A significant number of projects across industries don’t achieve all of their goals. Research firm Gartner has estimated that:
One of the best ways to avoid project failure is to become familiar with the five project management phases and each phase’s role in achieving success. Learning about these phases—collectively referred to as the project life cycle—and their value is the first step toward being able to lead projects to their desired outcomes.
Dividing Work Into Project Management Phases Can Yield Benefits
Project managers have a tremendous amount of responsibility, and they need to be aware of the different approaches they can take to their work. Unfortunately, the trail of famous project failures is lengthy, and many types of issues such as cost overruns and delays can lead to undesirable results.
But when project managers divide their work into the five phases of project management that constitute the project life cycle—initiation, planning, execution, monitoring and controlling, and closure—they can increase their odds for success.
The Benefits of a Five-Phase Approach to Project Management
Dividing their work into five project management phases can be beneficial in many ways to project managers. For example, this approach:
- Provides an understandable structure and clarifies a project’s components by splitting complex work into manageable segments
- Strengthens a project manager’s planning process and their ability to control the project by establishing clear objectives and points of review
- Improves transparency and communication about the project so that all stakeholders have a clear understanding of each phase of the project
- Allows project managers to track the project’s progress by comparing its current status with established milestones
- Helps to ensure the quality of the project through regular quality reviews that can detect any issues that arise
The Five Phases of Project Management
The five-phase approach to project management has been applied to projects in every sector, including:
- Construction: Designing blueprints, securing permits
- Information technology: Developing apps, rolling out security updates
- Finance: Creating digital banking tools, evaluating investments
- Manufacturing: Designing and testing new products, upgrading assembly lines
- Healthcare: Launching new care programs, updating electronic health records
Phase 1: Initiation
Project initiation is the first phase, in which teams:
- Specify the purpose of a project
- Identify the project’s stakeholders
- Develop a business case for the project
The initiation phase is also the point where teams ensure that the project fits well with their organization’s strategy and obtain authorization to proceed with its planning.
The initiation phase is important because it can determine whether the project is worthwhile and feasible. It is also key to securing buy-in from stakeholders.
Key Tasks in the Initiation Phase
During the initiation phase, teams establish a solid foundation for the subsequent phases in the project life cycle. Key initiation phase tasks include:
- Setting project goals. Teams benefit from carefully specifying goals for the project that are clear, are realistic, and align with the organization’s broader objectives. The goals also need to be compatible with the organization’s financial resources, human resources, and technology.
- Identifying the stakeholders and their requirements. In general, the project’s stakeholders include any party who is affected by the project or could influence the project. Stakeholders can be internal (company employees) or external (customers, other businesses, or the wider community). Identifying all stakeholders’ expectations is crucial to ensure the finished project will meet their needs.
- Assessing the project’s feasibility. Conducting a feasibility assessment involves evaluating the project’s technical needs and financial viability, as well as analyzing factors that could affect its progress (such as potential legal issues and market conditions). These assessments can also detect any potential risks before significant resources have been devoted to the project.
- Creating a charter for the project. Think of a project charter as a high-level guide to the project and its purpose. The project charter can specify the project’s goals, high-level estimates of its required resources, and its overall milestones. The project charter can also set forth a governance and decision-making structure and clarify the authority to conduct the project.
- Obtaining approval and funding. Securing approval and funding is a key part of the initiation phase, and it is at this point that responsible parties sign off on the project. Employing an established process for these approvals reduces ambiguity and can help to ensure that those charged with making decisions conduct the appropriate reviews before granting their approval.
Phase 2: Planning
The planning phase is when teams outline how they will carry out a project. During this phase, teams define what will and will not be part of the project (the project’s scope). Factors such as schedules, costs, risks, and quality assurance are also important considerations during the planning phase.
Planning is a crucial phase in the life cycle of any project because it can help ensure that teams use their resources efficiently, communicate well, measure the project’s performance, and achieve optimal outcomes.
Key Tasks in the Planning Phase
The planning phase is for determining exactly what teams will do to carry out a project. This includes:
- Establishing the project’s scope. A statement of scope for the project can include important items such as key assumptions and constraints, the specific deliverables, detailed timelines, and the specific resources necessary to complete the required actions.
- Creating a work breakdown structure. Teams often use tools such as work breakdown structures to outline each of the detailed tasks that will need to be done to complete the project. Breakdown structures can include elements such as consulting with users, mapping existing processes, or providing training.
- Developing a budget. A budget sets forth the cost of the project, any revenue it may generate, and how teams will allocate the resources devoted to the project. As the project progresses, the budget serves as a tool for monitoring the project’s expenses and detecting any cost overruns, which helps project managers decide when to make adjustments. Both direct costs (for example, labor and materials) and indirect costs (for example, utilities and rent) need to be included in the budget.
- Assessing risks. When teams use tools such as brainstorming or predictive analytics to identify potential risks, they can prepare in advance and develop responses to address those risks should they arise. They can also prioritize potential risks in terms of their likelihood and their negative effects on the project.
- Devising a quality assurance plan. A quality assurance plan can help teams detect and correct issues in the early phases of the project. This plan can establish specific performance metrics or goals that teams can monitor throughout the project’s phases, the processes teams will follow to test quality, and how teams will document the test results.
Phase 3: Execution
The execution phase is when teams put their plans into action and produce the deliverables. In this phase, a project manager oversees the team members to help ensure that they stay on schedule, remain within budget, and maintain quality. Effective communication within teams as well as with stakeholders is a key factor in keeping all parties informed and working in step with the project’s goals.
The execution phase is typically the longest phase of the project life cycle and requires the most resources. This is the phase when teams are at the highest risk of exceeding their budget or missing their deadlines. The execution phase is also when inadequacies in planning could be revealed.
Key Tasks in the Execution Phase
The work that team leaders and members do during a project’s execution phase helps to ensure that they produce deliverables efficiently. Key tasks in this phase include:
- Assigning tasks. During the execution phase, team leaders assign specific tasks to individual team members. This requires great care to ensure that the assigned individuals can work within the project’s organized structures and complete the work within the required time frames. Leaders need to clarify each team member’s specific responsibilities and priorities and ensure that they remain focused.
- Managing resources. An important element of project execution is ensuring that each individual has the resources they need to complete their assigned tasks. This includes not only materials but also financial resources, human resources, and time. Leaders need to anticipate team members’ resource needs and adjust as necessary to avoid shortages.
- Managing teams. All projects can benefit from strong team management where leaders communicate with team members regularly and clearly, resolve any conflicts that arise, and ensure effective collaboration among individual team members. Team management also involves ensuring that team members have a steady workflow and do not experience idle time or work overload.
- Keeping stakeholders engaged. Ensuring that internal and external stakeholders remain engaged during the execution phase involves keeping them aware of all project milestones and important decisions. Regularly communicating with or reporting to stakeholders is a way to ensure that they provide their feedback and to minimize misunderstandings.
- Documenting execution phase activities. While teams are focusing on completing their tasks, all of the project’s key decisions, processes, and activities need to be documented. Recordkeeping is key to maintaining transparency and accountability. It is also important for the transfer of knowledge, so that future teams can learn from past experiences.
Phase 4: Monitoring and Controlling
The monitoring and controlling phase overlaps with the execution phase. Leaders gather information in real time as a project progresses, compare that information to the project’s plans and benchmarks, and identify and mitigate any errors or issues.
Effective monitoring is important because it can help minimize delays, avoid expensive mistakes, enable teams to act quickly to correct issues, and ensure quality.
Key Tasks in the Monitoring and Controlling Phase
Monitoring and controlling a project is about remaining proactive and responding to events that arise. Examples of tasks in this phase include:
- Gathering data and monitoring progress. Teams collect data as they work to compare their actual progress with the project’s planned road maps: tracking their task completion rates, checking for their adherence to milestones, evaluating their actual costs against the budget, and monitoring the rates of their resource use.
- Implementing quality assurance plans. Quality assurance plans help teams ensure they produce high-quality deliverables. Testing can include real-time dashboards that offer quality metrics, internal audits, product sampling, and stakeholder reviews.
- Mitigating identified risks. Precisely how teams will minimize the risks identified during monitoring depends on the nature, likelihood, and severity of the risk. For example, in the case of a serious risk, teams can choose to implement a contingency or backup plan. However, for risks that do not pose a serious threat to the project’s costs, schedule, quality, or stakeholder acceptance, teams can choose to simply accept the risk.
- Controlling changes. Projects often evolve during their life cycle in response to changing circumstances. Project managers and teams can use a change control system to ensure that they correctly follow the required steps for altering the deliverables or another aspect of the project. Teams need to consistently obtain the required approvals for any changes, communicate the modifications to stakeholders, and thoroughly evaluate the effects of the proposed changes.
- Monitoring stakeholders’ satisfaction. Tracking stakeholders’ sentiments as the project progresses can help to ensure that the project deliverables meet their expectations. For example, sending out surveys and feedback forms throughout the duration of the project work can give teams valuable insights and help stakeholders feel engaged in the process.
Phase 5: Closure
The project closure phase is when teams perform their final tests, finalize their documentation, and reflect on the positive and negative aspects of the process.
Closure tasks are important because they help team members transition from working on the project back to normal operations. The project closure tasks also help future teams capitalize on what the current teams have learned.
Key Tasks in the Closure Phase
Project closure encompasses much more than simply completing a checklist or archiving documents. Examples of key closure tasks include:
- Conducting final tests. Rigorously testing the project’s final deliverables is how teams can identify and correct any defects and ensure the end user is satisfied.
- Updating and organizing the project’s documentation. Reviewing and updating all of the project’s documentation for completeness and accuracy is important for memorializing the project for future reference. The documentation needs to be preserved in an organized manner so that anyone who may need it can access it easily.
- Holding a postmortem meeting. Gathering stakeholders and team members to analyze and assess the project can be invaluable in sharing information, identifying areas for improvement, and noting successful processes to be repeated in future projects.
- Recognizing teams for their work. Showing appreciation for teams and celebrating their contributions is important to maintaining employees’ engagement. Leaders who demonstrate authentic, personalized, and equitable recognition of the employees involved in the project can improve the employees’ overall satisfaction with their jobs and motivate them to continue performing at high levels.
The Project Management Phases of the Project Life Cycle Offer a Blueprint for Success
Using the five project management phases to structure the completion of their projects helps leaders guide successful team efforts. The phases provide guidance that can help project managers steer projects toward reaching their goals. By focusing on detailed preparation, clear milestones, and open communication between team members and stakeholders, the phases of the project life cycle help create a solid framework for successful project execution.