Project management processes are carried out throughout the entire lifecycle of a project through both direct and feedback connections between the managers and the components being managed. These interactions are made possible by key management functions. This classification provides the foundation for understanding project management theory. Let’s explore the primary processes in more detail.
Project Management Processes
Initiation
This is the stage where a project and its parts are born and promoted, including all preparatory activities required for future planning and design.
Elaboration and Planning
At this stage, the direction and scope of actions needed to successfully implement the project are determined. Key milestones are identified, and potential internal and external influences are taken into account. Planning is most effective when all stakeholders participate. Implementation plans are developed to provide direction for the project at each stage of its lifecycle.
Project Execution
This is the systematic implementation of the work outlined in the project plan. Tasks are divided among team members or groups. The work breakdown structure (WBS) is typically hierarchical, consisting of tasks, subtasks, and work packages.
Control
Control involves creating and executing systems for measuring, tracking, forecasting, and identifying deviations within the project’s scope, budget, and timeline. The goal is to enable timely corrective actions. One of the key requirements is the regular collection and analysis of information so the project manager can intervene while the project is still in progress. Control is often considered the most complex project management function.
Project Close-Out
This phase ensures the successful handover of the project result to the client or end user. It includes preparing documentation, obtaining approvals from the client and authorities, resolving any identified issues, making final refinements, and conducting financial settlements and contract closures.
Warranty Obligations
A contractor’s responsibility doesn’t end with project delivery. In modern project practice, contractors provide warranties on the quality of their work and are expected to correct defects that arise during the operational use of the project outcome if those defects result from poor execution.
Functions and Processes in Project Management
Project management processes lead to results through a broad set of functions that influence the project both directly and indirectly.
It’s important to understand the relationship between project-specific functions and general management functions, such as planning, organizing, regulating, executing, controlling, and motivating. While these general functions were developed for traditional organizational structures, in project management they take on specific and adaptive forms.
Project Concept Management
A project idea is not enough on its own. It must be transformed into a viable project through management. This means shaping it into a technically and economically attractive initiative, evaluating alternatives, promoting it effectively, and doing so quickly. This function is a cornerstone of the initiation process.
Scope Management
This function ensures that the project reflects industry specifics, market conditions, and customer expectations to deliver relevant outcomes.
Time Management
Time is one of the most critical factors in project performance. The overall project timeline, the timing of specific components, and individual process durations must all be planned in advance. Constraints include technical capacity, technological limitations, and quality requirements.
Cost and Financing Management
This function ensures the project is delivered at an optimal cost that balances profitability and financial stability. Projects often rely on specialized financing methods such as venture capital, government support, bonds, or share issuance. The goal is to maintain a favorable cost-to-benefit ratio throughout the project lifecycle.
Quality Management
Quality must be ensured not only in the end deliverables but also in the project management processes themselves. This function ensures that execution and governance meet established quality standards.
Risk Management
Projects inherently carry risks, especially innovative ones — which, while profitable, are also more volatile. Organizations must define acceptable risk thresholds and manage those risks throughout the project lifecycle.
Human Resource Management
The success of a project depends heavily on its people. This function includes hiring, motivating, and supporting the team with a productive work environment.
Material Resource Management
This function involves coordinating the departments responsible for timely material supply, logistics, inventory management, supplier relations, leasing, franchising, and more.
Contract Management
Organizations interact with many stakeholders through contracts — employees, clients, banks, and partners. Partner selection and contract structures must be carefully designed to support project goals and protect the company’s reputation.
Change Management
Projects are subject to internal and external changes. Effective change management isn’t just about reacting quickly — it requires a structured, strategic approach to adapting processes and ensuring alignment with project goals.
Security Management
This function covers the physical and digital security of the company’s operations, including confidentiality of data, protection of assets, and safety of personnel and stakeholders.
Legal Support
Project activities must comply with the law. All project-related agreements should be formally documented to reduce legal risk and enhance trust among partners and stakeholders.
Conflict Management
Conflict is an inevitable part of project environments. The project manager’s job is to identify potential conflicts early and apply strategies to mitigate or resolve them effectively.
Systems Management
Projects and organizations can be viewed as interconnected systems with shared goals. This function ensures that finance, marketing, operations, and other subsystems work together toward the success of the project.
Communication Management
Effective communication ensures collaboration within the team and with external stakeholders. Regular meetings, presentations, and updates help explain project goals and challenges and support a unified vision.
Accounting
Accurate accounting is essential for internal financial control, regulatory compliance, and building credibility with investors, banks, and government agencies.
Warranty Management
This function ensures the company remains accountable after the project is delivered. Meeting warranty commitments strengthens customer loyalty and boosts the organization’s reputation — giving it a competitive edge.
