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Project Management Basics

Written by Leeron Hoory      Reviewed by Noa Kaufman
Last Update: November 2024


Project management is an approach to planning, executing, and overseeing a project from the initial idea to completion. Whether you're managing a growing business or embarking on a new venture, understanding project management can significantly contribute to turning your ideas into reality while also helping to maintain control over scope, budget, and schedule.

Whether you are navigating the early stages of your business or looking to streamline operations as you grow, understanding the basics of project management is crucial. This article will introduce you to the project management basics. This will include key concepts, methodologies, and best practices and how to tailor each to your needs.

What is Project Management?

Project management has a broad definition since it is used in many different industries and refers to the process of managing a variety of projects. According to the Association for Project Managers, “Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters.”

As a small business owner, you likely already have some project management systems in place. However, formalizing these systems can help you scale and run projects more effectively. When systems are organized and you’re no longer spending all your time on daily tasks, you’ll be able to dedicate your time to the long-term growth of your company.

Some small businesses hire a dedicated project manager. Depending on your needs, this role might be full-time or part-time. Project managers ensure that all aspects of a project meet expectations and are delivered on schedule. 

Key Concepts in Project Management

While every project is different, successful project management requires planning, leadership, and effective communication. Here are a few project management essentials that could act as the key to your businesses success: 

  • Project Scope: Project scope is a detailed description of exactly what’s included and not included in a project, including an outline of specific goals and deliverables. Clearly defining project scope is an essential part of successful project execution and making sure that the final outcome adheres to the initial project goals.
  • Project Timeline: Establishing deadlines for deliverables is an important part of ensuring a project stays on track and is completed on time. Project timelines also establish each team member’s role in the project and clearly indicate what they are responsible for and when.
  • Budget Management: Budget management involves planning, allocating and controlling financial resources. A project budget should include the costs of all project activities, materials, deliverables and plans to manage the risk of overspending.
  • Quality Control: Establishing quality standards is important to ensure a project meets its original goals and meets regulatory, industry, and customer expectations.
  • Risk Management: Even the most detailed plan can’t account for every possible road bump a project may face. Proactively addressing potential risks also builds resilience and stakeholder and team trust, and it can minimize the negative impact of things going wrong.

Project Management Methodologies

There are a few different popular project management methodologies and each is suited for different types of work styles and projects. The methodology you choose to implement in your team will largely depend on which projects you are working on. 

For example, Agile is commonly used by software companies while the Waterfall method is more suitable for projects involving construction and engineering. However, it’s good to be aware of the different methodologies so you can implement the one that best fits your projects:

Waterfall Method

The Waterfall methodology takes a linear approach to project management. Put simply, one part of the project needs to be completed before the team can move on to the next step. This methodology has five stages: requirements, design, implementation, verification, and maintenance. It is best suited for projects where the end goal is already determined from the start.

Agile Method

Agile is an iterative methodology and is much more flexible than waterfall. It’s best suited for projects where you don’t yet have a specific end goal or where the final outcome will depend on what’s revealed throughout the process. Agile is iterative. The final project is broken into different phases called sprints, and feedback is given throughout the project lifecycle instead of only at the end. This makes it adaptive to changes throughout the process. Agile is common in software development and technology companies.

Scrum

Scrum is a specific framework within the Agile methodology. It is especially popular in software development as it’s designed to regularly evaluate the project, adapt quickly and adjust as you go. Scrum is organized in iterative phases called sprints.

Kanban

For this methodology, individual tasks are visualized as cards, and the team addresses each one as time allows. There aren’t specific roles and set sprints like there are with Scrum. Kanban is best for projects with a steady stream of work rather than fixed milestones.

Project Management Tools

Project management tools help keep team members on the same page about which stage the project is in and which specific tasks individuals need to complete. They also help centralize information by putting all the essential tasks and documents of a project in a single platform.

There are many options for online project management tools. Most of them can be purchased online (without customization) and are suitable for small businesses that want the option to scale in the future. Some popular options include:

  • monday.com is a project management tool with an emphasis on visualization. You can also switch between Kanban, Gantt charts, and calendars.
Monday
  • Asana is focused on straightforward tasks and project management. You can switch between viewing projects as a list, board, calendar, or Gantt chart.
  • Microsoft Project is a project management tool designed by Microsoft suited for complex projects that involve intricate planning, tracking and resource management.
  • ClickUp is an all-in-one platform that includes not only task management but also tracking goals and documentation.
Clickup
  • Wrike is a good option with an emphasis on collaboration and reporting abilities.
  • Jira is designed for Agile project management, specifically for software development projects.
  • Smartsheet is a project management software that combines spreadsheets and project management. These “smartsheets” are the central interface of this software, making this choice a good one for data-centric projects.
Smartsheet

Best Practices in Project Management

Managing a project involves understanding all the different components that need to be done and who is responsible for them. While the role will vary by the team and the project, here are some of the best practices for project management:

  • Clear Communication: Clear communication is an essential part of any project’s success. It’s important that team members are on the same page about important information like which specific role they are responsible for, when handoffs happen, the deadlines for deliverables, and the file management system.
  • Effective Planning: Effective planning ensures that a project is executed as smoothly as possible. A detailed project plan should include objectives, deliverables, timelines, resources, and budgets. Milestones and monitoring the project's progress are also important parts of a project plan.
  • Stakeholder Engagement: Before starting the project, you’ll want to establish how, when and which information will be communicated with stakeholders. Project management tools can help communicate the status and details of the project with stakeholders.
  • Continuous Monitoring: A project manager should continually monitor the project to make sure deadlines are met, the project phases are meeting stakeholder expectations, any change in direction is implemented and the project stays within the initial or updated budget and scope.

Conclusion

The way you choose to manage your projects will depend on factors like your overall goals, whether you have a clearly defined final deliverable before starting, and how many changes come up during the process. What doesn’t change, however, is that projects need oversight to ensure they stay on track. 

Learning about the different project management methodologies and best practices will help ensure successful execution. If you’re just starting to learn about the formal practice of project management and how it can benefit your business, read more about specific methodologies that might work for your project and dive further into management techniques.

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