Your Guide to Project Management

We’re all project managers at some point in our lives. Whether it’s a quick undertaking, like organizing the garage over the weekend, or a complex, drawn-out one, like developing a website by the end of the year, project management involves coordinating temporary endeavors with a defined time frame and specific goals and objectives.

The key lies in a project’s temporary nature, as opposed to operations, where day-to-day tasks are ongoing and continuous.

The waterfall model is a sequential (non-iterative) design process, in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, production/implementation and maintenance.

This means that team members can’t move onto the next step in the process until the step before it is complete. Because this process goes in a specific order, project team members can’t go back to a previous step without starting from scratch, which means there’s no room for errors or changes.

The waterfall model allows no room for changes or errors; therefore, project managers must plan extensively in the beginning and then carefully follow the project plan.

The agile project management process has become increasingly popular as a solution to the disadvantages of the waterfall methodology. This approach favors an incremental, iterative process, as opposed to a sequential one.

Instead of extensive planning and design up front, agile methodologies allow for changing requirements over time by using cross-functional project teams – incorporating planners, designers, developers and testers – who work on successive iterations of the project over fixed time periods. The work is organized into a backlog that is prioritized into exact priority order based on business (or user) value.

Processes facilitate your project through its lifecycle until the project deliverables and outcomes are complete. Here’s a few of the most common project management processes.

Scope Management

The project scope is the sum of all the work that must be done on the project. Scope management is focused on defining and controlling what must be done on the project and what does not need to be done.

Schedule Management

Schedule management (or time management) is the process of creating, maintaining and communicating schedules for time and resources. And they’re used throughout most of the project lifecycle.

Schedule management usually takes an iterative (or agile) approach because, in most projects, the schedule is frequently updated or changed, and it helps ensure the project is delivered on time with the correct features.

Budget Management

Budget management (or cost management) refers to managing and controlling project costs.

Or to be precise, “Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.”

Team Management

“Team Management includes the processes that organize, manage, and lead the project team.”

Team members change, roles change and outside factors can influence internal team performance and relationships. If there are people involved (and there are always people involved) these processes apply. Team management goes hand in hand with resource management, project leadership and sometimes, conflict management.

Risk Management

Risk management processes guide the project manager and project team in the identification, analysis, response and control of risk.

While project risk management should be practiced throughout the time frame of the project, the emphasis has a tendency to change. Early in the project there are many risks and uncertainties, but there are also many options for addressing those risks.

As the project progresses, the number of risks decreases because things that were uncertain become known. However, the ability to respond to risk and the magnitude of the risk impact increases because there is less time and resources left as you approach project completion.

While a project manager normally manages the risk management process, they rely heavily on their project team members, who are often subject matter experts, to identify threats and opportunities.

Communication Management

“Project Communication Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring and the ultimate disposition of project information.”

Communication is at the heart of project management. Virtually everything a project manager does involves communication. In today’s world, there are a million ways to communicate online.

The project manager should use whatever project management software are commonly found among members of the project team and stakeholder community.

Stakeholder Management

“Project stakeholder management includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.”

Project stakeholder management is concerned with communicating with project stakeholders in order to understand and meet their needs.

When talking about project management, we often hear about the project manager, but of course, she isn’t the only person working on the project. Here are the various roles involved in a project. Some of these roles overlap with an individual wearing multiple hats.

Project sponsor

The project sponsor is accountable for the outcome or business impact of the project. She is often a high-up manager, who has a project idea that would benefit her department or team.

Project manager (PM)

The project manager is like the CEO of the project. They’re responsible for leading the project team, organizing project requirements, settings specific goals and tracking progress. This is often someone with strong leadership skills, adept at stakeholder management, and perhaps certified by PMI (Project Management Institute).

Supplier

Suppliers are the people or organizations doing the actual work. They can be an internal team, like the engineering team, or they can be external freelancers. Normally they are expected to deliver one or more portions of the project.

Team member

A team member is anyone tasked with completing a task of the project.

Stakeholder

A stakeholder is a person or group of people with a vested interest or “stake” in the project. They may be directly involved in the project or they may be affected by the project result. Typically, the PM updates stakeholders throughout the project lifecycle, looking for feedback on deliverables and performance while also managing their expectations.

Some consider project management to be CEO training. Both roles require similar skills and face similar challenges, such as managing budgets and working closely with stakeholders.

Project management jobs are in high demand with not enough skilled applicants to fill them. For qualified candidates, project management roles are available in almost every industry, allowing you to pursue a career in a field that interests you most.

Let’s take a look at how you can gain project management experience, the jobs available, and how earning a certificate can net you a higher salary.

Project Management experience

You don’t need to become a project manager in order to gain project management experience. You can gain hours of project management experience and enhance your skills in a number of ways.

Participate as part of a project team at work

Project team members gain invaluable experience and exposure to all aspects of project management, from research to planning to completing deliverables. You may already be a project team member at your organization without the formal recognition.

Volunteer at a charity or NGO

Giving your time and expertise as part of a non-profit or community effort is a great way to build up your project management experience, especially if your current role at work doesn’t allow you this opportunity.

Create and run your own projects

If you can identify opportunities for improvement within your department or community groups, take the initiative to present the problem and ask to lead the project. You can start small by implementing an improvement to a process or coordinating an event. In addition to the experience you will gain, you are also demonstrating to your managers and superiors that you are interested in taking on more responsibility and advancing in the organization – skills that will help you succeed in project management.

And both roles can be quite lucrative. Let’s have a look at how project management salaries vary by industry, location, and certification.

Project management jobs by industry

According to PMI’s project management salary mean survey, the highest paid industries for project management in the US are:

• Engineering project management jobs – $124,434
• Aerospace project management jobs – $129,732
• Natural resources project management jobs – $134,577
• Consulting project management jobs – $134,149
• Pharmaceutical project management jobs – $133,246

Note that the salaries vary from country to country. Stats are available for other countries here.

It’s important to note, though, that no matter the industry you work in, earning a certification shows employers that you have the skills and experience to be considered for management, leadership, and higher-paying positions.

Project management jobs by location

Countries where project management professionals report the highest median salaries are Switzerland ($130,996), the United States ($112,000), and Australia ($108,593). Salaries vary city by city, too, so it’s important to factor in the cost of living when deciding where to take up employment.

Project management jobs by certification

The same PMI survey found that certified PMP® holders earn an average salary of $119,235 compared to $99,070 for their uncertified counterparts – that’s almost a 20% increase. However, the average increase in salary can vary depending on the role, industry, and company.

Supply and demand also plays a role in your post-certification salary. PMI survey respondents in South Africa and Ecuador earn, respectively, a staggering 58% and 53% more once they are certified. Like other jobs, median salaries increase with tenure, too.

You might now be wondering what you need to qualify for the most well-known credentials, like PMP or CAPM. Check out the Project Management Institute’s guide to project management certification for an in-depth rundown of everything you need to get certified.