Jory MacKay on June 04, 2024 The 5 different types of project management you need to know
Project management is the process of planning, organizing, and coordinating changes. But because no two changes are the same, there’s no single right way to deliver a project.
Instead, there are various methodologies, tools, and techniques to choose from — each with their own benefits and potential downsides.
Whether you’re a construction company building a new skyscraper or a software team planning a new product launch, the key to success is aligning your industry, people, and product to the right project management approach.
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In this guide, we dive deep into project management methodologies, including what’s available, what to consider when choosing one, and the key questions to ask yourself to help you make the best decision!
What is project management?
Project management is the process of planning, organizing, coordinating, and managing changes within an organization. In reality, great ideas become a reality by combining various project management skills, tools, and techniques, including scheduling, budgeting, and communication.
To help break big projects down, it’s best to follow what’s called the project lifecycle, which looks like this:
- Initiation stage. A project sets itself up for success by establishing its goals, objectives, and scope. At this stage, project managers also estimate the resources they need to progress and gain the buy-in of stakeholders.
- Planning stage. Next, the project plots its way forward by gathering requirements, breaking down tasks, and creating a full project plan.
- Execution and monitoring stage. Now, the project gets exciting as the solution begins to come alive (e.g., a building is built, software is developed, etc.). During this phase, the project manager keeps an eye on the tasks, costs, and risks to ensure the project stays on track.
- Testing and handoff stage. Once the project deliverables are created, they’re tested, launched, and signed off by the customer or stakeholder. The project then transitions those deliverables into everyday operations through a formal handoff.
- Closure stage. Projects are finished by capturing lessons learned, completing project closure admin, and releasing the team to their next project.
While there are different types of project management, the lifecycle almost always follows the same pattern (with a few changes, in the case of Agile and related project management styles, which we’ll cover below!)
The 5 types of project management (and how they’re different)
Your project’s needs, risks, and deliverables will ultimately determine which project management type is right for you.
For example, a strict regulatory project will spend more time in the planning stage to ensure it has considered all the risks before proceeding. On the other hand, a project to create a new prototype may fast-forward to the execution phase, deciding to learn through user feedback rather than spend weeks on detailed planning.
This need for different approaches has spawned several project management methodologies.
Let’s look at five of the most common methodologies and their pros, cons, and use cases:
1. Waterfall or Linear project management
One of the most common project management methodologies is Linear, often referred to as Waterfall. In Waterfall, the project moves through the lifecycle stages sequentially, completing the work for all of the project deliverables before progressing.
Pros:
- Easy to understand for new project managers
- Provides good structure and strong control
- Can be used for all types of projects
Cons:
- Offers less flexibility than other methodologies
- Takes longer to begin delivering customer value
- No real user feedback until the project is complete
Example project flow:
An infrastructure project may use a Waterfall approach to plan, coordinate, and control the construction of an entire skyscraper, capturing all the detailed requirements and design specifications at the start. The team would then build, sign off, and hand over the building to the customer.
2. Agile (or Iterative) project management
Agile project management is another popular methodology whereby project teams design, build, and launch deliverables iteratively over time. With an Agile approach, teams break the entire project down and cycle through delivering different parts in cycles, often called sprints.
Pros:
- Focuses on customer collaboration and fast feedback
- Delivers value to the customer/end-user quickly
- Offers more flexibility than other methodologies
Cons:
- Only works when there is a low cost of change
- Can become chaotic and unorganized without the right systems in place
- Requires more processes (such as Agile ceremonies)
Example project flow:
A software development team may use an Agile approach to build a new website incrementally. The team would break the tasks for the website build down by designing, building, and launching one part (e.g., the home page) before starting the process again for the next part (e.g., the pricing page).
Along the way, they may share their progress with real customers to get feedback that will help guide changes to the next part of the project.
3. Lean project management
The Lean methodology focuses on helping organizations reduce waste and boost efficiency in their processes. Based on the principles of efficient manufacturing, teams view processes through different lenses to look for areas of continuous improvement that can help drive further value.
Pros:
- Focuses on customer value and efficiency
- Provides good structure and logical analysis
Cons:
- More effective at improving existing workflows rather than creating new ones
- Time-intensive as it requires detailed analysis
Example project flow:
A business improvement team may use a Lean approach to identify improvements in their customer service process. The team would analyze their current process, identifying, fixing, and re-launching it to reduce waste and increase efficiency.
4. Scrum project management
A derivative of Agile project management, Scrum provides product development teams with a framework to deliver great software. Using Scrum, teams break their work into sprints, with dedicated ceremonies to define, plan, launch, and reflect on their work, improving their capabilities as they progress.
Pros:
- Provides clear structure and team roles
- Focuses on customer needs and improving ways of working
Cons:
- Very specific to software development, hard to transfer to other projects
- Lacks flexibility for different team roles
Example project flow:
A new product team may use Scrum to help plan and deliver their product roadmap. On a regular cycle (often referred to as sprints), they would gather product requirements, analyze them, plan and deliver the next cycle of work, and then reflect on how they could make improvements for the future.
5. Kanban project management
Kanban is a workflow management system, often used to help teams manage projects in a simple, visible way. With Kanban, teams break their project down into a series of tasks and progressively move them through stages as work develops. Kanban is great for iterative projects where the same processes repeat time and time again.
Pros:
- Provides a simple and effective way to visualize projects
- Easy to identify bottlenecks and team capacity
Cons:
- Can be too simple for more complex projects
- Doesn’t support other PM fundamentals, such as cost or risk management
Example project flow:
A marketing project management team may use Kanban to plan and deliver a social media campaign. As a team, they use their Kanban board to see which social media posts are in the ‘backlog’, ‘design’, ‘launch’ and ‘done’ stages, moving the tasks through each phase as it progresses.
The bottom line: While it’s important to choose the right project management approach, it’s equally important to pick a project management tool that can help make your projects a reality. Straightforward and flexible tools like Planio bring together features for collaboration, planning, and control to help you bring to life the methodology of your choice!
How to choose the right type of project management for your company
While you can select whatever PM style feels right for you and your team, coming to that decision should be based on a number of factors, including:
- Cost of change. The easier it is to change your product, the more likely you are to go for an Agile-based project management approach. If instead your cost of change is high, you might go for a more controlled Linear style.
- Timeline available. If time is of the essence, you need a PM methodology that allows you to move quickly (i.e. Iterative). If instead you have more time, you can afford to analyze and plan your changes in greater detail (i.e. Linear or Lean).
- Risk appetite. How much risk you’re willing to take will drive the project management methodology of choice. If you want less risk, a more structured Linear, Lean, or Kanban approach is best. If you’re playing a high-risk, high-reward game, you can be more flexible with an Iterative style.
- Stakeholder expectations. What your stakeholders want is a big factor when choosing a project management approach. If your project sponsor likes working in a particular way, to gain buy-in, you might be inclined to take that approach.
- The objective. Most importantly, your chosen project management approach should reflect the objective in front of you. For example, Lean is a great bet for improving operational processes, but pretty useless for launching an advertising campaign.
Luckily, the world of project management isn’t a new one. Those that have gone before us have tried and tested each of these approaches, helping understand what works best for different sectors.
The best project management types for each industry
Let’s take a look at the sort of project management approach that works best for different industries, to help you understand which may work best for you:
- Technology (SaaS, IT products). Technology projects tend to prefer Agile and/or Scrum methodologies due to the low cost of change, tight timelines, and the ability to gain fast feedback from customers and end users.
- Marketing. Marketing projects use a variety of methods depending on client expectations. For those experimenting, an Agile approach works best, but for those managing long-term marketing plans, Kanban is great to manage workloads over time.
- Construction. Most construction projects follow a Linear approach due to the high cost of change and stringent regulation. It’s difficult to undo a half built construction project, so a lot of time is put into planning and design before starting.
- Government and non-profit. While the approach can depend on the project objective, many government and nonprofits favor a linear approach to help manage risk. In both of these industries, stakeholders expect care to be taken over budget, so teams plan carefully to ensure they’re acting responsibly.
- Manufacturing. Lean project management was born in the manufacturing world. When teams are repeatedly creating the same outputs, identifying efficiencies is often the difference between profit and loss.
- Fashion and retail. High-speed industries such as fashion and retail often favor an Agile approach that allows them to move quickly and stay on trend. Fast feedback is also essentially to help them iterate and improve for the next wave of launches.
- Defense. Much like construction, it’s incredibly hard to change a half built airplane or warship, so Linear approaches are typically favored. Given defense is often based on public spending, Linear approaches also help manage risk and align with stakeholder expectations.
Project manager archetypes: How personality impacts a PM’s style
Project management is a people-focused profession. While you’ll want to choose a methodology that fits your business, it needs to work for the people that operate it, too — especially the project manager. Each project manager brings their own style based on their personality and experience.
For the best chance of success, the business, project manager, and methodology need to align.
To help you consider your PM in the selection process, here are some of the most common PM archetypes and where they work best:
- The perfectionist. These PMs play by the rules and like to analyze everything down to the greatest detail. They’re highly organized, but often struggle with uncertainty and coming up with creative ideas. They’re great for Linear or Lean projects with low risk-appetite.
- The servant. Servant-leader PMs are all about empowering the team to get things done. They take a step back from the details and focus on building great relationships. This is great for strong, established Scrum teams, but aren’t great when everyone needs to roll up their sleeves and muck in.
- The risk-taker. Risk-taking PMs are great at managing high-risk, high-reward projects where time is of the essence. Oftentimes they’re charismatic and great at taking full responsibility, but get frustrated by detail and red tape. These PMs work well in an Iterative approach.
- The dictator. As the name suggests, these PMs call the shots and like things done in a very particular way. While the term dictator has negative connotations, in project management there is a time and a place for directive action. These PMs work well in a Linear world.
- The expert. Expert PMs are often those promoted from positions within the team based on their knowledge and experience. These PMs may lack soft skills, such as leadership, but plug the gap with their vast domain expertise. They’re great for established Kanban teams where the work repeats.
- The Swiss Army knife. These PMs are the jack of all trades who aren’t afraid to do what’s needed to help the project progress. Their flexibility means they fit in most project management methodologies, but won’t give you that specialism you get from others!
If you’re looking to adopt a new project management methodology, understanding where your PMs fit into these archetypes can help you make the best choice!
10 powerful resources for startups and new project managers
No matter the type of project management approach you choose, all projects have to manage the fundamentals: time, cost, quality, scope, risks, and stakeholders.
To help, here are some great Planio resources that will help you master the 101’s of project management:
- What does a project manager do?: A great place to start to understand the roles and responsibilities of a project manager throughout the project lifecycle.
- How to write a business case :Every project starts with a purpose, and that purpose is documented in a business case. Learning how to write one is an essential PM skill.
- Master the project management triple constraint: All good projects need to balance time, cost, and scope to meet their objectives.
- How to write a project plan (with free template): A project plan is the source of truth for each project, and includes your schedule, budget, tasks, risks, and more.
- How to set and track project milestones: No project simply jumps from A to B, they use milestones to incrementally move towards the project goal. Identifying and planning milestones are a key part of project planning.
- What is stakeholder analysis? (with free plan): All projects need champions to help them through the tough times. Learning to get people on board is a vital skill to boost your chance of success.
- How to manage team resources: Talking of people, getting the right people in the right place is essential to make progress, so take the time to learn how to manage resources effectively.
- How to write a risk management plan (with free template): Every project faces hiccups along the way. To help you spot them early and avoid them derailing your delivery, it pays to have a risk management plan.
- How to change your project’s scope: No project ever finishes the way it started, so you need to know how to manage changes to your project in a controlled way with a logical scope change process.
- The ultimate project closure guide (with free checklist): All projects come to an end, but they need to be closed in a controlled way. Getting closure right helps your project’s legacy live on into the future!
Choose the right project management type (and tool) for your team
There’s no right and wrong way to deliver a project — but aligning your approach with your industry, people, and product will greatly increase your chances of success.
If you’re new to project management and looking to select a methodology for the first time, we’d recommend asking yourself these questions:
| The question to ask yourself | To help with your answer |
|---|---|
| What project management methodologies are out there? | Waterfall, Agile, Scrum, Lean, and Kanban are the most common. |
| What methodology would work for my project(s)? | Consider factors such as the cost of change, risk appetite, and stakeholder expectations. |
| What methodology is proven to work in my industry? | Look for examples in your industry - e.g., Construction projects often favor a Waterfall approach. |
| What approach would align with my people? | Different types of PM respond to different approaches based on their personality, experience, and soft skills. |
Whatever choice you go on to make, the best way to bring your approach to life is by using a flexible and high-powered project management tool, such as Planio. PM tools are great for organizing the whole team while providing your project manager with the information, insights, and capabilities they need to make your next project a success!
