Most modern managers have heard of project management and have participated in it in some way at some point in their careers.
For many people in business roles, project management is central to their everyday lives. And although the term was coined in the 1950s, the skills have evolved for thousands of years since early civilizations. Throughout history, the practice of project management has grown into the techniques and strategies we use today.
Project management is a relatively new term, drawing on historical approaches and developing new techniques that help companies optimize their use of resources. Nevertheless, it has become a central part of contemporary business management and now plays an essential role in the success of any business or organization across both public and private sectors.
What Is Project Management?
Project management is a general term that refers to applying the skills, techniques and experiences that take any project from start to finish.
To manage projects effectively, many people opt for
project management training courses, which provide the essential knowledge and tools needed to successfully lead and complete projects across different industries.
Usually, the project manager is the person who leads the team and coordinates the work, as well as documenting everything in the project management documents.
There are many different
approaches to project management, and each has its own benefits, downsides and suitability for different types of projects and organizations.
For example, Agile project management works well for software development projects and also where there are small tasks that don't need to be done in a specific order, but are needed for the project to be successful.
Alternatively, Extreme Project Management is a widespread technique in technology industries, because it allows managers to cope with external factors and how they affect the project's outcome.
PMP is globally recognized and offers a broad understanding of processes and techniques; it focuses primarily on project management knowledge and experience. Whereas PRINCE2 uses a structured approach with clear roles and responsibilities, and is popular for larger scale projects in government sectors (especially in the UK) like the NHS, Home Office, and Central Government.
Each approach is unique and allows project managers to plan their projects and adapt to changing circumstances. But whatever approach is taken, there is always an underlying need for effective
project management software that enables full control of finances and operations.
Early Beginnings in History
Most project management articles focus on the 1950s and 60s as the starting point for the project management arena, but it actually has its roots way back in history.
While it might not have been known as project management, some of these practices have been present in significant projects dating back to ancient civilizations.
The earliest known examples of project management are evident in ancient civilizations. Sophisticated project management techniques were used to build he Great Wall of China and the Pyramids in Egypt. These projects involved careful planning, coordination, and resource allocation to ensure that they were set up correctly and that each stage was completed to the required standard, and on time.
In fact, splitting up sections of the project and putting specific managers or teams, such as armies or groups of convicts, in charge of them formed the basis for project management as we know it today.
The Industrial Revolutions
The first and second Industrial Revolutions brought about significant changes in the development of project management. Although the two revolutions are mainly associated with improved working and living conditions, with urbanization and great engineering works (like the first railway and the completion of the first transcontinental railroad) their effect on project management shouldn't be overlooked either.
During this time, industry expanded rapidly all over the world. The beginning of automation and the growth of factories meant that everything was done on a much larger scale. This, in turn, meant that people were able to manage projects in a completely different and more extensive way.
The 20th Century
The 20th century saw big changes in the world of project management. Both Frederick Taylor (often referred to as the Father of Scientific Management) and his friend Henry Gantt introduced scientific management principles, emphasizing efficiency and productivity. This was the time when formal project management emerged, as projects became increasingly complex, and it was clear that traditional methods of managing them were no longer adequate.
The Gantt Chart
Henry Gantt, as we've mentioned, was one of the forefathers of project management. He is actually best known for creating and designing his famous diagram, the Gantt chart – a radical idea at the time, and an innovation that changed the way projects were managed and documented in the 20th century.
Developed in 1917, the aim of Gantt's chart was to track the progress of ship building projects during World War I. By documenting and examining each step of the process, he was able to get a clear overall view of the entire project and gather information about the connection between various functions.
And over 100 years later,
Gantt Charts are still used in projects today.
The 1950s: the Start of Modern Project Management
The 1950s marked the beginning of the modern project management era, when project management became recognized as a distinct discipline and companies began to apply formal project management methods to complex projects. This was aided by
the creation of The American Association of Cost Engineers in 1956. Their aim was to offer resources for cost managers and other stakeholders in important corporate projects that would help them to achieve their operational goals in line with their budgets and timelines.
One of the most important inventions of the period was the Critical Path Method (CPM), developed by DuPont Corporation and Remington Rand Corporation in 1957. The aim of CPM was to enable better scheduling and resource allocation (essential for complex projects) so that activities could be assessed and quantified. Projects could then be controlled with predicted durations for each phase. The idea was so successful that it is reported to have saved the company $1 million in its first year of implementation. And $1 million was worth something like $12 million today
Another significant development from this era is the Program Evaluation and Review Technique (or simply PERT), developed by the United States Navy as part of the Polaris missile submarine program. Similarly to CPM, PERT is used to analyze the tasks required to complete a specific project, as well as estimating the time needed to complete each of these tasks, and the project itself.
Although the two methods are very similar, there is a critical difference between the two. While CPM is used for projects where the times at which each individual task is carried out are known, PERT is used for projects where these times are either varied or unknown. Because of this difference, CPM and PERT are used in completely different contexts, and are not interchangeable.
The 1960s: Becoming a Profession
The 1960s saw the foundation of two project management associations. The
International Project Management Association (IPMA, although it was initially called the International Management Systems Association) was founded in Vienna in 1965. A federation of more than 55 national and international project management associations, the aims of the IPMA are to develop and promote project management as a profession, and to establish and provide guidelines for the work of project management professionals worldwide. Today, the association has nearly 400,000 members all over the world.
Another key development was the birth of the
Project Management Institute (PMI) in 1969. The aim of the PMI is to promote project management as a profession, and it offers various certifications to project management professionals to assist their structured development.
In the UK, the
Association for Project Management (APM), a professional certification body and project management association, was founded in 1972, and has been at the forefront of the development of project management ever since. Representing more than 20,000 project management professionals, APM is now a key influencer in the industry.
The 1980s: Development of Different Approaches
Possibly one of the biggest developments of the 1980s involved the development of Agile project management. The most important feature of Agile is that it divides responsibility between multiple team members. Projects are then completed in small sections, after which each section is reviewed and critiqued by the project team.
In 1986, Scrum – a subset of Agile – was named as a project management style by Takeuchi and Nonaka in their paper, The New New Product Development Game.
The following year, PMI published A Guide to the Project Management Body of Knowledge, a document that has since become one of the most important documents in the industry.
In 1989, the PRINCE method was born. After its launch, PRINCE (an acronym for "Projects in Controlled Environments") became an established standard for all government information system projects. In 1996, this method was upgraded with the release of PRINCE2, a generic project management method which later became the de facto standard for project management in many UK, as well as various international, government departments.
Project Management as a Generic Skill
The roles of project managers have evolved considerably over time. In the past, project managers were mainly responsible for planning and executing projects. But today, project managers are also responsible for managing stakeholders, communicating project progress, and even managing risk.
As a result, project management certifications have become much more important because they demonstrate that project managers have the knowledge and skills necessary to perform effectively.
Project management has also grown as a generic skill that more and more people need as part of their working lives. In other words, you don't need to be a Project Manager to need project management skills!
That's because the roles that people fill nowadays are becoming more flexible, and encompassing a far greater range of tasks, so many people now need project management skills in order to stay on top of their work. They may not see themselves as project managers, but they're often functioning in this capacity. They may even be running a number of small projects where it would not be viable for a specialized project manager to be involved for each one.
This has meant that more people feel they need project management as a skill, and as a result, far greater numbers have familiarity with terms like Gantt charts, CPM and PERT than ever before.
Why Today's Organizations Need Project Management
Today, no organization of any size can function well without having project management strategies in place. That's because modern commercial projects are complicated and have multiple stakeholders with high expectations.
Contemporary businesses use project management to ensure that the goals of all stakeholders are aligned and that everyone involved in completing the project understands their role.
For managers and customers alike, project management techniques can allow them to track the project's progress and make them feel like they're getting good value and excellent service.
Business leaders and project managers can use project management techniques to show value to their stakeholders and clients. They can also
review the status of each stage of the project to see whether it's on track, and potentially
rescue the project from failure.
Project management involves
creating project budgets and schedules, which can be vital for keeping team members up to date, and ensuring everything is completed on time.
- AI and Automation
Technology plays a significant part in modern project management, and many project management tools will help. Ever-improving AI and automation solutions make it easier for managers to save time and improve their project efficiency.
- Increased Remote Working
Remote or hybrid working is rising in popularity, meaning that project managers need to adapt to deal with the challenges and changes this poses. That means focusing on communication technology and using shared digital storage to deliver work and fulfill aspects of the project.
- Security as a Focus
Security will remain a core focus for project managers as they seek to avoid potentially costly data breaches. With the advance of project management techniques and the increased focus on remote work, businesses will need to explore ways to keep their projects secure using technology.
- Reduced Budgets
Many businesses are seeking ways to cut costs due to global economic turmoil. One approach is reducing their budgets for new and existing projects. This means that project managers must find ways to cut costs and show value across every stage of their projects.
- Networking Is Critical
Networking and developing strong relationships across different industries is an essential element of project management today, as most projects now involve many external factors and different skill sets. So, the industry's future will rest on project managers' ability to build and maintain valuable relationships in and around their fields of expertise.
Project management is now a global profession. Project managers are employed in organizations of all sizes, and all industries, around the world. This means that project management skills are increasingly important for success in today's business environment.
And thanks to the trend to globalization, projects are becoming larger and more complex, and therefore increasingly difficult to manage.
New project management techniques and more efficient practices are developing all the time, which makes project management a very interesting and exciting place to be.
