What is project management?

At a glance

• SMART goals make project goals measurable, achievable and time-bound.
• The magic triangle shows the conflict of objectives between time, cost and quality.
• Classic, agile and hybrid methods offer different approaches to project steering.
• Project controlling continuously monitors progress, budget and time frame.
• Used in almost all industries: IT, consulting, construction, product development.

Project management definition

Project management refers to the entirety of all management tasks, methods, tools and organizational measures that are required to successfully plan, steer and complete a project. It is thus a systematic approach to implementing complex undertakings in a goal-oriented manner within defined framework conditions – such as time, budget and quality. Project management is used in almost all industries: from IT and consulting through construction to product development.

The goal of project management is to ensure that projects are implemented efficiently and that the agreed results are achieved in line with the defined objectives. This involves not only organizational and technical steering, but also the coordination of teams, communication between those involved and dealing with risks.

In practice, project management combines strategic planning with operational implementation: it is an active, continuous leadership and steering process that ensures that all those involved know what, when and how something must be done in order to ensure the project's success.

What all does project management include?

Project management encompasses all tasks, methods and tools that are needed to successfully implement a project from start to completion. Central aspects that are relevant for project managers and teams include:

• Goal and task definition: Project management is not possible without clear project goals and task areas. Clear goals, requirements, tasks, priorities and success factors are therefore the cornerstones of project management.
• Project planning and organization: Time, resource and budget planning is essential, since every project can only be implemented successfully with structure. Clear responsibilities and milestones, as well as the right method, are also decisive.
• Team management and communication: Project management thrives on collaboration within the team and with stakeholders – clear roles and transparent communication are crucial.
• Use of project management tools: Solutions such as Trello, Jira or MS help to plan tasks, document progress and manage the project digitally.
• Risk management and quality assurance: The identification and assessment of risks, the planning of countermeasures as well as the definition and continuous review of quality standards are integral components of project management.
• Controlling and project completion: The regular monitoring of progress, budget and time frame as well as the evaluation of project results and the documentation of "lessons learned" are part of the complete management cycle.

What does SMART mean in project management?

The SMART method helps to formulate goals in project management in a clear, measurable and achievable way. SMART is an acronym that describes the most important properties of project objectives:

• S – Specific: Goals should be formulated clearly, unambiguously and precisely in order to avoid misunderstandings and to be able to verify compliance transparently.
• M – Measurable: Progress and success must be verifiable on the basis of key figures, e.g.: "revenue increase of 10 % in 6 months"
• A – Achievable: Goals should be realistically achievable and accepted by the team in order to ensure the required motivation.
• R – Relevant: Goals should make a direct contribution to the overarching project or corporate goal in order to avoid unnecessary work and loss of focus.
• T – Time-bound: Clear time specifications for goal achievement are important for efficient planning, prioritization and control of the project.

What is the magic triangle of project management?

The magic triangle in project management (also known as the project management triangle or iron triangle) describes the central conflict of objectives that every project management effort must balance: time, cost and quality or scope. These three dimensions are closely interrelated – a change to one side of the triangle inevitably affects the other two. The concept therefore helps to identify conflicts of objectives early on and to make well-founded decisions. A deliberate prioritization and ongoing coordination of the three target variables is crucial in order to bring projects to a successful conclusion.

Time (schedule objective):

• Refers to the project duration, milestones and deadlines
• Both a shortening of the project time and delays can cause higher costs or reduce quality
• Clear scheduling and deadline monitoring are crucial

Cost (effort objective):

• Comprises all resources allocated to the project, such as the available budget, the personnel and other means
• Savings in the budget can lead to longer durations or lower quality
• Overruns often result in lower profitability or in scheduling delays
• Regular project controlling helps to stay within budget limits

Quality or scope (deliverable objective):

• Describes what is to be delivered specifically in the project – that is, the substantive and qualitative requirements for the project result
• An increase in quality requirements usually requires more time and higher costs
• A clear definition of the project objectives and requirements is essential

Practical example: If the completion date is brought forward, either more budget must be planned for additional resources or quality must be reduced. If the project manager succeeds in keeping all three factors in balance, the "triangle remains stable" – the project is completed efficiently, on schedule and within the cost framework.

Which methods exist in project management? – A comparison of project management methods

Methods in project management describe the different ways of structuring projects. Numerous methods are available, each used depending on the type of project, team structure, and objective. In principle, the methods can be divided into three main categories: classic, agile, and hybrid. The choice of the right project management method depends heavily on the type of project, team structure, and requirements. Classic methods are generally suited to projects with clearly defined goals, stable requirements, and an easily plannable workflow; agile methods are particularly suited to dynamic projects with changing requirements, while hybrid approaches are used for complex undertakings that require both flexible and plannable elements.

Classic project management

• Definition: Linear, sequential succession of project phases. The five phases of project management are initiation, planning, execution, monitoring, and closure
• Typical methods: Waterfall method: Consecutive project phases; ideal for projects with stable requirements V-Model: Especially widespread in software development; supplements each development phase with testing phases
• Advantages: High planning reliability as well as a clear distribution of tasks and structure
• Disadvantages: Little flexibility in the event of changes, adjustments difficult

Agile project management

• Definition: Iterative, flexible approach in short cycles ("sprints"), continuous adaptation to changes
• Typical methods: Scrum: Product Owner, Scrum Master, and the development team coordinate the work in regular meetings such as Daily Scrum, Sprint Planning, and Retrospective, in order to advance the product development iteratively and incrementally Kanban: Visual task management on a board: "To Do – Doing – Done" Lean: Efficiency improvement through resource conservation, focus on value-adding activities XP (Extreme Programming): Fast, customer-oriented software development through continuous feedback
• Advantages: High adaptability, promotion of team communication and fast reaction to new requirements
• Disadvantages: Lower plannability, high communication and coordination effort

Hybrid project management

• Definition: Combination of classic and agile approaches to leverage the advantages of both methods
• Typical application: Large projects or programs in which subprojects are implemented in an agile way, while the overall project is managed classically
• Advantages: Structured planning, but at the same time adaptability for complex or dynamic requirements
• Disadvantages: Requires experienced project leadership to combine both approaches effectively

Application examples: Where is project management used?

Project management is used in nearly all industries in which complex undertakings have to be implemented on schedule and within budget. The following examples show typical fields of application.

Summary

Project management is the foundation for the successful implementation of complex undertakings: it combines clear goal definition, structured planning and continuous steering – with methods ranging from classic to agile. The magic triangle of time, cost and quality makes it clear that project management always requires trade-offs – and that reliable data is the basis of every good decision.