meaning of key projects

Table of Contents

Definition of project, importance of project management , characteristics of a project, projects vs operations , project boundaries explained , the nature of a project, the project life cycle, phases of the project management life cycle , a project is considered successful when , how to implement a project, types of projects in project management , examples of successful projects, benefits of project management software for better project management , frequently asked questions , choose the right program, what is a project in project management: life cycle, and more.

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Projects are temporary, no matter how many years they last. This is because projects exist to solve particular problems and achieve specific goals efficiently.  

As Joseph M. Juran rightly put it, “A project is a problem scheduled for solution.” 

The size of the project is thus determined by the nature of the problem it is intended to solve. That said, the benefits of project management in organizations go beyond merely keeping within the project’s allocated resources, including timelines, cost, deliverables, and scope. The difference is in the value and efficiency that project management delivers. The project manager is in full control of the project and works to keep all stakeholders on the same page. This accords project teams the opportunity to collaborate on tasks and own the project’s vision and align with it in the course of executing their tasks.

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A project is a combination of set objectives to be accomplished within a fixed period. They are an excellent opportunity to organize your business and non-business goals efficiently. The changes made in the project completion process are expected to perform better. When you work on an office project, it requires experts from different departments to come together. When you are working on a school / college project, you collaborate with fellow students to meet the objective. While working on a personal project, you will be coordinating with your family or friends to accomplish the set objectives. Therefore, we can say one individual can own that project, but it is a group activity. These people are known as project managers .

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Watch the video below that will help you understand the basics of project management.

The importance of project management cuts across different businesses and industries. While the goals and objectives can be achieved in any setting, they are better and more efficiently achieved within a project management structure. Initially, project management was reserved for special projects, for instance, delivering new and/or innovative products or initiating a digital transformation. Today, more organizations, especially the large ones, are adopting project management for the more routine operational tasks to accomplish them more efficiently and deliver higher value.  

Project management involves proper planning, execution, and monitoring. It helps in increasing the chances of achieving optimal results for pre-set objectives. It enables project managers and other stakeholders to analyze the importance of any particular project for an organization and utilize business resources appropriately. In essence, project management helps set the scope, budget, and process of a project accurately.  

What qualifies an undertaking to be a project?  

You may have already worked on a project without realizing it. 

Here are the seven characteristics that define a project. 

Projects are Bound by Time 

As we have already seen, projects are temporary in nature. It means that all projects have defined start and end times within which the project concept is birthed, planned, executed, and delivered. Once project objectives have been met, the project comes to a close. In addition to the time resource, projects are also bound within the constraints of scope, quality, and cost. Project goals are thus formulated within the available resources. 

A few times, however, projects have been terminated before their planned end-time or before their goals have been achieved. This often happens when it becomes clear that the project is no longer viable. 

Projects are Purposeful 

The Project Management Institute (PMI) defines a project as a pool of human and non-human resources in a temporary undertaking to achieve a specific purpose. 

Projects are initiated to accomplish specific objectives against the available resources. After the project’s purpose has been achieved, a project will be brought to a close. The insights that have been drawn from it are documented for reference. As the project progresses through the predefined phases, monitoring and evaluation are done to ensure that the project’s cause for existence and objectives are fulfilled accordingly.  

Projects Progress Through a Life Cycle to Accomplish Goals 

The project life cycle represents the different phases that a project goes through from start to completion. All projects typically go through four phases which are: 

• Initiation 
• Implementation 

Just as projects are limited to available resources, different phases in a project should have resources allocated to them in advance. A project’s requirements may change, which is bound to impact the resources allocated to it. For this reason, project managers ought to ensure that the project is practically flexible to accommodate changes and still remain viable.

In addition, each project phase has part of the resources exclusively allocated to it to enable effective monitoring and evaluation.   

Projects are Unique

By PMBOK Guide standards, projects are temporary and undertaken to create a unique project service or result. Projects are unique in purpose, goals, location, structure, resources, activities, and other project variables to make each project different from the others. 

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Projects are Channels Used to Venture Into the Unfamiliar 

Every project has a level of risk and uncertainty. It is because not much is known about the outcome of activities through the project life cycle until they are actually executed. Hence, projects are usually based on projections of outcomes. However, the level of risk differs from one project to another. This will depend on how well the project is planned and steered through the project life cycle phases, resources available, or the toolset adopted to execute the project, among other factors.  

Projects Require Cross-Departmental Collaboration 

Projects require teams or individuals with different skills, roles, and responsibilities in various departments to collaborate to achieve a common purpose or solution. Collaboration presents immense benefits in project management as it pools together valuable ideas, skills, and expertise needed to deliver value. 

A Project is a Single Entity

Even though a single project will bring together diverse skills, functions, roles, participants, and even disciplines, it remains a single entity. This is because all these components unite towards achieving the project goals. 

Many undertakings that often pass off as projects are more often not projects but operations. This is due to the fact that they do not possess the qualities listed above. 

As illustrated in the table below, operations are usually ongoing undertakings without finite timescale and are not unique owing to their routine nature. 

A project boundary is a definition of the limits and exclusions of the project work. Project boundaries are listed as project boundaries identification in the scope statement. 

Boundaries are important for the project as they will state the things applicable to the project and those out of the project’s limits. This helps the project manager to determine the content of project activities. 

Factors to be considered when identifying project boundaries include:

• Project goals and objectives 
• Project/product scope
• Project phases 
• Project resources 

The nature of a project is optimistic. It is the hope of any project manager that the goals set out for a project will be accomplished and the output results in the betterment of a firm/individual. Projects vary by size, industry, objectives, organization, and output. 

However, the nature of every project, large or small, is to pass through a pre-planned life cycle right from initiation to its completion. 

A project process is divided into five main phases, collectively known as the project life cycle. Given the amount of work that goes into planning an entire project, it is more practical to break the project into phases for effective execution and monitoring. The project life cycle provides a framework within which the project activities and resources are organized into a logical execution sequence for optimal utilization of resources and ultimately the best outcome.  

Each project phase is goal-oriented and will include:

• A list of activities that need to be accomplished during the phase 
• Details of team members and their roles 
• Project deliverables 
• Resources allocated to the specific phase of the project 
• Performance monitoring guidelines

Here is a breakdown of the phases of a project life cycle. 

Project Initiation Phase 

The project initiation phase marks the onset of projects. Typically, a project will be initiated in response to an opportunity that needs to be explored or a problem to be solved. By then, a cost-benefit analysis should have been conducted. 

Part of the cost-benefit analysis includes conducting a feasibility study, defining the project scope, establishing the project deliverables, and the stakeholders involved to build a business case. 

In this phase, the project charter becomes the most critical document as it outlines:

• The vision and mission of the business 
• Goals of the project and the value it will deliver to the business 
• A list of all the stakeholders involved in the project 
• Project scope and budget 
• Anticipated risks 

Once all these details have been verified and the project approved, the project officially kicks off, project teams assemble, and planning begins.  

Project Planning Phase 

During project planning, it is essential for the project manager to understand the project requirements and objectives. The planning phase is the most critical stage for any project as planning impacts the project’s risk and outcomes.  

During the planning phase, a project plan is developed to provide all stakeholders with the roadmap for the project. It outlines all the activities, tasks, timelines, roles, costs, milestones, deliverables, and other dependencies required to execute the project successfully.  

The project plan is crucial during the execution, monitoring, and closing phases of the project as it details not only the project goals and objectives but also the ‘how to’ and the ‘who does what’ during implementation.

The following documents are prepared during the planning phase:

• Scope statement 
• Work breakdown structure (WBS)
• Project plan 
• Project schedule 
• Change request management 
• Communication plan
• Project quality plan 
• Acceptance plan 

Project Execution Phase 

Project planning and execution are two of the essential phases in achieving the goals of a project. The execution phase is typically the longest and takes up the biggest allocation of resources as the actual implementation of the project is done. At this point, controlling the project’s resources, monitoring the project’s progress, and maintaining clear communication among all the stakeholders becomes crucial. 

The project team uses the WBS and the project schedule to execute the tasks outlined in the project plan. Also, frequent team meetings are held to report the project progress, evaluate variances in the project, as well as address change requests, and update the project plan in case of any. 

The project manager ensures that he keeps all stakeholders up to date on the project’s progress through status reports. Communication should be appropriate as indicated in the communication plan. 

Once the deliverables have been produced, the final product delivered and accepted by the customer following the acceptance criteria, the project is ready for closure. 

Monitoring and Controlling Phase 

Even though monitoring and control are intended to check the entire project management process, it is handier during the execution phase. Monitoring and controlling are done to ensure that the project moves in the right direction and within the defined scope. When the project progresses as planned, the risk is minimized.  

Ideally, monitoring the project’s actual performance is compared against the planned performance and the appropriate course of action taken in the event that there is a variance.

Closing Phase 

The project is closed after it has achieved its goals and the product is ready for release and delivery to the client. This last phase is also known as the follow-up phase, where the project manager and the teams come together to discuss the project events and insights in a closing meeting. They will recap the entire life cycle to draw lessons and takeaways from it, identify strengths and opportunities for improvement, and document them alongside other project data for future reference. 

Sometimes, the project is closed before completion, mainly due to failure. 

Simply put, a successful project is one that is completed on time, within the budget, and having achieved its objective(s). 

Here are seven pointers of a successful project. 

• Completed on time or before time 
• Executed within the budget 
• Objectives are met 
• Meets or exceeds the expectations of the stakeholders  
• Arising issues were addressed proactively 
• Output is beneficial to the user 
• Positive feedback from the project execution team about how the project was run 

Project implementation is the process of bringing a project to fruition. The phases of project implementation are:

• Initiation: This phase defines the project objectives, scope, and feasibility. The project manager conducts a feasibility study to determine if the project is viable and if it aligns with the organization's strategic goals.
• Planning: In this phase, the project manager develops a project plan that outlines the project's timeline, budget, and resource allocation. The project plan also includes a risk management plan and a communication plan.
• Execution: In this phase, the project plan is put into action. The project manager coordinates resources and performs the necessary tasks to achieve objectives. The project team works together to complete project deliverables.
• Monitoring and Control: In this phase, the project manager tracks progress, identifies and addresses issues, and makes necessary adjustments to keep the project on track. The project manager also communicates with stakeholders and the project team to ensure everyone is informed of progress and changes.
• Testing and Evaluation: In this phase, the project deliverables are tested and evaluated to ensure they meet the project objectives. The project manager gathers feedback from stakeholders and the project team to identify opportunities for improvement.
• Closure: In this phase, the project manager completes the project deliverables, documents the results, and transitions the project to the operational phase. The project manager also conducts a post-project review to identify lessons learned and best practices.

Though many projects share the same characteristics, they are never the same. As such, they fall into various categories based on different factors. It is important to classify projects as this helps the organization highlight its features and come up with the most appropriate approach to execute them.  

Types of Projects According to Their Source of Funding 

• Public projects whose source of funding is the government or government institutions 
• Private projects that are privately funded by the business or venture capital financing 
• Hybrid projects whose source of funding is both private and public 

Types of Projects Based on Project Content 

• Construction projects are those whose output is an artifact, for example, an IT system development project.  
• Business implementation projects aimed at introducing a new/improvement feature or change in the business systems or processes.  
• Research projects are carried out with the aim of seeking knowledge or insights for decision-making. 
• Procurement projects that establish B2B relationships for the sourcing of products and/or services. 

Types of Projects Based on the Time it Takes to Implement Them 

• Normal projects are those projects that have adequate time allowed to conduct them; as such, they will pass through the project life cycle to produce the expected quality output. 
• Disaster projects are impromptu projects involving very high capital injection with minimal execution time. 
• Crash projects are those projects that incur extra costs to be executed within a short period and project phases will typically overlap. 

Types of Project Management Methodologies

Some main types of project management methodologies are:

• Waterfall Project Management: This style implements the project process in waves, and each step is dependent on its successor.
• Agile Project Management: It involves working in smaller iterative processes and often involves project pivoting.
• Scrum Project Management: It is a faster process and very beneficial for smaller firms. It is done to achieve results quickly. Click here to know more about scrum project management .
• Kanban Project Management: It is a variant of Agile Project Management and is best for large organizations. The tasks are simulated with processes to reduce the number of tasks over time.
• Lean Project Management: Lean Project Management works the same as Kanban Project Management , plus it focuses on customers too. It makes sure that the project is implemented so that the timely delivery of services/goods can be made to customers.

Some examples of successful projects are:

• The UIDAI (Unique Identification Authority of India) was established in 2016. This project was initiated in 2009, and its goal was to bring India's 1.23+ billion citizens under the world's largest biometric system, Aadhaar.
• American Airlines faced problems in technology overlapping when they merged with US Airways. They adopted a project to adapt to the changes and capitalize on their employees to better the business to manage this change. This project helped them a lot to grow.

The purpose of project management software is to help project managers with planning, scheduling, resource allocation and control, change management , document sharing and collaboration, quality management, and more project management functions. The project management software is basically an administration tool that helps project managers execute their duties through the different phases of the project life cycle.  

1. What is a Project in Project Management?

A project in project management is a temporary and unique endeavor that aims to achieve specific objectives within a defined timeframe, budget, and scope. It involves planning, executing, and controlling resources to deliver a desired outcome that meets stakeholder expectations.

2. What is Change Management in Project Management?

Companies will, from time to time, introduce new systems or processes as outcomes of initiated projects. These changes affect the usual way of operations and often have an impact on human resources. Change management is thus a structured way of managing these changes to help people transition from the previous to the new status by positively adapting to the new systems and processes. This enhances business performance and helps the organization attain its strategic goals. 

3. What is Agile Methodology in Project Management?

An agile methodology is an approach through which a project is broken down into several phases to be executed iteratively. This approach emphasizes the continuous development and improvement of product features through incorporating feedback after every iteration and changes in requirements to deliver high-value products. 

4. What is Cost-Benefit Analysis in Project Management?

Before a project is initiated, it is important to perform a cost-benefit analysis for the product or service being built. A cost-benefit analysis (CBA) is the process by which an evaluation is done to check the costs of an undertaking versus its benefits. Using the CBA, all possible expenses and benefits of the undertaking are listed then the following values are calculated to ascertain its viability.

• Return on investment (ROI)
• Internal rate of return (IRR)
• Net present value (NPV) 
• Payback period 

5. What is Cost Management in Project Management?

This is the process by which a project’s costs are planned, budgeted, and controlled through the various phases of the project lifecycle. This enables the proper utilization of resources and the project teams to achieve project goals within the cost allocation put in place. 

6. What is Cost Variance in Project Management?

Cost variance refers to the comparison between the planned and actual project budget. This is done by calculating the difference, in other words, variance, between the BCWP (budgeted cost of work performed) and the ACWP (actual cost of work performed).  

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Project management is a broad multidisciplinary yet specialized field that employs temporary undertakings to initiate profitable change to the organization. It is certainly one of the most exciting and fulfilling careers to pursue. You can learn all about 'what is a project' and project management with PMP® Certification Training  courses from Simplilearn. To take your career to the ultimate level, you can apply for our PG Program with the University of Massachusetts, where you will learn tools and digital skills that will help you lead and manage complex transformational projects and become a digital-age project leader. Start the amazing learning journey now!

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What is a Project? - Characteristics and Examples

A project is a temporary venture to produce a new and unique deliverable . A deliverable could be a tangible product, a service or achievement of a required outcome. stakeholdermap.com

Characteristics of a project

1. It has a start and a finish

2. it creates something new, 3. it starts with an idea, which is turned into something, 4. it isn't business as usual, projects still follow processes, project management processes, product processes, examples of projects compared to operations or business as usual, railway project example - crossrail.

Railway Operations example - Running stations, maintaining tracks

Project - Designing a new car

Operations – The production line building the car

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12 vital project management principles

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Successful project management is a critical activity at every company. Every major business activity is made up of one or more projects.

To deliver maximum business value and user satisfaction, project management requires much more than a spreadsheet, a RACI chart , or occasional meetings. All phases of every project must be supported by a clear, consistent, and transparent decision-making process and effective, efficient collaboration across multiple roles and teams. 

The best project management efforts are built upon a core set of governing principles. This guide describes 12 critical principles of project management that provide a structured yet flexible framework and foundation for collaboration. These principles promote effective planning and execution of projects and ensure consistent project management success. 

What are the 12 essential principles of project management?

A successful project management plan provides all the information needed to carry out a project from inception through completion and evaluation.

Regardless of your methodology, your approach must successfully address project requirements, stakeholder expectations, and business needs and goals. Adhering to the following 12 essential project management concepts can help assure your project’s success.

Establish the project structure

A project is larger in scope than a typical task or activity. Structure your project in a manageable, understandable way that is easy for the project management team and stakeholders to evaluate.

Define project goals and objectives

Defining the goals and objectives of your project is essential to establishing its structure and gaining support from project management team members and stakeholders. Articulate the goals and specific objectives of the project clearly, and ensure these align with the company's overall objectives.

Identify a project sponsor

Sponsor support is crucial to the success of a project. A project sponsor can provide enthusiastic assistance and helpful guidance for the project. Sponsors also can garner additional support and resources from multiple stakeholders and teams as necessary.

Form roles and responsibilities

Roles and responsibilities will vary depending on business requirements, stakeholder expectations, available people and resources, and other factors. Define these roles clearly to ensure effective collaboration and avoid duplication of efforts and unaddressed project needs.

Ensure team accountability

Foster a culture of accountability within your team. Implement ways to track and measure individual and collective responsibility.

Manage project scope and changes

Adaptability is key throughout a project’s life cycle. Goals, needs, expectations, available people, and resources are subject to change at any time throughout a project’s life cycle. Every project management plan must include a robust strategy and clearly defined processes for managing project scope and dealing with changes.

Create a risk management plan

Risks can quickly threaten the project, if not the business itself. Project management plans must include comprehensive steps for identifying, assessing, and mitigating project risks. Regularly review and update the risk management plan as the project progresses.

Monitor progress

The project management team should monitor progress at every stage of every project. Establish key performance indicators (KPIs) to help measure progress toward established goals. Your project management plan must also include a system for regularly tracking, assessing, and reporting project progress.

Focus on effective value delivery

The goal of every project is to deliver value to stakeholders and to the business as a whole. Give the highest priority to tasks that contribute to the project's success. Include methods and tools that enable your team to continuously assess and adjust priorities based on stakeholder needs and project objectives.

Establish a performance management baseline

Effective performance management is key to project management success. Establish a performance management baseline to evaluate and track team and project performance. Use performance metrics to identify areas for improvement and recognize achievements.

Finalize the project

To close out your project successfully, complete all the necessary tasks defined in your project plan . Ensure that all deliverables meet quality standards. Obtain necessary stakeholder and management approvals.

Examine successes

Reflect on the project’s successes, and highlight the key factors that contribute to positive outcomes. It’s equally important to document lessons learned to inform future projects and sustain continuous improvement .

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Project management principles: Frequently asked questions

What is agile project management.

The Agile project management methodology combines the sprints of Scrum with the continuous information sharing and feedback of Kanban. It focuses project management teams on continuous improvement and delivering value to stakeholders. It's flexibility and cross-functional team support make Agile highly effective for managing projects subject to change.

What are common challenges in project management?

All project management efforts face similar challenges, such as:

• Scope creep. As a project proceeds, needs, requirements, stakeholder desires, and external influences can also change. These changes can cause deviations from the original plan. They can also lead to budget overruns, delays, and disappointed stakeholders. A detailed plan with a well-defined project timeline and regular communication with stakeholders can help minimize or eliminate scope creep. 
• Unrealistic deadlines. Overly ambitious deadlines can lead to missed milestones. Project managers must balance what stakeholders want and what is achievable with the available resources. 
• Insufficient resources. Every project must deal with limited availability of money, time, and talent. Realistic, conservative budgets and accurate cost estimates can help, but teams should expect to face resource constraints beyond their plans and forecasts.
• Poor communication. Ineffective communication can lead to misunderstandings, unclear and unmet expectations, additional work, and missed deadlines. Consistent communication can help you avoid scope creep and manage stakeholder expectations.
• Change and risk management. Project management plans must include well-documented risk identification and mitigation processes and adaptation to sudden changes. This can help minimize project disruptions and delays.
• Monitoring, evaluating, and documenting progress. Consistent monitoring and evaluation can keep projects on track and identify challenges before they become problems. Documentation of monitoring efforts and evaluations can help keep team members and stakeholders informed and engaged.

What are the different project management methodologies?

Here are some of the methodologies most widely used for project management.

• Kanban: Kanban focuses on the visualization of tasks and progress. It relies on a shared physical or digital whiteboard typically divided into columns, each labeled with a stage of the workflow —To Do, In Progress, and Completed, for example. Kanban’s visual approach means everyone can see and follow the work as a project progresses. This keeps everyone informed and aligned with each other and the project objectives. Kanban can also help teams be more adaptable and flexible in the face of changing needs or priorities.
• Waterfall: Waterfall project management is more linear and sequential than other methods. Waterfall projects typically have well-defined requirements for planning, design, development, testing, and deployment. Waterfall projects demand strict adherence to plans and close alignment with declared requirements and objectives.
• Scrum:  The Scrum methodology includes a highly structured framework. It defines specific team member roles and the length of each work cycle or sprint. Teams hold daily meetings to review progress and map upcoming sprints. This methodology is well-suited for complex projects and active stakeholder involvement.

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What is a Project? – Definition, Lifecycle and Key Characteristics

If you’re a project manager, developer, or anyone else who works on completing goals, then you’re familiar with the definition and essential characteristics of the project. However, project definition is often used in different contexts and can mean something different to each project management professional.

But one thing that everyone agrees on when it comes to the meaning of “project” is that every project initiative defines a final deliverable to be produced in a finite period and budget, unlike a continuous process.

An individual or organization involved in projects needs to understand how to solve the complexity of problems through a systematic management approach. In this article, we’ll define the terms “project” and “lifecycle,” describe the critical characteristics of a project, and explain how to distinguish a project from an activity.

What is a Project? – The Definition

Project  is an excellent opportunity for organizations and individuals to achieve their business and non-business objectives more efficiently through implementing change. Projects help us make desired changes in an organized manner and reduce the probability of failure.

Projects differ from other types of work (e.g., process, task, procedure). Meanwhile, in the broadest sense,  a project is defined as a specific, finite activity that produces a visible and measurable result under specific preset requirements .

It attempts to implement desired change in an environment in a controlled way. By using projects, we can plan and do our activities, for example:

• Build a garage.
• Run a marketing campaign.
• Develop a website.
• Organize a party.
• Go on vacation.
• Graduate a university with honors or whatever else we may wish to do.

A  project is a temporary, unique, and progressive attempt to produce a tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks planned for execution over a fixed period and within specific requirements and limitations such as cost, quality, performance, etc.

The Key Characteristics of a Project

As follows from the given definition, any project features these characteristics:

• Temporary . This fundamental characteristic means every project has a finite start and end. The start is when the project is initiated and its concept is developed. The end is reached when all project objectives have been met (or unmet if it’s evident that the project cannot be completed – then it’s terminated).
• Unique Deliverable(s) . Any project aims to produce some deliverable(s) which can be a product, service, or another result. Deliverables should address a problem or need to be analyzed before the project start.
• Progressive Elaboration . With the progress of a project, continuous investigation and improvement become available, allowing more accurate and comprehensive plans. This fundamental characteristic means that successive iterations of planning processes develop more effective solutions to progress and develop long-term projects.

In addition to the listed characteristics, a  conventional project  is:

• Purposeful as it has a rational and measurable purchase
• Logical as it has a particular lifecycle.
• Structured as it has inter-dependencies between its tasks and activities.
• Conflict as it tries to solve a problem that creates some friction.
• Limited by available project resources.
• Risk as it involves an element of change with a negative impact.

Below are some examples of projects:

• Digging a well for the extraction of a natural resource in Nebraska
• Building a wooden house somewhere in Spain
• Developing a cloud-based marketing platform for startups
• Establishing a non-profit organization for COVID-19 relief and recovery efforts
• Renovating the kitchen
• Organizing a project meeting  with critical stakeholders
• Running a marathon … (anything you don’t repeat often).

No matter how big or small your project is, you can benefit from using editable project templates ― pre-formatted, reusable outlines that are a starting point for planning new work.  Templates  enable you to set up to-do’s, budgets, project schedules, reports, and other formal documents without starting from scratch.

Project vs. Activity

If you need clarification on “ project versus activity, ” let us explain the differences in the following list.

• Project is an all-encompassing term that helps you organize multifaceted tasks and manage multiple resources.
• Activities are particular types of tasks categorized based on the kind of work involved, the purpose, and constraints.
• A project is a lifecycle event, while an activity is a discrete unit of time or task that complements the scope of project planning.
• Projects have tangible deliverables or products and measurable outcomes, unlike activities and routine operations that don’t.
• Projects are temporary, but activities are ongoing and continuous.
• Projects usually have a number of activities, while single tasks in an activity or multiple tasks within an activity do not represent a project.
• Activities are sequential and sequential activities can be part of a sub-project.

Project Work Breakdown Structure

In project management, the work breakdown structure (WBS) defines a deliverable-oriented hierarchical decomposition of all the essential work to be executed by the project team to accomplish the desired objectives and create the required deliverables. It’s made up of separate activities organized as packages or phases.

It’s an organized and systematic way of illustrating a project to increase clarity. The primary purpose of the WBS is to describe what work needs to be done and how it fits within the project context. Identifying the tasks for successful project completion is essential, so you can clearly understand what activities should be accomplished by specific dates.

A WBS serves as a basis for finding the critical path and developing a network diagram that captures the flow of work needed to accomplish the project objectives.

• Program  – a broad, long-term objective that is often decomposed into a series of projects and sub-projects
• Task  – an identifiable and measurable activity that creates a small unit of work for a related project
• Work package  – a division of a project task
• Work unit  – a division of work packages

Projects, programs, tasks, work packages, and units are the elements of the  work breakdown structure  or WBS. Often WBS is used to determine an activity-based hierarchy of projects regarding their deliverables and objectives.

A program includes several or larger projects. A larger project can be broken down into smaller interrelated sub-projects. Each can be divided into tasks that are decomposed into complementary activities or sub-tasks. A task includes a series of smaller goals that are monitored against milestones.

Project Lifecycle: Common Phases

The concept of the lifecycle is fundamental in project management. It describes a project’s phases over time, from initial launch to completion and termination.

The project lifecycle includes an organization’s activities to produce the final product. Therefore, these activities should be considered equally important and referred to as “steps” or “phases.”

The value of project lifecycle management is that it defines what key stakeholders should be focusing on:

• In each phase, progress the project to its subsequent development step.
• Associated risks and challenges.
• Effective leadership styles, team dynamics, and strategies support project success.

Depending on the company and the  chosen method of project management , the project lifecycle can include these typical phases:

•   Conducting a feasibility study  is a phase meant to determine the viability of a project. The primary purpose of this phase is to identify the proposed project’s strengths, weaknesses, and opportunities.
• Establishing the project requirements  — identifies functional and technical requirements for producing a desired outcome or benefit. Defining project acceptance criteria usually include in this step.
• Developing the project scope  defines what has to be done for the product, who will do it, and how it will be done. This stage is also where the high-level project objectives should be defined.
• Creating the schedule  and the budget  — also called “ project baseline ” refers to the detail of the project timeline and the estimated budget, including dates and periods of each activity and the costs to be covered. It also includes time buffers for contingencies to avoid delays in the start or delivery of the product.
• Creating the project plan  — planning, organizing, and scheduling the work assigned to a project is known as project planning. Its main aim is to ensure that the activities required to create and deliver a product are put in place following the allocated budget and deadline.
• Executing project work  — it is also known as project implementation. The primary purpose of this phase is to ensure the completion of all activities and tasks following the project plan.
• Controlling and reporting  — this phase consists of tracking progress, changing circumstances and risks, identifying issues, plus monitoring the work performed during project execution. It can notify managers in the case of any deviation from the plan.

Predictive and Iterative Project Lifecycles

Most project management lifecycles can be of two types: predictive and iterative.

The  predictive lifecycle  is suitable for projects where the deliverables should be completed within a predefined time frame and budget. For instance, here are the five phases of the predictive lifecycle (the waterfall methodology) according to The PMBOK Guide by the Project Management Institute (PMI):

• Monitoring and Control

The predictive lifecycle is used in situations when you can estimate the average time required to complete every phase in your project. This makes it easy for managers to estimate the total time and cost that will be involved in completing the project successfully. However, this approach does not allow for identifying factors that might prevent you from achieving your goals on time and within budget.

The  iterative lifecycle , sometimes called the spiral lifecycle, is suitable for situations when you cannot accurately estimate the time and cost to complete every phase or activity.

The iterative methodology is suitable for those types of agile projects that have to deal with uncertainties, frequent changes in requirements, and other unforeseeable problem-solving activities.

Below are the six standard stages of the iterative lifecycle (Scrum, Extreme Programming, Agile approach):

• Maintenance

Project Management in Business

Startups and mature companies widely use project management to complete complex tasks and business objectives. It is used for planning, organizing, and controlling business projects that guide an organization’s growth.

Business project management is a systematic approach to planning, organizing, and controlling the work of one or more people and divisions within an organization to achieve a specific business aim. It is usually carried out using project management tools and techniques to achieve a particular business goal.

A business project can be aimed at developing a new product or service that will either fill a gap in the market or create a unique niche for your company.

Say you want to develop a new generation of mobile phones, then it is an R&D project management task within your business operations.

Or, you want to build a computer program to speed up the process of resolving life-chat queries in your customer support department. Then you have to plan and organize its development as a software project.

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Project Management

What is project management: definition, types, key features & more.

Michael Sanders

November 7, 2023.

Ever wondered “what is a project" and how do great projects come to life? Hint: it’s not magic. It’s all about project management - the secret sauce that turns ideas into reality and keeps teams running like well-oiled machines. But what exactly is project management, and why is it so crucial for success? Buckle up, because we’re about to take you on a whirlwind tour of the world of project management, from its core concepts and phases to the tools and methodologies that make it all happen.

In this blog post, we’ll dive into the intricacies of defining a project, discuss the importance of project management, explore the project life cycle and its phases, and investigate different types of projects and project management methodologies. We’ll also delve into the roles and responsibilities in project management and the essential project management tools and software that keep everything on track. Ready to become a project management pro? Let’s get started! 🚀

Key Takeaways

• Project management is an essential process for keeping projects on track, meeting goals and controlling elements like cost, risk & quality.
• Agile & Lean PM are powerful approaches to managing projects that focus on efficiency and delivering value.
• Project managers must understand their roles and responsibilities while team members need a variety of skills, all aided by the right project mgmt software!

Defining a Project

Imagine embarking on a journey - a temporary and unique endeavor with a definite beginning and end, a clear goal, and a set of constraints and boundaries. Welcome to the world of projects! According to the Project Management Institute (PMI), a project is a “one-of-a-kind, limited-time mission with a definite goal, timeline, budget, and scope, which follows the project management life cycle.” Think:

• Construction projects
• Software development
• Marketing campaigns
• Research projects

Each project has its own unique features and challenges, but successful projects share common traits that help them overcome these obstacles.

Initiating a project requires resources such as labor, materials, and equipment. An efficient project management body also plays a vital role in organizing and managing these resources. Team collaboration is also vital for getting things done - that’s where project management methodologies like Agile and Lean come into play, enhancing team collaboration and improving project outcomes.

Unique Features

Every project has its unique features that set it apart from business-as-usual operations. For instance, projects have:

• A well-defined timeline, with a clear start and finish line
• Purposeful objectives that provide direction and focus, align the project with organizational goals, and help track progress and measure success
• Collaboration, specifically effective cross-departmental collaboration that brings together diverse ideas, skills, and expertise to create something truly special.

A project distinguishes itself through:

• A clear timeline
• Ambitious goals
• Comprehensive processes

The International Project Management Association sets standards and provides certifications to ensure project management excellence, so you can be sure that these unique features are well taken care of.

Constraints and Boundaries

Projects don’t exist in a vacuum - they’re bound by constraints like time, scope, and cost (the three biggies of project management). These constraints help to keep the project on track and ensure that it delivers the desired outcome. Project boundaries, on the other hand, define what activities are included in the project and what’s out of scope. This helps the project manager identify exactly what needs to be done to achieve the project objectives.

Essentially, projects function within certain constraints and have distinct boundaries that dictate project activities and exclusions. Understanding these constraints and boundaries is crucial for effective project management, as it helps to set realistic expectations, allocate resources effectively, and monitor progress throughout the project’s life cycle.

Importance of Project Management

Project management serves as a cohesive force, ensuring timely completion of projects within the defined scope and budget. It’s essential for hitting targets, setting realistic expectations, and tackling issues like allocating resources, managing risks, and keeping stakeholders in the loop. The three essential goals of project management are time, quality, and cost - which are also known as the triple constraints of project management.

Beyond these goals, project management employs diverse control systems to facilitate successful project completion. Control systems encompass a variety of elements, such as:

• Communication
• Procurement
• Human resources management

Combined, they ensure the effective planning and implementation of projects. With an effective project management system in place, organizations can better utilize resources, minimize risks, improve communication, and ultimately achieve the project’s objectives.

Benefits of Effective Project Management

Effective project management brings a host of benefits including:

• Enhanced productivity
• Risk reduction
• Improved communication
• Punctual project delivery
• Optimal resource utilization

Effective project management also helps to align project outcomes with business strategies through Business Relationship Management (BRM) practices, ensuring that the project and organization’s goals are in perfect harmony.

Adopting effective project management practices significantly contributes to project success, irrespective of your geographical location. In short, the benefits of effective project management are numerous and far-reaching, ultimately leading to successful project completion, improved team collaboration, and better resource utilization.

Challenges in Project Management

As with any endeavor, project management presents its own set of challenges. These can include managing risks, ensuring clear communication, and adapting to changes in project scope or requirements. To overcome these challenges, project managers need to be adept at evaluating alternatives, weighing risks, managing resources, assessing project delays, and choosing the best course of action.

Of course, overcoming these challenges isn’t always easy - but with the right skills, savvy strategies, and effective communication, project managers can navigate these hurdles and ensure the successful completion of their projects. In the end, the ability to tackle these challenges head-on and adapt to changing circumstances is what sets great project managers apart from the rest.

Project Life Cycle and Phases

The project life cycle provides a comprehensive approach to managing a project from inception to completion, facilitating efficient resource use and optimal results. It consists of five main phases: initiation, planning, execution, monitoring and controlling, and closing, each with distinct tasks and objectives. By following the project life cycle, project managers can ensure that their projects stay on track, meet their objectives, and ultimately achieve success.

A thorough comprehension of the project life cycle and its phases is fundamental to proficient project management, as it provides a structured framework for managing projects and helps to keep everything on track and organized. Whether you’re managing a small personal project or a large-scale public project, following the project life cycle can help you achieve your objectives and ensure the successful completion of your project.

The initiation phase is the starting point of any project, setting the stage for success by:

• Defining the objectives and potential pitfalls
• Identifying the stakeholders and deliverables involved
• Exploring opportunities
• Defining the project scope

During this phase, project managers work to identify the necessary stakeholders and project deliverables needed to achieve the project’s objectives.

The initiation phase plays a pivotal role in preparing the foundation for a successful project, as it helps to establish a clear vision and direction for the project and ensures that all stakeholders are on the same page. By taking the time to carefully plan and prepare during the initiation phase, project managers can set the stage for a successful project and ensure that all the necessary elements are in place for a smooth and efficient project life cycle.

The planning phase is the cornerstone of project management. During this phase, project managers develop a detailed project plan, which serves as a roadmap for the project’s life cycle. This plan includes information about:

• Risk management strategies

This helps to ensure that every aspect of the project is carefully considered and accounted for.

One key aspect of the planning phase is breaking down tasks into smaller, more manageable activities, also known as a Work Breakdown Structure (WBS). This approach makes it easier to keep project risks, costs, quality, and time in check, ensuring that every aspect of the project is carefully managed and monitored.

Devoting time and effort to the planning phase enables project managers to pave the way for a successful project with every aspect meticulously planned and executed.

The execution phase is when the project plan springs into action, characterized by resource allocation and task distribution among team members. This phase is all about getting things done - following the project plan, allocating resources, and keeping stakeholders informed of progress. As the project progresses, the project manager is responsible for monitoring progress, making adjustments as needed, and ensuring that the project stays on track and within its defined scope.

The execution phase is where the rubber meets the road in project management. By carefully following the project plan and adapting as needed, project managers can ensure that their projects progress smoothly and efficiently, ultimately leading to the successful completion of the project.

Monitoring and Controlling

The monitoring and controlling phase focuses on:

• Tracking the project’s progress
• Ensuring it adheres to the outlined parameters
• Reviewing the project’s progress
• Comparing it to the defined scope and planned performance
• Making adjustments as needed to ensure that the project stays on track.

In addition to monitoring progress, project managers also need to keep a close eye on the various project components, such as:

• communication

By carefully monitoring and controlling these components, project managers can ensure that their projects stay on track and meet their objectives, ultimately leading to the successful completion of the project.

Marking the end of the project and its life cycle, the closing phase signifies the culmination of the project management process. During this phase, project managers wrap up any remaining tasks, document lessons learned, and evaluate the project’s success. This final phase is an opportunity for the project team to reflect on their experiences, identify areas for improvement, and celebrate the successful completion of the project.

The closing phase is an essential part of the project management life cycle, as it helps to ensure that all loose ends are tied up and that the project is brought to a successful conclusion. By carefully managing and documenting the closing phase, project managers can:

• Learn valuable lessons that can be applied to future projects
• Improve their project management skills
• Increase the likelihood of success in future endeavors.

Types of Projects and Project Management Methodologies

Projects can greatly vary in size, ranging from small tasks to large initiatives. They can be classified according to industry, source of financing or project management technique. Some common examples of project types include IT, construction, biotechnology, and public projects. To manage these diverse projects effectively, project managers often rely on a variety of project management methodologies, each with its own unique approach and set of principles.

Agile and Lean are two widely used project management methodologies. Each of these project management methodology offers its own unique approach to managing projects, with Agile focusing on iterative development and continuous improvement, and Lean aiming to reduce waste and improve efficiency by streamlining processes and focusing on delivering value. By understanding and selecting the most appropriate methodology for a particular project, project managers can increase the likelihood of success and ensure the best possible outcomes for their projects.

Agile Project Management

Agile project management emphasizes:

• Adaptability
• Swift, consistent delivery of value
• Iterative development
• Each iteration resulting in a working product or deliverable that can be reviewed, tested, and improved upon

This approach allows project teams to adapt to changing requirements and priorities, ensuring that the final product meets the needs of the stakeholders and end-users.

Some of the key principles of Agile project management include:

• Providing customer satisfaction through regular software delivery
• Embracing changing requirements even late in the project
• Delivering valuable software quickly and consistently
• Collaborating with customers and stakeholders throughout the project

By adopting an Agile approach, project managers can improve their ability to respond to change, increase the quality of their deliverables, and ultimately achieve better project outcomes.

Lean Project Management

Lean project management focuses on maximizing efficiency and minimizing waste. It aims to streamline processes and focus on delivering value by eliminating unnecessary steps and activities that don’t contribute to the project’s objectives. Lean project management is rooted in the principles of the Lean manufacturing methodology, which seeks to minimize waste and improve efficiency at every stage of the production process.

The core tenets of Lean project management involve:

• Uncovering value
• Tracing the value stream
• Establishing flow
• Implementing pull
• Pursuing perpetual improvement

By adopting these principles, project managers can reduce waste, improve efficiency, and ultimately deliver better value to their customers and stakeholders.

In a world where resources are often scarce and time is of the essence, Lean project management offers a powerful approach to managing projects and achieving success.

Roles and Responsibilities in Project Management

Several key roles and responsibilities must be fulfilled in any project to guarantee its success. At the heart of every project is the project manager, who is responsible for overseeing every aspect of the project, including:

• Planning and scheduling
• Delegating tasks
• Ensuring effective collaboration among team members
• Keeping the project on track and within its defined scope

The project manager is the driving force behind the project, ensuring that all team members are working together effectively and that the project stays on track and within its defined scope.

In addition to the project manager, there are also the team members who play a crucial role in executing tasks and contributing their expertise to the project. These team members collaborate and work together to achieve the project’s objectives, lending their skills and knowledge to ensure the project’s success. By understanding and fulfilling their roles and responsibilities, project managers and team members can work together more effectively, ultimately leading to better project outcomes and greater success.

Project Manager

The project manager serves as the keystone of any project, responsible for:

They are the driving force behind the project, ensuring that all team members are working together effectively and that the project stays on track and within its defined scope. The project manager’s role is crucial to the successful completion of the project, as they are responsible for coordinating all aspects of the project and ensuring that the project’s objectives are met.

Some of the key skills and competencies required of a project manager include:

• Decision-making
• Strategy development
• Team management
• Business acumen
• Technical competence
• Critical thinking

By mastering these skills and competencies, project managers can ensure that their projects are well-managed, well-executed, and ultimately successful.

Team Members

Team members form the core of any project, collaborating and working together to achieve the project’s objectives. Each team member brings their own unique skills and knowledge to the project, contributing to its success and helping to ensure that the project’s goals are met. Team members are responsible for carrying out assignments and lending a helping hand with their knowledge, ultimately playing a crucial role in the project’s success.

Some of the key skills and competencies required of team members include:

• Organization
• Problem-solving
• Time management
• Technical documentation
• Risk management

By mastering these skills and competencies, team members can work together more effectively, ultimately leading to better project outcomes and greater success.

Project Management Tools and Software

Project management tools and software form a crucial part of planning, organizing, and managing resources in a project. These tools help project managers and team members stay organized and on track, ensuring that project tasks are completed on time and within budget. Some of the key features and functions of project management software include:

• Task tracking
• Resource allocation
• Kanban boards

Project managers can ensure well-managed and efficiently executed projects by utilizing project management tools and software. ultimately leading to better project outcomes and greater success. Whether you’re managing a small personal project or a large-scale public project, choosing the right project management software can make all the difference, helping to streamline processes, improve efficiency, and ultimately ensure the successful completion of your project.

Features and Functions

Project management software provides a variety of features and functions to assist project managers and team members in staying organized and on schedule. These features include:

• Task tracking, which allows users to monitor the progress of tasks and assignments
• Resource allocation, which helps to ensure that resources are used effectively and efficiently
• Collaboration tools, which facilitate communication and teamwork among team members

Additionally, project management software often includes reporting and analytics capabilities, which help project managers monitor project progress, identify bottlenecks, and make data-driven decisions to keep their projects running smoothly. By leveraging these features and functions, project managers can ensure that their projects stay on track, meet their objectives, and ultimately achieve success.

Choosing the Right Software

Selecting the right project management software requires consideration of several factors, including project size, team size, industry, and specific requirements. For example, larger projects may require more powerful software with features like resource management, budget tracking, and collaboration tools, while smaller projects may require simpler, more streamlined solutions.

The industry can also play a significant role in selecting the most suitable project management software, as different industries have particular needs and processes that the software should accommodate. By taking the time to carefully evaluate your project’s needs and requirements, you can select the project management software that best fits your unique situation, ultimately improving your project’s efficiency and success.

In summary, project management is the secret sauce that turns ideas into reality and keeps teams running like well-oiled machines. From defining a project and understanding its unique features and constraints to navigating the project life cycle, selecting the right project management methodology, and understanding the roles and responsibilities of project managers and team members, effective project management is essential for achieving success in any project.

By mastering the skills and competencies required for effective project management and leveraging the power of project management tools and software, you can ensure that your projects are well-managed, well-executed, and ultimately successful. So go forth and conquer your projects with the newfound knowledge you’ve gained on the world of project management!

Frequently Asked Questions

How will you define a project.

A project is a unique, temporary, multidisciplinary effort by an organization to create an output with set objectives that need to be accomplished within a fixed period. It can range from simple to complex and can be managed by one or multiple people.

What is a project and example?

Projects are temporary endeavours with a clear beginning and end date, such as building a house or planning an event. Retailers may also pursue projects to improve the way they track order fulfillment. Construction teams complete projects any time they plan and build something!

What are the 3 types of projects?

It's time to pick a project! Strategic, Operational, or Compliance, take your pick - the choice is yours.

What are the five main phases of the project life cycle?

From initiation to closing, the five phases of any project's life cycle are: initiating, planning, execution, monitoring and controlling, and finally closure.

What are the key roles in project management?

Project management requires an experienced leader to guide the team and ensure success - that's the project manager. Team members come together to bring their skills to the table and execute tasks as necessary. It all comes down to having the right people with the right skills working together.

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Project Management

Project milestones: how to identify, establish, and manage them.

January 15, 2024

Understanding project management milestones is crucial—these markers are not just indicators of progress; they serve as pivotal moments that define the journey of any project. 

Whether you’re a seasoned project manager or new to project management, you’ll leverage these milestones to track your project’s trajectory and success.

This article aims to dissect the concept of project milestone planning, presenting real-world project milestone examples and strategic insights to enhance your project’s success rate.

Designed for project managers across various industries, this guide is essential for optimizing project outcomes!

What is a Project Milestone?

Why are project milestones important, examples of common project milestones, how to identify project milestones and establish them, how to achieve your project’s milestones with clickup, clarifying common misunderstandings about project management milestones.

Project management milestones are significant points or events within a project’s lifecycle that signify project progress and guide the team. They mark critical events, helping project managers and teams recognize achievements and understand the path ahead.

Unlike regular tasks, milestones typically don’t have a duration; they represent a moment of achievement or a critical decision point.

For instance, in a software development project plan, one project milestone might be the completion of the beta version of the application.

This doesn’t just mean the preliminary version is ready for testing; it signals a shift from development to user testing and feedback gathering.

This milestone is pivotal for project managers and stakeholders as it allows for a comprehensive review of the work done, ensures alignment with project objectives, and sets the stage for the next development phase.

Milestones, particularly with tools like ClickUp , create clear markers of project progress, aid in effective tracking, and instill a sense of achievement as the team navigates through complex phases of the project.

In a world where ineffective implementation of business strategies leads to losses of $1 million every 10 seconds, understanding the significance of project milestones is more crucial than ever.

Here’s why setting and adhering to the milestone planning phase is paramount in the project management lifecycle :

1. Enhances project visibility

Project management milestone planning provides a high-level project overview, marking critical events along the timeline. This visibility helps project managers and stakeholders comprehend the progress of your project at a glance, ensuring everyone is informed and aligned.

With nearly every project phase accounted for, potential issues can be identified and addressed promptly, preventing costly overruns and delays.

2. Improves time management

Each project milestone represents an end date, guiding the project team on when specific tasks must be completed. This helps allocate time and resources effectively, ensuring the project schedule stays on track. 

Effective time management is crucial, as delays can contribute significantly to a loss in revenue. 

3. Facilitates better communication

Clear project milestones create common goals for team members to aim for. Regular project milestone reviews foster open communication about the project’s status, challenges faced, and successes achieved.

This continuous dialogue ensures that everyone remains on the same page, enhancing the team’s ability to meet objectives efficiently.

4. Aids in risk management

By breaking the project down into key project deliverables and checkpoints, milestones help detect potential risks and issues early.

This proactive approach allows teams to mitigate risks before they escalate, saving time and resources.

5. Encourages team motivation and morale

Achieving project milestones is akin to celebrating small victories along the project’s journey. Each project milestone reached is a testament to the team’s hard work and progress, serving as a motivational boost.

Recognizing these achievements is essential, as a motivated team is crucial for maintaining momentum and ensuring a successful project .

Project milestones are crucial checkpoints that help manage and track the progress of various initiatives. Here’s how they might look in three different types of projects: marketing, software development, and software testing.

1. Marketing campaign launch

Milestone #1: campaign go-live date.

The go-live date is a critical project milestone in any marketing project. It marks the moment the campaign is launched to the public, following weeks or months of creating project plans, including content creation and strategy development.

Marketing teams can utilize ClickUp’s Gantt Chart View to visually plan and monitor the steps leading to this project milestone. This would help ensure that every task is completed on time for a successful launch.

Milestone #2: First performance review

After the campaign has gone live, the first performance review is a crucial project milestone where the initial results are analyzed. This review typically involves measuring key performance indicators (KPIs) against the campaign’s objectives to gauge its early project success and identify areas for adjustment.

With ClickUp’s Project milestone chart and KPI reporting , marketing teams or individuals can track real-time data and performance against campaign’ goals, ensuring they’re on track to meet targets.

2. Software development project

Milestone #1: beta release.

The beta release is a significant project milestone in software development, marking the transition from initial development to testing and user feedback collection. It reflects a product ready for real-world exposure.

Use ClickUp’s milestone tracking software to monitor the progress toward this crucial point. Project management KPIs help keep tabs on essential metrics leading up to the release. You can view it on a Gantt chart or a whiteboard for a simplified view.

Milestone #2: End of beta feedback collection

Completing beta feedback collection is another essential project milestone, signifying the end of the initial user testing phase and the beginning of final refinements. This project phase is critical for implementing process improvements before the final release.

Utilize ClickUp’s Feedback Boards to gather and manage user feedback efficiently. Pair this with ClickUp’s Gantt chart software to schedule and track all the tasks required for implementing feedback before the final launch.

3. Software testing phase

Milestone #1: completion of user acceptance testing (uat).

Completion of User Acceptance Testing (UAT) is a major milestone in the software testing phase. It signifies that the software has met all specified requirements and is ready for deployment. This phase often involves real-world testing by end-users to ensure the software’s functionality aligns with their expectations.

ClickUp’s project management software allows for detailed scheduling and tracking of testing phases. Utilize ClickUp’s Milestone templates to standardize UAT processes across projects.

Milestone #2: Resolution of all critical bugs

After UAT, the next significant milestone is resolving all critical bugs identified during the testing phase. This milestone ensures the software is functional and meets the quality standards required for a smooth, user-friendly experience.

Manage and track bug resolutions efficiently using ClickUp’s project management features like Tasks, Automations, and Docs. The platform’s comprehensive project tracking capabilities allow you to monitor the progress of bug fixes, ensuring that no critical issue is overlooked before the software’s final release.

Identifying and establishing project milestones is critical in ensuring the progress and successful completion of tasks on any project. Here’s a guide to help project managers determine these key points in their project life cycle using various project management tools and strategies.

Step 1. Understand the project scope and objectives

Before setting project milestones, thoroughly understand your project’s goals , deliverables, and constraints. This understanding forms the basis of what your project milestones should achieve, aligning with the project’s end goals and key deliverables.

Step 2. Break the project down into phases

Divide the entire project into manageable project phases or stages. Each project phase should represent a significant chunk of work that moves the project closer to completion. This segmentation helps in setting specific, measurable, and achievable milestones.

Step 3. Identify key deliverables

Within each project phase, identify key project deliverables that signify progress. These deliverables should be critical project tasks or events that indicate a significant achievement or a shift in the project’s direction.

Step 4: Consult with the project team

Collaborate with your project team and other stakeholders to ensure that the milestones are realistic and achievable. Their input can provide valuable insights into the project’s requirements and potential challenges.

Step 5: Use project management software

Implementing a robust project management software like ClickUp helps you identify milestones and plan them accordingly. Utilize tools like ClickUp’s Gantt charts to visually plot out milestones against your project timeline and ensure they are strategically placed.

Step 6: Set important dates and criteria

Assign a specific date or criteria for each milestone. This could be the completion of a key deliverable, reaching a certain percentage of the project, or any other significant event. Ensure that these targets and end dates are realistic and provide enough time for quality work.

Step 7: Communicate milestones to the team

Once milestones are established, communicate them clearly to your project team and stakeholders. Everyone involved should be aware of these critical points and their significance to the progress of your project.

Step 8: Monitor and adjust as per the project progress

Throughout the project, closely monitor the progress towards each milestone. Use milestone tracking to know whether the project schedule is on track. Be prepared to adjust milestones as needed based on project changes or unexpected challenges.

What’s ClickUp?

Clickup is an all-in-one project management platform. ClickUp Milestones turn major project tasks into visual markers, signifying how far along your projects are. They are displayed boldly with a diamond icon, making them easy to spot.

This helps you visualize your project’s critical tasks and see how they connect to larger project goals.  It simplifies marking milestones and tracking major progress points on milestone charts, ensuring everyone is aligned toward key targets.

Who is it for?

ClickUp project milestones are for project teams and individuals managing projects of any type and size, especially those needing a clear view of major project phases and key milestones. It’s made for anyone who needs to visualize critical tasks at a glance on a milestone chart and ensure that complex projects stay on track.

Tracking milestones using ClickUp’s Project Management features

Let’s learn how to leverage ClickUp’s powerful project management features to achieve your project’s milestones.

1. Project Milestone Charts: Gantt Charts

Use ClickUp’s project milestone chart and Gantt Chart to visualize your entire project timeline and lay down your project plan, including your milestones.

It shows you how your milestones fit into the larger picture of your project schedule and plan. Adjust and track progress against key tasks on an adaptable project timeline.

2. Board View

The Board view enables you to recognize and identify milestones, among other tasks.. It’s particularly useful for visualizing when a project is ready for the next project phase. This view helps project teams that rely on a more visual, Kanban-style organization to monitor deadlines and next milestones effectively.

3. Dashboards

Incorporating too many milestones into major project phases can make it tough to see when essential stages begin or end or if they’re progressing on schedule.

ClickUp’s Dashboards provide a clear, real-time overview of your project’s progress. Using this feature, teams can:

• Track and manage the number of milestones effectively
• Focus on major phases without the clutter of excessive markers

You can summarize your current project status by tracking the milestones completed. It’s a powerful tool for project teams to monitor progress, identify deviations,, and stay on top of major milestones.

For lengthier projects that often have numerous milestones, you can streamline your report to include only milestones completed or pending within the current quarter.

4. Automation

Put routine busywork on autopilot by setting up Automation in ClickUp. You can create automations to update your team or adjust project schedules and task statuses as you reach different milestones, ensuring everyone is informed and can prepare for the next steps.

5. Custom Fields

Add custom fields to tailor your workflow to suit your specific project management needs. Create milestones, track them, add specific details, and ensure all necessary information is accessible.

6. Key milestones tracking and reporting

With ClickUp’s Milestone Tracking, you can set milestones, track progress, and get detailed reports easily. These reports provide insights into whether your project is on track and help you make informed decisions about necessary adjustments.

Aren’t milestones just another term for project goals or deliverables?

Here’s a list of common misconceptions regarding project milestones:

1. Milestone vs. Goal

Misconception: They seem interchangeable.

Reality: A goal is a future-oriented objective you’re aiming to achieve, for example, acquiring 100 new customers with a new marketing campaign. Milestones, conversely, are significant achievements reached in the project’s life cycle on the way to the goal.

They act as markers of progress, while goals are the targets you’re striving for. In the previous marketing campaign example, milestones could include copy and creative development, stakeholder signoff, and campaign launch. Let’s look at ClickUp’s Milestone templates Vs. Goal-setting templates to understand the difference between both.

2. Milestone vs. Task

Misconception: They’re similar components of a project.

Reality: Tasks are actionable items, often with a time estimate. For instance, a project task might be ‘Complete the client report by Friday.’

On the other hand, milestones signify the completion of crucial tasks or phases with no specific duration attached. They’re points on the project’s schedule, marking important steps and helping track the entire project’s progress.

3. Milestone vs. Deliverable

Misconception: They’re effectively the same thing.

Reality: A project deliverable is a tangible or quantifiable result, such as a product or report. In contrast, a key milestone is a significant moment or event in the project’s life cycle, which may or may not coincide with the completion of a project deliverable.

For example, obtaining stakeholder approval is a milestone, though it might not be considered a deliverable.

Premier Tool for Successful Projects

Remember that milestones are pivotal events charting the course of your project’s success. They’re not mere markers but vital checkpoints guiding and focusing project managers toward their overarching goals.

A project manager must identify these milestones and efficiently navigate the team through each, ensuring alignment with the project’s timeline and objectives. For effective milestone management, a well-organized and structured approach is essential.

Enter ClickUp, your ally in the meticulous planning of your project. ClickUp is a comprehensive suite for all your project needs from creating a Work Breakdown Structure (WBS) to precise project planning.

So, don’t just plan; excel with ClickUp. Sign up for free today and navigate your project milestones easily and efficiently. With ClickUp, successful project completion is a visible, trackable, and achievable reality.

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What Are Project Activities In Project Management

Sandeep Kashyap

ProofHub Blog

There is no point in oversimplifying project management. It’s rarely simple and straightforward. There are so many factors and activities involved that it often becomes impossible for the manager and the team to deliver quality performance and outcome.

In this particular post, we’re going to dig deep into various fundamentals and activities that are a great deal of consideration for everyone during the project management life cycle .

Let’s start with the basics.

What defines a project?

Wikipedia defines a project as “any undertaking, carried out individually or collaboratively and possibly involving research or design, that is carefully planned to achieve a particular aim.”

Now, in project management, projects are defined as a temporary endeavor (rather than permanent) that are carefully planned, researched, executed, monitored, and delivered over a fixed period and within a certain cost — and with the help of the right project management software solution. Projects can range from simple to complex and can be managed by an individual or a whole team of collaborative professionals.

What are the five major project fundamentals?

Mentioned below are the 5 major project fundamentals, which are, in our opinion, the most important aspects of managing and completing projects.

Fundamental #1: Clarify project goals and scope

Before a project begins, the overall objective and scope of the project must be clearly defined (and agreed). Also, make sure that every aspect of the project is carefully considered in the discussion and everyone associated with the project are agreeing to the defined objective and scope.

Fundamental #2: Develop a work breakdown structure

Creating a (WBS) Work Breakdown Structure is an important part of the project management process. This process demands team efforts and multiple perspectives for the given project. Project teams often use low-key tools like a whiteboard, note cards, or sticky note pads to develop a work breakdown structure. But if you’re hoping to get a clear understanding of major deliverables, and sub-deliverables, you should consider using a dedicated work management software or a kanban tool .

Fundamental #3: Produce a realistic schedule

This is probably one of the most common mistakes managers and teams make during project management. They become overly optimistic and ambitious about when a project can be delivered. As a result? They get themselves and the given project into trouble. Now, what seems like a realistic timeframe for many project teams often turn out to be unreasonable and unattainable. The best way to go in this case is visualizing every aspect of the project together in one place. Luckily, in ProofHub , you have a dedicated tool just for that. We’re talking about the in-build Gantt chart software that lets you visualize your project timeline, estimate how long each task/subtask/milestone would take, create a realistic schedule, and get everything done.

Fundamental #4: Create a project risk plan

Once you’ve created a comprehensive list of tasks, subtasks, and milestones involved in the given project, it’s time to determine all the possible and potential risks involved. You have to think about what risk could impact your project and how much. Try to do this during the initial stage of the project. And when you’re done compiling all this information, you have to create a risk management plan that will be followed until the successful completion of the project.

Fundamental #5: Manage change requests

Be a professional ‘change manager’ if you seriously want to get success in nearly all projects. A project, by definition, is something that doesn’t stay as usual and is subject to achieve a degree of change. Whether it is a change in workflow or workforce. Whatever the change is, it should involve a clear understanding of what the impact of the change will be and how you can ensure that it is managed smoothly and quickly.

What does project management activities include?

This is probably the most familiar part of the story. A successful project is a combination of 5 major activities/steps. Following them not necessarily guarantees successful project management, but it assures you and your team that you are on the right track. With that being said, here are the 5 major activities involved in the project management life cycle.

Activity #1: Initiating

The first activity in project management is to settle on the idea, a good one. During this phase, you and your team scratch out an initial concept and agree on whether it is feasible or not. You’ll do a little research to see how it would be completed, then pitch it for examination and approval in front of team members, stakeholders, and clients.

Activity #2: Planning

The second project management activity is planning. Once your project’s been given the go-ahead, it’s important that everyone involved in the project stamp out the scope, schedule, and cost of a project. This is usually done by visualizing the scope, budget, schedule, and resources needed for the given project. Also, it’s worth noting that every aspect of the project is subject to change during the execution phase. Deliverables could be delayed, unexpected problems could arise, resources could be drained, so when making plans you need to give some flexibility and predict the most likely area for change.

Activity #3: Executing

The next activity in the project management life cycle is the project launch and execution phase. This is where things kick into overdrive. As the name would suggest, this is where the actual project work begins. A project is a collection of tasks and deliverables that must be completed before you and your team mark the project a SUCCESS. First, you should have all the tasks and deliverables of the project set — you need to have a clear understanding of what needs to be completed, how it should be completed, who needs to work on it, and when it has to be completed by. Once you’re sure that you have all the data collected and approved, project execution starts.

Activity #4: Controlling

The performance and control activity of project management occurs throughout the project — from the project initiation to its completion. This activity serves as a medium for managers and teams to measure and compare the status of the project with their original plan and make sure that everything is progressing as planned. Most project management professionals think that this activity requires relatively less effort on their part. However, that is not the case. This is one of the most stressful aspects of the whole project management process , especially when you want everything to run smoothly.

Activity #5: Closing

The final activity involved in project management is project closure. This is where, the project has been completed by all intents and purpose — and the desired outcome has been approved. A key part of this activity is to ensure that the project has met the expected standards. For that, the expected outcome of the project is to be compared with the actual outcome concerning quality, accuracy, time, and cost. A successful project closure would be the one where the project delivered outcome ahead of schedule, within budget, to a high quality, and with minimum problems.

“ProofHub — the one key Ingredient to successful project planning and completion. Get a FREE trial now !”

Project management is a tricky process. In projects, big and small, many factors need to be considered when you’re trying to manage a project smoothly and successful. There will be struggles, of course. But with the help of the insights we’ve shared in this post, your life, as a manager and team member, would be a lot easier.

Remember, with the right team, the right project management software and the right project management methodology in place, achieving the expected outcomes are more manageable and attainable than ever. Now that you have a clear understanding of project management fundamentals and activities, you can expect many successful and enjoyable project management experiences soon.

If you enjoyed this…

Read the other articles:

• 10 Powerful Tips For Project Management Success
• Work Hack: Leveraging Project Management Software to Improve Team Productivity
• 6 Steps Every Team Should Follow — A Project Management Guide for 2020
• Understanding The Many Aspects Of Project Management

If you enjoyed reading this article:

Clap: so others can find it Comment: if you have a question/suggestion you’d like to ask Follow: ProofHub to read all the articles

Written by Sandeep Kashyap

Internet Entrepreneur, CEO of SDP Labs and Founder of ProofHub

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The 25 project management skills you need to succeed

Anyone who oversees projects is a project manager, but to become a more thoughtful manager (with a higher impact), you need to develop the right project management skills. Learn what skills are necessary to become a successful project manager and how to build them.

If you’re interested in honing and developing your project management skills, you’re in the right place. In this guide, we’ll cover 25 key skills you need to succeed as a project manager or project administrator , and how you can develop those skills over time.

What are project management skills (and why do they matter?)

Project management skills are the attributes you develop to become a more experienced project manager. Building a project management skill set includes learning technical and hard skills, such as portfolio management and project scoping, and soft skills (for example, adaptability).In honing these skills, you’re preparing yourself to more effectively perform in your role. 

Project management is the practice of organizing and executing work efficiently—and helping your team do the same. For a while, project managers had to be trained and certified in complicated project management technology. Traditional project management tools were hard to set up and required constant maintenance, which is where the position “project manager” comes from.

Modern project management tools

Modern project management evolved from traditional project management in two distinct ways. As companies and teams democratized their project management processes, they needed more team members and team leads who were able to manage a process from conception to completion. In order to support those team leads, project management software has also evolved, from complex mechanisms to flexible and easy-to-use tools.

Today, any team member may be called upon to run a project and become the de-facto project manager—which is why modern project management tools are built to be flexible enough for anyone to use on any project, so you’re able to jump in and hit the ground running. 

These tools, like Asana , make it easy to track, manage, and organize work—without the learning curve associated with traditional tools. With today's project management tools , you can easily implement project management best practices and bring a new level of clarity and visibility to your project team. 

How to use your project management skills

Project management tools do the heavy lifting when it comes to reducing silos, increasing visibility, and facilitating cross-functional collaboration. As the project manager, you can use these tools to give your team the insight they need to get their best work done. While you don’t need to learn complicated skills or tools in order to become a successful project manager , there are hard, soft, and technical skills you can develop in order to improve your management and collaboration skills.

Some of these skills might not apply to you—while others might be things you’re already seasoned in. Like everything in the five phases of project management , approach this list with flexibility and work on the skills that are most relevant to you.

10 soft skills for project managers

Soft skills are what we call “non-technical skills,” or skills that can help you improve your quality of work—without a specific tool or technical requirement. These are also called “people skills” or “interpersonal skills” because they often help you work with and relate to others in your workspace. These 10 skills are the most important soft skills for project management:

1. Collaboration

Collaboration is the cornerstone of all project management skills. In project management, collaboration helps you get work done quickly and more efficiently. When you can coordinate across teams, you gain valuable insights into your project that you might not find within your team. If more minds are involved in the work, projects are inherently more creative and well developed.

To improve your collaboration skills, practice having conversations. Use techniques like active listening , where you stay engaged and focused when others are speaking to you. It sounds simple, but learning how to have open communication, reduce boundaries, and co-create are critical for a collaborative team.

2. Teamwork

Everyone on your team has something to bring to the table, and your team is more effective working together than they would be alone. Teamwork ensures that everyone feels welcome, valued, and they are supported to contribute.

If you’re working to boost your teamwork skills, dig deeper into team brainstorms , 1:1 conversations, and ask for feedback from your team—how can you be a better team member? Notice if there’s someone who hasn’t spoken up in a while, and be supportive when another team member has a new idea.

3. Communication

Miscommunications are common when you’re working with a group of people. Learning how to communicate well and avoid these will make projects run more smoothly and be more enjoyable. 

To develop your communication skills, practice being open and honest with your coworkers. This requires a lot of trust between you and your team members. To build this trust, encourage your team members to bring any thoughts into a discussion—even if you disagree with them.

4. Time management

Time management and organization skills go hand in hand. As you become better at organizing your tasks, you’ll also have a clearer sense of everything that’s on your plate and how long your upcoming tasks are going to take.

Still, it can be hard to buckle down and prioritize your work. To improve your time management skills and reduce procrastination, try prioritizing tasks. When you’re clear on which tasks are higher priority, you can tackle them first, to make sure nothing gets left behind or falls through the cracks.

5. Leadership

Even if you don’t think of yourself as a leader or have a role in team management, when you’re managing a project, your project team is looking to you for leadership, guidance, and support. 

To develop your leadership skills, practice approaching situations with empathy and understanding. Good leaders bring everyone together and make them feel supported to foster teamwork and collaboration.

6. Organization

For a lot of project managers, organization is the most intimidating soft skill. You might think organization is either something you “have” or “don’t have.” But, like every other project management skill in this article, you can develop your organizational skills and become a Marie Kondo in your own right.

The best way to become a better organizer is to create (and maintain) a central source of truth for your work and your team’s work. We’re often disorganized because work is disconnected—in fact, the average employee switches between 10 tools per day . Instead of splitting your time between 10 tools, try using a digital organization tool to act as that one central source of truth for your team.

7. Problem solving

Problem solving skills are collaborative, iterative skills that help you approach a problem and, ultimately, solve it. Developing problem solving skills isn’t about always having the “right” answer to every problem—rather, people with great problem solving skills practice approaching problems from new perspectives and methodically working towards a solution.

To become a better problem solver, use data-driven decision-making frameworks or routine analyses. For example, if you need to solve for how to boost sales by 10% over your competition, you can run a competitive analysis to determine where you currently stand in the market. Then, use that information to solve the problem of lower sales. In this case, you could develop a new marketing strategy coordinated with the sales team.

8. Critical thinking

Critical thinking, like problem solving, doesn’t have a “solution.” You can’t “win” at critical thinking, but you can practice approaching problems logically instead of making decisions based on your emotions. Good critical thinkers practice analyzing information in front of them and forming their own conclusions based on the facts—the way Sherlock Holmes solves a mystery.

To practice critical thinking, always take a step back and ask yourself: how did I come to this conclusion? Could there be another answer? Am I being swayed by something other than factual information? Emotional decisions aren’t necessarily bad—in fact, some of the best decisions are those we’re passionate about. But critical thinking is a helpful way to make sure you’re approaching a situation from the right perspective.

9. Adaptability

At some point, whether it’s this project or the next one, aspects of your project plan will change. Maybe your deadline or priorities shifts, and you need to adapt your workflow accordingly. Great project managers are able to pivot and adapt to new situations to continue steering their project team in the right direction.

Becoming more adaptable is all about understanding when and how to shift gears. To do this, you need to understand yourself. Developing other soft skills, such as self-awareness and mindfulness, can help you be more in touch with and manage your emotions, which are often in flux during times of change.

10. Conflict resolution

Inevitably, conflict will arise during the projects you manage. It could be that a stakeholder wants to change the project scope. Or maybe you missed your budget or deadline. Conflict resolution is about addressing both sides of the conflict so everyone feels heard and supported. If there are harmed parties, take the time to listen to them and try to find a solution that works for everyone. Even when that can’t happen, approaching the conversation with patience and empathy can help defuse a potentially frustrating situation and lead to a better result.

7 hard skills for project managers

Unlike soft skills, hard skills are quantifiable abilities. While the soft skills mentioned above are applicable for many work skills, these seven hard skills are relevant specifically to project management. Developing these will help you become a more well rounded and efficient project manager.

1. Project planning

At its core, a  project plan  (sometimes called a project charter) is a blueprint of the key elements your project needs to succeed. Typically a project plan will include seven things:

Goals and  project objectives

Success metrics

Stakeholders  and  roles

Scope  and  budget

Milestones ,  deliverables , and  project dependencies

Timeline  and  schedule

Communication plan

Some of these things, like your goals or your milestones, might already be defined in your project roadmap or brief. But your project plan is where all of these project elements come together to create a cohesive picture of your upcoming work.

A lot of planning goes into the beginning of the year for what our vision is and where we will be by the end of that particular year. Once that is done, we summarize it in a project so it's visible to everyone... Having that visual representation in Asana makes it easier to move things around.”

2. Project scoping

Project scope is the size, goals, and limitations (i.e., deadlines and resources) for your project. Your project scope will define what you can achieve within a certain timeframe and budget. Setting and defining your project scope is important in order to prevent scope creep , which is when your project deliverables outgrow your original project scope.

In order to improve your project scoping skills, practice setting project scope early and often. Once you’ve set your project scope, share it with stakeholders and surface it frequently, so everyone is on the same page about the project’s aims and limitations. Use it as a point of reference, so you know when to say no to new asks.

We have been able to reduce the number of products that we’ve oversold and the number of times we have to contact the customer to push a ship date out.”

3. Writing a project brief

Your project brief outlines your general project objectives and how you plan to get there. This can serve as a helpful North Star to guide planning sessions.

The most important thing to remember about your project brief is that it’s a living document. As you develop your project plan and get input from stakeholders, you can adapt and update your project brief. In general, your project brief should contain a link to your project roadmap if you created one, a list of your project stakeholders and their responsibilities  (sometimes called a RACI chart), other relevant documentation or files, and any other high-level information your team might need.

Having executive oversight and insight into projects is key so we can quickly get up to speed on what is happening at any point.”

4. Hosting a project kickoff meeting

A kickoff meeting is an opportunity to align with your project stakeholders. This is your chance to clarify your project goals and scope, and share any documents you’ve already put together like your project roadmap, project brief, or supplemental documentation like a bill of materials for a marketing campaign or a creative brief for a design team.

To host a successful kickoff meeting, plan to share the documentation you have put together with project stakeholders. Then, host a brainstorming or Q&A session to align on any additional variables, like budget,  resources , or final deliverables.

5. Project roadmapping

A project roadmap is a high-level overview of your project’s key deliverables and timeline. Project roadmaps are helpful for complex initiatives with a lot of stakeholders because they help the entire project team get on the same page before the project even starts.

Traditionally, project roadmaps are created in Gantt chart-like software , in order to display a general schedule of your project as a horizontal bar chart. To create a project roadmap, use a tool like Timeline in Asana to create a rough timeline of your project, adding key milestones or important dependencies.

6. Mapping your project timeline

Your project timeline is the order and duration of events during your project lifecycle. Knowing your project timeline helps your team track project success and deliver the right assets on time.

In order to build a great project timeline, make sure you clarify the start and end dates of your project, as well as any key milestones. As you continue building out individual tasks and deliverables, set dependencies between tasks, and clarify the start and end date of each piece of work.

7. Task management

Once your project is officially underway, task management refers to how well you manage your and your team’s time. The best project managers have visibility into what their team is working on in real-time, so they can help their team effectively prioritize and execute work.

But you don’t have to magically know everything that’s happening in your project—instead, use task management software.  Task management software  is more than a to-do list—it’s a way to get a holistic view of all of the work happening in your project. With effective task management, you can empower your team to work more productively, efficiently, and effectively.

With Asana, we can see project progress and blockers, plus feedback and action items, all in one place. We're now able to complete work more efficiently and effectively, which has become even more critical while working from home. We’d be lost without it!”

8 technical skills all project managers need

Soft skills: check. Hard skills: got it. The only thing you have left to master are technical skills!

Technical skills refer to your knowledge of specific tools and softwares within project management. These tools aren’t hard to learn—as we mentioned before, modern project management is built to be flexible and easy to use. These eight skills are aspects of project management roles you should become familiar with, so you know when and how to leverage them.

1. Project management software skills

Project management software  has come a long way from legacy tools that were difficult to use and required a project management professional to implement. But like any tool, even easy-to-use ones, the software you choose takes time to learn and truly master. Make sure the tool you select has a written  guide  and  helpful videos  to teach you the ins and outs of how to use it.

2. Gantt charts

Gantt charts are a way to visualize your project as a horizontal bar chart, where each bar represents a piece of work and the length of each bar represents the amount of time that work will take.

Project milestones

Dependencies

Real-time project progress

Start and end dates

Traditional Gantt chart technology can be tricky to use and limited in scope, which is why, at Asana, we took the best of Gantt chart technology and created  Timeline , a Gantt-chart like tool that helps you see how all of the pieces fit together.

Launching an album has so many moving parts, and Asana helps us track every detail, who’s responsible for it, and when it needs to be completed.”

3. Kanban boards

Another popular type of visual project management is the  Kanban board . Each column in a Kanban board represents a stage of work, like  New ,  In progress , or  Done . Individual work is represented by cards, which move through the columns until they’re completed.

Kanban boards tools  are a popular visual project management tool for lean project management teams, particularly product, engineering, and software development teams. They’re an Agile methodology , designed to be adaptable and flexible to adjust to development needs in real-time.

4. Agile management

Agile management is a lean project management methodology that’s particularly popular with product, engineering, and software development teams. Agile operates on a system of continuous improvement and incremental evolution, and it encompasses several lean methodologies, like lean portfolio management ,  Scrum , and  Kanban .

In order to manage an Agile team, it's the project manager’s job to coordinate between team members and stay flexible. This can mean changing the project schedule, aligning with teams working on a different project, or just staying in touch with effective communication.

5. Workload management

If you’ve managed projects before, you know how hard it is to gain clarity on who is working on what—but it doesn’t have to be.  Workload management  helps you measure your team’s bandwidth and make sure they aren’t over- or under-worked. It’s an interactive process that doesn’t have a beginning or end state—rather, an effective project manager will continuously monitor their team’s workload to ensure no one is burning out.

There are two steps to using workload management software . First, start by figuring out your team’s capacity, competencies, and current workload. From there, allocate resources based on individual workload, or rebalance workloads as needed.

6. Cost management

In project management, cost management is considering how each task impacts your budget at every stage of the project. Cost management is a key part of project leadership, and an important element of whether or not your project is a success. Staying within budget is as important as hitting your project due date, and cost management can help you get there.

To manage cost effectively, good project managers define their costs and budget at the beginning of a project. Make sure project stakeholders and team members all understand the budget. Then, during the project, keep cost and budget in mind. Check in on your spending several times during the project to make sure you aren’t overshooting your budget. Once the project is completed, tally predicted cost vs. actual cost to determine how effective your cost management strategies were. This can also help you benchmark for future projects.

7. Project portfolio management

With project portfolio management (PMM), you can get a bird’s-eye view of your team’s work across multiple projects. Unlike traditional project management, PMM involves working on multiple projects or large-scale initiatives simultaneously. Project portfolio management tools help you get a holistic view of all of your team’s work in real-time, so you can connect strategy to execution.

Portfolios are also a key Asana feature for our team. It is a great tool for our executive team so they can see our big pieces of work all in a single place with the status, progress and ownership. Our CEO visits our portfolio daily and adds comments. He loves to be able to see what's going on in a snapshot.”

8. Change management

If you’ve ever rolled out a big organizational change, you’ve likely practiced change management, even if you didn’t know it. Change management is the process of introducing organizational change—like new processes or tools—over a set period of time to make them easier to adapt to.

At Asana, we use the Asana Way of Change, a six step process developed by our Customer Success team that incorporates proven change management strategies. To learn more,  read our guide to change management .

The standard of our creative team, for a while, was just to react to work. But we’ll never do the best work we possibly can without a clear process.”

How to build your project management skills

Twenty five skills might feel like a lot, but remember that you don’t need to master every skill in this list. Some, like Agile, are only relevant for specific teams. Others, like organization, become virtually effortless with a little focus and great tools .

Keep in mind that developing your project management skills takes practice. Challenge yourself to focus on one or two new skills for each project—whether that’s trying out a new  visual form of project management  like Kanban, drafting your first ever project plan, or leaning into time-management.

There are also classes you can take to develop hard and soft project management skills. Though you no longer need certifications in order to be considered a project manager, the  Project Management Institute  (PMI) offers courses, learning events, and their famous  Guide to the Project Management Body of Knowledge (PMBOK® Guide) , which was the first project management guide ever published.

Finally, once you’ve  selected a project management tool , you can also take their classes to learn technical project management skills. At Asana, we’ve developed the  Asana Academy  and  How to Asana  series to help new project managers learn new soft, hard, and technical skills.

Build your project management toolkit

If you manage a project, you’re a project manager—and you likely already have some key project management skills. The most important thing is to be intentional, listen to your team, and collaborate with your team members. The rest will follow.

Project management doesn’t need to be complex. Asana was designed specifically to keep project manager’s organized, with tools, automations, and customizations built for collaborating and coordinating everything from a simple brainstorming session to a full-fledged product launch. 

Related resources

How to choose project management software for your team

7 steps to complete a social media audit (with template)

3 visual project management layouts (and how to use them)

Grant management: A nonprofit’s guide

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15 Key Project Roles & Their Responsibilities

Managing a project is a team effort that involves several key project roles and each has its own responsibilities so everything can progress as smoothly as possible. Before you begin that project, take a moment to understand the project management roles and their responsibilities so you can assemble an effective project team.

Now let’s review 15 critical project roles and their responsibilities in the project life cycle. Some of these project management roles are individual roles and others involve multiple participants.

1. Project Sponsor

While there might be a superior position, like executive sponsor, for most projects there’s a project sponsor sitting on top of the project roles pyramid. This is the person who’s deeply invested in the project and its success.

The project sponsor is in direct communication with the stakeholders which is the reason the project has been initiated. They tend to monitor the budget and hold the purse strings of the project. They also have the final say in making any project decisions, which include resources.

The project manager reports to the project sponsor and helps with the project charter , which is a statement of scope, objectives and people involved in the project.

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Project Charter Template

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2. Project Manager

The project manager is the one who’s responsible for the project. They plan it, develop a schedule, assemble a project team and manage their workload throughout the project’s life cycle. Project managers are also responsible for managing risk and the budget.

The project manager is the one who drives the project forward, but they’re not working independently. They collaborate with multiple project roles and are also responsible for reporting on progress to the project sponsor and any stakeholders who also have a vested interest in the project.

The project manager is the point person for vendors and independent contractors, creating contracts and managing their services. You can think of the project manager as a bridge that connects the executives or clients to the project team working on the project deliverables.

3. Senior Project Manager

A senior project manager is an experienced professional in the project management field. Senior project managers are usually employed by large organizations that have an extense project portfolio. Senior project managers oversee the planning and execution of programs and large-scale initiatives that require the cross-functional collaboration of several departments of an organization.

Senior project managers may work in many different industries such as construction, manufacturing, retail or technology-related fields. It’s important that they demonstrate specific knowledge of their industry and years of experience proving their capability to deliver successful projects of that kind.

4. Project Coordinator

Often there’s a go-between that helps facilitate the project manager’s job in terms of project operations. They’ll work with the project team and are especially helpful when there are remote teams working in different time zones on the same project. The project coordinator helps to keep the operations running smoothly for the project manager and the project team.

5. Project Administrator

Project administrators support project managers, project coordinators and project analysts, so they’re usually employed by large organizations that have multiple project roles and a large project portfolio. Project administrators, as their name implies, are in charge of administrative tasks such as making reports, planning meetings and facilitating team collaboration activities.

6. Project Analyst

Project analysts act as support to project managers, program managers and PMOs. They’re responsible for gathering and analyzing data for project management decision-making. Project analysts facilitate the work of other project management roles by creating reports and project documentation, analyzing databases, doing quantitative and qualitative research, among other similar activities.

7. Project Director

Project directors lead project management teams and external parties such as contractors, sub-contractors and other individuals who participate in the execution of a project. In addition to this, they are the liaison between projects and key stakeholders in companies. Their scope is wider than project managers, as they can oversee multiple projects and are in charge of resource management decision-making. Project directors also oversee project managers and other project roles when it comes to areas such as quality management, performance reporting and budgeting.

8. Project Management Consultant

A project management consultant is a project management professional that offers services to external organizations and works for finite time periods that are defined by a contractual agreement. Project management consultants might be part of project management consulting firms or might work as a freelancer.

If you need to hire a project management consultant to manage a project or establish project management best practices in your organization, gather as many consulting proposals as possible so you can compare their approaches and determine who’s the best fit for your team.

9. Project Officer

This project management role is similar to that of a project coordinator, project administrator or project assistant. Project officers are in charge of administrative tasks and organizational aspects of running a project, such as creating and managing project documentation, scheduling project meetings, managing relationships with vendors and contractors, supporting project team members, among other duties.

10. Project Executive

Similar to a senior project manager, a project executive is an experienced project management professional who leads the project management efforts of an organization. They usually work for project-based organizations that have a project management office (PMO). They make high-level decisions related to staffing, purchasing and strategic planning and are responsible for the success of projects, programs and other large-scale initiatives.

11. Creative Project Manager

A creative project manager is a project manager who’s in charge of the planning, scheduling and tracking or creative projects in marketing and advertising. A creative project manager might be employed as an in-house project management expert to lead creative projects or can be part of a creative agency. Besides the traditional functions of a project manager, a creative project manager acts as the liaison between the creative team and the project stakeholders to deliver successful projects.

12. Change Control Board

A c hange control board or change review board is a group of project management team members who are in charge of approving changes to the project plan. This board is critical for filtering change requests because otherwise team members or stakeholders could make changes to the project plan, which if left unnoticed, could greatly affect the project schedule or budget. The project roles that can be part of this change control board can vary from one project to another, depending on the size of the organization.

13. Steering Committee

A steering committee is an advisory board that has governance over an organization or project. Steering committees are formed by a cross-functional team of executives. Steering committees oversee project management teams and ensure projects are aligned with their organization’s strategic goals and business objectives.

14. Project Management Office (PMO)

Sometimes an organization will have a segment devoted to developing a set of standards and policies to govern their project management and to make sure those standards and policies are being followed. This tends to occur only in larger organizations, which might not always apply.

However, if it does exist the project management office will decide on the processes used in a project and how to follow them. The PMO will also archive the project for historical data, collecting and analyzing its results. Project managers are supported by the PMO.

15. Project Owner

A project owner is a person within an organization who advocates for the initiation of a project and is held responsible for its success or failure. Project owners typically come up with the project vision, business case and help secure funding for the project from sponsors. Then, once the project gets approved, they work with project managers to make sure their vision guides the project planning and execution phases.

16. Project Leader

A project leader is a project management professional who excels at managing teams. The main responsibility of a project leader is to guide and support project team members to make sure they’re all working towards the same goal as they execute their tasks and produce deliverables.

This role is especially important in larger organizations where there are many employees from different departments working on projects and programs. While most of those employees have expertise in their respective fields, they’re typically not so well-versed in project management, which is where project leaders come into play.

17. PMO Director

A PMO director is an experienced project management professional who leads the efforts of a PMO office. The responsibilities of a PMO director include defining the project management best practices that will be followed by an organization, choosing project management methodologies and deciding how resources will be allocated across projects and programs.

18. Project Team Members

These are the people who execute the tasks assigned to them by the project manager. There can be a team lead, who manages the team, who the team reports to and who in turn reports their progress to the project manager. In general, all team members are on equal footing.

The project team members have skills relevant to the project and can work with varying degrees of autonomy depending on the project management methodology that’s used in the project. They’re responsible for executing their tasks and updating their statuses to the project manager to track the overall project progress.

More Project Management Templates

ProjectManager isn’t only one of the best project management software in the market, it’s a hub of project management templates , blogs, videos and guides. Here are a few free templates for anyone on the project management team.

Project Plan Template

While some members of the project management team are not involved in the process of creating a project plan, they’re all informed about it to some degree. This free project plan template is a great place to start creating a simple project plan anyone can understand.

Project Budget

The project budget is a key project management document that sets the limits for spending on a project. This free project budget template helps project managers create a project budget that can easily be shared with stakeholders and other project management roles.

Gantt Chart Template

Gantt chart templates are versatile tools that can be used by project managers, program managers, PMOs and team members. This free Gantt chart template for Excel is ideal for any of these project roles.

How ProjectManager Helps Everyone on Your Project Team

The project team needs project tools to help them work more effectively and track progress. ProjectManager is award-winning project management software that’s packed with features that help everyone working on the project.

Live Project Tracking Updates

Let’s start with the project sponsor. They’re interested in how the project is progressing against where it should be in the project plan. When team members update their statuses on ProjectManager, that data instantly reflects throughout the software. Project sponsors aren’t interested in the nitty-gritty, so a real-time dashboard gives them a bird’s-eye view of the project’s progress as it’s happening.

Gantt Charts for Project Planning & Scheduling

When it comes to planning and scheduling the project, project managers will find the online Gantt chart tool especially helpful. Task lists on spreadsheets are easy to upload and can open up in ProjectManager as a new project. Then just add the task duration and it populates a timeline. From here, the project manager can make milestones, assign team members tasks and even attach relevant documents and images for direction.

Resource Management Calendars

Of course, project managers need more than just tools to monitor the project. They need to reallocate resources to keep things moving smoothly. ProjectManager has tools to manage tasks and resources to see if team members have enough work. Reallocate their workload from the workload page.

Related Content

ProjectManager offers a wealth of resources for all roles in project management. We have hundreds of tutorial videos and blog posts that cover all aspects of project management.

• How to Start a Project Management Career
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ProjectManager has tools for every project role. Online software means ProjectManager is reflecting the actual project as it’s happening, so better decisions can be made. No matter what your project role is, there are features that can help you do your job better. See for yourself by taking this free 30-day trial today.

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The Complete Glossary of Project Management Terminology

By Kate Eby | February 24, 2017

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Establishing standardized definitions for common project management terms is a challenge, even for seasoned pros. To help you achieve this goal, we’re offering this authoritative reference guide, pulling together a complete list of project management terminology. This glossary contains more than 600 terms and provides simple, clear explanations.

Included on this page, you'll find definitions from A-Z, from activity codes and dependencies , to performance reporting and timeboxes . 

Project Management Terms

A - project management terms.

Accept - A decision to take no action against a threat. Project teams typically accept risks when they fall below risk thresholds or when the team thinks it best to act only if and when a threat occurs. (See also risk acceptance )

Acceptance criteria - The specific requirements expected of project deliverables. To be formally accepted, deliverables must meet all acceptance criteria.

Acceptance test - A test in which a team of end users runs a product through its full range of use to identify potential problems.

Acquisition process - This process obtains the personnel and resources necessary for project work. Acquisitions are closely coordinated with project budgets and schedules.

Action item - An activity or task that must be completed.

Action item status - This tracks an action item’s progress from creation to closure. Since work packages comprise multiple action items, keeping action item statuses updated is important for project progress.

Activity - The smallest unit of work necessary to complete a project work package (which includes multiple activities). Time, resources, and finances are required to complete each activity.

Activity code - An alphanumeric value by which activities can be grouped and filtered. A code is assigned to each activity.

Activity identifier - A unique alphanumeric value by which an individual activity can be distinguished. An activity identifier is assigned to each activity.

Activity label - A short descriptor for an activity. Activity labels may be placed below arrows representing activities in activity-on-arrow (AOA) diagrams.

Activity list - This documents all the activities necessary to complete a project. Each activity is accompanied by its activity identifier and a description of the work it entails.

Activity-On-Arrow (AOA) - In this network diagram, arrows represent activities and nodes represent events or milestones. AOA diagrams can only indicate finish-to-start relationships.

Activity-On-Node (AON) - In a network diagram of this nature, nodes represent activities and arrows illustrate logical relationships between activities. AON diagrams can illustrate four relationship types: start-to-start, start-to-finish, finish-to-start, and finish-to-finish.

Actual cost of work performed (ACWP) - This represents the total cost incurred for work done in a given period of time.

Actual duration - The length of time taken to complete an activity.

Actual effort - The amount of labor performed to complete an activity. It is expressed in person-hours or similar units of work.

Actual expenditure - The sum of costs paid from a budget.

Actual progress - This measures the amount of work completed on a project. It is used to assess the comparison between project progress and project baselines and is usually stated as a percentage.

Adaptive project framework (APF) - An approach to project management that rejects traditional, linear project management and instead accepts changing requirements and allows projects to be affected by external business environments. The APF stresses flexibility in many aspects of project management and focuses on performing and evaluating project work in stages to allow room for replanning due to changing business goals, objectives, and requirements.

Administrative closure - This refers to the set of formal requirements fulfilled to end a project. Among other things, it involves documenting the formal acceptance of deliverables and ensuring that all relevant information is sent to a project’s sponsor and stakeholders.

Aggregate planning - This strategy uses demand forecasts to manage scheduling and planning for project activities between three and 18 months in advance, so that the necessary resources and personnel can be efficiently acquired or assigned.

Agile - The Agile family of methodologies is a superset of iterative development approaches aimed at meeting ever-changing customer requirements. Agile development proceeds as a series of iterations, or sprints, with incremental improvements made in each sprint. Since agile projects do not have fixed scopes, agile methodologies are adaptive, and the iterative work is guided by user stories and customer involvement.

Agile project management - Agile project management draws from concepts of agile software development. Agile approaches focus on teamwork, collaboration, and stakeholder involvement, as well as the use of iterative development methods.

Agile software development - Agile software development originates from the Agile Manifesto , a set of principles that emphasizes meeting changing requirements through collaborative development and making ongoing improvements through iteration. It stresses the importance of being reactive to rapid changes in external environments.

Allocation - The assigning of resources for scheduled activities in the most efficient way possible. (See also resource allocation )

Alternative analysis - The evaluation of possible courses of action for project work in order to find the most suitable course of action.

Analogous estimating - This technique uses historical project data to prepare time and cost estimates. It is considered the most inaccurate estimation technique. (See also top-down estimating )

Analytical estimating - This technique computes total project time and cost estimates by preparing estimates for each project activity and adding them together. Analytical estimating is considered the most accurate estimation technique. (See also bottom-up estimating )

Application area - The specific project category of which the project is a part. Application areas can be defined on the basis of project products’ characteristics or applications or by the projects’ customers or stakeholders.

Apportioned effort - Project work associated with components of a work breakdown structure and performed in proportion, with discrete effort. Since the amount of apportioned effort (which includes activities such as quality assurance) depends directly on the amount of discrete effort, it cannot be considered separately from discrete effort. It is one of three types of activities used to measure work performance as part of earned value management.

Approach analysis - During the project planning phase, this type of analysis is used to examine the various methods by which a project’s goals may be achieved.

Arrow diagramming method (ADM) - A method of constructing a network diagram that uses arrows to represent activities and nodes to represent events or milestones. The ADM is used to construct activity-on-arrow (AOA) diagrams.

Artifact - Items that support software development. Artifacts include both items associated with the process of development, such as project plans, and items used to support actual aspects of development, such as use cases and requirements.

Assignment contouring - The process of assigning people to project work for changing numbers of hours per day as the project moves through different stages. Assignment contouring is typically done using project management software.

Assumption - Factors deemed to be true during the project planning process, though proof of their validity is not available. A project’s assumptions can affect its risks and outcomes, so you must consider them carefully.

Authorization - In general, authorization is the power to make decisions that the management grants. The specific remit for authorization varies on a case-by-case basis.

Authorized work - Work that management or others in authority approve.

Avoid - A response to a negative risk that seeks to ensure the risk does not occur or (if the risk cannot be eliminated) seeks to protect the project objectives from the negative risk’s impact. (See also risk avoidance )

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B - Project Management Terms

Backward pass - This calculates late-start and finish dates for project activities by working backwards from the project end date.

Balance - A phase in the portfolio life cycle that involves balancing a portfolio’s components based on risk, costs, and use of resources. It is an aspect of organizational project management. (See also portfolio balancing )

Balanced scorecard - A Balanced scorecard is a concept or tool used to assess whether an organization’s activities are correlated with its general vision and objectives.

Bar chart - A diagrammed calendar schedule of project activities’ start and end dates in logical order. (See also Gantt chart )

Baseline - This term represent the costs and schedules approved at the start of the project. They use baselines as a basis for monitoring and evaluating performance.

Benefits realization -This term focuses on ensuring that project results give customers and stakeholders the benefits they expect.

Blueprint - A document that explains what a program means to accomplish and describes a program’s contribution to organizational objectives.

BOSCARD - This method details and considers the background, objectives, scope, constraints, assumptions, risks, and deliverables of new projects.

Bottom-Up estimating - This calculation computes total time and cost estimates for projects by preparing individual estimates for each of a project’s activities and adding them together. Bottom-up estimating is considered the most accurate estimation technique. (See also analytical estimating )

Brief -  This refers to the document produced during a project’s concept phase. It is the primary document outlining requirements.

Budget - The sum of money allocated for a project. The term may also refer to a comprehensive list of revenues and expenses.

Budgeted cost of work performed (BCWP) - The portion of the budget allocated to scheduled work actually performed in a period of time. (See also earned value )

Budgeted cost of work scheduled (BCWS) - The portion of the budget allocated to work scheduled to be performed in a period of time. (See also planned value )

Burn down chart - A graph that shows the relationship between the number of tasks to be completed and the amount of time left to complete these tasks.

Burst point - A point in a network diagram at which multiple successor activities originate from a common predecessor activity. None of the successor activities may start until one finishes the predecessor activity.

Business analysis - The practice of identifying and solving business problems. It focuses on creating and implementing solutions to business needs via organizational development, process reengineering, or any number of other methods.

Business case - A documentation of the potential outcomes of a new project, including benefits, cost, and effects. It shows the reasoning for starting the project.

Business imperative - An issue, situation, or circumstance with the potential to affect a business in one way or another, depending on the course of action used to address it. Organizations prioritize business imperatives for actions that will realize any potential benefits or avoid any potential harm.

Business model - A company’s business model is the system by which the organization’s  profitable activities are planned, structured, and executed, and by which it interacts with its customers.

Business operations - The entire ensemble of activities or business processes through which a company uses its assets to create value for its customers.

Business process - A Business process is a system of activities by which a business creates a specific result for its customers. There are three categories of business processes: management processes, operational processes, and supporting processes.

Business process modeling (BPM) - Business process modeling is the representation, analysis, and evaluation of business processes in an effort to improve them.  

Business requirements - The conditions a product must satisfy to effectively serve its purpose within a business.

Business value - The business value of a project is the sum of positive effects — tangible and intangible — it has on the business.

C - Project Management Terms

Calendar unit - The smallest unit of time — usually hours or days — by which project activity durations are measured.

Capability maturity model (CMM ) - This model is used to assess the maturity of business process capabilities. It was created to assess the capabilities of software development processes but is now used in a number of other industries as well. Like other maturity models, the CMM allows organizations to assess themselves against external benchmarks and provides recommendations for improvement.

CAPEX - CAPEX, or capital expenditure, is the money a company spends to acquire new fixed physical assets or upgrade old ones, typically for long-term use.

Case study - A case study involves extensive and in-depth formal research into an area of a company, a situation, or an event. Case studies typically result in formal reports that are published in academic or professional publications. They investigate important, singular, or locally representative cases that contribute to the advancement of knowledge.

Certified Associate in Project Management (CAPM) - This is an entry-level certification for project managers offered by the Project Management Institute. It is designed to build knowledge of project management processes and terms.

Champion - A project champion makes project success a personal responsibility. This person pushes the project team to work hard, liaise with stakeholders on behalf of the project, and support the project manager. Project champion is an informal role.

Change control - Change control is the process of identifying, evaluating, approving, and implementing changes to a project. It ensures that changes are introduced in a controlled and effective manner and that any adjustments necessitated by changes are also addressed.  

Change control board - An appointed group of stakeholders who evaluate proposed changes and decide when and whether to make them.

Change control system/process - The process by which changes to the project are evaluated before approval, implemented, and documented.

Change freeze - The point at which scope changes to a project are no longer permissible.

Change management plan - A Change management plan details the change control process. It is created to ensure all changes are managed according to procedure. Change management plans can be created for individual projects or for organizations undergoing transitions.

Change request - A formal document submitted to the change control board that requests changes to the finalized project management plan. Change requests are usually made only for significant changes, as smaller changes with little to no impact on the project work can be brought to the project manager.

Client/Customer - The people who will directly benefit from a project. A team executes a project with specific attention to a client’s requirements.  

Closing phase - The final phase of the project management life cycle, in which all aspects of the project are officially completed and closed. This includes making sure that all deliverables have been given to the client, that the team notifies suppliers of completion, and that the team updates stakeholders regarding the end of the project and overall project performance.

Code of accounts - An alphanumeric system used to assign unique identifiers to all work breakdown structure components.

Collaborative negotiation - Collaborative negotiation entails all negotiating parties obtaining at least some of what they want from negotiations.

Communications log - This document is used to track all project-related communications. It is organized and edited by the project manager and details who communicated, when and where the communication took place, what information was shared, and the results of the communication.

Communications management plan - This plan states who will send and receive information on aspects of the project, what details are communicated, and when communications are sent. It is part of the project management plan.

Communities of practice - Groups of people who share an area of interest within project management. They meet regularly to share and develop knowledge in the area of interest.

Competence - The ability and knowledge required to perform the tasks associated with a specific role.

Competence framework - The set of competence expectations by which one assesses a person’s suitability for a specific role.

Concept - The beginning phase of the project management life cycle. In the concept phase, the team presents the opportunity or problem (along with possible solutions) and examines the general feasibility of the project.

Conceptual project planning - Conceptual project planning involves developing the documentation from which a project’s organization and control system will originate.

Concurrent engineering - A product development approach where design and development are carried out at the same time. It is used to shorten the development life cycle and to release products more quickly. The simultaneous execution of design and development can help to improve design practicality.

Configuration - Configuration of a product involves shaping its functions and characteristics to make it suitable for customer use.

Configuration management - Configuration management ensures that the product of a project meets all necessary specifications and stipulations. It provides well-defined standards for the management and team to guarantee that they meet quality and functional requirements, as well as any other characteristics considered important.

Consensus - A decision agreed upon by all members of a group.

Constraint - A limitation on a project. Among other things, constraints may be financial or based on time or resource availability.

Constructability - Constructability is a concept used in complex hard projects to assess and examine the entire construction process before beginning construction. It reduces the number of errors, setbacks, and delays once construction work actually begins.

Construction - The process by which a team builds infrastructure. Construction projects are complex. Engineers and architects supervise them, while a project manager manages the project work.

Consumable resource - A nonrenewable resource that cannot be used once consumed.

Contingency plan - An alternative or additional course of action planned in anticipation of the occurrence of specific risks.

Contingency reserve - An allocation of time or money (or both) set aside for the occurrence of known possibilities that could delay a project or make it more expensive. It is not the same as a management reserve, which is an allocation made for unforeseeable circumstances. Use of a contingency reserve is typically authorized upon the occurrence of a contingency.

Contract administration - The process by which a team manages a relationship with a contracting party. It establishes protocols for dealings between contracting parties.

Contract closeout - The process of determining whether the terms of a contract were completed successfully and of settling any remaining terms.

Control Account - A work breakdown structure tool that allows aggregation of costs for work packages as part of earned value management calculations.

Control chart - Control charts compare process results with historical averages and process control limits to show whether a process meets results expectations. If a process’s results are inconsistent or fall outside process control limits, it may need to be examined and adjusted.

Core process - A process that follows an established order and is central to the performance of the process system or project of which it is part.

Corrective action - A step taken to bring work back into alignment with performance expectations after it has failed to meet expectations. A corrective action, which is reactive, is not the same as a preventive action, which is proactive.

Cost baseline - The sum of work package estimates, contingency reserve, and other associated costs by which project performance is assessed. A formal change control process is necessary to change the cost baseline.

Cost benefit analysis - A Cost benefit analysis is used to weigh project costs against anticipated tangible project benefits.

Cost engineering - The application of scientific and engineering principles to several aspects of cost management. Among other things, cost engineers contribute to estimation procedures and project cost management. Cost engineering may also be called project controls in some industries.

Cost management plan - This plan details how project costs will be planned, funded, and controlled. It is a part of the project management plan.

Cost of quality - The cost associated with ensuring project quality. This cost may mean the difference between unacceptable and acceptable project results.

Cost overrun - A cost overrun occurs when unexpected costs cause a project’s actual cost to go beyond budget.

Cost performance index - A cost performance index measures the cost efficiency of a project by calculating the ratio of earned value to actual cost.

Cost plus fixed fee contract (CPFC) - Under a cost plus fixed fee contract, the seller is reimbursed for costs incurred and paid a predetermined fixed fee.

Cost plus incentive fee contract (CPIF) - Under a cost plus incentive fee contract, the seller is reimbursed for costs incurred and paid an additional fee if they meet performance criteria specified in the contract.

Cost plus percentage of cost contract (CPPC) - Under a cost plus percentage of cost contract, the seller is reimbursed for costs incurred and paid an additional amount equal to a percentage of the costs incurred if they meet performance criteria specified in the contract.

Cost reimbursable contract - A cost reimbursable contract is a contract under which a seller is reimbursed for costs incurred and paid an additional sum as per a predetermined agreement as profit. They are typically negotiated for projects with costs that are not fully known or not well defined.

Cost variance - The Cost variance of a project is its earned value minus its actual cost. A negative cost variance indicates that a project is running over budget. A positive cost variance indicates that a project is running below budget.

Cost/schedule impact analysis - A cost/schedule impact analysis determines the effects of a particular change on a project’s cost or schedule.

Crashing - A schedule compression technique used to speed up project work by increasing the rate at which critical path activities are completed by adding more resources — usually more personnel or more equipment. Crashing increases project costs, so it is used first on activities that can be sped up at the least additional cost.

Critical chain project management (CCPM) - Critical chain project management is an approach to managing projects that emphasizes the resources needed to complete project activities over activity order and durations set in a schedule. It uses resource optimization techniques like resource leveling and requires that activity start times be flexible.

Critical incident stress debriefing (CISD) - CISD is a psycho-educational exercise for small groups who have experienced a traumatic event. It is sometimes used in project management to help project teams cope with trauma and to rebuild team cohesion.

Critical path activity - A scheduled activity that is part of a project’s critical path.

Critical path method - The Critical path method is used to estimate the shortest length of time needed to complete a project and to determine the amount of float for activities that are not part of the critical path.

Critical success factor - A critical success factor is an aspect of a project that is crucial to the success of the project.

Criticality index - Each project activity is assigned a percentage called a criticality index, which is a measure of how frequently it is a critical activity in project simulations. Activities with high criticality indexes are likely to prolong project duration if delayed.

Current finish date -  The most up-to-date estimate of when an activity will finish.

Current start date - The most up-to-date estimate of when an activity will start.

Current state - A detailed representation of current business processes that is used as a point of comparison for efforts to analyze and improve processes’ efficiency, effectiveness, and outputs.

D - Project Management Terms

Data date - A data date, also called an as-of date, is a point at which a project’s status is measured and documented. It separates actual data from scheduled data.

Decision tree analysis - A diagrammatic technique used to illustrate a chain of decisions and to examine the implications of multiple decision-making or situational outcomes.

Decomposition - The hierarchical breaking down of project deliverables into smaller components that are easier to plan and manage.

Defect repair - An action taken to remedy a product that is nonfunctional or does not match expectations or requirements.

Define - The phase in the portfolio life cycle in which projects, programs, and any organizational changes needed to realize strategic objectives are identified and examined.

Definitive estimate - A definitive estimate reaches a total project cost estimate by computing cost estimates for all a project’s work packages. Definitive estimating is considered a highly accurate estimation technique, with estimates falling within a ten-percent range of the actual budget.

Deflection - The transferring of risk to another party, generally via a contract.

Deliverable - A final product or product component that must be provided to a client or stakeholder according to contractual stipulations.

Delphi technique - An estimation method based on expert consensus. Experts make estimates individually and simultaneously and then review their estimates as a group before making another set of estimates. The process is repeated, with the pool of estimates typically becoming narrower after each round of review until a consensus is reached. (See also wideband delphi )

Dependency - A logical relationship between project activities in a network diagram that determines when a dependent activity may begin.

Discrete effort - Project work directly associated with components of a work breakdown structure. It is directly measurable. Discrete effort is one of three types of activities used to measure work performance as part of earned value management.

Discretionary dependency - The preferred way to sequence activities when there is no logical limitation on how they must be ordered.

Do nothing option - An element of a project business case that states the consequences, if any, of not undertaking the project.

Drawdown - A method used to exercise control on the release of project funds. Instead of making entire project budgets available from the outset, management may choose to release funds at specific times. These releases are called drawdowns. Drawdowns may coincide with phase gates so that funds are released at the beginning of each phase.

Dummy activity - In activity-on-arrow diagrams, where arrows represent activities, dummy activities show logical relationships between activities. They are not actual activities themselves - dummy activity arrows are drawn with broken lines to differentiate them from regular activity arrows.

Duration - The amount of time taken to complete an activity or task from start to finish.

Duration compression - Duration compression techniques shorten a project’s duration without reducing its scope. This typically requires additional expenditure. There are two main duration compression techniques: crashing and fast tracking. (See also schedule compression technique )

Dynamic systems development method - The dynamic systems development method is one of the agile product development methodologies. Like other members of the agile family, it conducts development in a series of iterations, with user-story-based improvements made in increments. The dynamic systems development method operates with fixed cost and time constraints and uses the MoSCoW prioritization method to identify the desired product requirements with these constraints in mind.

E - Project Management Terms

Early finish date - The earliest time by which a scheduled project activity can logically finish.

Early start date - The earliest time by which a scheduled project activity can logically start.

Earned schedule - A method of measuring schedule performance that improves upon traditional earned value management. Earned value management tracks schedule variance only in terms of money and not in terms of time and thus does not accurately indicate schedule performance by the end of a project. To address this discrepancy, earned schedule theory uses the same data as traditional earned value management but tracks schedule performances separately with respect to money and time.

Earned value - A concept used to gauge project schedule and cost performance. Portions of the project budget are assigned to components of the work breakdown structure, and successful completion of a work breakdown structure component is understood as value earned through work.

Earned value management - A method of measuring project performance and progress with regard to scope, time, and costs. It is based on the use of planned value (where portions of the budget are allotted to all project tasks), and earned value (where progress is measured in terms of the planned value that is earned upon completion of tasks).

Effort - The amount of labor needed to complete a task. It is measured in person-hours or similar units.

Effort estimate - A calculated approximation of the effort — measured in staff-hours or similar units — needed to complete an activity.

Effort management - The most efficient allocation of time and resources to project activities.

End user - The person or persons who will eventually use the product of a project. Products are designed with end users in mind.

Enhancement, maintenance, and upgrade (EMU) - Enhancement, maintenance, and upgrade are project classifications used in the software development industry. Enhancement projects involve improving the functionality or performance of software. Maintenance projects keep software functioning as expected. Upgrade projects create a new version of the software, called a release.

Enterprise environmental factors - Internal and external factors that can impact projects. They include such things as climate, available resources, and organizational structure.

Enterprise modeling - Enterprise modeling is the creation of a model to represent an organization’s structure, processes, and resources. Enterprise models are built to increase understanding of how organizations work. They form the basis of improvement or restructuring efforts.

Epic - A set of similar or related user stories.

Estimate at completion (EAC) - The estimated total cost for all project work, calculated as the sum of the actual cost and the estimate to complete.

Estimate to complete (ETC) - At a given point in a project, the estimate of the cost of the work that still needs to be completed.

Estimating funnel - A metaphor for the increased accuracy in estimation made possible as a project progresses.

Estimation - The use of estimating techniques to reach approximations of unknown values.

Event chain diagram - A visual representation of a schedule network based on event chain methodology. It shows relationships between project activities and risk events.

Event chain methodology - A schedule network analysis method that enables uncertainty modeling. It is used to identify risk events’ impact on a schedule.

Event-Driven - The adjective describes an action that is prompted by the occurrence of an event.

Execution phase - The execution phase begins after activity approval and is the phase in which the team executes the project plan. Execution is typically the longest and most expensive phase in the project management life cycle.

Executive sponsor - Typically a member of the organization’s board who is ultimately responsible for the success of the project. They provide high-level direction to project managers and are accountable to the board for project success.

Expert judgment - The practice of using expert opinion to guide decision making.

External dependency - An outside relationship that affects the completion of a project activity.

Extreme programming (XP) - An agile software development methodology that emphasizes a high degree of responsiveness to evolving customer demands. Development cycles in extreme programming are short, and releases are frequent. Its main features include high-volume communication with customers and pair programming.

Extreme project management (XPM) - An approach to project management used mostly for complex projects with a high degree of uncertainty. XPM is designed for projects where requirements are expected to change. Therefore, it focuses on flexibility more than rigid scheduling. Where traditional project management proceeds sequentially through the project management life cycle and thus clearly defines problems, scopes, and solutions, extreme project management accepts that all three aspects will change as the project proceeds and thus emphasizes continual learning over deterministic planning.

F and G - Project Management Terms

Fallback plan - A predetermined alternative course of action adopted if a risk occurs and  a contingency plan proves unsuccessful in avoiding the risk’s impact.

Fast tracking - A schedule compression technique or duration compression technique in which the duration of a critical path is shortened by performing sections of some critical path activities concurrently instead of consecutively.  

Feasibility study - An evaluation of how likely a project is to be completed effectively, or how practical it is, taking resources and requirements into consideration.   

Finish-To-Start - In a finish-to-start relationship, a successor activity cannot start until a predecessor activity has finished.

Finish-To-Finish - In a finish-to-finish relationship, a successor activity cannot finish until a predecessor activity has finished.

Fishbone diagram - A fishbone diagram is used in project management to identify and categorize the possible causes of an effect. (See also Ishikawa diagram )

Fixed duration - A task in which the time required for completion is fixed.

Fixed formula method - The fixed formula method calculates earned value in a given period of time by splitting a work package budget between the start and completion milestones of a work package. A known proportion of value is earned upon beginning the work package, and the rest is earned upon completing the work package.

Fixed price contract (FPC) - A fixed price contract pays an agreed-upon fee and does not incorporate other variables, such as time and cost.

Fixed units - A task in which the number of resources used is fixed.

Fixed work - A task in which the amount of effort required is fixed.

Float - A measure of the schedule flexibility involving a particular task.

Flowchart - A diagram that lays out the complete sequence of steps in a process or procedure.

Focused improvement - An improvement strategy based on the theory of constraints. Attention is focused on addressing one limiting factor — called a constraint — at a time in order to optimize a system. Each constraint is improved until it no longer limits the system’s performance.

Fordism - Fordism, named for Henry Ford, is a manufacturing system in which mass-produced goods are priced affordably enough that those producing them may reasonably buy them with their own wages.

Forecast - A prediction or estimation of future project status based on available information.

Formal acceptance - The step at which authorized stakeholders sign off on a product, indicating that it meets their expectations.

Forward pass - A technique used to calculate early start and finish dates by working forwards from a point in a project schedule model.

Free float - The amount of time by which an activity can be postponed without affecting the early start dates of a successor activity.

Functional manager - The individual in charge of all activities carried out by a particular functional department within an organization.

Functional organization - An organization which organizes and manages staff members in groups based on specialty areas.

Functional requirements - The working characteristics of a product. These are based on how end users will use the product.

Future state - A detailed representation of the ideal condition of a company’s business processes after improvement.

Gantt chart - A Gantt chart is a type of bar chart that shows all the tasks constituting a project. Tasks are listed vertically, with the horizontal axis marking time. The lengths of task bars are to scale with tasks’ durations. (See also bar chart )

Gate - An end-of-phase checkpoint at which decisions are made regarding whether and how to continue with the project. (See also phase gate )

Go/No go - A point in a project at which it is decided whether to continue with the work.

Goal - An objective set by an individual or an organization. It is a desired endpoint reached by setting and working towards targets.

Goal setting - The process of creating specific, measurable, and attainable goals and of setting deadlines for these goals if desired.

Gold plating - The practice of incorporating features and improvements that go beyond a product’s agreed-upon characteristics. This is generally done to boost customer satisfaction.

Governance - The structure by which roles and relationships between project team members and an organization’s high-level decision makers are defined.

Graphical evaluation and review technique (GERT) - A network analysis technique that uses Monte Carlo simulation to bring a probabilistic approach to network logic and the formation of duration estimates. It is an alternative to the PERT technique but is not often used in complex systems.

H, I, and K - Project Management Terms

Hammock activity - In a schedule network diagram, a hammock activity is a type of summary activity that represents a number of grouped - but unrelated -smaller activities that occur between two dates.

Handover - In the project life cycle, a handover is the point at which deliverables are given to users.

Hanger - An unplanned break in a network path, usually caused by oversights regarding activities or dependent relationships between activities.

HERMES - A project management method created by the Swiss government and used by IT and business organizations. It is a simplified project management method that can be adapted to projects with varying degrees of complexity. It provides document templates to expedite project-related work.

High-Level requirements - The high-level requirements explain the major requirements and characteristics of the final product, including its purpose as a product and within the company. (See also product description )

Historical information - Data from past projects used in the planning of future projects.

Human resource management plan - A human resource management plan details the roles of and relationships between personnel working on a project, as well as how personnel will be managed. It is part of the project management plan.

Hypercritical activities - Critical path activities with negative slack time. They are created when a sequence of critical path activities leading up to another activity is too long to be completed in the stated duration.

Information distribution - The channels used to provide stakeholders with timely information and updates regarding a project.

Initiation phase – The formal start of a new project. It involves receiving proper authorization and creating a clear definition for the project.

Inputs - The information required to start the project management process.

Inspection - The process of reviewing and examining the final product to assess compliance to initial requirements and expectations.

Integrated assurance - The process of coordinating assurance activities across a number of assurance providers.

Integrated change control - The coordination of changes throughout all aspects of a project, including scope, budget, and schedule.

Integrated master plan (IMP) - A project management tool used to break down project work in large, complex projects. It lists project tasks and events in a hierarchical structure and shows relationships between them.

Integrated master schedule (IMS) - An integrated master schedule is produced from an integrated master plan. It is a list of all project tasks represented as a networked schedule.

Integration management plan - A document that explains integration planning and details how changes to project aspects will be managed.

Integration planning - The process of deciding how project elements will be integrated and coordinated and how changes will be addressed throughout the project management process.

Integrative management - Management processes that coordinate a number of project aspects including cost, schedule, and resources (among others).

Invitation for bid - An invitation for expressions of interest that a procuring organization extends. (See also request for proposal )

Ishikawa diagram - Ishikawa diagrams are used in project management to identify the possible causes of an effect. (See also fishbone diagram )

ISO 10006 - A set of quality-management guidelines for projects. It is a standard created by the International Organization for Standardization.

Issue - Anything that can cause problems for a project. The term typically refers to major problems that cannot be tackled by the project team on their own.

Issue log - Project issues and the persons responsible for resolving them. It may also include issue status, plans for resolution, and resolution deadlines.

Iteration - A concept from iterative software development that specifies a fixed time cycle for development work, typically a few weeks long. The development life cycle consists of a number of iterations, sometimes with a functional version of the software produced at the end of each one. Iterative development prioritizes time over scope, so there are rarely concrete requirements to be achieved in an iteration.

Iterative development - Iterative development focuses on developing products in a series of repeated fixed-time iterations, instead of working towards a single deliverable. At the end of an iteration, the team assesses progress and sets targets for the next iteration.

Iterative and incremental development - Iterative and incremental development is any combination of the iterative and incremental development approaches. It is an alternative to the waterfall development method: instead of focusing on sequential development with a single end product, it passes through a number of development cycles, with an improved version of the product, called an increment, produced at the end of each iteration.

Kanban - The word kanban means visual signal in Japanese. Kanban is a visual communication approach to the project management process. It uses visual tools like sticky notes or virtual cards in an online bulletin board to represent project tasks and to track and indicate progress throughout a project.

Kickoff meeting - The first meeting between a project team and stakeholders. It serves to review project expectations and to build enthusiasm for a project.

Key performance indicator (KPI) - A Key performance indicator is a metric for measuring project success. Key performance indicators are established before project execution begins.

L - Project Management Terms

Lag/Lag time - A necessary break or delay between activities.

Late finish date - The latest possible date a scheduled activity can be completed without delaying the rest of the project.

Late start date - The latest possible date a scheduled activity can be started without delaying the rest of the project.

Lateral thinking - Lateral thinking involves using a roundabout method to inspire new ideas or solutions. It can be done in a variety of ways, from using a random word to choosing an object in a room as a basis for thought.

Lead/Lead time - The amount of time an activity can be brought forward with respect to the activity it is dependent upon.

Lean manufacturing - A production methodology based on the idea of streamlining and doing more with less, such as by providing customers with the same product value while eliminating waste and thus reducing production costs.  

Lean six sigma – Lean six sigma combines the no-waste ideals of lean manufacturing with the no-defects target of six sigma. The goal of Lean six sigma is to eliminate waste and defects so that projects cost less and deliver more consistent quality.

Lessons learned - The sum of knowledge gained from project work, which can be used as references and points of interest for future projects.

Level of effort - Work that is not directly associated with components of a work breakdown structure but that can instead be thought of as support work. Examples of level of effort include maintenance and accounting. It is one of three types of activities used to measure work performance as part of earned value management.

Life cycle - The entire process used to build its deliverables. Life cycles are divided into a number of phases. A variety of life cycle models are in use in project management.

Line of balance - A graphical technique used to illustrate relationships between repetitive tasks in projects such as building identical housing units. Each set of repetitive tasks is illustrated as a single line on a chart. Project managers look for places where dependent tasks intersect, indicating that the successor task must be delayed.

Linear sequential model - A linear sequential model moves through a project life cycle’s phases systematically and sequentially. It is typically used for small projects with straightforward requirements, since sequential development makes it difficult to revise design based on testing or preliminary feedback. (See also waterfall model )

Linear scheduling method - A graphical scheduling technique used to assign resources when project work consists of repetitive tasks. It focuses on maximizing resource use and reducing time wastage due to interruptions.

Logic network - A chronologically arranged diagram that shows relationships between project activities.

Logical relationship - A dependency between project activities or between project activities and milestones.

M - Project Management Terms

Management - The act of overseeing planning, personnel, and resources to achieve a goal.

Management process - The act of planning and executing a project or process to meet a defined set of objectives or goals. Management processes may be carried out at multiple levels within organizations, with the scale and scope of activities typically increasing up the organizational hierarchy.

Management reserve - An allocation of money or time (or both) to address unforeseeable circumstances that might delay or increase the costs of a project. A management reserve is not the same as a contingency reserve, which is an allocation made for known possibilities. The senior management must typically approve any release of funds from a management reserve.

Management science (MS) - A field of study that seeks to improve organizational decision making through the use of quantitative and scientific research methods. It evaluates management decisions and outcomes to find optimal solutions to problems, and thus enables better decision making. (See also operations research )

Master project - A master project file comprises a number of smaller projects, called subprojects, arranged hierarchically.

Matrix organization - Employees in a matrix organization report to more than one boss, with different lines of reporting representing different organizational projects or functions. A matrix structure can boost employee engagement and cross-field approaches to problem solving, but it can also create ambiguity over an employee’s role.

Maturity model - Maturity is the extent to which an organization’s methods, processes, and decisions are standardized and optimized. A maturity model assesses one or more of these aspects against a set of external benchmarks to determine an organization’s maturity level. Maturity models allow organizations to assess themselves according to management best practices. They typically offer recommendations for improvement.

Megaproject - A complex, large-scale, and high-investment project. Only hard projects may be termed megaprojects.

Merge point - A point in a network diagram at which multiple predecessor activities culminate in a single successor activity. The successor activity may not start until all the predecessor activities have finished.

Milestone - Milestones indicate specific progress points or events in project timelines. They mark progress needed to complete projects successfully.

Milestone schedule - A milestone schedule details the time relationships associated with project milestones.

Mission statement - A concise enunciation of the goals of an activity or organization. Mission statements are usually a short paragraph, and can be created for entire organizations or for individual projects. They are designed to provide direction and guidance.

Modern project management - An umbrella term for a number of contemporary management strategies. In contrast to traditional management, modern project management: features more recognition of quality and scope variation; refines processes more frequently; stresses collective, interdisciplinary knowledge and team consensus over individual leadership. It is also less based on traditional hierarchies- modern project teams draw from a range of organizational levels and functional areas.

Monte Carlo simulation/technique - Monte Carlo simulation is a computer-based technique that performs probabilistic forecasting of possible outcomes to facilitate decision making. For each possible decision — from the most high-risk to the most conservative — a Monte Carlo simulation provides decision makers with a range of possible outcomes and the likelihood that each will occur.

MoSCoW - The MoSCoW prioritization method allows project managers to communicate with stakeholders on the importance of delivering specific requirements. The acronym indicates four categories of priority and importance for project requirements. Each requirement is prioritized as a “must have,” a “should have,” a “could have,” or a “won’t have.”

Most Likely Duration - An estimate of the most probable length of time needed to complete an activity. It may be used to compute expected activity duration through a technique called three-point estimation.

Motivation - A reason or stimulus that makes a person behave in a certain manner. In management, motivation refers to the desire to pursue personal or organizational goals and is positively associated with productivity.

Murphy’s Law - Murphy’s Law — “What can go wrong will go wrong.” — is cited in project management as a reason to plan adequately for contingencies.

N - Project Management Terms

Near-critical activity - A near-critical activity has only a small amount of total float, or slack time. Near-critical activities have a high chance of becoming critical since their float is easily exhausted.

Near-critical path - A series of activities with only small amounts of total float, called near-critical activities. A near-critical path may become a critical path if its float is exhausted.

Negative variance - The amount by which actual project performance is worse than planned project performance. Negative variances in time and budget show the project is taking longer and is more expensive than planned, respectively.

Negotiation - A discussion to resolve an issue between parties. Negotiations can take place at any point during an activity and may be formal or informal.

Net present value (NPV) - Net present value is a concept that compares the present value of a unit of currency to its inflation-adjusted possible value in the future. It allows organizations to determine the financial benefits, or lack thereof, of long-term projects.

Network Path - In a schedule network diagram, a network path is a logically connected continuous series of activities.

Node - In a network diagram, a node is a point at which dependency lines meet. In activity-on-node diagrams, nodes represent activities. In activity-on-arrow diagrams, they represent events or stages.

Nonlinear management (NLM) - Nonlinear management refers broadly to management practices which emphasize flexibility, self-organization, and adaptation to changing circumstances. It runs counter to concepts in linear management, which seek to impose structure on organizations. The defining characteristics of nonlinear management include encouragement of out-of-the-box thinking, proactivity in responding to challenges, and flexible working arrangements for employees.

O - Project Management Terms

Objective - A clear, concise statement about what an activity is meant to accomplish. Objectives are written to be SMART: specific, measurable, achievable, realistic, and time-bound. A successful project meets all its stated objectives.

Operations and maintenance - Operations and maintenance is the stage at which a project or system is handed over to staff who will put it into full operation and carry out routine maintenance.

Operations management - The duty of ensuring that an organization's operations are functioning optimally. Operations managers maintain and improve the efficacy and efficiency of business processes. They seek to develop operations which deliver high-quality outputs while keeping costs low.

Operations research (OR) - A field of study that uses mathematical, statistical, and scientific methods to aid and optimize decision making. It uses techniques such as mathematical modeling and optimization to enable better decision making. (See also management science )

Opportunity - In project management, an opportunity is a possibility that can contribute to project objectives. Opportunities in project management are classified as a type of risk.

Opportunity cost - The opportunity cost of a particular course of action is the loss of potential gains from all alternative courses of action.

Optimistic duration - An estimate of the shortest length of time needed to complete a specific activity or task. It may be used to compute expected activity duration through a technique called three-point estimation.

Order of magnitude estimate - An order of magnitude estimate provides an early, imprecise idea of the time and money required to complete a project. It uses historical data from completed projects to form adjusted estimates for similar new projects, usually presenting these estimates as ranging from -25 percent to +75 percent of the actual budget to indicate the levels of uncertainty involved.

Organization - A formally structured arrangement of parties that actively pursues a collective purpose. Organizations can be affected by external factors, and they in turn can affect the external environment.

Organization development - Broadly, organization development involves strategic efforts to improve aspects of organizational performance such as efficacy, efficiency, and sustainability, as well as aspects of organizational health such as employee satisfaction and engagement. The term may also refer to a field of study focusing on the characteristics of organizations and their growth and evolution.

Organizational breakdown structure - A hierarchical model of an organization's units and all its activities. It shows relationships between activities and organizational units and indicates the responsibilities of each unit, thus providing a holistic perspective of how an organization operates.

Organizational enabler - Any practice, tool, knowledge, or skill base that facilitates an organization’s pursuit of its objectives may be termed an organizational enabler.

Organizational planning   - The strategic process of defining roles, responsibilities, and reporting hierarchies for parties within an organization, keeping the organization’s objectives in mind. It is carried out based on the principles and strategies by which an organization manages its members.

Organizational process assets - The specific set of formal and informal plans and processes in use at an organization. They also constitute the sum of knowledge and experience accumulated from past efforts. Organizational process assets are essentially the unique knowledge and processes that facilitate an organization’s operations.

Organizational project management - A strategic approach that emphasizes the effective management of projects, programs, and portfolios as the best way to pursue organizational objectives. It focuses on aligning an organization’s activities with its objectives and on managing these activities collectively, so they contribute to objectives.

Organizational project management maturity - A measure of an organization’s ability to meet its objectives by effectively managing all its activities. It can be assessed with a maturity model called the OPM3, which, like other maturity models, provides comparisons and recommendations for improvement.

Output - In project management, an output is the (usually physical) end product of a process.

Overall change control - The evaluation, coordination, and management of project-related changes. It concerns both the effective integration of changes to benefit the project and the management of adverse changes or emergencies, so that project activities are not disrupted.

P - Project Management Terms

P3 assurance - P3 assurance involves satisfying sponsors and stakeholders that projects, programs, and portfolios are on course to meet performance expectations, fulfill objectives, and meet requirements.

P3 management - P3 management refers collectively to the management of projects, programs, and portfolios.

Parallel life cycle - In a parallel life cycle, certain phases are conducted in parallel (they overlap).

Parametric estimating - A technique for estimating cost and duration based on using historical data to establish relationships between variables — for example, calculating unit costs and the number of units required to complete a similar activity.

Pareto chart - A Pareto chart is a combination bar chart and line graph where the bars represent category frequencies in descending order from left to right, and the line tracks the cumulative total as a percentage.

Path convergence - On a schedule network diagram, path convergence occurs when an activity has multiple predecessors.

Path divergence - On a schedule network diagram, path divergence occurs when an activity has multiple successors.

Percent complete - The percent complete indicates the amount of work completed on an activity as a percentage of the total amount of work required.

Performance measurement baseline - A performance measurement baseline uses the schedule, cost, and scope baselines to create a point of comparison by which project performance is assessed. Variance from the performance measurement baseline may prompt corrective action.

Performance reporting - Performance reporting is formally informing stakeholders about a project's current performance and future performance forecasts. The aspects of performance to be reported are typically laid out in a communications management plan.

Performing organization - The performing organization for a project is the one whose members and resources most directly perform the project work.

Pessimistic duration - The pessimistic duration is an estimate of the longest length of time needed to complete a specific activity or task. It may be used to compute expected activity duration through a technique called three-point estimation.

PEST analysis - A PEST analysis examines how political, economic, social, and technological factors might affect a project.

Phase - A distinct stage in a project life cycle.

Phase gate - A phase gate is an end-of-phase checkpoint where the project leadership reviews progress and decides whether to continue to the next phase, revisits work done in the phase, or ends the project.

Planned value (PV) - The budget assigned to the work it is meant to accomplish. (See also budgeted cost for work scheduled )

Planning - The development of a course of action to pursue goals or objectives.

Planning phase - In project management, planning refers specifically to a phase of the life cycle that involves creating plans for management, control, and execution, as well as for what a project is meant to accomplish.

Planning poker - A consensus-based estimation technique. It attempts to avoid the anchoring effect — where the first estimate forms a baseline for all subsequent estimates — by having project team members make estimates simultaneously and discuss their estimates until they reach agreement.

Portfolio - A collectively managed set of programs and projects.

Portfolio balancing - An aspect of organizational project management, portfolio balancing involves selecting and tailoring a portfolio’s components so they can be managed in line with organizational objectives.

Portfolio charter - A portfolio charter details the formal structure of a portfolio and describes what it is meant to achieve. It authorizes the creation of a portfolio and connects its management with organizational objectives.

Portfolio management - The collective management of portfolios and their components in line with concepts of organizational project management.

Portfolio manager - The individual responsible for balancing and controlling a portfolio in line with concepts of organizational project management.

Portfolio, program, and project management maturity model (P3M3) - The P3M3 assesses organizational performance in portfolio, program, and project management via a set of key process areas (KPAs). Like other maturity models, the P3M3 allows organizations to measure their performance against external benchmarks and provides a roadmap for project performance and delivery improvement.

Positive variance - The amount by which actual project performance is better than planned project performance. Positive variances in time and budget show the project is proceeding faster and is less expensive than planned, respectively.

Precedence diagramming method (PDM) - The process of constructing a project schedule network diagram. It illustrates the logical relationships between project activities and shows the order in which they must be performed by using nodes to represent activities and arrows to show dependencies. PDM also indicates early and late start and finish dates, as well as activity durations.

Precedence network - A precedence network visually indicates relationships between project activities. Boxes and links are used to represent activities and activity relationships. Precedence networks also detail the time relationships and constraints associated with activities.

Predecessor activity - In a schedule, a predecessor activity logically comes immediately before another activity, which is dependent on the predecessor.

Preventive action - A step taken to ensure future work does not stray from performance expectations. A preventive action, which is proactive, is not the same as a corrective action, which is reactive.

PRINCE2 - PRINCE2 is an acronym for projects in controlled environments, version 2. It is a project management methodology that emphasizes business justifications for projects.  PRINCE2 management is based on clear organization of project roles and responsibilities and managing when necessary rather than by obligation. It involves planning and executing projects in a series of stages, with stipulated requirements for each work package.

PRiSM - PRiSM is an acronym for projects integrating sustainable methods. It is a project management methodology that focuses on minimizing negative impacts on society and the environment. PRiSM focuses on sustainability. It is essentially green project management.

Probability and impact matrix - A visual framework for categorizing risks based on their probability of occurrence and impact.

Problem statement - A problem statement concisely states and describes an issue that needs to be solved. It is used to focus and direct problem-solving efforts.

Process - A process is a repeatable sequence of activities with known inputs and outputs. Processes consume energy.

Process architecture - The sum of structures, components, and relationships that constitute a process system, which is a complex system of processes. It refers to the overall design of a process system and comprises both infrastructure (the constituent parts and relationships) and suprastructure (the larger system of which the process system is part).

Process management - The act of planning, coordinating, and overseeing processes with a view to improving outputs, reducing inputs and energy costs, and maintaining and improving efficiency and efficacy.

Process-based project management - A methodology that views projects as means of pursuing organizational objectives. It involves using an organization’s mission and values to guide the creation and pursuit of project objectives. If project objectives aren’t in alignment with the company mission statement, they are amended accordingly.

Procurement management plan - A procurement management plan explains how an organization will obtain any external resources needed for a project.

Product breakdown structure (PBS) - A product breakdown structure is used in project management to record and communicate all project deliverables in a hierarchical tree structure. It may be thought of as a comprehensive list of all project outputs and outcomes.

Product description - A product description defines and describes a project product and its purpose. (See also high-level requirements )

Product verification - Product verification involves examining a deliverable to ensure, among other things, that it meets requirements, quality benchmarks, and expectations set by the product description. It is conducted before a product is presented to a customer for acceptance.

Professional development unit (PDU) - A continuing education unit that project management professionals (PMPs) take to maintain certification.

Program - A collectively managed set of projects.

Program charter - An approved document that authorizes the use of resources for a program and connects its management with organizational objectives.

Program Evaluation and Review Technique (PERT) - PERT is a statistical method used to analyze activity and project durations. PERT networks are typically illustrated with activity-on-arrow diagrams. The method makes use of optimistic, pessimistic, and most likely durations to estimate expected durations for project activities and to determine float times, early and late start dates, and critical paths. (See also three-point estimating )

Program management - The collective management of programs and their components in line with concepts of organizational project management.

Program manager - A program manager has formal authority to manage a program and is responsible for meeting its objectives as part of organizational project management methods. They oversee, at a high level, all projects within a program.

Progress analysis - The measurement of progress against performance baselines. Progress analysis collects information about the status of an activity that may prompt corrective action.

Progressive elaboration - The practice of adding and updating details in a project management plan. It aims at managing to increase levels of detail as estimates are revised, and more up-to-date information becomes available.

Project - A temporary, goal-driven effort to create a unique output. A project has clearly defined phases , and its success is measured by whether it meets its stated objectives.

Project accounting - In project management, project accounting deals with reporting on the financial status of projects. It measures financial performance and actual costs against budgets or baselines. Therefore, it complements project management while providing financial information to the sponsor. Project accounting may also be referred to as job cost accounting.

Project baseline - A project baseline comprises the budget and schedule allocations set during the initiation and planning phases of a project. Assuming the scope of the project remains unchanged, it may be used to determine variance from budget or schedule.

Project calendar - A project calendar indicates periods of time for scheduled project work.

Project charter - A Project charter is a document that details the scope, organization, and objectives of a project. It is typically created by a project manager and formally approved by the sponsor. A project charter authorizes the project manager’s use of organizational resources for the project and is understood to be an agreement between the sponsor, stakeholders, and project manager. (See also project )

Project cost management (PCM) - The use of an information system to estimate, measure, and control costs through the project life cycle. It aims at completing projects within budgets.

Project definition - A project definition or project charter is a document created by a project manager and approved by a project sponsor that details the scope, organization, and objectives of a project. It authorizes a project manager’s use of resources for a project and constitutes an agreement between the sponsor, stakeholders, and project manager (See also project charter )

Project management body of knowledge (PMBOK) - The PMBOK is a collection of project management-related knowledge maintained by the Project Management Institute.

Project management office - An organizational unit that oversees project management-related activities within an organization. It seeks to facilitate and expedite project work through the use of standard procedures. A project management office also functions as a repository of general, project-related knowledge and resources.

Project management process - A management process that encompasses all phases of a project, from initiation to the meeting of objectives.

Project management professional (PMP) - A Project management professional (PMP) is a person certified by the Project Management Institute upon completion of a course of formal education, an examination, and a certain number of hours managing projects. The certification is considered the gold standard in project management.

Project management simulators - Software training tools that teach project management skills via interactive learning and provide real-time feedback by which project management trainees can practice and reassess their decision making. Some simulators, such as the Monte Carlo simulator, are used to support and complement decision making in real projects.

Project management software - Project management software is a family of tools typically used in the management of complex projects. They provide the ability to: calculate estimates; create and manage schedules and budgets; track and oversee project activities and progress; assign and allocate resources; optimize decision making; and communicate and collaborate with members of a project team.

Project management triangle - A visual metaphor that illustrates relationships between scope, cost, and schedule. It expresses the idea that none of the three aspects can be amended without affecting the others.

Project manager - The person tasked with initiating, planning, executing, and closing a project, and with managing all aspects of project performance through these phases. The term is typically used for a project management professional. Project managers are able to use organizational resources for projects. They serve as contact points for sponsors, program managers, and other stakeholders.

Project network - A visual representation of the activities and dependencies involved in the successful completion of a project.

Project performance indicators - Measures used to assess project performance, usually with reference to project or performance baselines. These typically include cost, schedule, and scope statuses.

Project phase - A distinct stage in a project management life cycle. Each phase comprises a set of project-related activities.

Project plan - A document formally approved by the project manager, sponsor, and other stakeholders which states the approved cost, schedule, and scope baselines. It guides project execution, control, and quality and performance assessment. The project plan also forms the basis for communication between parties involved in a project. Project plans can vary in their levels of detail.

Project planning - Project planning is usually the longest phase of the project management life cycle. It involves determining cost, schedule, and scope baselines and using these to create a detailed roadmap for executing project activities and producing deliverables.

Project portfolio management (PPM) - A method of collectively managing a portfolio’s constituent programs and projects to pursue organizational objectives. It involves optimizing the mix and scheduling of projects to pursue objectives as effectively as possible. Project portfolio management is closely related to organizational project management.

Project schedule network diagram - A diagram is a visual representation of how scheduled project activities are ordered and related. Depending on the type of network diagram, boxes represent activities or events, and arrows indicate activities or dependencies, typically with expected durations.

Project scope statement - A project scope statement details what a project is meant to achieve and describes the deliverables expected. It forms the basis of measurable objectives by which the success of a project will be assessed. Project scope statements are typically part of project plans.

Project stakeholders - Broadly, a Stakeholder is any party which may be affected by a project. In project management, the term usually refers to parties with an interest in the successful completion of a project.

Project team - A project team is responsible for leading and collectively managing a project and its related activities through the project’s life cycle. Project teams may contain members from several different functional groups within an organization. Depending on the nature of the project, a project team may be disbanded upon completion of a project.

Project tiers - Project sizing categorizes projects into project tiers based on staff power or time required for completion to determine the most appropriate project management practices.

Projectized organization - A projectized organization arranges all its activities into a collection of projects, programs, and portfolios. Projects are typically completed for external clients or customers. The prioritization of project work means the project manager can utilize resources and assign work as they see fit.

Proof of concept - A proof of concept is derived from a pilot project or experiment that examines whether an activity can be completed, or a concept can be realized. It shows the feasibility of an idea.

Proport - The term proport is used to define the sum of unique skills that team members bring to a project. These skills can be harnessed for collective benefit.

Q - Project Management Terms

Qualitative risk analysis - A project management technique that subjectively analyzes risk probability and impact. The risks are categorized on a probability and impact matrix, and those deemed significant may undergo a quantitative risk analysis.

Quality - In project management, quality is a measure of a deliverable’s degree of excellence. Quality may also refer to a clearly defined set of stakeholder requirements by which results are assessed.

Quality assurance - A set of practices designed to monitor processes and provide confidence that result in deliverables meeting quality expectations. It may involve quality audits and the stipulated use of best practices.

Quality control - The use of standardized practices to ensure that deliverables meet stakeholder expectations. It involves not only the definition and identification of unacceptable results but also the management of processes to optimize results.

Quality management plan - A quality management plan identifies stakeholders’ quality expectations and details quality assurance and quality control policies to monitor results and meet these expectations. It is part of a project management plan.

Quality planning - Quality planning involves identifying expected quality standards and creating mechanisms to ensure these standards are met. It may also recommend corrective action if quality standards are not being met.

Quality, cost, delivery (QCD) - QCD is an approach to management that focuses on assessing production processes with regard to three aspects: quality, cost, and delivery. It seeks to simplify process management and facilitate decision making by providing objective information about each of the three aspects, with an understanding that modifications to any one aspect will also affect the others.

Quantitative risk analysis - The mathematical analysis of risk probability and impact. In project management, it is not a substitute for qualitative risk analysis. Instead, quantitative analysis is conducted after qualitative analysis and assesses risks that qualitative analysis has identified as significant.

R - Project Management Terms

RAID log - RAID is an acronym for risks, assumptions, issues, and dependencies. The RAID log is a project management tool that records developments in these four aspects of project work for the stakeholders’ benefit and for an end-of-project review.

RASCI/RACI chart - A RASCI chart is created during project initiation to identify those who are: responsible for project activities, accountable for ensuring that work is done, signing off on the work, consulted in relation to work activities, and informed about the status of the work. The acronym may be simplified as RACI . (See also responsibility assignment matrix )

Reengineering - Reengineering involves the extensive redesign or rethinking of core processes to achieve major performance improvements. It focuses on optimizing key performance areas such as quality and efficiency. Reengineering often involves restructuring organizations so that multi-functional teams can manage processes from start to end.

Release - In IT project management, a release is a fully functional software delivered to a customer as agreed, typically after a series of iterations.

Remote team - A remote team’s members work in collaboration, usually electronically, from different geographic locations.

Repeatable - The term repeatable is used to describe a sequence of activities that may be easily and efficiently replicated. Repeatable processes are economical since they typically avoid negative variances and have established operations.

Request for proposal - A formal invitation for expressions of interest that is extended by an organization looking to procure goods or services. (See also invitation for bid )

Request for quotation - Upon receipt of proposals after issuing a request for proposal, an organization will issue a request for quotations to shortlisted proposers, asking for detailed cost estimations for specific goods or services.

Requirements management plan - A requirements management plan explains how project requirements will be defined, managed, and delivered. It is part of a project management plan and is used to guide project execution and control to adequately deliver requirements.

Requirements traceability matrix - A table that tracks requirements through the project life cycle and product testing. It is used to ensure that a project is able to deliver the stipulated requirements during the verification process.

Requirements - A set of stipulations regarding project deliverables. They are a key element of the project scope and explain in detail the stakeholders’ expectations for a project.

Residual risk - Any risks that have not or cannot be addressed by risk mitigation or risk avoidance procedures.

Resource allocation - The assigning and scheduling of resources for project-related activities, ideally in the most efficient manner possible. Resource allocation is typically handled by a project manager, though they may be overridden by a program manager if resources are to be shared between multiple projects. (See also allocation )

Resource availability - Resource availability indicates whether a specific resource is available for use at a given time.

Resource breakdown structure - A hierarchical list of resources needed for project work, classified by type and function.

Resource calendar - A resource calendar indicates resource availability, usually by shift, over a period of time.

Resource leveling - A technique that involves amending the project schedule to keep resource use below a set limit. It is used when it is important to impose limits on resource use. Resource leveling can affect a project’s critical path.

Resource loading profiles - Resource loading profiles indicate the number and type of personnel required to do project work over periods of time.

Resource optimization techniques - Resource optimization techniques seek to reconcile supplies and demands for resources. Depending on whether project duration or limiting resource use is prioritized, they can be used to amend activity start and finish dates in ways that do or do not affect a project’s critical path. (See also resource leveling and resource smoothing )

Resource smoothing - A technique that makes use of float when allocating resources so as not to affect total project duration. It is used when project time constraints are important. Resource leveling does not affect a project’s critical path.

Resource-Limited schedule - A resource-limited schedule has had its start and end dates adjusted based on the expected availability of resources.

Resources - The elements needed for a project to successfully meet its objectives. Examples of resources include equipment, staff, locations, facilities, and money.

Responsibility assignment matrix - A responsibility assignment matrix identifies those who are: responsible for project activities, accountable for ensuring that work is done, consulted about work activities, and informed about the work status. (See also RASCI/RACI chart)

Retainage - The sum of money withheld from a contract payment until completion of the contract according to terms.

Return on investment (ROI) - The expected financial gain of a project expressed as a percentage of total project investment. It is used to assess the overall profitability of a project.

Risk - The probability of occurrence of a specific event that affects the pursuit of objectives. Risks are not negative by definition. In project management, opportunities are also considered risks.

Risk acceptance - Risk acceptance involves acknowledging a risk and not taking preemptive action against it.

Risk appetite - The amount and type of risk an organization is willing to accept in anticipation of gains. It is not the same as risk tolerance, which is the amount of variation in performance measures that an organization is willing to accept.

Risk assessment - An activity that involves identifying possible risks to a project and examining how these risks, if they occur, would affect objectives.

Risk avoidance - Risk avoidance focuses on avoiding threats that can harm an organization, its projects, or assets. Unlike risk management, which is geared toward mitigating the impact of a negative event, risk avoidance seeks to address vulnerabilities and make sure those events do not occur.

Risk breakdown structure - A hierarchical model of all risks, arranged categorically.

Risk category - A set of risks grouped by cause.

Risk efficiency - A concept based on the idea of maximizing the return-to-risk ratio. It can do this in two ways: by minimizing exposure to risk for a given level of expected return or by seeking the highest possible expected return for a given level of risk.

Risk enhancement - Risk enhancement involves increasing the probability of an opportunity, or positive risk, occurring.

Risk exploitation - Risk exploitation focuses on ensuring that an opportunity, or positive risk, occurs.

Risk identification - The process of identifying and examining risks and their effects on project objectives.

Risk management - A subset of management strategies that deals with identifying and assessing risks and acting to reduce the likelihood or impact of negative risks. Risk managers seek to ensure that negative risks do not affect organizational or project objectives.

Risk mitigation - Risk mitigation involves decreasing the probability of a negative risk occurring, as well as protecting project objectives from a negative risk’s impact.

Risk monitoring and control - The risk monitoring and control process uses a risk management plan to identify risks and implement appropriate risk responses.

Risk owner - A risk owner is responsible for determining and enacting appropriate responses to a specific type of risk. (See also risk response owner )

Risk register - A risk register, or risk log, is a tool used to chronicle risky situations and risk responses as they arise.

Risk response owner - A risk owner monitors a specific type of risk and implements appropriate risk responses when necessary. (See also risk owner)

Risk response planning - Risk response planning is typically conducted after risk analyses to determine appropriate courses of action for risks is deemed significant.

Risk sharing - Risk sharing involves handing ownership of a positive risk to a third party who is typically specialized and better able to realize the opportunity.

Risk threshold - The level at which the likelihood or impact of a risk becomes significant enough that the risk manager deems a risk response necessary.

Risk tolerance - The level of variation in performance measures that an organization is willing to accept. It is not the same as risk appetite, which is the level and type of risk an organization is prepared to accept in anticipation of gains.

Risk transference - Risk transference involves handing ownership of risk to a third party who is typically specialized and better able to address the risk or to withstand its impact.

Risk trigger - An event that causes a risk to occur. A trigger can serve as a warning that a risk has occurred or is about to occur.

Rolling wave planning - A planning approach that focuses on in-depth detailing of work to be accomplished in the near term and progressively lower levels of detail for work scheduled farther in the future. It is based on the idea that work scheduled in the future is more subject to change and thus less worth planning in detail. Rolling wave planning only works for schedules with clearly defined iterations.

Root cause - The primary reason an event occurs.

Run book - A comprehensive catalog of information needed to conduct operations and to respond to any emergency situations that arise during operations. It typically details, step by step, all regular operational procedures and emergency responses.

S - Project Management Terms

S-Curve analysis - An s-curve tracks cumulative financial or labor costs. S-Curve analysis is used to compare a project’s cumulative costs at any given point with a cumulative cost baseline created during the planning phase. It allows project managers and sponsors to assess performance and progress.

Schedule - A comprehensive list of project activities and milestones in logical order, with start and finish dates for each component.

Schedule baseline - A schedule baseline is the original project schedule — approved by the project team, sponsor, and stakeholders — by which performance is assessed. Schedule baselines are generally inflexible, though alteration of a schedule baseline via a formal change control process may be allowed.

Schedule compression technique - A schedule compression technique speeds up projects without affecting scope by decreasing the duration of a project’s critical path. There are two main schedule compression techniques: crashing and fast tracking. (See also duration compression )

Schedule model - A logically arranged, time-based plan for project activities. It is used to create a project schedule.

Schedule model analysis - Schedule model analysis examines the project schedule created from a schedule model. It aims to optimize the schedule, usually via the use of scheduling software.

Schedule network analysis - Schedule network analysis uses a variety of techniques to identify early and late start and finish dates for project activities and thus to create project schedules.

Schedule performance index (SPI) - The ratio of earned value to planned value at a given point in time. It shows whether a project is running to schedule. An SPI lower than one indicates the project is behind schedule. An SPI higher than one indicates the project is ahead of schedule.

Schedule variance - Schedule variance is the difference between earned value and planned value at a given point in time.

Scientific management - Scientific management was an early attempt to bring scientific approaches to process management. Its earliest form was derived from a 1911 monograph by Frederick W. Taylor, who focused on increasing economic efficiency via the analysis and optimization of labor processes.

Scope - The scope of a project constitutes everything it is supposed to accomplish in order to be deemed successful.

Scope baseline - The set of requirements, expectations, and work packages approved as project deliverables. It is used to guide and assess project performance.

Scope change management - Scope change management deals with amendments to the scope as set in the scope baseline and project management plan. Since scope amendments typically affect cost and schedule estimates, scope change management involves revising estimates and adequately communicating these to stakeholders, as well as obtaining the resources necessary to fulfill new scope requirements.

Scope creep - Scope creep refers to gradual changes in project scope that occur without a formal scope change procedure. Scope creep is considered negative since unapproved changes in scope affect cost and schedule but do not allow complementary revisions to cost and schedule estimates.

Scrum - Scrum is an iterative development procedure used in software development projects. Scrum-based projects focus on prioritizing requirements and working towards a clear set of goals over a set time period, called a sprint. The development team thus works through the list of requirements over a number of sprints. Scrum-based projects usually do not have project manager. Instead, the project team meets daily for progress updates.

Secondary risk - A risk created by a risk response.

Security - Security in project management refers broadly to protecting humans, information, and resources from risk.

Six Sigma - An approach to process management that focuses on the near total elimination of product or service defects. It uses quality management methods to improve and optimize processes involved in the production of a product or service so that 99.99966 percent of process outcomes are defect-free.

Slack time - The length of time an activity's early start can be delayed without affecting project duration. (See also float )

Slip chart - A slip chart graphically compares predicted activity completion dates with originally planned completion dates.

Slippage - The negative variance between planned and actual activity completion dates. Slippage may also refer to the general tendency of a project to be delayed beyond planned completion dates.

Soft project - A soft project does not have a physical output.

Software engineering - Software engineering is generally defined as the use of engineering principles in software development. It systematically employs scientific and technological approaches in the design, operation, and modification of software.

Spiral life cycle - An IT system’s development model that aims to learn from experience by drawing from both iterative development and the waterfall model. It has four sequential phases: identification, design, construction, and evaluation and risk analysis. At the end of each life cycle, an iteration is assessed by the customer, and the spiral sequence begins again upon receipt of customer feedback. The spiral model is typically used in long-term projects or those where requirements are expected to vary, and customer feedback is to be incorporated in phases.

Sponsor - A sponsor has ultimate authority over a project. They provide high-level direction, approve project funding as well as deviations from cost and budget, and determine project scope. Sponsors are typically members of the senior management and are expected to provide high-level support for a project.

Sprint - In iterative project development, a sprint is a fixed unit of time during which the project typically passes through a complete development life cycle. A sprint is usually a few weeks long.

Stakeholder - In project management, a Stakeholder is any party with an interest in the successful completion of a project. More generally, the term refers to anyone who is affected by a project. (See also project stakeholder )

Standards - A standard prescribes a collection of standardized rules, guidelines, and characteristics requirements for processes or products that are approved by a recognized body. Standards are not by definition mandatory. They are adopted by consensus, although they may be enforced as a requirement for participation in certain markets.

Start-To-Finish - In a start-to-finish relationship, a successor activity cannot finish until a predecessor activity has started.

Start-To-Start - In a start-to-start relationship, a successor activity cannot start until a predecessor activity has started.

Statement of work (SoW) - A Statement of work is a comprehensive and detailed list of deliverables expected under a contract, with expected dates for each deliverable.

Steering committee - A steering committee provides high-level strategic guidance on a project. It typically comprises individuals from a number of stakeholder organizations and serves to provide consensus-based direction on projects with a large number or a diversity of stakeholders.

Story point - In sprint-based projects, a story point is a measure of the amount of work required to implement a particular user story. Assigning and totaling story points allows project teams to target a realistic number of user stories for action during an iteration or sprint.

Successor activity - In a schedule, a successor activity logically comes after and depends on an activity immediately preceding it.

Summary activity - In a network diagram, a summary activity combines a set of related activities and visually represents them as a single activity.

Sunk cost - A cost that cannot be recovered once spent.

Systems development life cycle (SDLC) - In systems engineering, the systems development life cycle is the process of creating, releasing, and maintaining an information system, which may comprise hardware, software, or both. The typical SDLC has six sequential phases: planning, analysis, design, implementation, testing, and maintenance.

Systems engineering - A field of engineering that applies principles of systems thinking to the development of complex systems. Since complex systems are more difficult to coordinate and make cohesive, systems engineering focuses on developing and optimizing systems as interactive wholes instead of sums of parts. As complex systems comprise both technical and human elements, systems engineering is, by nature, interdisciplinary.

T - Project Management Terms

Task - In project management, a task is a unit of work or activity needed for progress towards project goals. Typically, a task must be completed by a set deadline. Tasks may be further broken down into assignments or subtasks.

Task analysis - A task analysis details the actions or resources required to complete a task.

Testing - The testing phase involves assessment of the product developed so as to gauge quality and performance and to determine whether requirements have been met.

Theory of constraints - The theory of constraints explains that any process is limited from optimum performance by its weakest link or links, called constraints. The theory of constraints methodology involves identifying these weak links via a strategy called focusing and improving them until they no longer limit performance.

Threat - A negative risk that could adversely affect project objectives.

Three-point estimating - A superset of estimating techniques that use averages (or weighted averages) of most likely, optimistic, and pessimistic costs, and duration estimates to form final estimates.

Time and material contract - A time and material contract pays per unit of time and reimburses materials costs for contracted work.

Time chainage diagram - In project management, a time chainage diagram graphically represents scheduled activities for a hard project completed sequentially over a geographic distance, such as the construction of a motorway or the laying of a pipeline. It thus provides both a scheduled time and a relative geographic location for each activity.

Time limit - The time limit for a task is the window of time or deadline by which it must be completed.

Time-scaled network diagram - A network diagram is time scaled if the lengths of activities are drawn to scale to indicate their expected durations.

Timebox - Timeboxing is a project management strategy that prioritizes meeting deadlines over scope requirements. It involves assigning specific lengths of time, called timeboxes, to project activities. Project teams work to address as many requirements as possible within each timebox, proceeding to successor activities once the time limit has passed.

Timeline - A Timeline is a graphical, sequential representation of project activities.

To-Complete Performance Index (TCPI) - A project’s to-complete performance index is the cost performance it needs to achieve to be completed within budget. The TCPI is calculated as the ratio of work remaining to budget remaining.

Tolerance - The acceptable level of variance in project performance. The project sponsor is typically informed if tolerance levels are crossed.

Top-Down estimating - Top-Down estimating uses historical data from similar projects to compute time and cost estimates. (See also analogous estimating )

Total cost of ownership (TCO) - The total cost of ownership estimates the sum total of direct and indirect costs incurred in the purchase, operation, and maintenance of an asset through its life.

Total float - The length of time an activity can be delayed from its early start date without affecting the project end date.

Trigger condition - A condition that causes a risk to occur. Trigger conditions can serve as warning signs that risks have occurred or are about to occur. (See also risk trigger )

U, V, W, and X - Project Management Terms

Unified process - A unified process may refer to any one of a family of iterative software development process frameworks. Unified processes have four phases: inception, elaboration, construction, and transition. Each phase comprises a number of timeboxed iterations, which in turn involve a cycle of specifying requirements, analysis, design, implementation, and testing, with emphases on these shifting as the project team proceeds through iterations. Each iteration results in an improved version of the system called an increment.

Use case - In software development, a use case is a step-by-step list of actions that end users would take to achieve specific goals. Use cases facilitate end user-focused software testing.

User story - A project requirement stated in one sentence. It typically identifies users, real or hypothetical, what these users want from software, and why they want it. Project development teams prioritize user stories in each iteration by assigning story points

V life cycle - The V in V life cycle stands for verification and validation. It is a sequential software development process that matches a corresponding testing phase to each phase in the software development life cycle. During the verification phase, a project team works at increasingly granular levels of detail to identify requirements and design, and then builds the software. Validation proceeds in the opposite direction, as testers examine software components in turn before moving on to systems testing and finally checking that the project as a whole meets requirements.

Value engineering - Value engineering seeks to increase the functionality-to-cost ratio of a product by providing improved functionality at lower cost. Some applications of value engineering attract criticism, as manufacturers may decrease costs by using lower-quality components that decrease product lifespans.

Value for money ratio - In project management, the value for money ratio is expressed as the ratio of financial and other benefits to the resources expended in a project.

Value tree - A hierarchical model of the characteristics of a product or service that determine its value.

Variance analysis - The practice of investigating deviations between planned and actual performance.

Variance at completion (VAC) - A project’s variance at completion is the difference between its budget at completion and its estimate at completion.

Vertical slice - A performance indicator that demonstrates progress across all project components or performance areas at a given point in time.

Virtual design and construction (VDC) - A method  based on using technology in design and construction projects. It uses building information modeling (BIM) tools that focus on designable and manageable aspects of projects to create integrated models that predict project performance.

Virtual team - A virtual team comprises people from different organizations, locations, or hierarchies. It is not necessarily the same as a remote team, which is a group of people working together from different locations.

Waterfall model - The Waterfall model is a software development life cycle in which development phases are sequential, non-iterative, and do not overlap. It is typically reserved for small projects with straightforward, clearly defined requirements since a sequential development process makes it difficult to revisit the analysis and design phases once testing has begun. (See also linear sequential model )

Weighted milestone method - The weighted milestone method allows project managers to estimate earned value by splitting work packages into weighted segments. Each segment represents a portion of the budget value for the work package and ends with a milestone. When a segment milestone is classified as complete, a portion of the total work package value has been earned.

What-If scenario analysis - A simulation technique that allows project managers to determine and compare specific conditions’ effects on project schedules and objectives.

Wideband delphi - An estimation technique based on expert consensus. Each member of an estimation team uses a work breakdown structure to create anonymous estimates of the effort required to complete each project element or work package. The estimates are then reviewed as a group before the experts create new estimates, and the process is repeated for a number of rounds until a consensus is reached. (See also delphi technique )

Work - In project management, work is the amount of effort needed to complete a task.

Work authorization system - A formal procedure to ensure that project work is performed on time and in logical order.

Work breakdown structure (WBS) - A Work breakdown structure is a comprehensive, hierarchical model of the deliverables constituting the scope of a project. It details everything a project team is supposed to deliver and achieve. A work breakdown structure categorizes all project elements, or work packages, into a set of groups and may be used to form cost estimates.

Work breakdown structure dictionary - A document that details, describes, and provides scheduling information for every element of a work breakdown structure. It may be thought of as a dictionary-cum-schedule of work packages.

Work package - The work packages of a project are its lowest-level deliverables. They are detailed in a work breakdown structure dictionary.

Work stream - In project management, a work stream is a logically arranged series of activities that must be completed to pursue project objectives. The term typically refers to the full sequence of work activities from project initiation to project closure.

Workaround - A way to circumvent a problem which does not have a permanent solution or for which no adequate response was planned.

X-Bar control charts - An x-bar control chart includes two separate charts that display the means and sample ranges for a number of periodically gathered, same-size samples. The sampled data constitute some characteristic of a product or a process.

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What Is a Milestone? 8 Examples for Better Project Management

Project plans are maps that chart the course of your projects. As you plan your project , you’ll begin to map out the tasks, dependencies, deadlines, and assignments.

But don’t forget a very important component of any project plan: milestones.

In this article, we’ll explain the meaning of a milestone in project management and share practical examples of project milestones you might use when planning a project of your own.

What is a milestone in project management?

Project milestones are checkpoints in your plan that mark important events, dates, decisions, and deliverables so it’s easy for your team and stakeholders to map forward progress on the project.

Milestones indicate a change in stage or development and act as signposts throughout the course of your project, helping you ensure everything stays on track. Without milestone tracking, you’re just monitoring tasks and not necessarily following the right path in your project.

Defining milestones vs tasks: What’s the difference?

Determining what should be a task or milestone can be difficult on larger initiatives—or projects that are new-to-you. If you’ve ever been confused about what is (or isn't) a milestone in your gantt chart, ask yourself these questions:

• Is this a deliverable you’ll want to mark as complete?
• Will this event impact the final deadline?
• Is this an important moment in the project that will indicate forward progress?
• Will this work require stakeholder review?
• Is this an event that impacts the project?

If you answered yes to any of these questions, you’re looking at a milestone.

Milestones are given additional significance over tasks in a plan so the team and stakeholders can focus on forward momentum while the project manager monitors the pace and progress of work. 

Here’s how to tell the difference between milestones vs tasks when scheduling your timeline in TeamGantt:

• A project milestone is represented by a gold, diamond-shaped icon or symbol on your gantt chart with a zero-day duration. 
• Tasks show up as horizontal bars on the gantt chart. They can be assigned different task colors, as well as multi-day durations. Progress is tracked by percent complete.

Lay a clear path to success with a visual plan that’s easy to understand, and keep everyone in sync with flexible workflows and team collaboration.

5 common project milestone examples

Milestones are powerful components in project management because they make it easier to keep work on track. Let’s look at 5 simple examples of milestones you might include in your project plan:

• Start and end dates for project phases : Using milestones to indicate when each project stage should begin and end makes it easy for everyone to know when major phases are officially a wrap or fall behind schedule. 
• Key deliverables : Various deliverables lead up to the final product and mark progress along the way, whether it’s a research report, content document, or design mockup. Milestones can also help you track deliverables you need to produce—like weekly status reports or project scope documents—to keep stakeholders in the loop and on board.
• Client and stakeholder approvals : Approvals signal a clear movement from one project phase or deliverable to the next, making them a perfect use case for gantt chart milestones.
• Important meetings and presentations : Milestones are a great way to keep key meetings—such as project kickoffs, design reviews, or sprint retrospectives—on everyone’s radar. 
• Key dates or outages that may impact your timeline : Is your team attending an all-day conference? Adding it as a milestone keeps it visible in your project so no one accidentally plans work on top of it.

3 practical examples of how to use milestones in project management

Project milestones do more than just show progress—they can help you communicate what’s happening with your project. 

When creating a gantt chart , milestones provide an easy way to see major dates or deliverables at a glance. That means anyone who views your gantt chart can quickly tell where things are at any given moment.

Now that you understand what a milestone is and why it’s important, let’s dig a little deeper and explore 3 common ways you can use milestones to benefit your projects.

1. Monitor deadlines for deliverables more easily

No plan is ever complete without a list of deadlines ! The best way to make them noticeable is to use the project management milestones and deliverables technique. What does this mean? Make the deliverables project milestones!

Why do this? Well, it’s no secret that not everyone wants to pore over your beautiful project plan to find key dates. Most people—your teammates included—want a top-level view of key dates and events. Milestones are great for this purpose because they’re called out in a special way—usually with a diamond symbol—in project plans.

While you should list the tasks and effort leading up to a project milestone, be sure to present the milestone at the end of those tasks to signify a delivery, or even a presentation of, the deliverable.

Here's an example of how one team uses milestones to track an important deadline in their project.

2. Spotlight important dates

Are there days from now until the end of your project that could impact your project in some way? Maybe your team will be out of the office for a mandatory training. Or perhaps there’s a board meeting you’re expected to attend.

It’s important to keep all of these important events in mind when you’re planning a project because they could possibly impact your project schedule . So why not include them as project milestones so you can track them all in one place?

In this example, the team’s off-site strat-op meeting has been added to the project plan as a milestone so work can be scheduled around it.

3. Identify potential project bottlenecks

Many projects rely on the work produced by external teams or partners to make forward progress. If you’re not tracking those external factors somewhere, there’s a great chance you’ll forget to follow-up on it.

That’s why it’s important to list these deliverables as project milestones if you’re working on a project that depends on someone or something outside of your project. Here’s an example of how you might use a milestone to track a client approval.

How to manage gantt chart milestones in TeamGantt

Once you’ve mapped out your overall process and plan with your team, you can add tasks, identify gantt chart milestones, and determine task owners. Project milestones are easy to create and track because you’ve called out the most important points in your project. 

Let’s take a quick look at how project milestones work in TeamGantt.

How to set and schedule milestones in your gantt chart

You can set a milestone for your project in just a couple of clicks in TeamGantt. This quick tutorial shows you how to add milestones to your project schedule once you’ve signed up for a TeamGantt account.

How to change a task to a milestone

Need to change a task to a milestone on your gantt chart? Simply follow these steps:

• Hover over the task you want to change on your gantt chart.
• Click the 3-dot menu that appears to the right of the taskbar. 
• Select Convert to Milestone from the drop-down menu, and your taskbar should automatically switch to a milestone icon on your project timeline.

How to mark a milestone as complete

Nothing’s quite as satisfying as checking a major milestone off your list! To update the status of a milestone in TeamGantt, simply click the checkbox in the Progress column of your gantt chart to mark it as complete.

How to share project milestones with clients and stakeholders

Want to give clients and stakeholders a high-level view of the project? Follow these steps to share a PDF of key project milestones in your gantt chart.

1. Filter your project by milestones.

From Gantt view, click the All Dates menu at the top of your gantt chart, and select Only Milestones from the drop-down.

2. Export your filtered project to a PDF file.

Navigate to your project's Menu , and select Print/Export PDF from the drop-down.

Customize your PDF settings, then click View PDF to complete the export. From there, you can download and/or print your PDF to share with clients and stakeholders.

Who would have thought such a critical step could be so easy?

Hit every project milestone with ease

TeamGantt makes it easy to create, track, and collaborate on all your project milestones so nothing slips through the cracks.

You’ll have all the features you need to ensure projects finish on time and under budget—from drag and drop simplicity and team collaboration to customizable views and workload management.

Best of all, it’s all wrapped up in a simple and intuitive interface your whole team will love. 😍

Give TeamGantt a free try today!

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Home » Property Trends » Turnkey project: What is turnkey contract and examples

Turnkey project: What is turnkey contract and examples

Large-scale infrastructure projects are usually developed through various methods. One of these methods is known as turnkey project development. In this article, we explain everything about turnkey projects.

Table of Contents

What is a turnkey project?

According to the Oxford Dictionary, the word ‘turnkey’, an adjective, stands for anything that is ‘complete and ready to use immediately’. When applied to project development, a turnkey project meaning remains the same. A turnkey project is one which is designed, developed and equipped with all facilities by a company under a contract. It is handed over to a buyer when it becomes ready to operate business. Obviously, the company responsible for building a turnkey project does it for the cost as agreed in the contract. The work of the company includes design, fabrication, installation, aftermarket support and technical service for the turnkey project.

See also: All about Lighthouse projects

Turnkey project features

In this mode of carrying out international projects, a company in need of a manufacturing or services facility hires a third-party operator to design and build, rather than doing everything on its own. The third-party contractor is responsible for providing everything from manufacturing to supply chain services.

See also: What is a Greenfield Project ?

Turnkey project examples

A majority of government-funded, large-scale infrastructure projects are developed on a turnkey basis. The upcoming Jewar Airport project, for example, is a turnkey project. It is being developed by Swiss company Zurich Airport International. Once it is fully developed, the airport will be handed over to the local authorities to operate. In the housing market, a turnkey property is a fully-furnished flat or apartment that you can buy and rent immediately.

Also read all about the Setu Bharatam Project

Benefits of turnkey projects

Also spelt as turn-key, such projects are mutually beneficial for the firm that develops them and the player that eventually takes control of such projects. Some of the major benefits of turnkey projects are listed below:

• Cost saving: A company hires firms that are willing to make projects at a cost mentioned in the contract.
• Time saving: As there is no need for companies to waste their time and energy on developing a facility, they get time to grow their own businesses.
• Hassle-free: As someone is dedicating time and energy to build the facility, the main operator is free from all sorts of legal and technical challenges, an inherent feature of the project development, especially in a country like India.
• Access to expert knowledge and technical know-how: A company running a textile business may not be an expert in building and operating a textile manufacturing unit. So, turnkey projects offer them a chance to hire experts in the concerned field.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.

In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel. [email protected]

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Key takeaways

• J.P. Morgan Research forecasts that the GLP-1 market will exceed $100 bn by 2030, driven equally by diabetes and obesity usage.
• Total GLP-1 users in the U.S. may number 30 mn by 2030 — or around 9% of the overall population.
• The increasing appetite for obesity drugs will have myriad implications, boosting sectors such as biotech and creating headwinds for industries such as food and beverage.

Ozempic. Wegovy. Mounjaro. Zepbound. Originally developed to treat diabetes, these GLP-1 agonists — now also popularly known as obesity drugs — have been making headlines for their weight-loss effects. According to the Centers for Disease Control and Prevention (CDC), the prevalence of obesity in the U.S. has grown from 30.5% over 1999–2000 to 41.9% over 2017–2020.

What’s whetting the consumer appetite for these weight-loss drugs, and what does this mean for sectors ranging from biotech to food? 

“The newest generations of GLP-1s and combos lead to 15–25+% weight loss on average, well above prior generations of products.”

Chris Schott

Senior Analyst covering the U.S. Diversified Biopharma sector, J.P. Morgan

What are GLP-1 agonists?  

Glp-1 agonists are a class of medications used to treat type 2 diabetes (t2d). besides helping to lower blood sugar levels, they also suppress appetite and reduce calorie intake — fueling their growing popularity as obesity drugs. , “glp-1s have been used to treat t2d since 2005, starting with the approval of byetta, with follow-on products continually improving on efficacy. the most recent, ozempic and mounjaro, offer significant advantages over previous products and have accelerated class growth,” said chris schott, a senior analyst covering the u.s. diversified biopharma sector at j.p. morgan. “indeed, the newest generations of glp-1s and combos lead to 15–25+% weight loss on average, well above prior generations of products.” .

What’s driving the increase in appetite for obesity drugs?

Originally developed to treat diabetes, GLP-1 agonists — or obesity drugs — have risen in popularity thanks to their weight-loss effects.

J.P. Morgan Research forecasts the GLP-1 market will exceed $100 bn by 2030, fueled equally by diabetes and obesity usage.

Total GLP-1 users in the U.S. may number 30 mn by 2030 — or around 9% of the overall population.

This could lead to a paradigm shift in health care and also impact other sectors, from biotech to food.

What’s the market for obesity drugs?

J.p. morgan research forecasts the glp-1 category will exceed $100 bn by 2030, driven equally by diabetes and obesity usage. , today, glp-1s are used by around 10-12% of t2d patients in the u.s. “we model glp-1 usage expanding to around 35% of diabetics in the u.s. in 2030 and would not be surprised to see upside to this number, especially as outcomes data continues to emerge,” schott noted. “in addition, we forecast that around 15 mn obese patients will be on glp-1s by the end of the decade.” overall, total glp-1 users in the u.s. may number 30 mn by 2030 — or around 9% of the population. , the glp-1 landscape is currently dominated by two major players: u.s.-based eli lilly and denmark-based novo nordisk. “we expect the obesity market to largely be a duopoly between both companies, with modest share attributed to later entrants,” schott said. “while demand could continue to outstrip supply for the next several years, we do see these issues resolving in the longer term with more plants coming online and more competitive oral options becoming available.” , the u.s. obesity market is expanding rapidly .

The U.S. obesity market is forecast to reach $44 bn in 2030 — up from just $0.5 bn in 2020.

Sector implications

What this means for … health care.

The growing popularity of GLP-1s could transform how obesity is viewed and managed. “We believe this marks the beginning of a paradigm shift in the way that obesity is treated, with physicians moving to a weight-centric treatment of multiple co-morbidities associated with the condition. We expect this to drive substantial uptake of GLP-1s,” said Richard Vosser, Head of European Pharma & Biotech at J.P. Morgan. For instance, GLP-1s may aid in the management of cardiovascular disease and heart failure, which around 9 mn obese patients suffer from. 

Likewise, the rise of GLP-1s will shape diabetes treatment. “In diabetes, we see growth of GLP-1s driven by a shift in medical guidelines, including those proposed by the American Diabetes Association and European Association for the Study of Diabetes, which place weight management and assessment of co-morbidities profile on par with glycaemic control,” Vosser added. 

What this means for … biotech

With the GLP-1 market proving to be highly lucrative, new biotech firms will seek to enter the drug race. “Naturally, with a class so potentially unprecedentedly large, we expect many biotechs across the market cap range to be motivated to participate. Even capturing a small share of such a large market could be very interesting for some companies, and these efforts may also lead to attractive partnering opportunities,” said Jessica Fye, a Senior Analyst covering the Large-Cap Biotechnology sector at J.P. Morgan. 

There is also scope for biotech firms to explore, through clinical trials, how certain medications work in tandem with GLP-1s. “For example, we believe companies investigating drugs targeting certain cardiovascular indications may want to consider planning to generate data that includes patients on GLP-1s,” said Anupam Rama, a Senior Analyst covering the U.S. Biotechnology sector at J.P. Morgan. “All in all, we see GLP-1s as an exciting category, with biotechs angling for a slice of the pie.” 

What this means for … medtech

How will GLP-1s impact other technologies used to treat diabetes and obesity? Despite the recent fall in medtech share prices, J.P. Morgan Research does not see an imminent threat to devices such as insulin pumps and continuous glucose monitors (CGMs). “In fact, we anticipate CGM utilization could increase as they will be vital to track progress and determine if GLP-1s are actually working,” said Robbie Marcus, a Senior Analyst covering the U.S. Medical Supplies & Devices sector at J.P. Morgan. “Plus, the weight loss benefit from CGMs, while not quite comparable to that of GLP-1s, is nevertheless material, especially considering how much more affordable they are.” 

Weight loss surgery will also continue to be in demand due to its superior and more sustainable clinical outcomes. “Even those patients who opt for drugs will most likely still undergo bariatric surgery down the line due to the low adherence rates and high recurrence of weight gain from GLP-1s,” Marcus noted. 

Overall, the outlook is still positive for the medtech industry. “With medtech now trading at a slight discount to the S&P 500 vs. a 15–25% historical premium, we think a reasonable amount of GLP-1 risk is already priced in,” Marcus said. “While GLP-1s will be a huge drug class, medtech volumes can also increase over time. We think both can live side by side and don’t see them as mutually exclusive.” 

What this means for … insurance

In the U.S., many insurance providers are scaling back on coverage of GLP-1s due to the high costs involved. As of November 2023, a month’s supply of Zepbound is priced around $1,060, while a month’s supply of Wegovy is around $1,350.

However, J.P. Morgan Research expects coverage to eventually improve, especially for obesity treatment. “Coverage for obesity currently far lags that for T2D, and this will likely remain the biggest debate in the class for some time,” Schott noted. “We estimate current coverage at only around 40%, but this will likely reach the 80% range by the end of the decade, driven by a series of outcomes studies that we expect will show broad health benefits from losing weight.”

In the life insurance space, companies that cover mortality risk will benefit the most from GLP-1s to the extent that the treatment of diabetes, obesity and related co-morbidities translates to longer life spans for the insured population. “In financial terms, higher life expectancies would allow life insurers to earn more premium income and higher investment income on reserves, as mortality claims are deferred,” said Jimmy Bhullar, Head of the U.S. Insurance research team at J.P. Morgan. 

On the other hand, GLP-1s could have a negative impact on life insurers that cover longevity risk through products such as structured settlements and pension risk transfer (PRT) plans, or lapse-supported policies such as long-term care and universal life with secondary guarantees (ULSG), where insurer economics deteriorate the longer the policy stays in force. “This is because longer life spans would translate to more benefits paid in the future,” Bhullar noted. 

What this means for … food and beverage

GLP-1s could have a significant impact on food and beverage consumption. The advent of GLP-1 use for appetite suppression has been a key factor in the median larger-cap U.S. food producers underperforming the S&P 500 by nearly 40% year to date. “We have seen a number of trends and possible disruptions come and go in consumer staples over the years, but never one quite like GLP-1s,” said Ken Goldman, Lead Equity Research Analyst for the U.S. Food Producers and Food Retailers sectors at J.P. Morgan. 

Using data from alternative data provider Numerator, J.P. Morgan Research has found that current GLP-1 users purchased around 8% less food — including snacks, soft drinks and high=carb products — for at-home consumption over the last 12 months compared with the average consumer. Food intake could decrease by  -3% in North America by 2030E, though the figure could be higher for packaged foods. While European food companies derive up to 30–40% of their sales in North America, many of them have broad category and regional exposures, mitigating potential headwinds.

“Overall, we think that if GLP-1s start to make a meaningful difference in consumption patterns, grocers will be hurt less than packaged food companies,” Goldman said. “This is especially as they sell a lot of higher-margin fresh food, which could offset much of the impact on the center store and snacking in particular.” 

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