Project management

1. Initiating: Defines the needs of the project. Upper
   management of other leading stakeholders research to
   determine if the project's
   return on investment (ROI) is greater than the risks. If
   the ROI justifies the
   the project, then they proceed.
2. Planning: Describes the scope of the project. Scope
   includes gathering and analyzing the project's
   requirements, then creating
   steps based on the requirements. This phase also
   determines any project risks
   and develops plans to minimize them. It also includes
   creating a communication plan.
3. Executing: Begins the work of the project. A project
   manager delegates tasks and teams execute the project as
   defined in the
   planning phase. This is a continuous phase that happens
   for the majority of the
   project.
4. Monitoring and controlling: Ensures the project
   progresses on time and within budget. The project manager
   monitors the project
   and makes adjustments as needed. This phase and the
   executing phase happen at
   the same time.
5. Closing: Delivers a finished product to the customer.
   After the customer approves the product, teams evaluate
   the project in full,
   identify successes and reflect on areas for potential
   improvements.
   Project management example
   Let's explore an example project that incorporates each
   of the above phases.
   You work for a construction company. Your managers meet
   with a sales agency that wants to build a new office.
   During the initiating
   phase, your managers and the agency create a study to
   determine the benefits of
   a new office versus the cost. After estimating the time
   and resources needed,
   the agency decides to proceed.

During the planning phase, your project manager defines
the project's requirements, including the types and
amount of material
required, such as concrete and steel beams. They also
determine how many people
and how much equipment the job requires. The sales agency
gives them the ideal
deadline for the project, creating a timeline. They
establish that their team
should communicate with the foreperson who reports all
information to the
the project manager then schedules a weekly meeting with
the
sales agency to
deliver progress updates.
Your project manager executes, monitors, and controls the
the project as your team constructs the office. You record
your time when you
arrive and leave the construction site, which helps your
project manager
monitor the timeline. They assign you new tasks once you
complete prior
assignments and visit the construction site once a week
to monitor the progress
and quality of your team's work.
Once you complete the office, the sales agency managers
review it to meet all requirements. They are satisfied
with the
office and the project closes. Your project manager
holds a meeting to review
the project. They ask for feedback and invite you to
share your experiences.
Why do companies use project management?
Companies use project management to achieve results
measured, focused, and predictable. Project management
processes keep complex
plans organized and all individuals aligned and focused
on specific roles and
responsibilities. Companies use project management for
these reasons:
• Project management creates a focus.
• Project management controls quality.
• Project management minimizes risks.
• Project management reduces project costs.
• Project management encourages teamwork.
• Project management maximizes resources.
• Project management encourages learning.
Project management creates a focus.
Projects, especially ones that last months or years, can
be challenging for companies to manage. Project
management relies on defining a
scope for projects that follow specific deadlines for
each task. With a clear
scope and strict deadlines, companies can stay focused on
the objective and
complete goals successfully.

Example: You work on a project team for a software company
that creates customized solutions for the hospitality
industry. A hotel wants
your company to create an integrated property management
system that all
employees can use. Your project manager holds a team
meeting to define the
scope. Your team gathers the requirements for the system,
including guest
tracking, turnover rate, billing, and so on. With these
requirements, your team
determines the length of each task. This scope helps you
stay focused
throughout the project.
Project management controls the quality.
The most important part of project management is
delivering a quality project on time and fully. To
deliver a satisfactory
the project, a project manager closely monitors their
team's
progress and quality
of work. A project manager will oversee their team's
work, identify any
quality obstacles, and find acceptable solutions.

Example: Throughout the hotel management system project,
your project manager holds daily meetings and weekly
individual team member
sessions to measure the project's progress. They also
audit your team's work
quality by taking samples and asking employees outside of
your team to evaluate
them. Your coworkers give a fresh perspective on the
quality and provide
valuable feedback that helps your team improve its work.
Related: 4 Types of Communication (With Examples)
Project management minimizes risks
The first phase of project management involves evaluating
whether the risks of a project outweigh the benefits. If
a company chooses to
continue with a project. Project managers will
continually assess potential
risks and formulate plans to minimize them. Fewer risks
ensure a timely and
successful project.

Example: During the execution phase, you and your project
manager discovers there may be an issue integrating the
hotel's current property
management system with your new one. To eliminate this
risk, they hold a
a special session where your project team formulates
several ideas for a
solution. After evaluating all of the solutions, your
project manager chooses
to implement one that poses the least risk to the rest of
the project.
Project management reduces project costs.
During the planning phase, project managers and
stakeholders define a budget for the project. Having a
thorough budget helps
project managers reduce costs by knowing how much they
can spend on resources.
Further, once a company creates a successful project
management phases, it can
reuse the processes in future projects.

Example: Your project manager spends a portion of each day
comparing the project's current cost against the budget.
Reviewing this
information daily ensures the project will not go over
the planned budget.
The hotel owner has.