Project Management 101 eBook:

Definitions, Methods and Tools

Table of contents
An introduction to project management 3

Templates 5

The project management life cycle 6

Project management methodologies 11

Project scheduling 17

Resource management 21

Risk management 26

Stakeholder management 30

Reporting 34

Project management tips and best practices 37

Project management tools 40

Why choose ProjectManager? 43

An introduction to project management

Projects are a series of activities with a defined start and end aimed
at achieving specific objectives. Project management is a crucial
discipline across industries to help organizations complete
initiatives. It involves combining skills, tools and techniques to plan,
execute and control projects so they’re finished on time and on
budget.

Noteworthy stats:

✓ 92% of organizations using project management practices meet

objectives

✓ Organizations that invest in project management practices waste

28x less money

✓ By 2030, there will be a need for ~2.3 million project managers

annually

Leverage the information you learn in this eBook to meet project

expectations, boost stakeholder satisfaction and deliver more value
to your company.

3
The power of project management software

To thrive in the project management community, you need the right tools. Project
management software is one of the most critical components of planning, scheduling and
executing projects from start to finish. Seventy-three percent of organizations that use a
formal approach to project management always or often have met their goals or intentions.

Outdated tools like static documents, spreadsheets and email communication are no longer
cutting it. Today’s businesses need award-winning software instead.

ProjectManager helps plan projects, build workflows and manage resources with powerful
features your whole team can use. Use the award-winning Gantt chart to build detailed
plans, set milestones and assign work to your team in real time. Or use built-in resource
management features like timesheets and workload charts to balance schedules and control
costs. Live dashboards and reports are quintessential tools to keep stakeholders informed of
progress while the mobile app keeps you connected from the office or the field for live
updates. Our suite of tools will bring agility, accuracy and insights into your projects and
portfolios.

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4
Templates

Templates are one of the easiest ways to kickstart projects and ensure consistency.
ProjectManager offers pre-built templates to use in Excel, Word and directly within our
software. Explore some of our highly utilized templates below.

Gantt chart Project plan

Work breakdown
Project budget
structure

Project dashboard Project proposal

5
The project
management
life cycle
Regardless of the industry, all projects go through the project life cycle. It’s a structured
approach divided into five stages to move the project from start to finish. The life cycle
includes initiation, planning, execution, monitoring and closure. While the project manager
is typically responsible for managing the life cycle, the project management office (PMO)
may be involved when there are multiple projects.

Initiation phase
01 The initiation phase is when the idea of the project is first explored and
decisions are made to determine whether or not to proceed. This phase defines
the “why” and “what” of the project.

Whoever has the idea, whether it be the VP of marketing, CFO, project manager
or another role, is considered the project sponsor. It’s up to this individual to
convince others in the organization that the project is worth pursuing.

Some key aspects of this phase include

defining the project’s goals and objectives
and leveraging feasibility studies to
Tip
determine if it is technically, economically
and operationally sound. Then identify
stakeholders. Stakeholders may include Explore a glossary of 100+
everyone from internal team members like project management terms in
senior managers or executives to external one convenient location.
stakeholders like clients or investors.
Learn more
All of this information is compiled into a
document called the project charter that
provides clarity and ensures everyone involved understands the objectives. If
the project charter is approved, a team is assembled and a project kickoff
meeting takes place. After this, the project manager takes over where the
sponsor left off and begins the planning phase.

Project planning phase

02 During the planning phase, the high-level goals and objectives are transformed
into a detailed roadmap that outlines execution. Here, the project manager
creates the project management plan, a document that details how the initiative
will be executed. While there are some guidelines for making project plans, they
vary across organizations.

7
 Any plan should cover these key areas:

✓ Goals: Identifies SMART (specific, measurable, attainable, realistic, timely)

goals and tasks and deliverables will be geared towards completing them.
✓ Scope management: Includes all tasks that will be executed to complete a
project defined in a scope management plan. It explains how tasks will be
executed, their outcomes or deliverables and their success criteria, among
other details.
✓ Stakeholder management: Identifies, analyzes, plans, manages and tracks
interactions with people or groups that may be impacted by the project’s
outcomes.
✓ Resource management: Maximizes resources to achieve project goals. It
includes planning and allocating the people, equipment, materials and other
assets.
✓ Budget management: Establishes the budget and tracks and controls a
project’s financial resources.
✓ Schedule management: Determines what task needs to be done at what
point to ensure the project stays on schedule.
✓ Change management: Guides people through changes that could impact
their project roles. It helps them adapt if there are changes such as new
tasks, deadlines or processes.
✓ Risk management: Identifies and deals with potential problems that could
impact projects. It aims to identify issues and minimize the impact if the risk
comes to fruition.
✓ Quality management: Ensures the project delivers the right results while
being mindful of the required quality standards and customer satisfaction.

The planning phase aims to reduce uncertainty by anticipating potential

problems before they occur. It also works to optimize resource utilization. The
better a project plan is fleshed out, the higher the chances of completing it on
time, on budget and within the expected quality.

Execution phase
03 Here, the project comes to life. In this phase, the team executes tasks to meet
deliverables and milestones. Typically, this is the longest and most demanding
phase.

Some tasks that make up the execution phase include developing the team and
assigning resources using key performance indicators, executing the plan,
procurement management and tracking and monitoring progress. If needed,
project managers can set status meetings and revise the schedule and plan.

8
 A project execution plan (PEP) explains how the execution phase will be
managed. It’s similar to a project plan but its scope is much narrower as it only
includes what’s related to project execution, while plans cover the entire life
cycle.

Typically included in a PEP are:

✓ Organization
✓ Scope
✓ Schedule
✓ Resource plan
✓ Budget
✓ Risk management plan
✓ Communications plan

As the tangible results begin coming to life during this stage, it’s easier to
determine whether the project will succeed or fail.

Monitoring and control

04 Fourth comes the monitoring and control phase although this often happens
simultaneously with the execution phase. This phase ensures performance
aligns with what was established in the plan to keep the project on track.

Project managers will closely oversee progress and performance, review status,
identify potential problems and implement corrective actions to keep the
project on schedule and on budget.

A project manager should oversee these monitoring steps:

✓ Create and reference the project scope baseline

✓ Make a schedule baseline to compare actual and planned progress
✓ Estimate costs and define the budget
✓ Use a risk log to collect potential risks that could show up
✓ Keep a change log to track and communicate changes as they occur
✓ Establish quality control procedures
✓ Create reports to share with stakeholders

This phase is all about managing risk, communicating with stakeholders,

controlling costs and maintaining quality.

9
 Closing phase
05 The life cycle isn’t completed until the closure phase is over. While it’s essential
to complete the deliverables to stakeholders’ satisfaction, the project manager
also needs to tie up loose ends. This means closing out work with contractors,
ensuring everyone has been paid and confirming that all project documents are
signed off on and archived properly.

This includes the project closure report or a formal document that summarizes
outcomes. It’s a performance record, capturing lessons learned and providing a
final assessment of whether the project met its objectives. This report should
contain the following.

✓ Goals and objectives

✓ Key deliverables and if they were Tip
completed successfully
✓ Realized benefits for the stakeholders Want to learn even more about
✓ Lessons learned to outline what the project management life
worked and what didn’t cycle? Watch this video by
✓ Financial performance to determine if Jennifer Bridges, PMP.
it stuck to the budget
Learn more
From there, the project manager typically
holds a post-mortem meeting with the
team to review what worked and what
didn’t to avoid repeating the same mistakes. Once the meeting is over, don’t
throw away documentation; archive it and leverage it in the future.

The project management life cycle is a structured approach for organizations to improve
their project management capabilities and their chances of success. It’s one of the most
important tools to help project managers effectively oversee all phases to achieve better
outcomes.

However, there’s more than one way to achieve ideal outcomes;

this is why various project management methodologies exist.

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Project
management
methodologies
A project management methodology is a set of principles, tools and techniques used to plan,
execute and manage projects. These methodologies help project managers lead team
members and manage work while facilitating collaboration.

Methodologies help ensure timely projects without sacrificing quality. They offer a
consistent, structured approach to organizing tasks, allocating resources and achieving the
project’s short-term and long-term goals.

Reducing risk is another important aspect. With a methodological approach, project

managers have the tools to identify and reduce risks before they impact the project. As each
team member has clear marching orders, expectations are clear and stakeholders
understand what to expect.

Methodologies also include performance metrics and control mechanisms to improve

tracking, performance and resource management. Overall, a project management framework
has countless benefits and virtually no downsides.

Project management methodologies and the triple constraint

One fundamental concept in project management is the triple constraint of scope, time and
cost, or the three key constraints of every project. When one constraint is changed, it will
likely impact the others.

✓ Scope: The work that must be done to deliver the project’s objectives
✓ Time: The schedule for completing the project
✓ Cost: The budget allocated for the project

Project management methodologies offer the tools needed to manage the triple constraint
effectively, yet in different ways.

If you’re unsure where to begin, here’s an overview of the most commonly used
methodologies that project managers, program managers, portfolio managers and PMOs
use.

12
Waterfall methodology

What it is When to use it

This is typically the most The waterfall approach is great for

straightforward and linear approach to manufacturing and construction
managing projects, as well as the most projects, which are highly structured.
traditional. As the name suggests, the This is also a good methodology for
waterfall methodology is a process in when it’s too expensive to pivot or
which the project phases flow change anything after a plan is made.
downward. The model requires moving The waterfall method uses Gantt charts
from one phase to the next once the for planning and scheduling.
existing one has been completed.

Agile methodology

What it is When to use it

Agile project management is an The practice originated in software

evolving, collaborative way to development and works well in that
self-organize across teams. It’s a culture. However, agile has been
dynamic way to work and collaborate, applied to non-software products that
making it a popular methodology. When seek to drive forward with innovation
implementing agile, project planning and have uncertainty, such as
and work management are adaptive, computers, motor vehicles, medical
evolutionary in development, seeking devices, food, clothing and more. It’s
early delivery and always open to also used in projects that need a more
change if it results in process responsive and fast-paced production
improvement. It’s fast and flexible, schedule, such as marketing.
unlike waterfall project management.

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Scrum methodology

What it is When to use it

Scrum is a short “sprint” approach to Like agile, the scrum methodology has
managing projects. The scrum been used predominantly in software
methodology is ideal for teams of no development, but it’s applicable across
more than 10 people and often is any industry or business, including
wedded to two-week cycles with short retail logistics, event planning or any
daily meetings, known as daily scrum project that requires some flexibility. It
meetings. It’s led by what is called a does require strict scrum roles,
scrum master. Scrum works within an however.
agile project management framework,
though there have been attempts to
scale it to fit larger organizations.

Project Management Body of Knowledge (PMBOK)

What it is When to use it

The Project Management Institute (PMI) Almost any project can benefit from
is a not-for-profit membership PMBOK, as they all go through the
association, project management various stages of the life cycle. It’s a
certification and standards great way to keep everyone on the
organization. same page and clearly define how a
project is managed.
This organization produces a book
called the “Project Management Body The Project Management Institute is
of Knowledge” or PMBOK. The PMBOK the organization that grants various
provides definitions and guidelines for certifications such as the project
project planning, scheduling, executing management professional (PMP)
and controlling. For example, the certification, which is the gold standard
project management process groups among project managers and is
describe the life cycle, while the 10 recognized globally. PMBOK is a great
project management knowledge areas traditional framework.
explain how to manage a project.

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Critical path method (CPM)

What it is When to use it

In the critical path method (CPM), CPM works better with smaller or
project managers build a model, mid-sized projects. In larger projects, it
including all the activities listed in a can be difficult to take all the needed
work breakdown structure, the duration data and make sense of it on a
of those tasks and any task diagram.
dependencies. They mark milestones to
indicate larger phases or points in
which deliverables are due.

With this information, identify the

longest sequence of tasks to finish the
project, which is called the critical path.
Keep in mind that if one task is delayed,
the whole project will be delayed.

Kanban

What it is When to use it

The kanban methodology is a visual Another process developed initially for

approach to project management, and manufacturing and software teams, the
the name means billboard in Japanese. kanban method has since expanded
It helps manage workflow by placing and is used in human resources,
tasks on a kanban board where marketing, organizational strategy,
workflow and progress are clear to all executive process and accounts
team members. This methodology receivable and payable. Almost anyone
reduces inefficiencies and is a great can plan with kanban boards, adding
tool for many purposes such as lean cards to represent project phases, task
manufacturing or agile projects. deadlines, people, ideas and more.

15
Six Sigma

What it is When to use it

Six Sigma works to improve quality by This methodology works best in larger
identifying what isn’t working in the organizations. Even companies with a
project. It applies quality management, few hundred employees are likely too
including empirical statistics and small to take advantage of its benefits.
employs experts in these disciplines. It requires a certification to practice.
There is also a Lean Six Sigma that
adds lean methodology to eliminate
waste.

As a doctrine, it says that continued

efforts to achieve stable and expected
results are the most important to
success. Processes can be refined and
improved. It takes the whole
organization, from the top down, to
sustain quality in a project, program or
portfolio.

The above methodologies are only a handful of examples as over a dozen are recognized.
Newcomers to the industry can consider the project specifics, the size and skills of the team,
constraints, industry best practices and the company’s organizational structure. Remember,
a hybrid or a mixture of methodologies can be another effective approach.

Project management methodologies offer guidance for effective

project scheduling, another foundational topic for project
managers.

16
Project
scheduling
A project schedule is a timetable that organizes tasks, resources and due dates in the ideal
sequence so a project can be completed on time. It is created during the planning phase and
includes the following:

✓ A project timeline with start dates, end dates and milestones

✓ The work necessary to complete the project deliverables
✓ The costs, resources and dependencies associated with each task
✓ The team members that are responsible for each task

Project scheduling techniques

How can project managers estimate the duration of project tasks accurately? In addition to
referencing historical data for similar projects, this is accomplished through scheduling
techniques. Below are some common scheduling techniques to consider.

Work breakdown structure (WBS)

The work breakdown structure shows how many tasks and deliverables there
are to get to the final deliverable. It’s a network diagram with the project goal on
top with “branches” underneath that show all the needed steps to get there.
The two main types of a WBS include a deliverable-based WBS and a
phase-based WBS. This tool ensures nothing is left out of the schedule.

Critical path method (CPM)

The critical path method focuses on the longest sequence of tasks that must be
completed to execute a project to create a project schedule. If a task on the
critical path is delayed, it will delay project execution as a whole. Once this path
is identified, project managers use the critical path algorithm to identify the
duration of the critical path.

Program evaluation review technique (PERT)

In this technique, a PERT chart is made of nodes and directional arrows to

visualize tasks and dependencies. The arrows are the activities that need to be
done before moving on to the next event or milestone. It provides a timeline
overview that outlines which tasks are essential to delivering a successful
project.

18
An in-depth guide on how to make a project schedule

Before starting to make a schedule, consider the following as this information will help inform
the schedule:

✓ What needs to be done?

✓ When will it be done?
✓ Who will do it?
✓ Where will it be done?

Follow the below steps to create a project schedule.

Create the project scope

01 The project scope statement is created during the initial planning. This
document contains the specific goals, deliverables, features, budget, etc. All
tasks needed to complete the project successfully are listed here (which
requires an understanding of stakeholder requirements).

Be thorough when putting a task list together and use a work breakdown
structure (WBS) to organize these activities and lay them out in order of
completion. Understanding task dependencies and their sequence is important
for schedule management.

Establish the sequence of tasks

02 Tasks are the small jobs that lead to the final deliverable, and it’s important to
map out the sequence of those tasks before diving into them. Oftentimes a task
will be dependent on another to start or finish. You don’t want to get halfway
through a task before realizing it can’t be completed due to hanging objectives.

Group tasks

03 Once tasks are collected and in the right order, divide them by importance. This
helps determine the tasks critical to the project implementation schedule. A
priority matrix can also help facilitate this process.

Then, break tasks into milestones that relate to the five project phases.
Organize tasks with milestones so it’s easier to track progress.

19
 Link task dependencies
04 Some tasks can be done simultaneously, but some tasks are dependent on
others to start or finish before they can start or finish. These task dependencies
must be mapped out in the schedule to minimize the risk of bottlenecks.

Find the critical path

05 Tasks are the small jobs that lead to the final deliverable, and it’s important to
map out the sequence of those tasks before diving into them. Oftentimes a task
will be dependent on another to start or finish. You don’t want to get halfway
through a task before realizing it can’t be completed due to hanging objectives.

Assign resources
06 Resource management and project scheduling are closely related. Every task on
the schedule should have the related resources and costs associated with
completing it. Without mapping the resource availability to each task, it’s easy to
exceed the budget. With resources attached to tasks, it’s easier to plan the
team’s time and balance their workload.

For more guidance on how to assign resources in a project

schedule, explore our chapter on resource management below.

20
Resource
management
Resource management

Without resources, projects can’t come to life. All projects require human and non-human
resources such as raw materials, equipment and machinery that must be managed. This is
where resource management comes into play; it’s the process of estimating what resources
will be needed to complete a project, acquiring them, making a schedule for how they’ll be
allocated and monitoring their utilization during execution.

Project and organizational resources can include time, raw materials, human resources,
financial resources, machinery, equipment and more. For example, employees, facilities,
electronic devices, data, wood, aluminum and credit may all be project and organizational
resources. Usually, the project manager or project management office (PMO) oversees this
process, but some organizations have a resource manager who specializes in this area.

There are three main categories of resource management:

✓ Project resource management is the process of overseeing the use of resources such as
labor, materials and equipment to complete tasks

✓ Enterprise resource management consists of using resources to manage the business’

everyday operations

✓ Human resource management focuses on allocating human resources for both project
and enterprise resource management

Resource management plans

How does the process of resource management come to life? A resource management plan.
This document describes the different guidelines, operating procedures, tools and methods
an organization uses to manage resources. For example, it should itemize resources, indicate
their estimated costs and establish a resource schedule for their allocation, among other
details.

Resource management techniques

Utilize the following techniques to forecast, plan, allocate, level and optimize resources while
executing projects.

22
Resource forecasting

Project managers must do their best to estimate a project’s resources and how
those requirements fit the organization’s current plans. In other words, what
resources will be needed in the future? To achieve this, define the scope to
identify tasks and their needed resources.

Example: A software development company launching a new app needs to

know the number and type of developers, the needed software tools, testing
environments and an overall budget.

Resource capacity planning

The maximum amount of work an organization can accomplish with its current
available resources over a period. Resource capacity planning is the process of
ensuring resource capacity is sufficient to execute a project.

Example: During the holiday season, a retail store should predict increased
customer volume based on past sales and schedule extra staff accordingly.

Resource loading

Resource loading determines the maximum number of work hours employees

can be allocated and ensures that 100% of their time is utilized throughout a
project.

Example: A construction project manager allocates all concrete finishers on the

crew to work on a specific pour of concrete, allocating their full capacity to that
task to keep on schedule.

Resource leveling

The process of re-assigning work to a team to solve overallocation or

scheduling issues. By thoroughly understanding what each team member
offers, resource leveling makes it easy to assign tasks based on the team’s
abilities to maximize resource efficiency.

Example: If a software team only has two developers and one is assigned to the
majority of the tasks, the other will sit idly. The project manager can redistribute
some high-priority tasks to the other developer to balance the workload and
prevent burnout.

23
 Resource utilization tracking

Resource utilization spots resources that aren’t being used efficiently. From
there, project managers can reallocate those resources or change the resource
management plan.

Example: If an IT help desk has an employee who closes significantly fewer

tickets than their colleagues per hour, the other technician may receive more
training to improve efficiency.

Resource smoothing

This delays non-critical tasks to complete a project on time with the available
resources. Resource smoothing uses the slack or float on each task to delay
them without affecting the critical path. As a result, project managers can move
resources to complete critical path tasks and circle back to the least important
activities.

Example: A marketing team’s workload may spike in three weeks due to

overlapping campaign tasks. The project manager may shift less critical tasks to
week four to spread the workload and prevent burnout.

The resource management process

This ongoing process starts during the planning phase and continues until closure. It’s known
as the resource management life cycle and includes various stages.

✓ Resource analysis: Gauge the current resource availability to determine what resources
are missing. To do so, define the needed resources, look at the inventory and assess the
capacity of the resources to find gaps.
✓ Resource planning: This explains the resource requirements and how they’ll be met. More
importantly, it guides the team on resource management, so it should include general
guidelines, a description of project resources, their quantities and when they’re needed.
✓ Resource scheduling: Then, ensure those resources are readily available by aligning the
resource schedule with the overall schedule. There should also be a supply chain in place,
so map out every step, from suppliers to customers.
✓ Resource analysis: Pick the right resources at the right time to achieve tasks. For
example, prioritize critical tasks when creating the resource schedule.
✓ Resource planning: Keep track of the team’s performance with timesheets, workload
charts and other resource management tools.

24
Tips and best practices for resource management

Identify resource constraints before

planning a project
Tip
A resource constraint is any condition that
limits the availability of resources for the Download 7 free resource
completion of tasks. For example, a piece management templates.
of equipment might be scheduled for
maintenance, or team members may be Learn more
allocated for multiple projects, limiting their
availability.

Assemble a cross-functional team to identify resource requirements

In most cases, these projects will require an organization-wide effort and an

extensive use of organizational resources. Assemble a cross-functional team
and involve key stakeholders in the resource forecasting stage to get a holistic
and accurate view of resource requirements.

Consider the level of effort of the project beyond tasks

The level of effort of a project refers to all the supporting activities needed to
complete tasks, such as transporting resources from a warehouse to the job
site or training employees.

Resource management is all about making the most of what you

have, including time, money, people or materials. The more
effectively a team can manage resources, the better they can
manage risks.

25
Risk
management
Project risks are unexpected changes to the timeline, performance or budget—these can be
either positive or negative changes. A pragmatic approach to risk management is best as it
helps reduce the impact of a risk should it be negative. Ideally, risk management occurs in
the planning process to identify what risks could happen and how to control that risk, if it
occurs.

Different projects require different approaches to risk management. For large-scale

initiatives, strategies could include extensive planning to mitigate risks if issues arise. Smaller
projects, on the other hand, might mean a simpler approach such as a prioritized list of high,
medium and low-priority risks.

Several types of project risks exist, including:

Tip
✓ External risks such as the threat of new competitors
or economic changes Utilize these 9 free risk
✓ Scope creep, which can be caused by not management templates for
monitoring the critical path or poor task estimates Excel to identify, track and
✓ Schedule risk if there’s a chance of not meeting the mitigate risk.
planned schedule
✓ Financial risk if the project incurs costs higher than Learn more
expected such as a resource management issue
✓ Performance risk when the work isn’t progressing
as expected
✓ Strategic risks such as choosing the wrong methodology
✓ Legal and regulatory risks such as failing to get the needed permits

6 steps in the risk management process

While risk management is elusive, it’s all about having a risk management plan.

Identify the risk

01 Risks can’t be resolved if they aren’t identified. During this step, collect the data
in a risk register. Do this by brainstorming with the team, colleagues or
stakeholders. Ideally, find those with relevant experience and set up interviews
to gather information to identify and resolve risks. The same can be
accomplished using historical data on past projects.

All risks should be rooted in the cause of a problem. A risk breakdown structure
is also a helpful tool to weed out risks from non-risks.

27
 Analyze the risk
02 Next comes risk assessment. Here, consider the likelihood and impacts of a
potential risk occurring. Determine how each risk could impact the scope,
schedule, cost or quality.

Prioritize risks and issues

03 Not all risks require an immediate response. Categorize each risk as high,
medium or low. If the risk turns into an issue, it’s ideal to keep an issue log to
monitor it and implement corrective actions, which leads to the next step.

Assign a risk owner

04 Without someone to oversee the risk, the risk management process is useless.
Who is responsible for the risk, identifying it when and if it should occur? Will
this person also work toward resolving it? Some team members may be more
experienced in risk management than others, so assign accordingly.

Respond to the risk

05 Here’s where a risk mitigation strategy comes into play if the risk is negative.
This is simply a contingency plan that minimizes the impact of a risk. From there,
act on the risk(s) based on prioritization, deciding with the risk owner the best
path forward.

Monitor the risk

06 The risk owner is responsible for tracking its progress toward resolution. Will it
be tracked daily, weekly, bi-weekly, etc.? Document any changes to the risk
including its response strategies.

To stay updated and have an accurate picture of the project’s overall progress,
the project manager should set up a series of meetings to manage the risk.
Always be transparent so the team is aware of the risk, helping to mitigate it
however possible.

28
Risk mitigation strategies

We’ve outlined some of the most effective risk mitigation strategies.

✓ Risk avoidance: This strategy avoids any activity

that could be risky. This isn’t always possible, of
course, and is best when the potential impact of the
risk is high and the cost of mitigating it significant.
Tip
✓ Risk control: Also called risk reduction, this
mitigates potential bad outcomes by enhancing Risk management
safety and security as an ongoing process instead requires the right tools
of a one-off event. It identifies and addresses risks and techniques.
before they become significant.
✓ Risk transference: Here the risk is transferred to Learn more
another party, such as insurance to cover the cost.
This is used when the risk can have a big impact, but
it can also add significant cost to the project.
✓ Risk acceptance: This is when one accepts the risk and its possible consequences
without taking action. It’s best when the risk is low and the cost of addressing it doesn’t
work with the benefits of mitigating the risk.

Think of risk management as taking control of the project’s

future. Proactivity can help identify potential risks, make
informed decisions and boost the likelihood of success. By
actively engaging stakeholders in the risk management process,
project managers can gain valuable insights and build support.

29
Stakeholder
management
What is a stakeholder?

A stakeholder is an individual, group or organization that is impacted by the outcome of a

business venture or project. Project stakeholders, as the name implies, have an interest in
the project’s success and can be internal or external to the organization sponsoring the
project.

Stakeholders can include the project manager, team members, external customers,
contractors, subcontractors, investors, suppliers or government agencies. There are two
main types of stakeholders; internal and external.

What is stakeholder management?

This process consists of managing the expectations and requirements of all internal and
external stakeholders involved. This requires that project managers create a stakeholder
management plan, a key document that explains what stakeholder management strategies
will be applied.

Project managers also use tools and techniques like a project status report to facilitate
stakeholder management throughout the project life cycle.

A stakeholder management plan typically includes the following elements.

✓ A list of all project stakeholders along with their basic information

✓ A stakeholder map or power interest map
✓ A section describing the different stakeholder management strategies to apply in different
scenarios (ex: conflict resolution or project status reporting techniques)

How to make a stakeholder management plan in 5 steps

Here are five simple steps to create a stakeholder management plan.

Identify stakeholders

01 Use a stakeholder register to identify project stakeholders and their key

information such as their name, role, level of power and interest in the project,
preferred communication methods, etc.

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 Prioritize stakeholders

02 Not all stakeholders have the same impact. Note which have a bigger influence
and at which stage their influence becomes lesser or greater. Always monitor
key stakeholder relations as they will have the highest impact on the project or
business.

Interview stakeholders

03 Working with new stakeholders can be tricky at the start. Knowing stakeholders
is key to effective stakeholder relationship management. Because of this, it’s
ideal to interview project stakeholders, here are some examples of questions to
ask them.

✓ What are your expectations for this project?

✓ Which deliverables are you most interested in?
✓ What do you hope this project changes after launch?
✓ How quickly do you see this project rolling out?
✓ If you feel positively about this project, why?
✓ If you have worries about this project, why?

Create a power interest grid

04 A power interest grid or project interest matrix is a chart that determines
stakeholders’ level of power and interest in the project. It’s a helpful tool for
stakeholder analysis.

Identify these four stakeholder groups using this tool. They’re listed by
importance.

✓ High-power, high-interest stakeholders

✓ High-power, low-interest stakeholders
✓ Low-power, high-interest stakeholders
✓ Low-power, low-interest stakeholders

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 Set and manage expectations

05 Identify which stages each key stakeholder will be involved in, and timelines by
which their feedback is needed. Create a stakeholder engagement or
stakeholder communication plan to define how to manage stakeholder
relations. As always, be realistic, transparent and honest at every phase.

Stakeholder management revolves around building relationships with

stakeholders and understanding their needs. It’s a proactive approach to
managing their expectations to improve decision-making and achieve stronger
operational performance.

In many cases, stakeholder management is intertwined with

project reporting as reports help build transparency,
accountability and trust.

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Reporting
Project reporting is one of the key responsibilities of any project manager. It consists of crea-
ting different types of reports to track schedules, budgets and progress to keep stakehol-
ders informed.

A project report is a document that provides details on the overall status of the project or
specific aspects of progress or performance. All reports use project data based on econo-
mic, technical, financial, managerial or production aspects.

Not only do project reports help managers and stakeholders monitor progress, but they can
also predict threats, and in so doing, work toward developing a response to avoid them. They
help control costs and keep to your budget, monitor team performance and increase visibility
into the project for greater insights into managing them.

How to write a project report

✓ Define the report’s objective by considering the main areas that stakeholders want to
monitor

✓ Consider the audience of the report; is it for investors, clients, the project management
team or someone else?

✓ Collect data based on relevant report information such as due dates, labor costs, resource
expenses, etc.

✓ Format the report based on the audience and the available data

Below are some of the most common project reports crucial to success.

Status report

Status reports describe a project’s progress within a specific period against a

project plan. While they are usually produced weekly or monthly, some projects
benefit from daily reports during the implementation phase. They help
managers and stakeholders visualize data through charts and graphs. Use a
status report template to streamline the process.

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 Progress report

Progress reports communicate what has

been happening in the project over a set Tip
period to stakeholders. It shows work in
progress so stakeholders can make any Implement these 12
change requests. Compared to the status essential project reports
report, the progress report offers a larger to keep teams and
amount of data. Progress reports include stakeholders informed.
project, work, daily, weekly, monthly,
quarterly or annual reports. Download a Learn more
progress report template for Word to get
started.

Risk reports

A risk report such as a risk tracking report can show stakeholders a sense of
proactivity in how projects are managed. While the risk register should be
updated regularly, reporting on risks should be a priority.

Other types of reports to consider include:

✓ Resource reports
✓ Variance reports
✓ Board/executive reports
✓ Project closure reports

Now that we understand project management better, let’s learn

some tips and best practices.

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Project management
tips and best practices
These takeaways are useful for newcomers and seasoned professionals alike. Remember,
perfecting project management skills is a lifelong process.

Write documents and reports throughout the project management process

Documenting work and generating reports are important throughout the entire
life cycle of a project. They are especially important during execution to ensure
the actual progress aligns with the plan. Look at reports as communication tools
to keep team members updated and stakeholders informed.

Understand how to run a meeting

Whether formal or informal, team meetings are critical components of a project

manager’s role. Make sure to define the purpose of the meeting and create a
focused agenda to not waste time. Meeting minutes are a simple way to capture
the essential information in each meeting. Everyone should leave with the
needed action items and next steps.

Establish project controls to monitor time, budget and scope

Project controls, key performance

indicators (KPIs) and metrics are all
measurements that allow project Tip
managers to determine if work is being
done on time, within budget and meeting
quality standards. By establishing these While having the right
controls, a project manager can make skills is key, make sure
adjustments to keep the project on track. you have the right
certifications to further
Be a good leader your career.

Both hard and soft skills make up the Learn more

foundation of a strong project manager.
Brushing up on some of these skills such
as leadership can help project managers
lead by example and motivate their team to reach their goals.

38
 Foster clear communication

Open and honest communication is key to success, both with internal and
external teams. As a project manager, always keep stakeholders informed and
address any concerns as promptly as possible.

Use project management software

Project management software was developed as an all-in-one tool to improve

outcomes. It often delivers real-time data, which helps make more informed
decisions. Software also has features that make processes more efficient, from
Gantt charts to schedule work to dashboards and reports to monitor progress,
time and costs. Some tools include robust resource, risk and portfolio
management, too.

Let’s explore some of the foundational project management tools

below.

39
Project
management
tools
A range of project management tools exist, both online and mobile. Below are the most
essential tools for a project manager.

Gantt charts

A Gantt chart is a quintessential tool that visually represents the project

timeline. It shows all the tasks on one graph, with a data grid on the left and a
timeline on the right. Gantt charts are used for planning, scheduling, task
management and resource management. They work best on waterfall projects.

Project dashboard

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

Resource tracking tools

Resource management is pivotal to project success. Common tools that can

help track resources include Gantt charts, timesheets, workload charts,
roadmaps, dashboards, reports, calendars and more.

Kanban boards

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

Reports

Reports offer a framework to communicate project status, progress, risks and

issues to stakeholders. They help track progress against the baseline plan,
highlighting what is on track, behind schedule or over budget. Examples of
popular reports include status, progress, issue, financial, resource and lessons
learned reports.

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 Project management software

Online project management software has all the tools project managers need to
plan, track and execute initiatives. Built-in features help track progress, identify
trends, generate reports and more.

However, not all project management software is created equal.

Let’s delve into a best-in-class option that comes at an
affordable price.

42
Why choose
ProjectManager?
ProjectManager is award-winning project management software for business excellence.
With over 35,000 highly productive teams across industries using ProjectManager, here’s
how it can bring agility, accuracy and insights to projects and portfolios.

Detailed planning and execution

For projects that require careful planning, forecasting, cost analysis, resource allocation and
task management, ProjectManager outperforms the competition. The Gantt chart, for
example, tracks all four types of task dependencies, filters for the critical path, tracks team
resource availability and so much more. Simply attach files, add comments or drag and drop
timelines; all data updates in real time for secure team collaboration.

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Built-in resource management

Unlike many other options on the market, advanced resource management is already built
into ProjectManager’s software at no additional cost. Leverage tools such as secure online
timesheets, workload charts and team management features to monitor how you allocate
human resources, materials and equipment. Use real-time dashboards and reports to share
information with stakeholders in seconds.

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Stay connected from anywhere

Collaborate on projects whether you’re in the office or the field. The ProjectManager mobile
app is available on Apple and Android devices and allows teams to manage tasks, log time,
track progress and stay in touch with live updates. No matter where you are, it’s easy to stay
connected to your tasks and teams.

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Ready to try ProjectManager
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