Project management

What it means

Project management is the planning, organisation and steering of a temporary effort with a clear goal, budget and deadline, such as introducing a new accounting system, a construction job, a product launch or a data migration. It covers scope, schedule, resources, risks, communication and handover.

The basic framework is the project management triangle of scope, time and cost: changing one side affects the others. The project is broken down into a work breakdown structure, scheduled over time, for example with a Gantt chart, and progress is checked at milestones.

There are different approaches. The classic waterfall model plans everything upfront and proceeds in phases, while agile management works in short iterations and adapts to change. In larger companies, project standards and the portfolio are coordinated by a PMO.

How it works in practice

A project should have a brief setting out the goal, scope, budget and success criteria, approved by the sponsor. Without a clear brief, scope creeps, deadlines slip and at the end nobody can say whether the project succeeded.

When introducing new software, such as an accounting or ERP system, a typical risk is underestimating data migration, training and parallel running. It is sensible to plan testing on real data and to switch over at the start of a period, not in the middle of a closing.

Communication with stakeholders matters as much as the schedule. Regular status reports, clear decision rights and change control stop the project from shifting according to whoever shouts loudest.

What to watch out for

The most common causes of failure are unclear goals, an unrealistic plan, key people lacking capacity alongside their day jobs and weak management support. These risks should be named at the start, not when the project has already stalled.

For accounting, distinguish which project costs are capitalised as assets and which are expensed directly. Software development costs, for example, can be an intangible asset under certain conditions, whereas training and analysis usually are not.