Have you ever tried to cook an elaborate meal without a recipe? It can be overwhelming and lead to disastrous results. The same is true for project management – a project will likely falter without a clear plan and expectations.

That’s where a statement of work (SOW) comes in. Like a recipe guides a chef, a notice of work sets the project’s scope, objectives, and expectations. This article will explore creating a winning statement of work for your project management needs.

What’s a Statement of Work?

A statement of work (SOW) is a document that outlines the scope, objectives, and expectations for a project. It serves as a blueprint for the project, providing clear direction and guidance for all parties involved.

An SOW typically includes the following elements:

• A description of the project, its goals, and objectives
• The scope of work, including tasks to be completed, deliverables, milestones, and timeline
• Required resources for successful completion, such as personnel, budget, materials, and equipment
• Payment terms, including how often invoices will be expected and payment due dates
• Quality assurance, including performance standards and how quality will be monitored and maintained
• The desired outcome, a description of the desired results from the work
• Contingency plan, steps to take in case the project deviates from the original plan
• Signatures of all parties involved in the agreement.

In short, an SOW is a critical tool for defining and managing a project, ensuring that all parties are on the same page and working towards the same goals.

Types of SOWs

Just like a chef has different recipes for different dishes, a project manager has different types of SOWs for other projects. Here are four types of SOWs you might encounter in project management:

• Functional: A functional SOW is like a recipe with detailed instructions on what a team or individual must do to complete a project. It includes timelines and performance measures.
• Technical: A technical SOW is like a gourmet recipe with specialized instructions on the methods and materials used to complete a project. It is often used for complex projects that require specialized skills or knowledge.
• Operational: An operational SOW is like a cookbook with detailed instructions on how work should be performed and expectations for output and quality.
• Management: A management SOW is like a chef’s hat, defining the roles and responsibilities of those involved in managing a project. It includes information on who will be responsible for what and how decisions will be made, and progress will be monitored.

Why Use an SOW?

The Importance of an SOW

A statement of work is a crucial document for any project manager. It provides a clear and concise plan for the project, outlining the scope, objectives, and expectations. This ensures that everyone involved in the project understands the work and how it will be done.

Providing a Clear and Concise Plan

For example, let’s say you are working on a web design project. The SOW would include details such as the number of pages to be designed, the specific features to be included, and the timeline for completion. This ensures that everyone on the team knows what is expected of them and can work together towards the common goal.

Acting as a Legal Agreement

A well-written SOW also serves as a legal agreement between the parties involved in the project. It outlines the payment terms, quality assurance measures, and contingency plans, protecting all parties from potential misunderstandings or disputes.

For instance, let’s say you are hiring a team to develop a new app. The SOW would include details such as the payment schedule, the performance standards for the app, and the steps to take in case of unforeseen challenges. This ensures that you and the team are clear on your obligations and can avoid any potential disputes.

Tracking Progress and Making Informed Decisions

In addition to defining the project, an SOW can help project managers track progress and make informed decisions. It provides a reference point for monitoring performance and identifying potential risks or issues. This allows project managers to take timely action and course-correct as needed to ensure the successful completion of the project.

For example, suppose you notice that a particular task is behind schedule. In that case, you can refer to the SOW to see if any contingency plans are in place or if additional resources are needed. This helps prevent delays and keeps the project on track.

Setting Your Project Up for Success

In short, a statement of work is essential for defining, managing, and tracking a project. It provides a clear and comprehensive plan, protects all parties involved, and helps project managers make informed decisions. Creating a winning SOW can set your project up for success and ensure its completion.

Remember, a statement of work is like a recipe for your project. It provides clear direction and guidance, ensuring everyone is on the same page and working towards the same goals. By investing time and effort into crafting a winning SOW, you can ensure the success of your project and avoid potential misunderstandings or disputes.

Writing an Effective Statement of Work

Crafting a winning statement of work requires careful planning and attention to detail. Here are some critical steps to follow when creating your SOW:

Step 1: Define the project

Start by clearly defining the project’s goals, objectives, and scope. This will provide a foundation for the rest of the SOW and ensure that all parties involved have a shared understanding of the work. Be as specific as possible, outlining the same tasks to be completed and the expected outcomes. This will help ensure everyone is on the same page and working towards the same goals.

Step 2: Outline the scope of work

Next, provide a detailed description of the project’s tasks, deliverables, milestones, and timeline. This will give all parties a clear understanding of what is expected and when it is expected. Include specific deadlines for each task and milestone and any dependencies or constraints that may impact the project. This will help everyone stay on track and avoid potential delays or setbacks.

Step 3: Specify required resources

Identify the personnel, budget, materials, and equipment that will be needed for the successful completion of the project. This will ensure that all parties have the necessary resources to complete the job. Be as detailed as possible, including information on the number of staff members needed, the budget for each task, and any specialized equipment or materials that will be required. This will help ensure that everyone has the resources they need to complete the project on time and within budget.

Step 4: Define payment terms.

Include information on how often invoices will be expected and when payment is due. This will ensure that all parties have a clear understanding of the financial aspects of the project. In addition, specify the payment schedule, terms, and any penalties or incentives that may apply. This will help avoid potential disputes or misunderstandings around payment and ensure everyone understands their obligations.

Step 5: Establish quality assurance measures

Include performance standards and how quality will be monitored and maintained throughout the project. This will ensure that the project meets the agreed-upon quality standards. Specify the specific quality standards used to evaluate the project, and outline how quality will be monitored and measured. This will help ensure that the project meets the required quality standards and delivers the desired results.

Step 6: Describe the expected outcome

Provide a detailed description of the expected results from work. This will give all parties a shared understanding of the end goal and how it will be measured. Be as specific as possible, outlining the exact metrics that will be used to evaluate the project’s success. This will help ensure that everyone is working towards the same goals and that the project delivers the expected results.

Step 7: Develop a contingency plan

Include steps to take in case the project deviates from the original plan. This will ensure that all parties are prepared for potential challenges or changes. In addition, outline the steps to be taken if the project encounters delays, challenges, or other unforeseen events. Again, this will help ensure that the project stays on track and that everyone is prepared to respond to potential challenges or changes.

Step 8: Obtain signatures

Finally, obtain signatures from all parties involved in the agreement. This legal agreement will protect all parties from potential misunderstandings or disputes. Ensure all parties have read and understood the SOW and are clear on their obligations and responsibilities. This will help ensure that everyone is committed to the project and that all parties are protected.

By following these steps and including the critical elements outlined above, you can create a winning statement of work that will set your project up for success. Remember, a well-written SOW is like a roadmap for your project, providing clear direction and guidance for all parties involved. By investing time and effort into crafting a winning SOW, you can ensure the success of your project and avoid potential misunderstandings or disputes.

Tips for Crafting a Winning SOW

Crafting a winning SOW takes time and effort, but it’s well worth it. Here are some tips to keep in mind when creating your SOW:

• Clarity: Be clear and concise in your language, so all parties involved understand the scope of the project and what is expected of them.
• Communication: Discuss the project with all parties involved and ensure that everyone is on the same page before finalizing the SOW.
• Attention to detail: Include all necessary details in the SOW, such as timelines, deliverables, and performance measures.
• Flexibility: Be prepared to adjust the SOW if needed, as the project may evolve and change over time.
• Collaboration: Work with all parties involved to ensure that the SOW aligns with their needs and expectations.

Common Mistakes to Avoid in Your SOW

Mistakes will be made, but you want to avoid as many of them as possible when crafting your SOW. Here are some common mistakes to avoid:

1. Leaving out important details: Make sure all important elements are included in the SOW, such as timelines and deliverables.
2. Skipping the collaboration process: Before finalizing your SOW, be sure to discuss the project with all parties involved and make sure that everyone is on the same page.
3. Being too vague: Be as specific and detailed as possible when outlining the project’s scope, tasks, timelines, and deliverables.
4. Ignoring contingencies: Include steps to take in case the project deviates from the original plan. This will ensure that everyone is prepared for potential challenges or changes.
5. Failing to clearly define roles and responsibilities: Be sure to clearly outline the roles and responsibilities of all parties involved in the project. This will help ensure that everyone is working towards the same goals.
6. Forgetting about quality assurance: Don’t forget to include performance standards and quality assurance measures in your SOW. This will help ensure that the project is completed to a high standard.

Using an SOW Template

Creating a winning SOW can be time-consuming, but using a template can make the process much easier. An SOW template provides a pre-designed format that you can fill in with your own project’s details. This can save you time and ensure that you include all necessary information in your SOW.

Here is a basic SOW template that you can use as a starting point for your own projects, such as hiring a lot of customer support people for the holidays:

Project Description:

Provide a brief overview of the project, including its goals and objectives. Would look something like this:

“Hire and train a team of customer support representatives to handle the increased volume of customer inquiries during the holiday season.”

Scope of Work:

Outline the tasks that need to be completed, the deliverables, and the timeline for completion. Example tasks, deliverables, and timeline:

Task 1: Post job listings and review applications.
Task 2: Conduct interviews and select candidates.
Task 3: Provide training and onboarding for new hires.

Deliverables: A team of trained customer support representatives ready to handle holiday season inquiries.

Timeline: October 1 – December 15.

Resources Needed:

Identify the personnel, budget, materials, and equipment that will be needed for the project’s successful completion.

Personnel: A team of 5 customer support managers and 20 customer support representatives. Budget: $50,000 for hiring and training costs.
Materials: Training materials and onboarding packages.
Equipment: Computer equipment and headsets for each new hire.

Payment Terms:

Include information on how often invoices will be expected and payment due dates

Invoices will be expected on a monthly basis and payment is due within 30 days of receipt.

Quality Assurance:

Outline the performance standards and how quality will be monitored and maintained.

Performance standards: Customer support representatives must maintain a minimum satisfaction rating of 90% based on customer feedback.
Quality assurance: Customer satisfaction surveys will be sent out weekly to assess customer experience.

Signatures:

You’re now ready to include the signatures of all parties involved in the agreement.

Signatures:
________________________
Client Signature
_______________________
Project Manager Signature
______________________
Team Member Signatures (if applicable) _________________________ _________________________ _________________________ _________________________ _________________________ ____________
Date of Agreement ___________________.

Do you ever spend an entire morning doing something completely pointless, like cleaning up dog food spilled across the kitchen floor? And then, when you leave for work, nothing is accomplished. You haven’t worked out, checked emails, or even had breakfast.

If this is one isolated episode, that’s one thing. But sometimes entire days proceed in this fashion, and build into weeks full of bustle and activity where nothing significant ever gets done. The meaningful, value-adding work sits in the “to do” pile, like laundry waiting to be washed.

The 24 hours we have each day seems like a lot of time, but with deadlines to meet, bills to pay and projects to complete, time quickly becomes a scarce resource. And just like money, it’s so easy to squander and waste.

But don’t go thinking that productivity and time management are beyond you, because a solution is simpler than you think. For many, a four-box grid known as a priority matrix is the ticket to generating the momentum to focus and finish tasks.

Want to get in on this project management hack? That’s what we’re going to cover in this post.

The When, What & How of a Project Priority Matrix

A priority matrix is helpful whenever you need to sort and prioritize a multitude of diversified tasks, so it works well within teams, for community initiatives and even in personal planning. The matrix determines what to work on now, in the present moment, and what to postpone for later.

Steven Covey, the renowned businessman and keynote speaker, developed this matrix and its underlying principles in his bestselling book, The 7 Habits of Highly Effective People.

In its simplest form, the matrix is four quadrants that categorizes work according to two criteria: important and urgent. Urgent work requires immediate attention. These tasks have no workaround; if it doesn’t get done, then the lights turn off. Important works, rather, include tasks that bring value to the business or initiative. They contribute to a project’s overall goal.

In delineating work according to this criteria, Covery drives home the lesson that not everything that’s important is urgent, but more significantly, not everything that’s urgent is important. It’s easy to be allured by “urgent” tasks that have no importance at all, and fail to do things that really matter.

Utilizing the method, essentially, means parsing through an assortment of tasks and activities and categorizing them according to these criteria.

1. The Important and Urgent Quadrant

The tasks that fall into the important and urgent quadrant are critical. These are consequential tasks that have no workaround, and include things like paying bills and meeting deadlines.

Clearly, anything that’s both important and urgent must be completed right away. Ideally, however, the tasks in this category don’t usurp all your time.

2. The Important But Not Urgent Quadrant

The tasks in this quadrant lay foundations and build systems. They include things like strategic planning, networking and researching. They don’t have immediate deadlines, but if neglected, they may well move into the urgent and important quadrant.

As this work positions a project for success, ideally the bulk of your time is spent working on tasks in this category.

3. The Urgent But Not Important Quadrant

This is the category for time-wasters. The urgent but not important quadrant includes things like long-winded conversations in chat boxes, people who need favors, phone calls and back-to-back meetings.

This is a deceptive category, as it’s easy to spend a lot of time on these tasks and feel occupied. Yet all the while, none of the busyness adds any value or serves any overall business goals.

Ideally, you’d spend the least amount of time on this work. If this category is brimming with tasks, then delegation may be the solution.

4. The Not Important and Not Urgent Quadrant

These are the activities that you look forward to at the end of a long day. This final quadrant includes things like watching TV, scrolling through a FaceBook feed, or taking a long leisurely walk. Niksen, or doing nothing with intention, captures the essence of these activities.

Although enjoyable, ideally these activities consume only a small portion of one’s overall time.

How to Use the Matrix

These “urgent” and “important” criteria are benchmarked against the project’s overall objectives. A personal goal to develop a healthy lifestyle would classify urgent and important much differently than a development’s team’s objective to create an app.

A healthy lifestyle, for example, might have “lose weight” in the urgent and important category and “create healthy meals” in the important but not urgent category.

A software team who’s developing an app centers its important goals around the client’s objectives. What are the functional and non-functional requirements for the app? The urgent and important goals might center around meeting deadlines, while the not important and not urgent work might include generating reports that no one looks at anyway.

Creating the matrix is a process. Within a team, ideally, it’s developed and modified in face-to-face meetings. After mapping out the initial designations, the team engages in discussions and possibly moves things around. Then, it’s time to run water though the pipes and take action based on each task’s classification. This is the real test to identify if the activities have been categorized accurately.

Generally, each box ends up with multiple tasks, which presents a prioritization challenge all of its own. Sometimes the principle  “eat the frog” provides the best approach to determine what to tackle first. This means selecting the dirtiest, hairiest work and getting it done, right out of the gate.

Other times, it’s best to focus and complete several small tasks and save the larger work for later. Whatever method, the objective is to create a plan that generates and increases team momentum.

The 5 Benefits of a Priority Matrix

The priority matrix is a deceptive little diagram. It looks almost too simple to be effective. But despite its simplicity (or perhaps because of it), it benefits a project in many ways.

1. Breaks Down Complex Projects

In a long or complicated project, it’s easy to fall into a pattern of playing whack-a-mole and constantly putting out fires. But the matrix provides an opportunity to step back and determine a plan of action that considers the project’s overall objectives.

2. Encourages Fast & Clear Collaboration

The concept of the matrix is easy to catch onto. This makes it an effective go-to at an all-hands meeting, where each stakeholder contributes to priority planning. The simplicity of the method allows everything to be prioritized quickly, providing a clear action plan.

The matrix is also a powerful visual. When the four quadrants are displayed on a large white board, everyone grasps the overall picture right away.

3. Provides Useful Signals

The method also provides key indicators around where to switch up a workload. After organizing work into the four categories, it’s possible to analyze how much work falls into each quadrant.

As discussed, ideally most work falls into the important but not urgent category. If the majority of the work, rather, is in the urgent and important category, this may indicate that work isn’t being completed in a timely fashion. When the urgent but not important category carries most of the weight, it indicates that the team may be focused on low value work requests.

4. Creates Momentum in a Team

The priority matrix aligns a team around its true north. It allows everyone to understand what is most important and what’s going to add value. This clarity creates efficiency and momentum around the completion of tasks.

5. Maximizes Value

Any project, whether personal or work-related, is about delivering value. The priority matrix places the things that matter most over the things that matter least, and so ensures the completion of value-adding work.

As you can see, there’s several clear benefits to incorporating a priority matrix into planning and strategizing. When combined with some other project management strategies, the matrix can really deliver a powerful punch.

The Matrix Supersized With Agile and Kanban

Generally, the prioritization matrix is an effective tool on its own. However, due to its simplicity it can run into trouble. For example, most projects evolve over time, and so the priorities it has at the beginning may change. And so it’s useful to combine the matrix with principles from other project management methodologies in order to make it relevant and increase its capacity in a variety of scenarios.

The Matrix With Agile

The Agile methodology emphasizes continual change. As its Manifesto states, it “welcomes changing requirements, even late in development.”

Within an agile framework, then, the priority matrix may be approached not as a fixed chart, but as a continually evolving diagram. With each retrospective and sprint planning session, the team revisits and reevaluates the chart and possibly makes adjustments based on recent developments.

The Matrix With Kanban

Kanban is a pull system that establishes work-in-process (WIP) limits. It creates a continual work flow within a team, as tasks must be completed before a new task is begun.

Fusing the priority matrix with Kanban doubles down on this focus and finish mentality. It clarifies to everyone what tasks need the most attention. The WIP limits forces the team to complete tasks, and move through the work at an energized pace.

As you can see, the priority matrix needn’t be used in isolation. Combining and adapting it with other methods actually increases the value it brings to a team.

The Matrix in Contrast With Other Prioritization Methods

The priority matrix certainly isn’t the only prioritization method out there. Let’s compare and contrast it with a few other popular methods.

The MoSCoW Method

The MoSCoW method was developed in 1994 by Dai Clegg, a software developer working at Oracle. “MoSCoW” really represents the acronym, MSCW. The vowel sounds are added to make it easier to pronounce. Each letter in MoSCoW represents a separate layer for task prioritization: Must, Should, Could, and Won’t. By organizing tasks into these categories, a team finds clarity around what it needs to work on right now, and in the near future.

MoSCoW is very similar to the priority matrix, except that it goes a step further and actually determines work to cut out completely.

While MoSCoW works particularly well in project planning, the matrix can be used at any point as an effective time management tool. MoSCoW is not a visual chart, and so the priority matrix has a step up in this respect.

The Four Ds (Eisenhower Matrix)

The four Ds is also known as the Eisenhower Matrix. It’s a simple system that’s also designed to sort through a myriad of tasks. The Ds stand for “do, delete, delegate and defer.”

For example, when we open our inbox to dozens of unread emails, the “4 D” system lets us identify those emails that need to be responded to right away, those we can delete, messages to forward, and those to put off until later.

The Four Ds helps with personal task management, while the priority matrix works within teams as well as in personal planning.

The RICE Scoring Model

The RICE model takes a different approach and evaluates a project by its Reach, Impact, Confidence and Effort.

While the priority matrix combines all kinds of tasks, both operational and project-related, the RICE model focuses primarily on a singular project. While the priority matrix is good for queuing the next activity, the scoring model serves to contrast the value of one project relative to another.

While each of these four methods are all very similar, each has its own strength, making it best suited for particular scenarios.

You may have heard the saying, “Failing to plan is planning to fail.” This statement couldn’t be more true when managing a project. A well-defined and carefully executed project schedule is key to the success of any project.

But what exactly is project schedule management, and why is it so important? In this blog post, we’ll explore the ins and outs of project schedule management and how it can help ensure the success of your project.

What is project schedule management?

Project schedule management is defining, creating, and maintaining a project schedule to ensure the project is completed on time and within budget. A project schedule is a document that outlines the tasks and activities that need to be completed to achieve the project’s goals.

Essentially there are 3 types of project schedules:

1. Master schedule

This is an overarching project timeline detailing all tasks and activities.
A detailed schedule. This outlines each job’s individual tasks, dependencies, and resource requirements.

2. Milestone schedule

This tracks the completion of significant milestones throughout the project life cycle. Such as the completion of a phase or deliverable.

3. Detailed schedule.

This outlines the individual tasks, their dependencies, and any resource requirements for each job.

How does a master schedule differ from a detailed schedule?

You might ask yourself, what’s the difference between a master’s and a detailed schedule? The answer is simple. A master schedule is more of an overview of the entire project, while a detailed schedule provides more granular information.

A master schedule typically includes high-level tasks and activities, such as milestones and key deliverables. On the other hand, a detailed schedule consists of all functions and activities related to the project—including their duration, resources required, and dependencies.

Benefits of project schedules

So, why is having a detailed schedule important?

Well, by having a detailed schedule, you can:

• Better track the progress of the project
• Improved project efficiency and productivity
• Reduced risk of project delays and cost overruns
• Identify potential problems before they arise
• Adjust resources and timelines as needed
• Reduce stress and frustration for the project team
• Improve communication

Components of a project schedule

A project schedule is a document that outlines the tasks and activities that need to be completed to achieve the project’s goals. It typically includes the following components:

• Project objectives: The high-level goals and outcomes the project aims to achieve.
• Project scope: A description of the boundaries and limitations of the project, including what is included and what is not included.
• Project tasks and activities: A list of the specific tasks and activities that must be completed to achieve the project’s objectives.
• Task dependencies: The relationships between tasks, indicating which tasks must be completed before or after other tasks.
• Task duration and resources: An estimation of the time and resources (e.g., personnel, equipment, materials) required to complete each task.
• Project timeline: A visual representation of the project schedule, showing the sequence, duration, and overlap of the tasks and activities.
• Milestones: Key points or events in the project timeline that mark significant achievements or stages of the project.
• Risks and assumptions: A list of potential dangers or assumptions that could affect the project and the strategies to address them.
• Communication and reporting: A plan for how the project team communicates and reports on the project’s progress and status to stakeholders.

Creating a project schedule

Imagine your project as a journey – you know where you want to go, but you need a map and a plan to get there. That’s where a project schedule comes in! A project schedule is like a roadmap for your project, outlining the tasks, dependencies, and resources needed to achieve your goals.

Step 1: Define the project scope and objectives

The first step in creating a project schedule is to define the scope and objectives of the project. This involves determining what the project is trying to achieve and what it is not trying to achieve.

For example, if you are building a house, you need to decide what features and finishes are included in the project and what is outside the scope (e.g., landscaping, furniture). This helps clarify the project’s boundaries and limitations and ensures that everyone involved has a shared understanding of the project’s goals.

Step 2: Break the project down into tasks

Once you clearly understand the project’s scope and objectives, the next step is to break the project down into individual tasks.

Start by brainstorming a list of all the activities needed to achieve the project’s goals. Then, organize these tasks into logical sequences and group related tasks together.

Step 3: Estimate the duration and resources for each task

Once you have a list of tasks, the next step is to estimate how long each task will take to complete and any personnel, equipment, or materials needed. This helps to better understand the project’s timeline and resource requirements.

Step 4: Create a project timeline

Once you have estimated the duration and resources for each task, the next step is to create a project timeline. Start by mapping out the sequence of tasks, showing which tasks must be completed before or after other tasks.

Then add milestones to mark critical points or events in the project timeline. Finally, add an estimated timeline to the project schedule so that you can track progress and identify any potential delays or roadblocks.

Step 5: Assess risks and assumptions

No matter how well-planned a project is, there will always be some degree of uncertainty. That’s why it’s essential to assess any risks or assumptions that could affect the project and develop strategies to address them. This will help ensure the project runs smoothly and is completed on time and within budget.

Step 6: Communicate and report

To ensure everyone involved in the project is on the same page, it’s essential to have a plan for how the project team will communicate and report progress and status to stakeholders. This could include regular project updates, status meetings, or a dedicated dashboard to track progress and deadlines.

Maintaining a project schedule.

Maintaining a project schedule is different from creating one. Once your project schedule is created, it’s essential to update and monitor it throughout the project’s life – adjusting tasks and timelines as needed. This will help ensure that you stay on track.

Here are a few key steps to help you maintain your project schedule:

1. Regularly review the schedule.

Whether daily, weekly, or monthly, review the project timeline and make sure everything is on track.

Monitor progress and adjust as needed. As tasks are completed, check to see if there is any room for improvement and adjustments to stay on track. Monitor resources and priorities. Make sure that all vital personnel, equipment, and materials are available when they are needed.

2. Monitor and track progress

Have you ever heard the saying “what gets measured, gets done”? It’s true. Monitoring and tracking progress helps ensure that tasks are completed on time, and that goal is achieved. Use a project management tool to track progress and generate reports.

One of the best tools to use is the Gantt chart. This type of diagram helps to visually display the tasks involved in a project and how they are related, as well as their estimated duration and completion date.

3. Communicate and collaborate

Effective communication and collaboration are vital in maintaining a project schedule. This means regularly communicating with the project team and stakeholders about the progress and status of the project, and working together to identify and resolve any issues or challenges.

It’s also essential to keep the project schedule updated and available to everyone who needs it so that everyone understands the project’s goals and requirements.

4. Update the schedule as needed

As the project progresses, there will likely be changes to the project schedule. This might be due to changes in the project scope, delays or issues with specific tasks, or changes in the availability of resources.

When these changes happen, updating the project schedule to reflect the new timeline and requirements is essential. This helps ensure the project stays on track and meets its deadlines.

Examples of project schedule management

One of the most important tasks when managing a project is creating a realistic project schedule. Let’s take some time and look at a few examples of how project schedule management can be used in the real world.

Software development

Regarding software development projects, some key tasks include setting deadlines for different phases of the project, assigning resources (personnel, software tools, money $) to each task, scheduling regular team meetings, and creating detailed plans for each project stage.

To create an effective software development project template:

1. Begin by listing all the tasks that need to be completed in order of importance.
2. Assign deadlines for each task based on how long it will take to achieve them.
3. Assign resources (people or money) needed for each job.

A comprehensive SOFTWARE PROJECT SCHEDULE should encompass the following tasks:

• setting deadlines for different phases of the project
• assigning resources (personnel, software tools, money $) to each task
• scheduling regular team meetings
• creating detailed plans for each stage of the project

Launch of a new product

When launching a new product, many steps must be completed before launch day arrives. These include researching competitors, designing the product, producing samples, setting up distribution channels, marketing the product, and launching.

To create an effective launch of a new product project template, start by listing all the necessary tasks in order of importance and then assign deadlines for each task based on how long it will take to complete them.

Next, assign people or money resources needed for each task, and finally, make sure there is enough time allocated between each step so that nothing is rushed or overlooked during the process.

A PRODUCT LAUNCH PROJECT SCHEDULE should encompass the following tasks:

• researching competitors
• designing the product
• producing samples
• setting up distribution channels
• marketing the product
• launching

Developing a new website

It may sound simple, but developing a website is quite complex and requires careful planning.

Developing a new website includes several steps: designing the site structure, coding pages, setting up content management systems, testing compatibility across different platforms, and launching.

To create an effective developing new website project template, start by listing all necessary tasks in order of importance and then assigning deadlines for each task based on how long it will take to complete them.

Next, assign people or money resources needed for each task. Lastly, ensure enough time is allocated between each step so that nothing is rushed or overlooked during the process.

A complete WEBSITE PROJECT SCHEDULE should encompass the following tasks:

• designing the site structure
• coding the pages
• setting up content management systems
• testing the site for compatibility across different platforms
• launching.

Construction of a new building

Construction projects are complex and require a great deal of planning.

The process of constructing a new building includes several steps, such as securing permits, designing the structure, acquiring materials, hiring contractors, erecting the building, and finally, completing inspections.

To create an effective schedule, the new building project template begins by listing all necessary tasks in order of importance and then assigning deadlines for each task based on how long it will take to complete them.

Next, assign people or money resources needed for each task and ensure enough time is allocated between each step so that nothing is rushed or overlooked during the process.

A BUILDING CONSTRUCTION PROJECT SCHEDULE should encompass the following tasks:

• securing permits
• designing the structure
• acquiring materials
• hiring contractors and subcontractors
• erecting the building
• completing inspections.

Whether you’re an experienced project manager or a newbie just getting your feet wet in the wide world of project management, cost-benefit analysis (CBA) is something you will inevitably have to tackle. And if you plan on tackling it well, then this comprehensive guide is for you.

Cost-benefit analysis is one of the most important processes you’ll have to go through in order to make sound decisions for your projects. It involves weighing the potential costs associated with a course of action against its potential benefits by creating a comparison between the two. The goal is to ensure that you get the most bang out of your buck, and make sure resources are allocated efficiently.

Like any tool, though, a cost benefit analysis must be used correctly in order to be effective. In this blog post, we’ll discuss how to properly conduct a CBA so that you can use it to make sound decisions for your projects.

Defining cost benefit analysis and its purpose

At its core, cost-benefit analysis is a process of comparing the costs associated with a project against potential benefits to determine if it’s worth pursuing. It involves looking at both short and long term costs as well as short and long-term benefits. This allows you to make sure that resources are being used effectively and efficiently.

To put it another way, CBA is a way to determine whether or not the juice is worth the squeeze. It’s a tool that can help you make sure that you’re investing your time and money in the right places.

The purpose of a cost-benefit analysis is to give you a more detailed picture of potential costs and benefits associated with an investment over time. It’s also used as a way to compare different investments in order to determine which one offers the best return on investment.

Let’s say you’re considering two investments. Cost-benefit analysis can help you evaluate each investment and compare the projected costs against potential benefits to decide which one is more likely to provide a positive return on your investment.

7 reasons why CBA is important …

Have we sold you on the importance of cost-benefit analysis yet? If not, here are seven reasons why CBA is a must for any project manager:

1. It Helps You Make Better Data-Driven Decisions

Let’s be honest: decisions made without data are nothing more than guesses. Humans have a tendency to rely on intuition and emotion when making decisions, but this can be dangerous in project management. Cost-benefit analysis helps you make better, data-driven decisions by providing you with an objective way to evaluate potential investments.

2. It Positions You To Set Realistic Expectations

Have you ever had a leader who set an overly ambitious goal, only to be disappointed with the results? Cost-benefit analysis can help you avoid this scenario by providing an objective way to evaluate potential investments. It also forces you to consider long-term costs and benefits associated with each investment, helping you make more realistic projections.

3. It Helps Identify Potential Pitfalls

No investment is without risk. Cost-benefit analysis helps you identify the potential risks associated with an investment, as well as how likely they are to occur and the potential costs associated with them. This can help you make sure that you’re investing in projects that have a greater chance of success.

4. It Helps You Discern Where To Allocate Resources

Cost-benefit analysis can help you determine the best way to allocate resources. It allows you to compare different investments and make sure that your resources are being used in the most effective way possible.

5. It Can Be Used To Compare Multiple Investments

Some projects are simply not worth pursuing. Cost-benefit analysis allows you to objectively compare multiple investments and determine which one offers the best return on investment.

For example, let’s say you’re considering two investments. Cost-benefit analysis can help you evaluate each investment and compare the projected costs against potential benefits to decide which one is more likely to provide a positive return on your investment.

6. It Helps You Avoid Unnecessary Spending

Money wasted is money lost. Cost-benefit analysis can help you identify potential investments that may not be worth pursuing, helping you avoid unnecessary spending.

7. It Helps You Track Progress

Once you’ve made an investment, cost-benefit analysis can help you track progress and make sure your resources are being used in the most effective way possible. This can help you adjust your strategy and make sure that each investment is meeting expectations.

Considering the Downsides to CBA

Of course, cost-benefit analysis isn’t without its drawbacks. For one, it relies on estimates and predictions, which can be difficult to accurately project in the long run.

Additionally, some investments may offer intangible rewards that are hard to quantify in a cost-benefit analysis. Bottom line: Cost-benefit analysis isn’t perfect, but it does offer a value for project managers to evaluate potential investments.

Understand the different types of costs that can be incurred during a project

Whenever setting off on any project, big or small, a wise and savvy individual will understand the different types of costs that can be incurred along the journey. Think of these potential expenses as little sign posts guiding you from Point A to Point B – whether it’s buying interior design materials for redecorating your home, or investing in research software for advancing your business.

Costs come in two flavors – those that are fixed, and those that are variable, and they can throw some serious curveballs at you if you’re not prepared. Fixed costs are like running into a brick wall during a race – unavoidable nightmares that suck up all your resources right then and there and can never be retrieved.

But variable costs act more like fellow racers who join you intermittently throughout the course — while they can add up quickly over time, at least they give you breathing room in between.

All in all, knowing how your project might fluctuate financially is an invaluable skill to have – and it will serve you through untold future adventures. So take the time now to scrutinize each potential cost closely – plan ahead and understand this complex territory before proceeding full-speed ahead. It’s well worth the effort.

5 Types of costs that are typically considered in a CBA

Before we look at how to do a cost-benefit analysis, let’s take a look at the types of costs that are typically considered in a CBA:

1. Direct Costs: These are the most obvious costs associated with an investment, such as materials and labor.
2. Opportunity Costs: This is the potential benefit you may have missed out on by making an investment.
3. Fixed Costs: These are costs that don’t change regardless of the level of production, such as rent and utility bills.
4. Variable Costs: These are costs that vary based on the level of production, such as materials and labor costs.
5. Indirect Costs: These are costs that can be difficult to identify and measure, such as lost time due to delays.

4 Types of Benefits that are typically considered in a CBA

Now that you know about the types of costs that are typically considered in a cost-benefit analysis, let’s take a look at the types of benefits:

1. Direct Benefits: These are the most obvious benefits associated with an investment, such as increased revenue or reduced expenses.
2. Indirect Benefits: These are benefits that can be difficult to identify and measure, such as improved customer satisfaction or employee morale.
3. Net Benefits: These are all of the benefits minus all of the costs, which lets you see if an investment is profitable or not.
4. Total Benefits: These are benefits that can’t be measured in terms of money, such as improved customer loyalty or a better reputation for your company.

How to conduct a cost benefit analysis

Alright so now that we’ve laid the groundwork, let’s take a look at how to do a cost-benefit analysis.

Step 1: Identify Your Goals and Objectives

The first step in conducting CBA is to identify your goals and objectives. This involves listing what you want to achieve with the project and the expected outcomes.

For example, if your goal is to increase customer satisfaction, then your objective could be to reduce customer wait times by 20%. This will help you measure the success of your project and assess whether it has achieved its desired results.

Step 2: Estimate Costs and Benefits

Once you have identified your goals and objectives, it’s time to estimate costs and benefits associated with the project. To do this, you will need to create a list of all resources required for the project (materials, labor, equipment etc.) as well as any potential risks or opportunities associated with it (such as unexpected delays or cost savings).

Once you have done that, calculate both direct and indirect costs related to each resource. Then, assign a monetary value to each benefit that can be derived from completing the project.

Step 3: Analyze Alternatives

Before starting work on a new project, it’s important that you analyze potential alternatives that could be used instead. This will help ensure that you are making the most cost-effective decision possible by comparing different options before committing resources and money into one particular approach.

For example, if there are two equally viable options but one requires fewer resources than another then it would make sense to choose that option over its more expensive counterpart.

Step 4: Determine Expected Results

Now that you have identified your goals, estimated costs and benefits associated with different alternatives, it’s time to estimate what kind of results can be expected from implementing them.

This involves using data such as past performance metrics or market trends to predict potential outcomes based on which alternative is chosen. Once these expected results have been calculated they can then be compared against actual results once the chosen option has been implemented in order to measure its effectiveness over time.

Here’s an Example Of Cost Benefit Analysis in project management

Let’s say that you are considering launching an online store for your business.

Before doing so, it would be wise to do some research on the costs associated with setting up such a store (e.g., web hosting fees, design fees etc.) as well as the potential benefits (e.g., increased sales revenue etc.). For the sake of this example, let’s say the total cost of launching an online store is estimated to be $10,000 and the expected benefits are estimated to be $20,000.

Using the cost benefit analysis method, you can then compare these two figures and determine that launching an online store would net a $10,000 profit.

In addition to this, you could also look at the potential risks associated with launching an online store (e.g., potential security issues) and then compare them to the potential rewards. This would give you a more comprehensive picture of the potential outcome of the project before committing any resources or money.

Tips for ensuring that your cost benefit analysis is accurate and meaningful

1. Make sure to accurately estimate the costs and benefits associated with each possible alternative.
2. Don’t forget to consider any potential risks that may arise from implementing the project, as these can have a huge impact on its success or failure.
3. Use data such as past performance metrics or market trends to support your predictions.
4. Try to get feedback from other stakeholders in the project and incorporate their perspectives into your analysis.
5. Keep track of the results of your cost benefit analysis, as this will help you refine it over time and ensure that it is providing accurate and meaningful insights into the success or failure of a project.

A project may look straightforward enough at the very beginning. Until you start asking questions.

Maybe initially the client asks you to build a widget, and says that it needs to be green. Ok, you think, clear enough.

But then in the second and third rounds of discussions, you begin to see the bigger picture. You understand the client’s expectations around the quality, usability and scalability of the widget, plus all the regulations that go into creating it. You understand the client’s company, their brand and their mission.

A project manager who doesn’t take the time to unearth these expectations and discover what they don’t know is headed for failure.

“Asking questions” is the process of gathering requirements. The objective of requirements gathering is to align everyone’s expectations about the project’s objective. Without this continuity, the team easily works toward a deliverable that doesn’t meet the client’s expectations at all.

A formal compilation of all of these requirements into a business requirements document further solidifies everyone’s focus around the project’s goal. This post is going to define a business requirement document, describe how to create one, and explain what it needs to include in order for a project to succeed.

What Is a Business Requirement Document?

A Business requirements document (BRD) is a primary tool for listing and structuring requirements. It’s a document that’s created in a project’s planning stage and provides the purpose, background and scope of a project.

It’s a major deliverable in this planning stage and requires formal review by the client and acceptor. Usually, it’s created by a senior business analyst or the project manager.

Generally, a business requirements document is created in stages, using feedback loops. With each meeting and consultation, the current version is updated.

During a project’s execution stage, the BRD is used as a guideline for stakeholders to make decisions and to prioritize requirements and objectives.

How is a BRD different from a Functional Requirements Document (FRD)?

The BRD is intended for all stakeholders and the client, so it’s written in a language that is easy to understand by everybody.

The FRD is an internal document that’s passed around the team. Oftentimes it’s written in technical language that isn’t accessible to a wide audience. It’s more granular than the BRD and may include charts and workflows.

What Types of Requirements Are in a BRD?

Requirements capture all of the expectations in a project. They include tangible deliverables as well as non functional requirements. Capturing and documenting requirements at the get-go ensures that the team and the client are on the same page

The requirements in the BRD start from a high level, then work down to greater specificity.

High Level Requirements

According to the PM Glossary, high-level requirements “explain the major requirements and characteristics of the final product, including its purpose as a product and within the company.”

High level requirements, distinct from detail requirements, describe the central objective of the project. They are stated at the beginning of a business requirement document along with the project’s overall purpose.

Business Requirements

The business requirements state the business goals of the project, including the ROI, the objectives and the reason the project is initiated in the first place.
For example, a goal of adopting new software might be to reduce processing times by 50%. Or the goal of adding an online store to a retail store might be to increase sales by 20%.

Stakeholder Requirements

The stakeholders can include subject matter experts, customers, product managers and other business units. This section includes things like functionality requirements and quality standards.

Solution Requirements

The solutions requirements get down to the nitty gritty and include the expected features and behavior of the product. Business rules are taken into account with solution requirements, including constraints around regulations or the mission of the company.

Solution requirements are broken down into functional and non functional requirements.

Functional requirements (FRs) are clear deliverables the product must have. If the project is a web page, then some functional requirements may be that it include a bio page, a login page, and a shopping page. Functional requirements generally are visible and quantifiable. They must comply with business rules, and work around the project’s constraints.

Non-functional requirements (NFRs) are just as significant as functional requirements, but harder to grasp, define and quantify. “Usability” and “high-quality” are two examples of non functional requirements. NFRs sometimes relate to the behavior of the system, so also include things like privacy, security access and documentation.

Non functional requirements are approached differently than FRs, as they can’t be quantified as easily. For example, a non functional requirement of “usability” for a website would affect several facets of the project. Since they’re nebulous and indefinable and bleed into all parts of a project, it’s difficult to determine when a non functional requirement has been met. It’s not so simple as checking a box on a list and pronouncing it “done.”

In a sense, NFRs are treated more like constraints than requirements. They’re the boundaries under which a project is executed; the parameters it works within at all times.

Transition Requirements

Many projects entail a transition period. Let’s say the project is to install a new software system within the company. Learning to use the new software is a significant and sometimes challenging transition, and this stage has requirements all of its own.

These requirements describe features and processes that facilitate the transition. They may include things like cheat sheets, training courses, and data migration from the old system into the new system. Once a transition is complete, these requirements are no longer needed; they’re only necessary during the interim period.

As you can see, there are many types of requirements, originating from different places and serving a variety of purposes within the project. Let’s look into how these requirements are gathered.

How to Capture Requirements for the BRD

Requirements, unfortunately, aren’t prepared in a nice neat checklist at the beginning of a project and presented to the project manager.

Rather, it takes a lot of research and digging to unearth all of a project’s requirements. Sometimes they can’t even be discovered by asking direct questions. Requirements include implicit aspects of a project, things like the culture and the mission of the company, so teasing them out means reading between the lines, talking to the right people and understanding resource constraints.

Successfully gathering all pertinent requirements requires a strategy. The objective for the project manager is to understand the expectations of all stakeholders.

Here are a few methods and approaches for capturing a project’s varied requirements, so as to compile them into one neat document.

Business Process Model

The business process model looks at a business process from two different perspectives. First, it examines the current process, and then it examines the process in a future desired state.

Take a coffee shop for example, whose objective is to shorten the customer’s order time. This method studies the process for how a customer currently completes an order, then contrasts it with a possible future process. Maybe in the current process, the store has only one cash register. But in the future desired processes, it adds a second register.

Two requirements for this project, then, would be to purchase the new cash register and to create space for it within the shop.

This approach to analyzing systems and workflows makes it easy to highlight critical areas and identify the requirements for achieving objectives.

User Story Sessions

A user story is a simple, easy to understand description of a product feature, written from the perspective of the end user. For example, if the feature is a website login page, the user story would read something like, “The login page asks for my username and password.”

A user story session brings the client, the team and other stakeholders together, to capture an assortment of requirements. The requirements may be functional or non functional, and some may be business related as well. After gathering requirements, the next step is to prioritize them.

A MoSCoW Meeting of Stakeholders

At a MoSCoW meeting, the stakeholders identify everything a project must have, what it should have, what it could have, and what it won’t have.

A MoSCoW meeting is helpful in the planning stage to identify a project’s high-level requirements, its constraints, and everything in between. It’s about clarifying and crystallizing what the project really is all about.

The simplicity of the method allows the customer, the team, and any other stakeholders to make meaningful contributions toward the project’s requirements.

Although MoSCoW is a great way to plot out a project at the beginning, this isn’t a stopping point and it is best combined with other requirement gathering methods.

Product Manager Consultation

A product manager researches the customer, and so understands who the product targets and what problems it needs to solve. Soliciting feedback and data from the product manager helps to identify key features to include in the deliverable in order to meet the end users needs.

1:1 With the Client

When a project is too focused on deliverables and checking boxes, it’s easy to miss non functional requirements. A one-on-one with a client allows the project manager to get an idea of his or her priorities with respect to areas such as usability, scalability, security, compatibility and performance.

For example, if a client says that first and foremost she wants a website that’s “usable,” it’s necessary to dig a little further to grasp what that really means. It may mean that the pages must load quickly, or the checkout procedure must be simple and fluid. But without asking for clarity, it’s easy to make assumptions around a vague requirement like this.

This summarizes several ways to gather requirements. Each method provides its own benefits and weaknesses. Using a variety of methods together ensures that all necessary requirements are gathered.

How to Create a Business Requirement Document

A BRD is developed in rounds, after meetings and consultations with various stakeholders. Its completion indicates that everyone has a firm understanding of what the project entails. Here are a few things to include in a business requirements document.

• Requirements Gathering Process and Participants
  A BRD clarifies the project’s requirements gathering techniques. These methods vary depending on the nature of the project and the size of the team, but they generally always include gathering user stores and communicating with the product manager, the client and other stakeholders.
• Document Approvers
  The BRD clarifies the processes around requirements approval. It states who signs off to indicate the fulfillment of a requirement, and may also include a definition of done.
• Requirements
  A BRD, of course, also includes all of a project’s requirements, listed from the broadest to the most specific.

Business Requirements:

This section states the business goal is of the project, as well as how this goal is measured. It means defining the problem the project seeks to solve, or the opportunity it seeks to create.

Stakeholder Requirements:

These are the needs of key stakeholders, including business units, the product manager and investors. It lists the criteria these groups want the product to meet.

Functional and Non Functional Requirements:

Functional requirements define what the deliverable looks like or what features it has. This section doesn’t propose a solution, but rather it indicates all of the boxes that the final deliverable must check off. It may include diagrams for clarity.

Non functional requirements are performance or quality standards such as capacity, speed and availability. It may include things like training and documentation as well. As mentioned, non functional are sometimes difficult to quantify, and the BRD seeks to break down and clarify the NFRs as much as possible.

• Requirement Dependencies
  Requirement dependencies are those things outside of the project manager’s control that affect the requirement delivery. For example, it may list equipment or skilled labor that is only available with the completion of another project.

• Assumptions
  Assumptions go over anything that’s implied with the completion of a deliverable. It includes things like resource availability (labor, materials, and equipment).

  Assumptions create risk. It may turn out, for example, that the resources aren’t available in the amount it was assumed.

• Constraints
  Constraints are internal and external limitations that affect project performance. These include regulations, industry standards and limitations on resources.
• Approval and Sign Off From Key Stakeholders.
  When everyone has looked at the document, stakeholders sign off to indicate it’s complete.

And these are some components to a BRD. As you can see, it is a lengthy document when it’s all said and done. But bringing it to completion benefits a project in several ways, as we’ll see next.

How Does a Project Benefit From a BRD?

A requirements document captures all of a project’s essential components and places it in a position to succeed. Here are a few benefits of a thorough BRD.

• The Project is Completed on Schedule
  With a BRD, all the expectations are clear from the get-go. This focuses the production process, and sometimes even speeds things up!
• Re-Work Is Eliminated
  A work process that emphasizes ongoing communication with the client, and continual reference to the BRD keeps the project focused on its goal. The team is less likely to have to back up and repeat work.
• Client is Please With the Deliverable
  When everything is written out and all of the stakeholders are on the same page, it’s likely that the team will meet expectations and the client will be pleased with the final deliverable.

These are just a few of the many benefits a requirements document brings to a project.

Sometimes in a project, the budget drips out like a leaky faucet, in steady, predictable amounts. At other times, the pace of the budget is more like a roller coaster. There are long stretches where almost nothing is spent, followed by short, fast intervals that consume huge portions of the budget in one go.

Understanding a budget’s cadence is key to successful project management. Without a firm grasp of a project’s costs, work packages and timeline, it’s easy to mismanage a project and have it go over budget.

A cost breakdown structure plays a significant role in successful project management. It keeps things from spilling out and going off the rails. Let’s see how a cost breakdown structure works, and how it fits in with other diagrams like the resource and work breakdown structures, to successfully plan and execute a project.

What Is a Cost Breakdown Structure?

As the similar names suggest, a cost breakdown structure (CBS) is like a work breakdown structure (WBS), except that it evaluates a project with respect to cost rather than work.

Like a WBS, the CBS begins at the highest level, the overall budget. Then it breaks down into increasingly smaller sections with each tier.

A CBS becomes more granular and specific at each tier. For example, say the overall project is a home remodel. On the second tier, this might break down into the cost for the kitchen, the bathroom and the deck. Each lower tier breaks costs down further into things like the materials and appliances for each space.

The CBS is a valuable tool for developing accurate estimates of work. As it’s almost impossible to know how much a package of work costs from a high level requirement, breaking the cost down into smaller packages allows the budget to hit closer to the actual mark.

Generally, the cost becomes more accurate with each tier. However, the tiers should align with the project execution, as at some point the divisions become too small and they’re useless. Once a cost is broken down into its separate labor, supplies and equipment, usually it needn’t be broken down any further.

How to Create a CBS

One way to create a CBS is to model it after the WBS. In this method, the CBS is created by breaking each work package down into their required resources (labor, materials and equipment), then totaling the cost for each resource.

A CBS can also be created independently from the WBS. Whereas the WBS breaks a project down by requirements and deliverables, the CBS can break the project down by other categories such as research, production and operation.

Each method provides a different perspective for evaluating a project and its correlating costs.

Regardless of how the CBS is constructed, the scope of the project in both the WBS and the CBS remains the same.

What Is a CBS Used For?

A CBS is used in both the planning and the execution stages of a project.

Planning: The objective at the beginning of a project is to evaluate the requirements thoroughly, from a variety of perspectives, in order to prepare for a fluid, predictable execution.

The cost breakdown structure analyzes the project at a variety of aggregation levels (between one and four, generally), and breaks it down by a variety of criteria (either deliverables or research, production and operation).

This depth and granularity creates accurate cost estimates, and provides inputs into the creation of an accurate budget.

Execution: The CBS is also helpful during the execution stage of a project. Tracking the progression of the project against the CBS is one way to gauge if the project is proceeding according to plan.

The CBS functions a bit like a fishnet or a corset in this sense. It’s a document that’s used throughout a project to keep things together.

The CBS is not used exclusively, however, but in combination with other key documents. Let’s examine how the CBS works together with other breakdown structures.

CBS versus WBS versus RBS

All these breakdown structures can start to feel like information overload when you don’t understand how they work together. However, the WBS and the CBS and the RBS (resource breakdown structure) really have a synchronistic function within a project.

Used together, the three charts complement and support one another, helping both in planning a project, and making adjustments during the execution stage.

Definition: Work Breakdown Structure

A work breakdown structure (WBS) diagrams of all a project’s tasks and activities. It’s hierarchical, and lists the project objective at the top, then breaks the work into increasingly smaller packages at levels 2, 3 and 4. At the lower levels, it’s possible to make accurate estimates around the resources required for each work package.

The WBS, principally, is an operational document. It isn’t intended for budget creation, although sometimes it’s misapplied for this use.

Generally, the WBS has more granularity than a CBS. Whereas the WBS might break one work package down into 50 individual tasks, this level of decomposition isn’t necessary with the CBS.

Definition: Resource Breakdown Structure

A resource breakdown structure examines all of the resources required to complete a project’s objective. Just like a work breakdown structure, it’s a hierarchical grid that starts with the project’s central objective. Rather than breaking things into work packages, however, the lower tiers quantify the labor, equipment, materials and facilities required to complete each requirement.

The resource breakdown structure, then, is a perfect mid-way document between the creation of the WBS and the CBS. Once the work is decomposed in the WBS, it’s then possible to calculate all of the labor, materials and equipment required to complete the work. When this is clear, and the package is small enough to assign accurate time and quantity estimates, then the CBS can be calculated as well.

The Three Charts Combined

Together, the RBS, the CBS and the WBS allow a project to stay within its central constraints of time, budget and scope.

Reign in the Budget: In order to properly monitor a project and stay within budget, it’s necessary to not only know the budget, but to also understand the cadence of the budget, or how much money is consumed when.

The WBS and the RBS identify central work packages. When this work is correlated to the costs in the CBS, it allows the project manager to monitor cost expenditures, and to know how much money should be spent and when.

Monitor the Deliverable Schedule: Monitoring a project also means evaluating progress in terms of the number of units completed, or percentage completion. Together, the WBS and the CBS allow the project manager to evaluate a project in terms of the percentage of deliverables completed alongside the percentage of budget spent. It works similarly to the idea of a burndown chart.

Stabilize Scope: Together, the WBS, the RBS and the CBS clarify the project’s scope. When all the work is known, it’s easier to identify when additional costs or work packages not outlined in these diagrams creep in and increase the scope.

In summary, each type of breakdown structure evaluates a project from a slightly different perspective, and each complements one another. Now let’s look at some key benefits the CBS provides in project management.

Benefits of Using a CBS in a Project

A cost breakdown structure helps with many aspects of a project, including risk management, schedule tweaking and scope adjustment.

Scope Management

Sometimes it becomes clear during a project that scope needs to be reduced in order to reign in costs.

Take a home remodel, where the project manager has gone over budget and must decide between adding new light fixtures and adding new wallpaper. The CBS comes in handy here. As it details the cost for each work package, it provides a clear indication for which item to cut.

This is a simple example, of course, and oftentimes a project is much more complicated. Generally speaking though, a CBS allows the project manager to identify which items bleed the most cost, and so it serves as a helpful tool for identifying where to cut away work in order to stay within budget.

Schedule Tweaking

A project manager is always concerned about keeping a project on schedule. One helpful technique for freeing up time is known as crashing. With crashing, a project manager doubles up on the resources for an activity in order to speed up its completion.

Say the project is painting a house, and with two painters the project takes one week. Possibly, by adding two more painters this task can be shortened to just a few days.

At the same time, the project manager also wants to stay on budget. In looking for the best activities to crash, then, it’s helpful to understand their costs relative to one another. The CBS allows the project manager to identify those lower-cost activities whose resources can be increased without making a huge impact on the project’s overall budget.

Risk Management

A risk management plan analyzes a project at the onset, and anticipates all possible occurrences, both positive and negative. The plan also considers the likelihood of each occurrence.

The CBS helps to focus the risk management plan around the high cost areas that need the most attention.

Take a construction project that plans to rent an expensive piece of equipment for one day. This CBS highlights this activity with respect to all of the other work packages, and notifies the project manager that it needs extra attention in the risk management plan.

As you can see, the CBS is a useful diagram to reference and assists with many facets of a project.

Have you ever opened an app or tried to use a piece of software and thought, “What the heck is this?” Maybe the user interface was confusing, or the code was buggy, or the software didn’t even work at all.

Chances are, the developer or team behind it didn’t do a good job managing the project. In fact they were probably just trying to get customers without focusing on the user experience.

To lead effective software projects, you need to get organized and stay ahead of the game. That’s why it’s crucial to understand why software management is important, what kinds of tasks must be completed, and why such projects can fail.

In this blog post, we’ll walk you through everything you need to know about how to manage a software project from start to finish. By the time you’re done reading, you’ll be more confident and better equipped to handle your next project. So let’s get started.

Why is software management important?

If you haven’t noticed, software projects are everywhere—from the phone in your pocket to the dashboard of your car. It’s become undeniable that software is becoming increasingly intertwined with every aspect of life. You can even buy groceries through software.

Now, with that said, it’s easy to understand why software project management is so important. After all, if you’re running a software project that contains hundreds of thousands of lines of code, it’s essential to have a comprehensive plan in place to ensure everything goes smoothly.

Your most important objective as a software manager is to ensure the project is successful. To do this, you must ensure that all of the essential tasks are completed.

Here’s a brief list of what kind of things you may need to do when managing a software project:

• Wireframes and mock-ups
• Development and testing
• Documentation and user guides
• Bug tracking/issue solving
• User acceptance tests
• Deployment and maintenance.

Why software projects fail…

Maybe, you’ve experienced it yourself: the sinking feeling in your stomach when the software project you’re managing fails to accomplish its goals. After weeks (or months) of hard work, the last thing you want is for all that effort to go down the drain.

But here’s the good news: recognizing and addressing common pitfalls behind failed software projects can help you avoid repeating prior mistakes — like a virtual GPS system for navigating rough waters. So what are some of these missteps?

Well, first and foremost, there’s a tendency for people to skip important steps when developing a solution. They dive directly into coding without planning out the details or testing whether certain requirements are actually achievable. Think of it like building a house without taking time to put blueprints in place: work might continue but at some point, your structure will collapse without a solid foundation.

Similarly, launching prematurely — without verifying user needs or ensuring high-quality results — can lead to project failure. Aim to avoid this fate by investing time upfront to make sure everything is ready before pushing ‘Go’ on your venture.

Finally, bad communication between stakeholders and the development team can be a major source behind software project failure. Remember: everyone needs to stay on the same page, and that won’t happen if they’re not regularly talking to one another.

9 Types of Software Projects You Should Know

What kind of software are you looking to develop? Are you working on a web application or mobile app development project? Knowing the type of software you’ll be developing is essential for successful software management. Here’s a brief list of nine common types:

• Desktop applications
• Web applications
• Mobile applications
• Embedded systems
• Business software
• Database systems
• Gaming software
• Machine learning projects
• Cloud-based services.

5 common challenges when managing a software project:

Now that you know a few of the most popular types of software projects, let’s discuss some of the common obstacles faced when tackling them.

1. Unclear Objectives: Without well-defined objectives, it can be difficult to measure success or to plan out an effective timeline. Make sure everyone is on the same page right from the start.
2. Unmet Expectations: Software projects can easily require a lot of people and resources, which makes it hard to guarantee success. Aim to keep expectations realistic from the get-go in order to avoid disappointment down the line.
3. Unexpected Costs: Cost overruns can often occur during software projects; be sure to plan for contingencies and allocate additional resources as necessary.
4. Poor Onboarding of Talent: The onboarding process is key — you’ll need to ensure that everyone involved has a good grasp of the project and the tools they are working with. Especially, if they are coming into the middle of the process.
5. Re-engineering: Re-engineering can be a major time sink, so it’s important to have a plan in place to fix any issues that arise quickly and efficiently.

Assembling Your Ideal Team

Assembling the right team for software development is like assembling a world-class orchestra. All of the pieces must come together seamlessly to create beautiful music.

After all, the members of your team will be responsible for the success or failure of your software project. So, it’s extra important to surround yourself with experienced professionals who possess the right skills, motivation, and enthusiasm.

Finding Experienced Talent

But what specifically should you look for and how can you make sure they are a fit for your team?

First off a software team is often made up of a couple of specialized roles. These can include but aren’t limited to:

• Developers: The “musicians” of the orchestra, responsible for writing code;
• Project Managers: The “conductors” of the team, who will keep everyone organized and on-task;
• Designers: The “artists” in the mix, in charge of ensuring the project looks and feels great;
• Quality Assurance (QA) Engineers: The “critics” of the orchestra, keeping a close eye on any potential bugs.

In addition to these roles, it’s also important to keep an eye out for individuals who have experience in your particular software platform, as well as those with a strong sense of business acumen and problem-solving skills.

Where do you find the talent?

If you’re stuck wondering how to find the right people, don’t forget that there are plenty of online job boards and recruiting tools available to help match you with excellent candidates.

Upwork and Fiverr are our favorite go-tos for finding talent. They make it super easy to find professionals with the exact skills you need and allow you to narrow down your search using their detailed filters. Plus, they make paying and managing your team members simpler than ever. You can also consult staffing companies like DOIT Staffing or head hunters to find top talent.

Special Note: As you search these platforms, keep in mind that an effective post should focus on the key details such as job requirements, payment terms, deadlines, etc. Additionally, it’s also important to provide clear directions on how interested individuals can respond with their CVs or portfolio samples if available.

Something like this should do the trick:

“We are looking for an experienced software developer with knowledge of _____. The project will require ___ hours of work and will be compensated with a rate of ___ per hour. Please submit your CV and portfolio samples to___. Deadline for submission is ____.”

What if you’re paying per project?

If you are paying per project, rather than per hour, then it’s also important to provide a timeline and milestones for the team. This will help everyone stay on track and avoid any potential confusion or disagreements down the line.

Discerning if they’re a fit…

Once you have a list of potential candidates, it’s time to do your due diligence and make sure they’re the right fit for your team.

Don’t forget to evaluate them in terms of their overall compatibility with the team. After all, you want everyone to get along and work together efficiently; this means finding individuals who have compatible personalities and communication styles.

Most importantly, make sure to discuss the job in detail. This should include outlining your expectations, project timeline and deliverables. And even consider where the ambiguity is and how you might manage it.

In addition, make sure to assess each individual’s personality and attitude. After all, software development is often a team effort and the success of any project will depend on everyone being in sync with one another.

At this point, if all goes well, you have the perfect orchestra playing together in harmony — all ready to create beautiful music.

Managing your project – The five phases of software development project life cycle

Once your team is in place, it’s time to focus on how best to manage the project. To do this, you’ll need to become familiar with the five phases of the software development project life cycle. This includes:

1. Requirements gathering and planning
2. Design and implementation
3. Testing and quality assurance
4. Deployment and maintenance
5. Documentation

This is a well known framework for managing software projects. Each stage has its own distinct set of tasks and deliverables that need to be completed before you can move on to the next one. Let’s take a look at each one in more detail.

1. Requirements gathering and planning:

This stage is like writing the introduction to a novel: it sets the stage for all the exciting action to come. It might seem tedious or even unimportant, but this crucial step can help guide you and keep your work on track.

The goal of this stage is to define your project’s scope, timeline, and budget.

Scope = What the project should accomplish
Timeline = When it should be completed
Budget = How much it will cost

Scope

To arrive at your project’s scope you’ll need to consider a few factors:

• What is the problem that needs to be solved?
• Who will use the software?
• What functionality does it need to have?
• And what technologies must be used in its creation?

Timeline

When setting your project’s timeline, be sure to allow as much time as you need to complete the project. As they say, “Rome wasn’t built in a day!”

Also, be sure to break it down into smaller steps and establish individual deadlines. Then, set milestones off in the distance that act as signposts – not necessarily achievable checkpoints along the way, but places where you can take stock of your progress and course-correct if necessary.

Budget

Finally, the budget should match your timeline and scope. If you don’t have enough resources to complete the project on time and within budget, then it’s better to reevaluate or renegotiate rather than start off with a plan doomed for failure.

2. Design and implementation:

This phase includes creating system designs, wireframes and user interface mockups. It also includes determining the architecture of the system, as well as any programming or coding that needs to be done.

To create system designs, wireframes and mockups, you’ll need to have a deep understanding of the user experience. You’ll want to make sure that each element is designed with your users in mind and that they create a consistently pleasant experience.

Also, be sure to consider how this all fits within the architecture of the system, both in terms of data structure, programming language and any other technologies that need to be implemented.

If you were to analyze the most successful software projects, you would find that they all have one thing in common: careful consideration of the user experience and architecture. After all, your users will be the ones who determine whether or not a project is ultimately successful.

3. Testing and quality assurance:

This is an essential step in the process, and it’s important to take the time to do it right. This phase includes verifying that the software works as expected and is free of bugs and errors.

Testing the software thoroughly is essential to making sure it runs smoothly. This process also includes conducting user acceptance testing with select users to ensure that the system meets everyone’s needs and standards.

When TESTING keep in mind:

FIRST, make sure to test the functionality of your software. This includes everything from basic navigation and usability to more complex features. Testing all of the functionality of your software will help to ensure that it works as intended and that there are no hidden bugs.

SECOND, pay attention to how your software performs under different conditions. This means testing it on different operating systems, with different hardware, and under different loads. This will help you to identify any potential performance issues.

THIRD, make sure to test the software’s security. This is especially important if your project deals with confidential data or payments. Make sure that all of the security measures are up-to-date and working as expected.

FINALLY, don’t forget to perform regression testing. This is the process of running tests again after making changes or updates to the software. This will help to ensure that the changes did not introduce any new bugs or errors.

Taking the time to properly test your software is essential for ensuring its quality. By following these tips, you can make sure that your software is ready for launch.

4. Deployment and maintenance

Once your software is tested and ready to go, it’s time for deployment. This step involves making sure that all of the necessary files are in place and that the system is set up correctly. It also includes configuring any hardware or networks that will be needed to run the software.

In addition, you may need to do some last-minute updates or fixes prior to deployment, such as updating the user interface or adding new features.

Once your software is deployed, it’s important to maintain it over time. This includes keeping up with any security patches and bug fixes that may be needed. It also involves making sure that the system remains compatible with any new system updates that come out.

Keeping the lines of communication with customer service open is also important. Make sure that your users are able to get help whenever they need it, whether it’s answering questions or helping with any technical issues.

5. Documentation

Finally, documenting your project is essential for ensuring that everyone involved in the process understands how it works. Documentation can range from a simple list of features to more in-depth tutorials and user manuals.

Having up-to-date documentation makes it easier for future developers and users to get up to speed on the system quickly. It also makes it easier to troubleshoot any issues that may arise.

You’re in the middle of a project and things are going smoothly. The team is hitting their milestones and everyone is working together like a well-oiled machine. But then you get the dreaded call.

One of your team members is sick and won’t be able to work for the next two weeks. You can already feel the panic rising in your throat. What are you going to do?

This is where resource leveling comes in. Resource leveling is the process of managing resources – such as people, machines, and other resources – to ensure that all tasks are completed on time and with the right amount of resources. It’s like a life vest in a sea of tasks, keeping you afloat when times get tough.

Resource leveling helps you to prioritize tasks based on their importance, as well as to predict when and how much resources will be needed. This way, you can ensure that all tasks are completed in a timely manner without overburdening your team or running out of resources.

But what exactly is resource leveling, and how can you use it to your advantage? Let’s take a closer look.

What’s Resource Leveling?

Resource leveling is the practice of evenly distributing resources across multiple tasks in order to prevent too much or too little from being allocated to any one task.

The goal of resource leveling is to spread the workload evenly between team members, creating a healthy work environment and making the project schedule attainable. It’s also a great way to address any issues with availability of resources, such as if one team member is on vacation or has taken on an extra project.

Resource Leveling Examples

Let’s say you have two people working on a customer support project. One is assigned to work on the customer’s account setup, while the other is assigned to answer calls and assist with account inquiries.

The team member who is answering calls and assisting with account inquiries is getting overburdened by the demand for customer support. The other team member is not as busy and can pick up some of the slack if needed.

Using resource leveling, you could evenly distribute the workload by assigning each team member equal numbers of customer inquiries each day. This would help to make sure that both team members have enough work but aren’t overwhelmed with too much.

Most likely you’re already utilizing resource leveling in some way, but understanding the concept and actively planning your resources is key to ensuring that everyone on your team has enough work without being overburdened.

Four Ways that Resource Leveling Can Help

We’ve identified four ways that resource leveling can help your team stay afloat in a sea of tasks:

• Smoothing out uneven workloads
• Identifying bottlenecks early
• Increasing visibility into project problems
• Addressing scope changes

Smoothing out uneven workloads

Do you have team members who are always running around like chickens with their heads cut off, while others seem to have too much time on their hands? This can lead to frustration and resentment on both sides of the spectrum. Resource leveling evens out these uneven workloads by redistributing work among team members so that everyone has a more manageable workload.

Identifying bottlenecks early

Bottlenecks can seriously derail a project if they’re not identified and dealt with early on. By leveling resources, you can get an early indication of which parts of the project are going to require the most resources. This information can then be used to make adjustments to the project plan so that bottlenecks don’t become a problem later on down the line.

Increasing visibility into project problems

Another benefit of resource leveling is that it increases visibility into potential issues. By looking at how resources are being used (or not used), you can identify potential problems before they have a chance to cause major disruptions. This increased visibility can help you make better decisions about how to allocate resources and avoid potential pitfalls.

Addressing scope changes

If the scope of a project changes, it can often create havoc as far as resourcing is concerned. Resource leveling can help address these changes by determining how best to reallocate resources based on the new scope. This helps ensure that projects stay on track despite changes in scope and helps avoid last-minute scrambling to find additional resources.

7 Super Effective Resource Leveling Tactics

Now that you know how resource leveling can help, let’s take a look at some of the tactics you can use to effectively implement it.

Here are seven effective tactics for implementing resource leveling:

1. Borrow From Peter to Pay Paul

One way to level resources is by “borrowing” from another part of the project that doesn’t need those resources at that moment and using them where they’re more needed.

For example, if you have a team working on two tasks—Task A which requires four workers for two days, and Task B which requires two workers for four days—you might borrow two workers from Task A for the first two days of Task B, and then borrow two workers from Task B for the last two days of Task A. This ensures that both tasks get completed on time without any undue stress on your team.

2. Smash That Silo!

Silos are bad news bears for project managers. A silo mentality can lead to infighting among team members, hoarding of resources, and an overall feeling of mistrust among teammates. If you want your project to succeed, it’s important to encourage collaboration and break down silos early and often.

One way to do this is by creating cross-functional teams—that is, teams made up of members with different expertise who can complement each other’s skill sets. This kind of team environment fosters collaboration and prevents resource hoarding because members know that they need to share resources in order for the team to succeed.

3. The Cake Is a Lie! (Or Is It?)

In project management, it’s important not to promise more than you can deliver—but it’s also important not to deliberately lowball your estimates in order to make yourself look good. Nobody likes being lied to, least of all your project stakeholders.

A better approach is what one PMI member calls “deliberate optimism.” In other words, be realistic in your estimates but also err on the side of caution so that you don’t overcommit and end up disappointing people further down the line.

4. Keep It Lean (And Mean)

In lean manufacturing (and lean management more generally), one of the core principles is eliminating waste throughout the production process. The same principle applies to resource management: if there’s something getting in the way of efficient resource utilization, get rid of it.

This could mean anything from streamlining communication channels so that everyone is on the same page about what needs to be done when, or it could mean ditching outdated processes and tools that are no longer serving a purpose.

5. The Power of Prioritization

If you’re faced with a situation where resources are in short supply, one way to manage it is by prioritizing tasks according to their importance. This can be done manually or via software that can automate this process for you. We recommend Teamly not only for task management and tracking, but also for its powerful resource prioritization features.

By assigning values to tasks according to their importance, you can ensure that the most important tasks are being handled first and resources are not wasted on low-priority tasks.

6. Zoom Out For The Big Picture

It’s easy to get bogged down in minutiae when managing a project, so it’s important to take a step back every now and again and look at the big picture.

Ask yourself: What is the overall goal of the project? Which tasks need to be completed in order for that goal to be met? How can I best utilize my resources so that those tasks are completed efficiently?

7. Don’t Just React – Be Proactive

As a project manager, it’s important to stay ahead of the curve. If you see potential problems looming on the horizon, take steps to address them now rather than waiting for them to become a full-blown crisis.

This could mean having regular meetings with your team to discuss future plans, engaging with stakeholders to ensure everyone is on the same page, or training your team members in different skills so that they can take on more tasks in the future.

The Three Rs of Project Management: Resource Allocation, Resource Leveling, and Resource Smoothing

There are a lot of terms used in project management that can be confusing. In this case, three very similar-sounding terms are often used interchangeably: resource allocation, resource smoothing and resource leveling.

While these concepts all deal with the same idea—getting the right resources in place to achieve a project’s goals—each has its own distinct definition and purpose.

Resource Allocation

This is the process of assigning resources to specific tasks based on their availability and cost. The goal here is to make sure that you’re getting the most out of your resources in terms of quantity, quality, and price.

Resource Smoothing

The focus here is on balancing the amount of work across different areas or people in order to minimize interruptions to productivity. Here, the goal is to avoid peaks and troughs in demand so that your project runs as smoothly as possible.

Resource Leveling

As you know by now, this involves adjusting the timing of tasks and shifting resources around in order to make sure that everyone on your team has enough work but also isn’t overwhelmed by too much work. This helps to ensure that deadlines are met, goals are achieved, and resources aren’t wasted.

5 Types of Resource Leveling Tools Every Project Manager Needs

Luckily, there are plenty of different resource leveling tools out there that can help you keep your project on track. Here are five of the most popular types:

1. Gantt Charts
2. Critical Path Method
3. Resource Allocation Matrix
4. Project Management (PM) Software
5. PM Templates

1. Gantt Charts

Gantt charts are one of the most popular tools for resource leveling (and for good reason). They provide a clear and easy-to-understand overview of your project, and they make it easy to see which tasks need to be completed when.

Plus, Gantt charts can be used for more than just resource leveling—they can also be used for project planning, task management, and tracking project milestones. In other words, they’re the perfect all-in-one tool for busy project managers.

2. Critical Path Method

The Critical Path Method (CPM) is another popular tool for resource leveling (as well as project management in general).

CPM is all about finding the shortest path from start to finish—which is essential for keeping your project on schedule and ensuring that it’s completed on time and within budget.

3. Resource Allocation Matrix

A Resource Allocation Matrix (RAM) is a tool that helps you assign tasks to team members based on their skills and availability. This is related to resource leveling because it ensures that each team member is working on tasks that they’re qualified to do—which frees up your time so that you can focus on other aspects of the project. RAMs can be created using spreadsheet software like Microsoft Excel or Google Sheets.

4. Project management software

If you’re looking to take your resource leveling to the next level, you might want to consider using project management software. These tools provide powerful tracking capabilities that make it easy to keep an eye on everyone and everything associated with your project.

They also come with a wide range of features, such as task allocation tools, automated notifications, and reporting functionalities—all of which can help you stay on top of your resource levels and ensure that everyone is working efficiently.

We suggest trying out Teamly. It’s free to get started and it has a lot of built-in tools that help keep your team connected and organized. Teamly has realtime chat features, which is great for when you need to keep everyone in the loop about any changes or updates.

It also allows you to assign tasks and track progress, view overall project progress and screen capture capabilities whether you need to make a quick video or capture a picture, you can do it all on Teamly. You can also save time with Teamly’s templates (see next point)

5. Project Management (PM) Templates

Finally, one of the best ways to make sure that your resource leveling is going smoothly is by using project management templates. Templates are pre-made project management documents that you can customize for your needs.

Teamly’s templates make it easy to create project plans, budget sheets, resource allocation schedules, and more—all without having to start from scratch.

They have over 100+ pre-written Standard Operating Procedures (SOPs) and checklists for virtually any business, so your team can easily establish best practices.Use the templates “as is” or edit them to better suit your needs.