and manage your projects, while Confluence boosts transparency and centralizes your project-related conversations and resources. 

Scale with team and company growth

Confluence is designed to enable project management for technical teams and business teams, as well as for small businesses , remote teams , and enterprise-scale companies . Scale with unlimited instances to provide organizational autonomy, segregate data for security reasons, or customize environments. Confluence also has the security, compliance, performance, and reliability needed to support enterprises, including guaranteed SLA uptimes; data residency in US, EU, Australia, or Germany; and certifications with GDPR, SOC2, and more.

Secure and protect work and knowledge

What happens when a teammates leave your company, does their work leave too? Confluence protects project work from being lost, even if teammates leave a company. You can create permissions, set controls, and assign admins roles.

Analyze and optimize performance

You can’t manage what you can’t measure, right? In combination with Jira , you can track progress, monitor activities, and generate reports to help optimize project processes and workflows.

Project management is the engine powering team productivity. But not all project management solutions are created equal. Find out why more than 85,000 companies use Confluence.

Project management templates

Persona template.

The Persona template helps you create detailed profiles of target customers for marketing and product development, complete with persona names, goals, challenges, and information sources.

Customer journey mapping template

Use this template to understand your customer’s experience with your product, including their emotions and pain points.

Disruptive brainstorming template

This Confluence template will help your teeam generate fresh ideas.

DACI template

Use this DACI template to define each person's role in the decision-making process and make the right call sooner.

Project poster template

If project briefs and project charters aren’t your cup of tea, try this template for a project poster instead.

Key benefits of project management

1. improve collaboration.

We know we need to work with others to meet our goals, yet effective collaboration doesn’t come easy for most of us. There are varying communication styles, different approaches to organization, and so many other factors that make collaboration challenging. 

Project management software gives teams greater visibility into what their colleagues are working on, what deadlines are set, how individual tasks fit into the overall project process, and more. All of this contributes to the greatest benefit of project management software: better and easier project collaboration.

2. Centralize communication

Your team is struggling to communicate with disorganized email threads, direct instant message pings, and comments that get lost in the shuffle. 

That’s bad news (and a big time-waster) for your projects. When team members have too many places to check for information, wires are crossed, deadlines are missed, tasks are forgotten, and confusion builds. 

Project management software keeps all of your communication — from timelines and status updates to feedback and questions — in one single place that’s easily accessible to everyone. This breaks down silos so that everybody can not only share knowledge, but effectively manage how and where they share it. 

3. Streamline task management

For your projects to be delivered successfully, team members need to know which tasks they’re responsible for and when they need to have them completed.

Unclear responsibilities and directions from managers are a big piece of that; working within numerous apps and tools only adds to the mayhem. 

If a team member is assigned a task in one tool but they spend more of their time in another platform, they’ll miss that important notification. Managing your projects in one piece of software patches those holes and also breaks your biggest most overwhelming projects into individual steps and action items. 

From there, you can assign those tasks to the correct team members with a deadline so they’re aggregated in one place, and people will get notified of their new to-dos.

4. Create a single source of truth

Your project management software will be your repository of project-related information. Documents, assets, updates, timelines, meeting notes, and everything else should be stored in your software. (Here’s a handy template for meeting notes to keep track!) Doing so ensures it’s accessible, organized, and searchable. Team members can find what they need without wasting a ton of time digging for the truth. 

5. Boost efficiency

Add all of the above benefits together, and you get the best benefit of all: your team can move work forward faster. A lot faster. 

With project management software in place, your team is communicating well. They know what’s expected of them and what they should get started on next. They can easily locate the information they need.

Working together like a well-oiled machine significantly cuts down on lost time. The Jira project management template helps teams get started faster with tried-and-tested workflows, instead of starting a blank page every time they need to create a new project. 

Now, work no longer drags on and on because your team is equipped with the resources they need to crank out high-quality results at an impressive pace.

6. Track progress

You don’t want to deliver just any project. You want to deliver a project that stays under your budget, honors your timeline, and meets its original goals.

Those important elements are easy to lose track of when you’re up to your eyeballs in project work, and it’s a slippery slope. If you don’t keep a close eye on those limitations and expectations, you’ll struggle with schedule, budget overruns, and wasted effort when team members need to re-do work to get the project back on track.

Project management software organizes your work so it’s simpler to track things like your spend and deadlines. Additionally, you can generate reports to monitor progress as you move forward — rather than realizing too late that you’ve missed the mark.

Why use Jira for project management

Jira  helps teams successfully plan, track, and deliver top-quality products supported by specialized project management apps for Jira .

Centralized reporting

Jira brings all your project data together, allowing you to effortlessly track task completion, identify bottlenecks, and make decisions with confidence.

Real-time updates

Everyone stays in the loop with Jira’s instant updates, ensuring quick reactions and consistent project alignment.

No-code automation

Jira cuts the hassle with simple no-code automation, saving time on repetitive tasks and letting you focus on what matters.

Manage projects with confidence

Steer teams of all sizes toward success and achieve objectives confidently with Jira.

Offering tailored solutions for nonprofits and small businesses

You may also like

Project poster template.

A collaborative one-pager that keeps your project team and stakeholders aligned

Project Plan Template

Define, scope, and plan milestones for your next project

Enable faster content collaboration for every team with Confluence

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What is a Business Plan? Definition, Tips, and Templates

Published: June 28, 2024

Years ago, I had an idea to launch a line of region-specific board games. I knew there was a market for games that celebrated local culture and heritage. I was so excited about the concept and couldn't wait to get started.

But my idea never took off. Why? Because I didn‘t have a plan. I lacked direction, missed opportunities, and ultimately, the venture never got off the ground.

And that’s exactly why a business plan is important. It cements your vision, gives you clarity, and outlines your next step.

In this post, I‘ll explain what a business plan is, the reasons why you’d need one, identify different types of business plans, and what you should include in yours.

Table of Contents

What is a business plan?

What is a business plan used for.

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Purposes of a Business Plan

What does a business plan need to include, types of business plans.

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A business plan is a comprehensive document that outlines a company's goals, strategies, and financial projections. It provides a detailed description of the business, including its products or services, target market, competitive landscape, and marketing and sales strategies. The plan also includes a financial section that forecasts revenue, expenses, and cash flow, as well as a funding request if the business is seeking investment.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Project Management: What Is Project Management?

This guide is brought to you by projectmanager, online project management software used by 35,000+ users worldwide..

What Is a Project?

What is project management, project management history, why is project management important, what are the areas of project management, what are the 5 steps in the project management process, what types of project management exist, what tools are used in project management, project management templates, what are the key project management roles, how to start a project management career, which are the best project management certifications, what is project management software.

A project can be simply defined as an endeavor that involves completing tasks to achieve an objective with a limited set of resources and a finite timeline . Based on this definition, it’s clear that most businesses, nonprofits, governments and other types of organizations execute projects of some sort and therefore, need to implement a project management process.

Project management is a process that allows project managers to plan, execute, track and complete projects with the help of a project team. To do so, they must use project management principles, skills, methodologies and tools to lead team members through each of the project management steps which are known as the project lifecycle.

However, project management can’t be defined in one paragraph. In this guide, we’ll cover the basic concepts you need to know to understand what project management is, the stages of the project management process, different types of project management approaches and the tools you can use for managing projects.

In addition, you’ll need project management software to plan, execute and track projects. ProjectManager , for example, has the project planning, scheduling and tracking features you need to manage timelines, resources, costs and teams in one online tool. Use our Gantt charts, kanban boards, and calendars to create project schedules and assign work with real-time resource availability. Get started for free today.

Project management is closely related to other disciplines including program management and portfolio management. However, while they’re similar, they’re not exactly the same. Here’s how they differ.

What Is the Difference Between Project Management and Program Management?

Program management uses the same principles and techniques as project management, but as its name suggests, it consists of managing programs instead of projects . Programs are a group of related projects that are executed simultaneously to make the most out of an organization’s available resources which presents unique challenges for project management professionals.

What Is the Difference Between Project Management and Project Portfolio Management?

The main difference between project management and project portfolio management is that the latter focuses on prioritizing projects based on the business objectives and strategic goals of an organization.

Now, let’s review the history of project management and explain its importance for organizations in any industry.

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• Project Plan Template

Use this free Project Plan Template for Word to manage your projects better.

Project management as we know it today began taking shape roughly in the 1950s when foundational tools and techniques of project management such as the critical path method (CPM), work breakdown structure (WBS) and the program evaluation and review technique (PERT) were created.

However, the origins of project management can be traced back to 1896 when Karol Adamiecki created the harmonogram, which was the inspiration for the Gantt chart , which was later created in 1910 by Henry Gantt and remains one of the most important project management tools today. The origins of project management are closely related to construction, engineering, scientific management and even military research.

Now that we’ve defined what project management is and where it came from, let’s review how it can be implemented by organizations by reviewing the project management steps.

Related: 25 Free Project Management Templates for Excel

In a nutshell, project management is important because it helps organizations control all the moving parts of projects to bring them to successful completion. These moving parts are known as project management areas, which are key project aspects that must be overseen as projects progress.

Here’s a quick definition of each of the 10 project management knowledge areas, first defined by the Project Management Institute (PMI) in its Project Management Body of Knowledge (PMBOK).

• Scope management : Managing the scope of a project, which refers to the tasks, deliverables and milestones that should be delivered.
• Schedule management : Creating a project schedule and setting guidelines for how it’ll be tracked and maintained.
• Cost management : Estimating project costs to create a budget which is then tracked throughout the project.
• Quality management : Ensuring project deliverables meet quality standards.
• Resource management : Acquiring, allocating and tracking project resources like labor, materials and equipment.
• Communication management : Defining communication guidelines for project teams and stakeholders.
• Risk management : Identifying, evaluating and preventing or mitigating risks in your project.
• Procurement Management : Acquiring project resources and maintaining relationships with vendors and suppliers.
• Stakeholder management : Identifying project stakeholders, and managing them based on their expectations and influence over projects.
• Integration management : Creating a framework that helps project teams work better together.

These project management knowledge areas need to be managed during each step of the project management process.

The project management process consists of five steps or phases that all projects must go through: initiation, planning, execution, monitoring and control and closure. These project management phases are also known as process groups, the project management cycle or the project lifecycle . Let’s review each of these steps.

1. Project Initiation

This is the starting phase where the project manager must prove that the project has value and is feasible through a series of project management documents . Here are the most important ones:

• Business case : A business case justifies the need for the project, project objectives and return on investment.
• Feasibility study : A feasibility study proves that the project can be executed within a reasonable time and cost.
• Project charter : A project charter conveys what the project is going to deliver.

Once the project gets approved, the project manager must assemble a project team and set up a project management office. The project initiation phase ends with a kickoff meeting, which is when project goals and scope are defined.

2. Project Planning

The goal of the project planning phase is the creation of the project plan, a comprehensive project document that explains in great detail how the project will be executed. Here’s a quick overview of the most important sections of a project plan.

• Project schedule : The project schedule defines a timeline for the execution of tasks and resource allocation.
• Project budget : A project budget is the sum of all the estimated project costs.
• Scope management plan : Explains how your project scope will be tracked throughout the project.
• Risk management plan : Explains the risks that might affect the project, along with strategies to mitigate them.
• Resource management plan : Describes how your resources will be obtained, allocated and managed during the project.
• Stakeholder management plan : Identifies all project stakeholders  and the guidelines to manage them.

Project managers often lay out their project plan using Gantt chart software , which provides a visual representation of the entire project schedule and project scope. Some Gantt charts automatically identify critical path activities.

3. Project Execution

The third project management phase is project execution, which is when the project plan is executed to meet the project goals and objectives.

The project execution phase is when project managers need to oversee the project management knowledge areas as their project progresses toward the monitoring and control phase.

Along the way, the project manager will reallocate resources or adjust time and scope as needed to keep the team working. In addition, they’ll identify and mitigate risks, deal with problems and incorporate any changes.

4. Project Monitoring and Control

The fourth project management phase, project monitoring and control, takes place concurrently with the execution phase of the project. It involves monitoring the progress of the project execution activities to ensure the project team stays on schedule and within budget. Quality control procedures are applied to guarantee quality assurance.

Reporting is also a critical part of this project management phase. First, it allows project managers to track progress, and second, it provides data for stakeholders during presentations to keep them in the loop. There are many project management reports such as project status, timesheets, workload, allocation and expense reports.

5. Project Closure

The fifth project management phase is project closure, in which the final project deliverables are presented to the stakeholders. Once approved, resources are released, documentation is completed and everything is signed off on.

Now that we’ve learned about the project management life cycle, let’s look at some project management approaches.

Through the years, many project management methodologies have been developed to adjust to the needs of different industries. Some of these project management types or approaches also work best for projects of certain sizes and complexity levels.

Here’s a list of the main project management methodologies . Click the links for an in-depth explanation of each.

Waterfall Project Management

A linear project management approach, in which stakeholder requirements are gathered at the beginning of the project, and then a sequential project plan is created.

Agile Project Management

An iterative project management approach that doesn’t follow a rigid project plan, but instead short sprints of work called agile sprints.

Scrum Project Management

An agile framework that’s very popular for product and software development.

Lean Project Management (or Lean Manufacturing)

This technique was invented to improve manufacturing processes and became a very important project management methodology through the years.

Kanban Method

Kanban is a widely used project management approach that consists of managing work through visual boards and cards. Kanban boards are used by agile and scrum teams.

Just like kanban or lean, six sigma is a set of tools and techniques that were developed to improve production processes and later became a project management approach.

Critical Path Method (CPM)

The critical path method is a project scheduling technique that allows project managers to estimate the duration of a project, identify task dependencies, float and critical activities.

Critical Chain Project Management

A project management approach that’s based on the theory of constraints and uses resource management as the primary way to execute projects effectively.

PRINCE2 is the most popular project management methodology in the UK, Australia, and European countries. PRINCE2 is very similar to the Project Management Body of Knowledge from the PMI because it provides definitions and best practices for project managers.

There is a wide range of project management tools, both online and mobile, available to manage projects. These are the most essential tools for a project manager:

Project Dashboard

A project dashboard is a project-tracking tool that allows you to monitor your costs, tasks and progress. It’s a very useful tool during project execution because it helps project managers quickly determine whether their projects are on track.

Gantt Charts

A Gantt chart is a visual representation of a project timeline that shows all the project tasks in one graph. Gantt charts are used for project planning, project scheduling, task management and resource management. They work best on waterfall projects.

The Gantt chart is the preferred method used by project managers to schedule their projects. Some tasks are dependent on others before they can start or end, and these task dependencies can create bottlenecks later in the project.

By linking them on a Gantt chart, task dependencies help avoid slowing down the schedule. Projects can be divided by milestones  and diamond symbols, which indicate the end of one phase and the beginning of the next.

Kanban Boards

A kanban board is a task management tool that allows project managers and team members to visualize tasks. Kanban boards are used by agile and scrum teams who work in iterative sprints. They’re easy to use and foster team collaboration.

There are many project management charts and diagrams that project managers use to plan, schedule and track their projects. Here are some of the most commonly used ones.

• Gantt Chart Template
• Work Breakdown Structure Template
• Project Budget Template
• Project Timeline Template

These are just some examples of project management charts. We have a library of project management templates you can use to manage every project phase.

However, while these templates can be very useful, they’re still static documents that can’t match the features that you’d get from project management software such as ProjectManager.

A project works best when project management roles are well-defined. While there are project management methods that require different types of project teams, these are the main project management roles:

• Project manager: As we’ve mentioned above, the project manager is responsible for managing the project management knowledge areas throughout the project.
• Project sponsor: The project sponsor represents the customer of the project. Depending on the organization, there can be different levels of project sponsors.
• Project team members: Team members are skilled professionals who work to contribute to the process of producing deliverables, managing risks and achieving project goals.
• Project stakeholders: This is a person or a group who has a vested interest or “stake” in the project. The project manager must communicate project progress to stakeholders throughout the project life cycle.
• Clients: This is a group or a person for whom the project or a key component of the project is delivered.

Ready to become a project management professional? You’ll need to work on your project management skills and a certification program to become a professional project manager.

Project managers are leaders. They need to motivate their teams as well as plan, monitor and report on their progress. It’s a job requiring many hats. They must have strong project management skills and be able to clearly connect with both stakeholders and the project team.

Additionally, formal project managers are typically certified through agencies like the Project Management Institute (PMI) in the U.S. or PRINCE2 in the U.K. After certification, they’re required to maintain their certifications by acquiring additional project management training to gather a targeted number of Professional Development Units (PDU).

How Much Does a Project Manager Make?

In terms of salary, a project manager can earn anywhere from under $100,000 to close to $200,000 a year. This is dependent on a number of factors, including location, education, years of experience, performance and more.

There are several organizations over the world that provide project management certifications and training. Here are the most popular ones.

• Google project management certificate : Google recently developed this training program in association with Coursera, which teaches all the project management basics.
• PMI certifications : PMI offers numerous project management certifications. Most project managers obtain the Project Management Professional (PMP) certification which is an industry standard.
• Agile certifications: There are plenty of agile project management certifications and training courses. These are a requirement for agile and scrum project managers.
• PRINCE2 certifications: PRINCE2 is the project management framework used in the UK, Australia and Europe. You’ll need specific certifications to participate in a PRINCE2 project.

What Skills Are Needed to Succeed In Project Management?

In addition to certifications, project management positions require a set of soft and hard skills to lead project teams. Project management skills are grouped under two main categories: hard skills and soft skills.

Hard skills are skills that can be acquired by individuals through formal training, such as becoming knowledgeable about project management methodologies, learning how to use project management software or implementing project management techniques.

Soft skills, on the other hand, are skills that people develop over the course of their lives, such as communication skills, problem-solving, time management or work ethic.

Project management software is a platform for managers to plan, monitor and report on projects; it lets teams manage their work and collaborate, too. Watch the video below to see project management software in action:

Choosing the best project management software for your organization isn’t easy as there are many alternatives to choose from. But not all project management software has the same features and, as a project manager, it’s your responsibility to decide which tool works best for your organization.

ProjectManager offers a suite of all the project management tools you need to take your project every step of the way—from initiation through closure. We have the best project planning, scheduling and tracking features.

Project Management Resources

• Work Breakdown Structure
• Project Management Trends (2022)
• Guide to Gantt Charts
• Guide to Project Plans
• Guide to Construction Project Management
• Guide to Program Management

Software Tools

• Gantt Chart Software
• Project Planning Software
• Dashboard Software
• Reporting Software
• Project Management Information System
• Project Management Software for Mac
• Project Management Basics
• Project Management Conferences
• Project Management Framework
• Project Management Principles

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What Is Project Management? Everything You Need To Know

Updated: Mar 22, 2024, 1:47am

Businesses rely on competent project managers to keep their operations running smoothly. These professionals oversee projects throughout their life cycles, ensuring teams stay focused and on schedule. This essential skill set makes project management specialists valuable employees across diverse industries, including construction, technology, finance and manufacturing.

This article gives an overview of what project management is and how to start your project management career , including degree options and recommended certifications.

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What Is Project Management?

Project management uses specific skills to deliver valuable products and services to consumers across various industries. Project managers play a vital role in the construction of new highways, the development of software to maximize business efficiency, and strategies for relief efforts following natural disasters.

Project timelines and goals can vary. Projects are usually broken down into tasks and deliverables, requiring a competent manager to navigate these moving parts.

Degrees in Project Management

Learners can study project management at both the undergraduate and the graduate levels.

Bachelor’s Degree in Project Management

Like most bachelor’s programs, a bachelor’s in project management typically takes four years of full-time study to complete. Most undergraduate project management curricula consist of approximately 120 credits.

Many schools offer standalone bachelor’s programs in project management . Other schools may include project management as a concentration within a bachelor of business administration program. The latter provides a broader business foundation, while the former provides more specialized and comprehensive project management coursework.

Master’s Degree in Project Management

Most project management master’s degrees require students to complete approximately 30 to 45 credits within one to two years. Learners may have the flexibility to pursue these programs on a full-time or part-time basis.

Requirements for master’s programs in project management vary by school, often including case studies, hands-on experience, and projects to mirror the tasks project managers are likely to encounter in their careers.

Project Management Certifications

The project management space values tangible skills and a proven track record. Project management certifications demonstrate expertise and can increase your employment prospects. Certification can even raise your earning potential; the Project Management Institute reports that its Project Management Professional® certification boosts salaries by 33% on average.

PMI administers and awards the certifications listed below. Each option has its own education and professional experience requirements.

Certified Associate in Project Management (CAPM®)

The CAPM credential is intended for entry-level project managers aiming to establish themselves in the field. Candidates must pass an examination covering the fundamentals of project management. CAPM certification is a common first step for people who want to earn PMI’s project management professional certification.

PMI Agile Certified Practitioner (PMI-ACP®)

The PMI-ACP certification is for experienced project managers who demonstrate proficiency in agile principles and techniques. The certification covers agile approaches like Scrum, Lean and Kanban. Candidates must pass a three-hour examination consisting of 120 multiple-choice questions.

PMI Professional in Business Analysis (PMI-PBA®)

The PMI-PBA credential is for project managers specializing in business analysis. These professionals define business requirements and shape outputs and outcomes. Candidates can take the required examination anytime from their home or office.

PMI Project Management Ready™

PMI offers the Project Management Ready certification for professionals who want to apply project management principles across various industries. This credential primarily targets industry newcomers, including high school and college students.

PMI Scheduling Professional (PMI-SP®)

According to PMI, 50% of projects fail to meet the initial agreed-upon timeline. The PMI-SP certification is for professionals who want to master project scheduling to help their teams complete their tasks on time. Candidates must pass a 3.5-hour exam consisting of 170 multiple-choice questions.

PMI Risk Management Professional (PMI-RMP®)

The PMI-RMP credential is for professionals with advanced risk management and large project experience. The certification is a good option for professionals at all managerial levels, from project managers to C-suite executives.

Portfolio Management Professional (PfMP®)

The PfMP designation is for senior-level portfolio managers seeking career advancement. The certification demonstrates advanced competency in portfolio management and the consistent achievement of strategic objectives and high return on investment with portfolios.

Program Management Professional (PgMP®)

The PgMP certification is for professionals who oversee multiple projects for their organizations. To earn this credential, candidates need at least 48 months of project management experience or PMP® certification. Bachelor’s degree holders should also hold 48 months of program management experience within the last 15 years, and those without a bachelor’s need 81 months.

Project Management Professional (PMP®)

The PMP designation is the gold standard for professional project managers, signifying expertise and mastery in the field. Candidates must complete 36 months of professional project management experience within the past eight years, CAPM certification or 35 hours of project management professional development, and a four-year degree.

Candidates without a bachelor’s degree can still qualify for PMP certification with 60 months of professional project management experience. Additionally, all candidates must pass a 180-question exam.

Careers in Project Management

According to PMI , employers must fill approximately 25 million project management roles to meet global demand by 2030. This talent gap makes qualified project managers highly valuable in the current job landscape.

The positions below are some of the roles available to project management professionals. We sourced career data from this section from the U.S. Bureau of Labor Statistics .

Construction Project Manager

Median Annual Salary: $101,480 Projected Job Growth (2021–32): 5% Job Description: Construction project managers oversee construction projects from start to finish. Their tasks may include developing and managing budgets, sourcing and acquiring materials, and making critical decisions regarding the project’s future direction.

Health Services Manager

Median Annual Salary: $104,830 Projected Job Growth (2021–32): 28% Job Description: Health services managers oversee business and administrative activities within healthcare organizations and facilities. They may manage budgets, staffing and company initiatives.

Information Systems Manager

Median Annual Salary: $164,070 Projected Job Growth (2021–32): 15% Job Description: Information systems managers supervise and manage computer activities for their organizations. Their daily tasks may include adding new users, setting policies, providing training, and handling computer-related issues and crises.

Project Management Specialist

Median Annual Salary: $95,370 Projected Job Growth (2021–32): 6% Job Description: Project management specialists oversee projects throughout their life cycles for employers and external clients. Common tasks include managing staff, managing budgets, scheduling, and acquiring resources.

Frequently Asked Questions (FAQs) About Project Management

What is the definition of project management.

Project management delivers valuable products to consumers through a specific set of professional knowledge, skills and strategies. Project managers are vital across various industries including construction, business, healthcare and information technology. 

What is the main purpose of project management?

The purpose of project management is to ensure that organizations can achieve strategic outputs and deliverables. In simpler terms, project management sees that companies accomplish their goals for success.

What are the main types of project management?

Project managers use several approaches and methodologies to ensure project success. Major types include Waterfall, a traditional approach in which tasks are tackled one at a time in a specific order; Agile, in which team members tackle small steps simultaneously; and Lean, which focuses on efficiency. Other paradigms include Scrum and Kanban.

What are the five stages of project management?

The project management field defines five stages of the project life cycle. According to the Project Management Institute’s Project Management Body of Knowledge, also known as the PMBOK®, these stages are initiation, planning, execution, monitoring and controlling, and closing.

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

Download Template

One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

View Sample Plans

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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• Digital transformation

Project planning: What is it and 5 steps to create a plan

• Ben Lutkevich, Site Editor

What is project planning?

Project planning is a discipline addressing how to complete a project in a certain timeframe, usually with defined stages and designated resources. One view of project planning divides the activity into these steps:

• setting measurable objectives
• identifying deliverables
• planning tasks

Supporting plans may encompass human resources, communication methods and risk management .

Enterprises often have an information technology project planning guide that identifies the processes used. Tools used for the scheduling parts of a plan include Gantt charts and PERT charts .

Why is project planning important?

Project planning is important at every phase of a project. It lays out the basics of a project, including the following:

Planning enables project managers to turn an intangible idea into reality. Key purposes of planning include the following:

• facilitate communication and provide a central source of information for project personnel;
• help the project sponsor and other key stakeholders know what is required;
• identify who will perform certain tasks, and when and how those tasks will happen;
• facilitate project management and control as the project progresses;
• enable effective monitoring and control of a project;
• manage project risk; and
• generate feedback useful for the next project planning phase.

What are the components of a project plan?

The three major parts of a project plan are the scope, budget and timeline. They involve the following aspects:

• Scope. The scope determines what a project team will and will not do. It takes the team's vision, what stakeholders want and the customer's requirements and then determines what's possible. As part of defining the project scope, the project manager must set performance goals.
• Budget. Project managers look at what manpower and other resources will be required to meet the project goals to estimate the project's cost.
• Timeline. This reveals the length of time expected to complete each phase of the project and includes a schedule of milestones that will be met.

How do you create a project plan?

Project planning includes the following 10 steps:

• Define stakeholders. Stakeholders include anyone with an interest in the project. They can include the customer or end user, members of the project team, other people in the organization the project will affect and outside organizations or individuals with an interest.
• Define roles. Each stakeholder's role should be clearly defined. Some people will fill multiple roles, however.
• Introduce stakeholders. Hold a meeting to bring stakeholders together and unify the vision behind the project. The topics covered should include scope, goals, budget, schedule and roles.
• Set goals. Take what is gleaned from the meeting and refine it into a project plan. It should include goals and deliverables that define what the product or service will result in.
• Prioritize tasks. List tasks necessary to meet goals and prioritize them based on importance and interdependencies. A Gantt chart can be helpful for mapping project dependencies.
• Create a schedule. Establish a timeline that considers the resources needed for all the tasks.
• Assess risks. Identify project risks and develop strategies for mitigating them.
• Communicate. Share the plan with all stakeholders and provide communications updates in the format and frequency stakeholders expect.
• Reassess. As milestones are met, revisit the project plan and revise any areas that are not meeting expectations.
• Final evaluation. Once the project is completed, performance should be evaluated to learn from the experience and identify areas to improve.

What are the 5 phases of a project?

Projects typically pass through five phases. The project lifecycle includes the following:

• Initiation defines project goals and objectives. It also is when feasibility is considered, along with how to measure project objectives.
• Planning sets out the project scope. It establishes what tasks need to get done and who will do them.
• Execution is when the deliverables are created. This is the longest phase of a project. During execution, the plan is set into motion and augmented, if necessary.
• Monitoring and management occur during the execution phase and may be considered part of the same step. This phase ensures that the project is going according to plan.
• Closing and review is the final Contracts are closed out and the final deliverables are given to the client. Successes and failures are evaluated.

What are some project planning tools and software?

Project planning and project management software facilitate the project planning process. The best tools support collaboration among stakeholders, have intuitive user interfaces and provide built-in time tracking and invoicing.

Some project planning software tools include the following:

• Asana offers different project views to suit a team's preferences.
• ClickUp comes with several Agile -based features, including a custom automation builder that lets users create reusable task templates.
• Freedcamp lets users organize their projects using a Gantt chart or Kanban
• Hive has a template creation tool in the task management feature that speeds up task creation.
• Scoro is a combination of tools and includes customer relationship management
• Trello provides Kanban features, budget management, resource management and progress tracking features.
• Wrike integrates with tools like Jira , Slack and Dropbox.

Learn more about the various tools that help with project management .

Continue Reading About Project planning: What is it and 5 steps to create a plan

• Keep IT project planning on track with 5 principles
• 10 top project management courses and certifications
• RACI matrix for project management success, with example
• Quiz yourself on Agile project management principles
• Project planning, execution, monitoring, and control techniques on large complex programs

Related Terms

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Waterfall vs. Agile methodology: Differences and examples

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IT project management

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The only must-have project documents you need (with 9 templates)

This blog is reader-supported. When you purchase something through an affiliate link on this site, I may earn some coffee money. Thanks! Learn more .

I picked up a project from someone else not that long ago and I was three months into my management of it before I realized there wasn’t a project charter.

There were lots of other documents that all had a degree of overlap with a charter, but not an actual charter. That meant there were some key things missing from the project’s paperwork and the most important thing missing was which budget was going to pay for it .

That was a bit of a headache to sort out.

Project management can create a lot of paperwork, and it’s not always the stuff you want or need. In this article we’ll define what you really need and how to use it.

So, what documentation are we really talking about? Let’s define.

Project Management Documents: A definition

We can define project documents as:

The documentation created by a project manager in order to adequately manage, control and deliver the project.

What project documents do you need?

If you look in the project management standards and methods, you’ll find a ton of documentation mentioned (one article I found said you need 22 “essential” documents!! I’d never get any work done if I wrote that many). Do you really need it all? Honestly, for most projects you don’t.

If you are building a massive Olympic park or a military battleship, then there are higher standards for documentation, but for most projects done in office-based environments by small, medium and even large-ish firms, your time will be best spent on getting the basics right, not on spending hours making the project team review files.

So let’s talk about the essentials.

These are the nine documents that every project needs:

• Business case
• Project charter
• Project plan
• Status report
• Budget tracker
• Lessons learned review/retrospective
• Project closure document

Below, we’ll look at each of these in more detail (don’t worry, none of these have to be huge documents — I’ll tell you now that some can just be an email!) .

I’ve organized the project management documents by phase so you can see the order in which they are typically created. And I’ve pointed out how to get templates for each of those so you don’t have to start from scratch.

As you read through the descriptions and learn more about what these documents are for, have a think about how they might be relevant to your project. Your business case is just a few lines in an email? That’s fine. Don’t create documents for the sake of it. It’s the concept behind the document that is important, not the length of the file itself. As long as they exist, and are written in some way for the archives, then that’s enough.

Ready to dive in? Let’s go.

Get copies of all these project document templates in one easy-to-use bundle with notes and guidance. Created by project managers, for project managers, this set of project document templates will help you manage your projects successfully.

1. Business Case

At the Concept or Idea phase of a project, someone comes up with a bright idea. That is written down into a formal project proposal or business case.

The project business case is the document that kicks off the whole project. It’s written to explain why the project should happen, summarizes the problem the project is going to solve, reviews the cost benefit analysis of doing the work and sets out the project goals.

But here is where my definition of project documentation falls down: the business case is normally written by someone other than the project manager.

So who writes the business case?

In my experience, business cases are put together by the business owner who wants the change — the person who ultimately becomes the project sponsor .

However, it’s far, far easier to manage a project if you have had some involvement at business case stage because you understand the drivers and objectives better.

The business case should be comprehensive and persuasive with enough detail to justify the investment required for the project.

Having said that, the business case could be as simple as an email to an exec asking for permission to go forward with an initiative. If you were building an Olympic stadium, that level of informality wouldn’t be enough.

Be reasonable and pragmatic – there’s no point in creating overkill documentation at this point. It will just make people wary of what admin is to come.

Once the business case is approved, you can move forward into the Project Initiation phase.

2. Project Charter

The most important piece of paperwork in the Project Initiation phase is the project charter document.

You need this: it gives you the authority to act as project manager for the project. It’s your mandate to run the project and it’s the document that turns the project from an idea into an actual program of work, with allocated owners (and agreement on funding).

Without a project charter document, your project doesn’t formally exist!

Templates to help you set expectations, get information, request updates and manage issues. Aimed at Business Analysts but easily customizable for all project roles.

Project charters can be short or substantive. I prefer to use a fully-rounded version that in our terminology we call a Project Initiation Document. It includes everything you need to know about what you’re starting with.

Once you’ve got clarity on what the project is going to do, and the context in which it is going to operate, it’s time to move into the Planning phase.

3. Project Management Plan

There are two project planning documents created in the Planning phase. The first is the project management plan.

This is a huge document. In fact, it’s probably not one document (although I have bundled it together in the project management plan template you can find here ).

In the past I have always managed it as separate documents but together they form ‘The Plan’.

This includes a risk management plan, quality plan, project communication plan, implementation plan, scope management plan, resource management plan and any other subsidiary plans.

Even if these individual documents are short, the overall goal is a comprehensive plan for how the management of the project will happen.

More recently, my projects have been operating under a formal PMO structure, and much of what goes in a project management plan is basically repeating the formal processes.

Note: only create a planning document if you need it

There’s no point creating a plan document just to say, “We do it the way the PMO mandates, just like every other project in this company.” In that case, I have one over-arching project management plan document and it references corporate standards.

The plan covers everything you need to know and do to manage the project including things like managing project tolerances , variances, the change control approach, how you will assess quality and so on.

4. Project Schedule

The second project planning document that is important in the Planning phase is the project schedule.

Frankly, most people say ‘project plan’ when they mean ‘ project schedule ‘.

The project schedule sets out all the tasks, who is going to do them and when they are going to be done. It also tracks dependencies between tasks.

You can use software to organize the project timeline for you. There are hundreds of different project scheduling tools – most organization have something. The trouble is, it might not be perfect for what you want to use it for.

I create project schedules in Microsoft Project, Teamwork and Excel, because I use them for different things.

For communicating top-level milestones, I create a version of the schedule in Microsoft PowerPoint using the Office Timeline plugin .

However you choose to document your project schedule, the important thing is to keep it up to date.

Do you need a work breakdown structure?

Not on every project. A ‘proper’ WBS is a lot of work. If your project is relatively straightforward, you can put your tasks straight into the schedule and build out from there. Subject matter experts will often know what to do without having to breakdown the work into packages. If you’re handing work out to a subcontractor, the WBS and work packages (at least for their part) becomes useful, but a WBS isn’t essential on every project.

5. Project RAID Log

We’re now moving into the fourth phase of the project, the Execution phase. At this point, you’ve got a number of important project documents. The first we’re going to look at for this phase is the RAID log .

RAID stands for:

• Actions (and/or Assumptions)
• Dependencies (and/or Decisions).

I use the term ‘RAID log’ to cover all the different logs relating to the project. That includes all the elements in the list above, plus changes. RAAIDDC is harder to say, though.

It pays to have a register of all these items (especially potential risks and actions — I’m in those tabs of my file nearly every day). Your project RAID log is an important document that lets you can keep track of everything.

Read next: Everything you need to know about RAID in project management.

It’s easier to create than you’d expect as you only really need a few important fields:

• Item ID, so you know what line you’re talking about when you discuss the content with your team
• Item description
• Action required
• Owner: don’t forget this or no one will take responsibility for doing anything about it
• Last updated date.

You can pretty much use that format for all the different sheets and trackers within your RAID log.

A RAID log can be part of your project management software or you can do what I do and maintain a project workbook spreadsheet that includes RAID and a lot more.

6. Project Status Reports

Project status reports are another critical document during the Execution phase. You are busy doing the work, so you need to tell people what work is going on. They also help you track what’s going on.

Project status reports cover a range of different scenarios. You have:

• Formal project board reports
• Weekly information team updates
• Formal reporting to the PMO
• Ad hoc reports whenever a key stakeholder asks for something.

Project managers spend a lot of time reporting.

OK, these are a collection of documents rather than a single document. But they are really important because they’re the mechanism you use to get information to your stakeholders on a regular basis.

Project reports are the formal written record of progress. And if they are any good, your stakeholders should take action as a result of reading them.

7. Project Budget Tracker

Finally for the Execution phase, you have a project budget tracker , another important project planning and control document.

Your project budget is a different sort of document — it includes less text, and a lot more numbers.

However, it helps to have a text-y document to go with the calculations that sets out information about contracts, procurement and the financial processes you’re expected to follow. You can wrap this into your project management plan.

The budget tracker needs to show you what you have forecasted to spend i.e. “the budget” and what you have actually spent. You can then get the spreadsheet to do the heavy lifting and work out the variance.

Variance is the difference between what you forecasted and what your actual spend was.

If you are overspent, you can identify the line items where this has happened. If you are coming in under your forecast, you may have some flexibility to add more items into scope.

Or you may have to hand the money back — different Finance departments and project sponsors will have different priorities!

Bonus: Project benefits tracker

As well as project cost, you can also track project benefits, assuming your project has some that can be financially documented and tracked. I have a tab in my main project workbook that has a benefits tracker, which is updated each month with key KPIs and financial measures.

8. Lessons Learned Review

As we carry on our review of project management documents by phase, we come to the final phase of your project: Closure.

There are two project closure documents that are important at this point in the lifecycle; the first is your lessons learned documentation.

Lessons learned documents might not actually be documents. You could store your lessons learned in a database, Sharepoint site or wiki, or some other searchable format.

Read next: Everything you need to know about lessons learned in project management.

I still produce formal end of project lessons learned documents though, and then copy the key lessons into any other system that requires them.

The lessons learned paperwork forms part of your project closure work. It only becomes a useful reference for future projects if you share it with the people on this team so they’ve got something that codifies the lessons they learned while working with you.

Equally, it should be shared with other project managers or they won’t benefit from what worked and what didn’t work.

9. Project Closure Document

Finally, during the Closure phase you should produce a formal project closure document.

This document summarizes:

• What the project delivered
• How the project performed against time, cost, quality and scope measures i.e. were you late, over-budget or struggling to get a quality result?
• Any outstanding items from the risk register, issues log and actions at the point of closure
• The location of project files
• Anything else the person receiving the handover needs to know.

Of all the documents, this is the most important one to get formally signed off and approved. Without the project sponsor agreeing to the project being closed, the project is not closed.

You’ll end up doing ad hoc work and support for months. (Don’t ask me how I know.)

Choose the documents that work for your project

The most important thing to remember is that this is a guide. Tailor the project documentation you need so that you can best manage your project.

You need a detailed procurement plan? Make one. You don’t need a budget tracker as there is no external spend? Don’t create one and leave it blank; that’s a waste of your time.

Don’t get hung up on what you need to have – just use the above as a guide for what most projects of on-the-larger-side-of-small-but-not-gigantic have.

Less admin time spent creating documents that don’t add value means you can free up more time to lead your team. It’s more important that you do the work on the project. Onerous paperwork is no fun for anyone.

Grab document templates for these nine project documents you’ll be able to control your project without too much bureaucracy.

Project manager, author, mentor

Elizabeth Harrin is a Fellow of the Association for Project Management in the UK. She holds degrees from the University of York and Roehampton University, and several project management certifications including APM PMQ. She first took her PRINCE2 Practitioner exam in 2004 and has worked extensively in project delivery for over 20 years. Elizabeth is also the founder of the Project Management Rebels community, a mentoring group for professionals. She's written several books for project managers including Managing Multiple Projects .

• Project Management

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What is a Project Management Office? A Beginner’s Guide

• Written by Contributing Writer
• Updated on June 24, 2024

Understanding how to organize and optimize workflows is key to a business’s success. However, without a standard process, different teams within an organization may often develop their working methods, which can pose a challenge when collaborating. This is where a Project Management Office (PMO) comes in.

So, what is a PMO? PMOs help organizations streamline project management by building supportive processes, standards, and best practices. They achieve smooth project delivery, ensuring peak resource utilization, cost efficiency, and timely execution.

Keep reading if you want to learn more about a project management office or build your career in this field. This blog will acquaint you with PMO basics. Additionally, we’ll discuss a project management program ideal for those aspiring to advance in this industry.

What is a Project Management Office (PMO)

A project management office (PMO) is a team dedicated to steering project management efforts and maximizing the value an organization derives from its projects. This team can be an internal department or an external entity that supports and oversees all project-related activities. Key functions include project planning, resource allocation, risk management, and performance tracking.

In addition to overseeing project delivery, PMOs ensure that projects are executed efficiently, mitigate risks, and align with organizational goals. They are crucial in ensuring projects are completed on time, within budget, and to the required standards.

Also Read: What is Change Management in Project Management?

What Does a PMO Do?

A PMO’s roles and responsibilities can vary from company to company, depending on its size, structure, and objectives. Irrespective of this, there are some typical tasks a PMO performs, such as:

• Governance : PMOs set standards to ensure projects align with organizational goals and principles. They simplify roles, responsibilities, and decision-making processes for the team.
• Resource Management: PMOs efficiently assign resources, ensuring projects have the necessary personnel, equipment, and materials until completion.
• Project Portfolio Management: PMOs prioritize projects based on goals, resource availability, and risk. They provide insights into portfolio performance and optimize resource use.
• Training and Mentoring: PMOs offer training programs and mentorship to teams to help them upskill and encourage keeping up with industry trends.
• Performance Tracking and Reporting : PMOs monitor project progress and KPIs, providing stakeholders with regular updates and transparent insights for informed decisions.
• Risk Management: PMOs identify, assess, and mitigate risks. They develop strategies and contingency plans to ensure project success.
• Quality Assurance: PMOs oversee quality management to ensure project deliverables meet required standards and satisfy customers.
• Process Improvement : PMOs drive improvement by analyzing performance data, gathering feedback, and streamlining processes to enhance project delivery.

What is a PMO and Why Is it Needed?

A PMO is crucial for organizations to ensure efficient project delivery, alignment with organizational objectives, and optimization of resources. Here’s why an organization needs a PMO:

• Standardization and Consistency: A PMO establishes standardized processes and methodologies for project management, leading to greater consistency in execution. Research shows that organizations that use project management practices consistently have a 92 percent success rate in meeting goals.
• Resource Optimization: According to a report by KPMG, 70 percent of businesses claim they have experienced project failure in the last 12 months. With a PMO, organizations can optimize resource allocation across projects and teams, maximizing productivity and minimizing waste.
• Risk Management: PMOs play a vital role in risk identification and mitigation. While around 60 percent of projects typically have clear risk management plans, 25 percent sometimes lack such plans, and 39 percent occasionally or never establish schedules.
• Improved Project Success Rates: PMOs increase the likelihood of project success by providing governance, oversight, and support to project managers. As of 2020, 89 percent of organizations have deployed at least one project management office.

Also Read: What is Project Scope Management?

How to Create a Project Management Office

Creating a PMO is more straightforward than it seems. Before setting up a PMO, an organization should ask five key questions: what, when, where, how, and why. These questions guide the creation process, much like a journalist’s approach.

#1. What needs to be done?

First, identify stakeholders. They shape the PMO. There are two types of PMO: one acts as a consultant offering training and guidance, and the other is a centralized team overseeing project managers and portfolios. It is important to choose the right fit as both have their pros and cons and yield different results.

#2. When must things be done?

The PMO handles tasks at different project stages, so it is important to set a timeline. This enables PMOs to develop and implement standardized methods for all projects, refining processes to meet standards.

#3. Who must be hired?

A task chart must be drawn out after establishing what a PMO needs from the organization. This chart shows what each person in the team should do and what skills they need. Quality control, planning, and all related risks must be considered when building a team.

#4. What tools must be used?

The PMO must be updated on all fronts of a project and update management as and when needed. A report that combines all projects’ key points and problems helps the organization make big decisions. Here, using a project management tool is key for sharing these details. Collaboration, resource and project management, ease of use, and support availability must be considered when picking the right tool.

#5. How will the PMO’s position in the organization help?

A PMO is expected to manage projects across all spheres of the organization. To ensure consistency, the PMO must align its goals with the organization and work closely with the executive team.

What is a PMO? Project Management Office Structure and Roles

Different types of PMOs cater to various organizational needs, depending on the budget and the level of autonomy required. Here’s an overview of the most common types.

• Supportive PMO : This category of PMO offers guidance, tools, and training to project teams, fostering a collaborative environment. It is ideal for organizations that prioritize flexibility and continuous improvement.
• Controlling PMO: This type takes an active role in governance, enforcing strict standards and processes. This is suited for larger organizations seeking uniformity and accountability in project management practices.
• Directive PMO: PMOs of this kind exercise high control and authority over projects, directly supervising project managers. It is common in industries with regulatory or compliance requirements necessitating centralized oversight.

Types of Jobs in a PMO

A value-centric Project Management Office encompasses various roles, each with distinct responsibilities across the organization.

• PMO Director: The PMO Director, typically a senior-level executive, oversees the entire PMO function. They ensure project objectives align with the organization’s goals and manage effective project execution. The typical salary for a PMO director in the US is $169,693 annually.
• PMO Manager: The PMO Manager is the operational leader responsible for day-to-day management and process implementation. They oversee project managers and ensure timely, budget-conscious, high-quality project execution. In 2024, the average salary for a PMO Manager is $122,469 .
• PMO Analyst : A PMO analyst gathers and analyzes data to assist the PMO manager and project managers in making informed decisions. They create reports and presentations to share findings with project stakeholders. As of April 2024, the average salary for a PMO Analyst is $84,475 .
• PMO Consultant: PMO Consultants provide strategic advice on project governance, process improvement, and organizational change management. They bring in the best industry practices to optimize project management. The typical PMO Consultant in the US earns $92,625 annually.
• PMO Administrator: The PMO Administrator supports the team by handling paperwork, keeping track of resources, and organizing meetings and training. They also help with budgeting and keeping tabs on finances. The typical annual salary for a PMO Administrator in the United States is $106,784.

Essential Skills and Prerequisites for Working in a PMO

Becoming a Project Management Officer isn’t a walk in the park. Companies don’t usually hire newbies for this role. To build a successful career in project management, you need to possess an array of essential skills.

• You must communicate well to build strong relationships with your team and understand how they work.
• Negotiation is crucial. PMOs use it to handle tricky situations, ensuring everyone benefits and vendors are managed well.
• You need to think critically and analyze situations logically. This helps you make fair decisions and solve problems effectively.
• Having emotional intelligence is important. It helps PMOs motivate their teams, show empathy, and be good leaders.
• Understanding your company’s culture is key. PMOs focus on keeping talented employees, helping them grow, managing their performance, and making necessary changes.
• Managing people is a big part of the job. PMOs assign tasks, build trust, listen actively, make decisions, and recognize good work.
• Keeping up with technology is a must. PMOs must know new tools and how they can improve service delivery and project management.
• Knowing how to use project management tools well is essential. PMOs guide their teams in using these tools to smooth project execution.
• It is important to be flexible with project methods. PMOs should be skilled in Agile, Kanban, Scrum, and Lean approaches and adapt them to fit each project’s needs.

Also Read: How to Use Microsoft Access: A Comprehensive Guide

What is a Project Management Office? PMO vs. Project Manager

Want to Build Your Career in a PMO?

Project management is increasingly crucial for organizations today, which is reflected in the soaring demand for these roles. According to the US Bureau of Labor Statistics, project management jobs, including those in PMOs, are projected to grow 6 percent from 2022 to 2032, making it a great time to pursue a career in this field.

To prepare for success, consider enrolling in a project management bootcamp . This course covers the essentials of project management principles, laying the groundwork for excelling in a PMO role. Besides building a solid theoretical foundation, the program will equip you with hands-on training and real-world projects that will add tremendous value to your CV and help you stand out.

You might also like to read:

Unveiling the Project Engineer Job Description: A Comprehensive Guide

Time Management: Unlocking Your Potential through Effective Planning

Best Practices in Project Management Office: How to Achieve Peak PMO Performance

Top Resource Management Tools in 2024

Top Project Portfolio Management Tools for 2024 and How to Choose the Right One

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What Is a Risk Management Plan?

From potential risks to their impact, learn what a risk management plan is and the components needed to create an effective one. Read our guide today.

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Risk management is an intentional, methodical system for cataloging, quantifying, and addressing the potential for future loss across the board. And like so many things in business, it’s easier to succeed in risk management when you have a plan —specifically, a “Risk Management Plan.” 

Consider this article your crash course on the what, the why, and the how of risk management plans.

What is a risk management plan?

Put simply, your risk management plan is your playbook for spotting, preparing for, and responding to risk and risk factors.

The plan can be as narrow as a single project or team, or as broad as a whole global organization. They can be elaborate and complex, or simple and streamlined. Whatever the specifics, it’s a strategy that has been established, recorded, and (hopefully) implemented across the entire domain it covers.

Expert Tip:

No plan can feasibly cover every possible eventuality. No matter how careful or comprehensive, there will always be more contingencies than can be accounted for.

Regardless, nearly any plan is better than no plan. You know, “fail to plan,” and all that. 

In short, no business achieves successful enterprise risk management (ERM) without establishing a risk management plan first.

What is risk management?

Defining risk management plans is difficult to do without at least a baseline understanding of what you’re planning for . Sure, it’s a plan for your risk management. Great. Now, what’s risk management ?

Risk management, often referred to as enterprise risk management (especially when implemented at scale), is a methodology for handling risk and minimizing losses. 

Again, that definition is more concise than it is clear. So let’s dive into some specifics.

Risk management comes in a variety of shapes and sizes. Depending on where you look for a definition, what industry you’re in , and what kind of risks you face, you’ll get slightly different answers regarding what it is, what it should be, and how you should deploy it in your organization. You’ll even see variance in the number of steps. 

However a given expert decides to break up the aspects of risk management in their explanation, what remains the same is the underlying tactics. Here’s an example of what we mean, via a widely-used five-step framework:

• Identify risk
• Assess risk
• Determine risk strategy
• Respond to risk
• Monitor, report, repeat

The process begins with an audit of the risk factors in play, the potential losses, the potential gains tied to the risks, respective probabilities of outcomes, and so forth. In other words, you start by taking inventory of what can be gained, and what can be lost (and the likelihood of either). 

From there, risks are categorized based on how avoidable they are, whether they can be mitigated in any way, if they’re an inherent part of the process, and if there’s any added value in addressing the risks vs. leaving them as is. This evaluation leads to determining strategies and putting them into motion.

Expert Tip :

A business that offers bungee jumping experiences may, for instance, take steps to minimize the risk of injury to participants, but ultimately use waivers to handle the portion of risk that’s baked into the whole concept (as there’s no way to remove the potential for mishap entirely). 

A grocery store, conversely, may accept that carts will be damaged or lost over time, and do little to intervene beyond posting video cameras in the parking lot. 

Finally, effective risk management requires ongoing efforts to monitor and manage risks. This includes both tracking previously assessed risks, and identifying new risks that arise over time. Without this final aspect, there’s no way to tell if efforts are working, and no way to catch emergent risks before they become a problem. 

Now, with that explanation out of the way, we can give a more meaningful description of a risk management plan : the predetermined processes, protocols, and policies that govern the work of risk management, ensuring standardized approaches and consistent results.

The benefits of risk management planning

What’s to be gained from risk management, and more specifically, building a risk management plan? That may seem painfully obvious, but we’ll cover it here anyway for the sake of completeness.

First and foremost, you cannot prevent/protect/avoid/mitigate/anticipate/remediate/etc., etc. what you aren’t aware of. In other words, until you check under the bed, there’s no way of knowing what monsters might be under there, metaphorically speaking, and thus no way to prepare to deal with them. 

Second, nothing in life is completely risk-free. From a quiet evening at home, to the daily commute, to a major business conference, there is risk soaking into every portion of our lives, and there’s no expunging it entirely. The only thing we can do is account for that risk where appropriate. 

We turn off the stove when we’re not using it. We wear seatbelts when we drive. We avoid the guy at the conference who’s hacking and coughing like he’s trying to donate a lung without medical assistance. 

Not all risks are worth modifying our routines, processes, or plans for. Some can be avoided or removed entirely from the equation. And some can be handled sufficiently to render them a non-issue for the most part. But none of that is apparent until you start “looking under the bed.” 

And, because there’s always something under there, it’s best if you have a plan in place that dictates standard operating procedure when you inevitably find something unpleasant during your search.

How to create a risk management plan

We know this is going to sound a bit recursive, but bear with us. How do you create a risk management plan? 

You follow the steps we mentioned above:

Strictly speaking, the “plan” portion constitutes the first three steps, though good plans also outline how risks will be monitored and reported on. 

“What about those organization-wide plans you mentioned?” Glad you asked. Those are usually referred to as “frameworks,” and they are often dictated by the specifics of a given industry or use case. For example, IT, InfoSec, and I&O pros will likely be using a cybersecurity framework when planning for and responding to risks.

Because most of the tactical-level strategizing requires more specifics than such a framework can outline without becoming too cumbersome, it’s almost always left to more focused implementations, such as project-specific risk management plans. That said, the framework will be what sets the standard for how those plans are created and implemented. 

One final detail that’s critical here is the assignment of responsibility. Much as agile project management often identifies product owners, etc., it’s helpful to have someone who is expected to ensure risks are handled appropriately, and who can be held accountable if they’re not. 

After all, the team members who will care the most about the risks are the ones with skin in the game, so to speak.

Creating the right risk management plan for your business

Risk management is a staggeringly extensive subject to cover, and the nuances get pretty nuanced beyond this point. 

Hopefully, though, this has given you a better idea of what some of these terms are referring to, and where you can start looking for more curated information that’s specific to your industry, use case, and circumstances. If not, well, that’s a risk we’ll have to take.

Featured Partners Featured Partners: Project Management Software

Frequently asked questions.

A Risk Management Plan is a documented strategy for identifying, preparing for, and responding to various risks that may impact a project, team, or organization.

What are the core steps involved in risk management?

The core steps in risk management include identifying risks, assessing them, determining a strategy to handle them, responding to them, and continuously monitoring and reporting on them.

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SME definition

Small and medium-sized enterprises (SMEs) represent 99% of all businesses in the EU. The definition of an SME is important for access to finance and EU support programmes targeted specifically at these enterprises.

What is an SME?

Small and medium-sized enterprises (SMEs) are defined in the EU recommendation 2003/361 .

The main factors determining whether an enterprise is an SME are

• staff headcount
• either turnover or balance sheet total

These ceilings apply to the figures for individual firms only. A firm that is part of a larger group may need to include staff headcount/turnover/balance sheet data from that group too.

Further details include

• The revised user guide to the SME definition (2020) (2 MB, available in all EU languages)
• Declaring your enterprise to be an SME (the form is available in all languages as an annex in the revised user guide)
• The SME self-assessment tool which you can use to determine whether your organisation qualifies as a small and medium-sized enterprise

What help can SMEs get?

There are 2 broad types of potential benefit for an enterprise if it meets the criteria

• eligibility for support under many EU business-support programmes targeted specifically at SMEs: research funding, competitiveness and innovation funding and similar national support programmes that could otherwise be banned as unfair government support ('state aid' – see block exemption regulation )
• fewer requirements or reduced fees for EU administrative compliance

Monitoring of the implementation of the SME definition

The Commission monitors the implementation of the SME definition and reviews it in irregular intervals. Pursuant to the latest evaluation, the Commission concluded that there is no need for a revision.

On 25 October 2021, we informed stakeholders by holding a webinar with presentations on the SME evaluation's results and next steps.

Supporting documents

• Study to map, measure and portray the EU mid-cap landscape (2022)
• Staff working document on the evaluation of the SME definition  (2021)
• Executive summary on the evaluation of the SME definition  (2021)
• Q&A on the evaluation of the SME definition  (2021)
• Final report on evaluation of the SME definition  (2018) (10 MB)
• Final report on evaluation of the SME definition (2012)  (1.8 MB)
• Executive summary on evaluation of the SME definition (2012)  (345 kB)
• Implementing the SME definition (2009)  (50 kB)
• Implementing the SME definition (2006)  (40 kB)

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