What Is Project Management? Definitions, Examples & More

A project can be defined as a series of tasks that teams need to complete to reach an end goal. Projects are divided into small, manageable tasks and are placed in five work phases: initiation, planning, execution, monitoring and control and closing. Combined, these phases create the project management life cycle.

The project life cycle consists of five phases.

When you have completed all tasks, the project is finished, and the company stakeholders or clients can bask in the glory of their success or enjoy the product or service you and your team have created for them.

Projects are commonplace in all industries, including healthcare, software development, human resources, content creation, manufacturing and construction. Be sure to check out our roundup of the best construction project management software.

Project management is the art of bringing together a team to complete a project successfully. A project manager leads their team through all five phases of the project management life cycle—which we’ll cover in more detail below—to achieve the goal that has been set.

Projects can be as simple as a list of tasks and resources required to paint a house or an incredibly complex set of tasks, goals and milestones that your team must complete to construct a towering skyscraper or create a piece of software.

Projects come in all shapes and sizes and can be simple or complex.

No matter the project scope, project managers must collaborate, manage resources, risks and time, communicate efficiently and ensure task deadlines and budgets are controlled.

Failure to do so can lead to scope creep, a term used to describe a project that is late, over budget, or worse, both. Take one look at the Denver International Airport fiasco, and you’ll understand why projects must be managed properly.

Why Is Project Management Important?

Project management is essential because a project can quickly fall apart without it. Think of a project manager as the oil that helps an engine run smoothly, the glue that holds a product together and the handlebars of a bike that help control where you’re going.

A project without a leader who can plan for numerous outcomes, reduce friction, hold the team together and steer everyone in the right direction will likely fail.

How Does Project Management Differ From Program Management?

The main difference between project and program management is that project management focuses on an individual project, while program management covers many related projects. Still, program managers and project managers can use the best free project management software to help manage projects.

A project manager is an individual who plans, organizes and executes projects from start to finish. Project managers and Scrum masters wear many hats and must possess a diverse skill set to handle every facet of a project. Below, we’ll cover what project leaders should be prepared to own.

• Cost control: Leaders must be comfortable working with project budgets and balancing the books to ensure stakeholders or clients receive value for money. Project managers can use various cost accounting methods, such as activity-based costing (ABC), throughput accounting and Lean accounting.
• Resource management: Every project requires resources, be it people, physical goods, equipment or facilities. The project manager’s job is to manage resources and ensure that everything is readily available and in good working order throughout the project.
• Quality management: Project leaders must make sure that work is of high quality. The deliverable must meet the expectations of the stakeholders and clients at every milestone or sprint review. Ultimately, the project leader is responsible for maximizing the value of the project deliverable.
• Planning and scheduling: Project managers create project timelines, assign due dates to tasks, plan milestones and do everything in their power to ensure the end product is delivered on time. If you’re looking for software that can help you plan, check out our roundup of the best task management software.
• Collaboration and communication: Project managers must communicate effectively with team members and foster a collaborative environment where individuals and cross-functional teams can lean on and learn from one another. Project managers are also the lead contact for key stakeholders and clients and must be ready to answer their questions.
• Risk planning: When creating a project scope, managers must consider events or risks that could derail the project. Risks can be anything from team members falling ill to essential resources being scarce due to supply chain issues. By planning for risks, should the worst happen, you’ll already have a plan to handle the issues.

Project Management Certifications

If project management interests you, consider obtaining project management certifications. Many learning institutions offer certifications in traditional and Agile methodologies. Project Management Institute (PMI) is a globally recognized organization, along with Scrum Alliance, Scrum.org and SAFe, to name a few.

The globally recognized PMP certification from PMI will prove you have the required skills to lead projects.

A few certifications that can make you stand out to potential employers include the Project Management Professional (PMP) certification and the Certified Associate in Project Management from PMI. Both will prove you have the required knowledge and skills to either lead a team or be a productive part of one.

If you want to be an Agile Scrum master, take a look at some of the best Scrum certifications. They include the Certified Scrum Master (CSM) certification from the Scrum Alliance and the Professional Scrum Master from Scrum.org. Both will show that you can lead Agile teams and projects and foster an environment of continuous improvement. Another option is a SAFe certification. These certifications are ideal if you plan to lead scaled Agile projects.

Project Manager Earning Potential

A project management certification will not only increase your knowledge and increase your job prospects, but it could also increase your income. A study by PMI showed that, across 21 surveyed countries, those with a PMP certification earned 33% more than those without [1].

In the U.S., a project manager with a PMP certification can, on average, earn over $122,000 annually [2]. Scrum masters holding a Certified Scrum Master certification can earn roughly $120,000 annually [3].

Project management methodologies and frameworks are guidelines, values and philosophies that help guide project managers and their teams. There are three types of methodology: traditional (predictable), Agile and hybrid. These ways of working suit different styles of work and projects. Below, we’ll break each of them down.

Traditional Methodologies

Traditional project methods follow a predictable step-by-step approach. The methods are highly structured, limit conversations to the project manager, stakeholders and clients, rely on multiple documents and do not allow deviations from the original plan. This is a blessing and a curse. On the one hand, you have a well-defined project with an end date. However, if problems arise, the inflexibility of traditional methods can create problems.

One of the most popular traditional approaches is Waterfall, which allows teams to work through a project timeline on a Gantt chart. Each task or milestone is placed underneath the task that preceded it. As you work through the timeline, you work your way down the waterfall.

Gantt charts are used extensively in traditional project management methodologies.

Other traditional methods include PRINCE2, the critical path method and critical chain project management. Be sure to read our best Gantt chart software guide if you need a new work management tool.

Agile Frameworks

The Agile management movement began when a group of software developers grew tired of rigid traditional methodologies. The developers wanted a work environment that fostered open communication and collaboration, adapted to change rapidly and presented working software to clients and stakeholders frequently rather than relying on documentation.

Kanban boards give a global view of a project and its tasks.

During the meeting, the Agile Alliance created the Agile Manifesto, which outlines the 12 principles of Agile. Today, many project teams, not just software developers, use Agile project management to complete their work. You’ll find content creators, publishers, human resource teams and manufacturers using Agile frameworks such as Scrum, Kanban, Lean and Feature-Driven Development (FDD), to name a few.

Many, but not all, Agile teams work in time-boxed work segments called sprints, which typically last no longer than a month. Once a sprint is complete, the teams meet to discuss the work, demo the deliverable and plan the next sprint. These steps are continued until the project is complete. The frequent meetings allow teams to plan for changes and collaborate. However, the flexibility and acceptance of change can lead projects towards scope creep.

The biggest commonality between Agile frameworks is that they use Kanban boards that offer a global project view. If you’re hunting for Agile project management software, our roundup of the best Agile software has you covered.

Hybrid Frameworks

Hybrid frameworks combine parts of traditional methodologies and Agile frameworks. Teams using hybrid methodologies typically adopt the structured approach to creating a project scope from traditional methods, such as Waterfall, but use Agile’s sprints or short work iterations to complete the work. This way, projects have the best of both worlds. They aren’t overly rigid and have some room to maneuver, but they aren’t so flexible that the project can bend out of shape.

Many project management software platforms offer tools that suit hybrid frameworks.

While hybrid frameworks aren’t the most popular, they are catching up to traditional and hybrid methods. PMI’s 2024 Pulse of the Profession report shows that the use of hybrid approaches increased in popularity by 11%, from 20% in 2020 to 31% in 2023 [4]. Popular hybrid approaches include AgileFall, Scrumban and PRINCE2 Agile.

Regardless of the project management methodologies used, most projects will travel through five phases. The phases, known as the project management life cycle, are initiation, planning, execution, monitoring and control, and closing. Below, we’ll cover each stage of the life cycle.

1. Initiation: During the initiation phase, the project manager creates an overview of the project to show stakeholders or potential clients if it provides value and is feasible.
2. Planning: When the project planning stage starts, the project leader creates a detailed plan, or project scope, that contains details about goals, milestones, due dates, required budgets and resources, and potential risks and issues.
3. Execution: The execution stage of the project management life cycle is when project teams perform the work to complete the project.
4. Monitoring and control: During the monitoring phase, leaders must ensure work quality is high and that the team’s output is satisfactory. Managers can lean on reports generated in project management software, such as Wrike, to help monitor the team’s performance, resources and budgets. You can learn more about reporting tools in our Wrike Review. Additionally, managers must also manage risks and issues.
5. Closing: When closing the project, the manager ensures that every task is complete, that stakeholder and client expectations have been met, and that the final product is top quality. Project managers and Scrum masters should also hold retrospective meetings to discuss the project’s wins and losses and what can be done better in the future.

Customizable dashboards let you see important project metrics during the monitoring phase.

Project management software suites include tools that project teams can use to help them plan, organize, track and complete projects. Additionally, many platforms offer real-time collaboration features, communication tools, document management systems (DMS), file storage and time management and budgeting tools.

Integrations can help organizations link software and create workflow automations.

Organizations can also integrate other software platforms into the project management software to create workflow automations, which can drastically reduce the amount of time you need to spend on monotonous tasks. When configured correctly, project management software can be a one-stop shop for everything you need to get your project over the finish line.

What Tools Are Used To Help Manage Projects?

There are many tools available for project managers to use when working on projects. You will find some specialty software platforms that only offer one or maybe two types of tools, such as TeamGantt, which specializes in Gantt charts. However, most platforms provide an array of tools. Below, we’ll explain the most common tools you will encounter in project management.

• Kanban boards: A board that contains columns that typically follow the pattern of to-do, in progress, in review and done, that indicate different stages of work. Each column contains cards, which are moved between columns until the task is complete.
• Gantt charts: Gantt charts offer a visual representation of your project’s timeline. Tasks, dependencies and milestones are placed over a calendar so that everyone can see task start and end dates.
• Calendars: The humble calendar still plays an important role in the workplace. Project managers can use calendars to keep track of due dates, employee requests and meetings.
• Dashboards: Customizable dashboards allow managers, stakeholders and clients to see critical project metrics, such as budgets, upcoming due dates, milestones and resources at a glance.
• Lists: As the name suggests, lists display upcoming tasks, assignees, due dates, proposed budgets and other information in list format.
• Spreadsheets: Old-school spreadsheets are alive and kicking, with a twist. Platforms such as Smartsheet and Airtable specialize in sheets that let you link projects, add files and documents, generate reports, communicate with team members and create advanced workflows. Read our Smartsheet review and Airtable review to learn more.
• Real-time collaboration tools: Many project management platforms offer collaborative tools. You’ll find collaborative documents, whiteboards, mind maps, and image and document-proofing tools that can enable distributed teams to work together seamlessly.
• Time management tools: Most software suites offer tools that allow employees to track the time spent on tasks. These tools can help managers better understand where bottlenecks may be and see how productive team members are.
• Budgeting tools: Keeping track of finances is vital, so numerous platforms offer budgeting tools. You can keep track of resource expenses, utilities, payroll and a host of other project needs. Some platforms, such as Scoro and Bonsai, also allow teams to invoice for services provided and receive payment.
• Reports: Many software platforms allow you to create detailed reports that show how your team is performing. Depending on the platform you use, you’ll find everything from basic bar charts and pie charts to burn-up and burndown charts, team velocity reports and detailed account ledgers.
• Artificial intelligence: Numerous pieces of project management software now employ AI. How you can use it varies on the platform you choose. Still, many AI tools allow you to create progress update reports for stakeholders and clients, messages for team members, project plans and basic workflow automations.

Calendars are still one of the best tools project managers can use.

The best project management software for you will vary based on your needs, but our team of experts has rigorously tested project management platforms to help you find the ideal one for you. The three picks below offer everything a modern project manager could need.

1. ClickUp: A one-stop shop project management tool that’s suitable for traditional and Agile teams. You’ll find Kanban boards, Gantt charts, integrations, real-time collaboration features, AI assistance and a generous free plan. You can find out more by reading our full ClickUp review.
2. monday.com: One of the most user-friendly pieces of software available, monday.com provides teams with numerous task management tools, a collaborative whiteboard for remote teams, AI, integrations and automations, and plenty of templates to get your next project up and running in a jiffy. You can learn more about monday.com’s features in our monday.com review.
3. Asana: Another do-it-all platform that’s vibrant, user-friendly and chock-full of task, time, budget and resource management features, workflow automations and a powerful AI tool. See if Asana is right for you by reading our Asana review.

AI tools in project management software are becoming commonplace.

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We hope our guide to project management has helped you understand more about the process of guiding teams to success and how to become a project manager. With so many moving parts, project management is vital.

With proper project management, you can lead teams to glory and appease stakeholders and clients alike. However, projects can run over schedule and budget quickly without a robust plan, which could harm your reputation and your bottom line. If you obtain a certification, you’ll be on your way to project management success.

Are you a project manager, or are you looking to become one? Which certifications pique your interest? Do you have a favorite project management software platform? Let us know in the comments. Thanks for reading.

1. Project Management Profesional – pmi.org
2. PMP Project Manager Salary – ZipRecruiter
3. Certified Scrum Master Salary – ZipRecruiter
4. The Pulse of the Profession – pmi.org