Project Management methodology: 6 methodologies you must know

Have you ever wondered how successful businesses achieve their goals? It all boils down to a well-definedmethodology. But what exactly is methodology, and how does it apply to projects? In this article we will delve into 6 different types of project management methodologies.

Based on the nature of a project, these methodologies are successfully used to achieve project goals. To explain each methodology in detail would result into a separate article in itself, therefor we will keep our discussion brief and touch upon only important characteristics of each methodology.

Let’s begin with the definition of methodology.

What is methodology?

In essence, methodology refers to the systematic way of doing something, especially research. It’s a road map that outlines the steps, tools, and principles used to achieve a specific objective.

Think of it as a recipe for successfully completing a project. There are methodologies for everything, from scientific research to project management. In the business world, a strong methodology is crucial for making informed decisions, solving problems efficiently, and achieving desired outcomes.

The 7 project management methodologies we will look at have their own set of processes, standards and frameworks for executing the projects. These methodologies are widely used in the different industries based on a nature of project.

Let’s begin with the first methodology!

Waterfall (traditional) project management methodology

The Waterfall methodology — also known as the Waterfall model — is a sequential development process that flows like a waterfall through all phases of a project (analysis, design, development, and testing, for example), with each phase is completed before the next phase begins. This methodology allows clear, linear process for planning and executing the project.

For e.g. if you are constructing a house, you must prepare foundation first before you build the walls and other structures. Building foundation should be completed before next phase begins. The Waterfall methodology follows a chronological process and works based on fixed dates, requirements, and outcomes.

When to use waterfall methodology?

Waterfall methodology is used mainly in construction and large infrastructure projects. In these projects, the requirements are very clear from the project onset, the projects are governed by well written contracts, thus clients are unlikely to change the scope of the project once it is underway.

Advantages and disadvantages of waterfall methodology

The Waterfall methodology is a straightforward, well-defined project management methodology with a proven track record. Since the requirements are clearly laid out from the beginning, each contributor knows what must be done when, and they can effectively plan their time for the duration of the project.

The disadvantage of waterfall is that it is less flexible, or agile. Changes that come further in the process can be time-consuming, painful, and costly.

Agile project management methodology

In the waterfall approach to project management, one phase of the project is completed before the next phase is started. This straight jacketed approach to handling projects does not work when requirements are evolving and priorities are changing. Thus a more flexible methodology called Agile methodology, which is adaptable to change is developed. In agile approach project team works collaboratively with the customer to determine project needs. Requirements are not well known in the beginning, but rather evolved as project is progressed. Coordination with customer and team drives the project forward.

The entire agile methodology is based on foundational values. These foundational values are documented in a declaration called as “Manifesto for Agile Software Development”. This declaration also called as Agile Manifesto, was prepared in 2001, by the group of 17 software developers and project experts.

Agile, as per agile manifesto, at its core, is mindset on how to deal with unpredictability. The agile mindset is:

• Individuals and Interactions over processes and tools. This ensures cohesive and effective teams that work together and not in silos
• Working software over comprehensive documentation. It emphasizes delivering product incrementally. Since customers are involved in development, it ensures minimum rework in product development activities, and just bare minimum project documentation.
• Customer collaboration over contract negotiation. This ensures maximum participation of customer in product development.
• Responding to change over following a plan. It ensures the flexibility to adapt to changing requirements

There are various types of agile methodologies are now commonly used in a industry. Some of the popular methodologies are:

• Agile Scrum Methodology.Scrum is one of the most straightforward and widely used Agile methods. In scrum the product is delivered in iterative manner, and each iteration cycle is called as sprint.
• Lean. This agile method has roots in lean manufacturing. It focuses on eliminating wastes thereby improving the process efficiency.
• eXtreme Programming.This software development methodology shares many similarities to Scrum, particularly with its emphasis on communication and responsiveness
• Kanban.Kanban shares similarities with both Lean and Scrum.

When to use Agile methodology?

The Agile Method is an increasingly attractive project management methodology in the software development world and beyond. It is used on the projects which require quick adaptability to requirements changes. It has greater adaptability to projects involving frequently changing scope.

For e.g. Spotify, the popular music streaming service uses Agile principles to foster creativity and innovation. By organizing teams into small, cross-functional groups, Spotify enables quick iterations and feedback, allowing them to adapt to user needs efficiently.

Advantages and disadvantages of agile methodology

In the Agile, the customer is always involved in the decision-making process which leads to greater customer retention. Another benefit of Agile Project Management is that the go-to-market time gets significantly reduced. Since agile encourages continuous incremental delivery of a product, it is very easy to predict the product risks and mitigation plans become easier.

Since agile methodology prefers Responding to change over following a plan, it is very difficult to accurately estimate project timelines and budgets, which can lead to delays and cost overruns. Agile methodologies tend to prioritize working software over comprehensive documentation. While this can be beneficial for rapid development, it can also create challenges for long-term maintenance, support, and knowledge transfer. Since very high level of customer collaboration is involved, the unavailability of customer or who don’t know enough about the domain can impede development and slow it down.

PRINCE2 project management methodology

PRINCE2 is a project management methodology mainly used in the UK, Australia, and European countries. It stands for Project in Controlled Environment, as this approach focuses on resource and risk management by breaking the project into smaller phases, defining roles and responsibilities clearly, and using seven processes to manage the project lifecycle.

The methodology relies on seven principles:

• Continuing business case
• Learning from experience
• Defined roles and responsibility
• Step-by-step management
• Exception management
• Focus on the product
• Adaptation to the project environment

When to use PRINCE2 methodology?

PRINCE2 is formal project management methodology that was originally developed for the UK goverments, for use in formal high governance environments. This is very close to waterfall methodology.

PRINCE2 is primarily used to execute government contracts where very high degree of governance and transparency is required.

Advantages and disadvantages of agile methodology

In PRINCE2, unlike agile methodology, the projects are broken down into logical stages that are easier to manage and execute. A detailed plan of project activities ensures more transparency in terms of start and finish dates of a project.

Since planning is done before any work can begin, this methodology isn’t suited for projects where the requirements are prone to change. Additionally, due to the extensive work necessary to create and maintain the documentation, PRINCE2 isn’t the most efficient approach for smaller projects.

Six Sigma project management methodology

Six Sigma tools and techniques are found in many improvement methodologies, such as total quality management. Six sigma tools are related to statistical process control, stochastic control (related to probability), and engineering process control. Six sigma methodology attempts to minimize variability in process outcomes. Unlike other project management practices, Six sigma is primarily used in process improvement projects.

Six sigma projects follow what is called as DMAIC cycle of execution. DMAIC cycle comprises of:

• Define: This stage defines the problem statement. What is the key metric that we need to improve.
• Measure: This stage establishes current stage of the process. At the end of this stage we would have identified all key inter related components, stakeholders, current measurements of key metrics, typical process flows and exceptions
• Analyze: At this stage, the problem solving team, along with the team of experts will sit together and analyse the data captured using “Measure” stage. In this stage, team clearly identifies what needs to be corrected.
• Improve: Once the problem is analyzed, the implementation happens in the form of pilot project. The outcome is measured to verify if the changes we are making will give us desired results. Once the pilot is verified satisfactorily, implementation is expanded to entire scope of the problem resulting in large scale implementation.
• Control: Once the changes have been made, we have to make sure that the changes remain and the system should not revert back to the earlier state of affairs.

When to use Six Sigma methodology?

Six Sigmais a set of tools and methodologies for creating continuous process improvement. Irrespective of the industry, it can be adopted to improve company’s overall operational efficiency.

Advantages and disadvantages of six sigma methodology

Since Six Sigma is process improvement methodology, it provides many advantages to the organisation such as improved operational efficiency, enhanced product quality, data driven decision making and increased customer satisfaction.

Six Sigma is a rigorous and complex methodology that requires a deep understanding of statistical analysis and problem-solving techniques. This complexity can make adopting and implementing it is challenging for organisations without proper training and support.

Hybrid project management Methodology

Hybrid methodology is a blend between waterfall and agile. It can be any combination of waterfall and agile tailor-made to the needs of the organisation, projects and team.

For e.g. if project requires designing a new bike, the design of the bike could use agile approach and then preparing for manufacturing and later distribution, a waterfall approach could be used. The design phase of the bike uses feedback to ensure the bike is meeting the needs of potential customers. The manufacturing and distribution requires up-front planning and stable set of requirements.

When to use Hybrid Methodology

This is relatively new project management methodology adopted by the industry especially in product development projects. Also projects with an aggressive delivery schedule and the goal of rapidly developing a working solution, benefits from a hybrid project management approach.

Advantages and disadvantages of hybrid methodology

By choosing elements of waterfall and agile, you are trying to get the best of both worlds. It allows you to stick to the budget and schedule yet gives flexibility to work on customer feedback by allowing iterations.

One drawback of this approach is that, organisation using hybrid approach must have experience in both agile and waterfall project management to be able to confidently combine the models.

Critical Chain project management methodology (CCPM)

Critical chain project management is based on Theory of constraints and was developed by Eliyahu Goldratt. This project management methodology focuses on resource constraints and task dependencies to improve project delivery.

CCPM introduces resource and project buffers to protect the critical chain from potential delay. Critical chain is the longest sequence of tasks that directly impacts the project’s overall duration.

In traditional project schedules, the project performance is monitored in percentage completion. However, in CCPM, the project is monitored through consumption of buffers.

When to use critical chain methodology?

CCPM is completely new paradigm of handling a projects, which is an alternative to task based project structures and focuses on end goals rather than individual assignments. It uses buffers to protect a project from uncertainty. It is widely used to execute the projects with strict deadline and limited skilled resources.

Advantages and disadvantages of critical chain methodology

In CCPM all task durations are optimistic, i.e no padding is allowed in planning a task. While in traditional projects, the task duration is pessimistic. This leads to overly inflated project duration. Therefor one of the major advantage of CCPM is that it increases productivity as it requires tasks to be completed in the minimum time possible.

Using critical chain methodology requires great level of project management maturity. Thus if the organisation does not have strong and mature project management practices, CCPM won’t work.

Summary

Here is a summary table on different project management methodologies we have discussed in this article.

Its your turn

Which methodology do you follow in your project. Write down in the comments below. I would love to read your comments.

Further reading

If you want to explore more, here are the links to further resources on project management methodologies.

• PRINCE2
• Critical Chain Project Management
• Six Sigma methodology
• Waterfall, agile and hybrid methodology
• Agile methodology