What is a Project? Product, Project and Operations. A Comprehensive Project Definition

What exactly is a project, and what is not? For managers, it's crucial to understand. Imagine your boss says: Here's a project. Do it. The first thing every manager should start with is to assess whether this is truly a project, or if it's just considered one by the management.

Defining a Project and Project Characteristics

According to the PMBOK (Project Management Body of Knowledge), a project is described as a temporary endeavor undertaken to create unique products, services, or results within defined constraints, such as time, budget, and resources. However, this definition doesn’t always make it easy to separate a project from non-project activities.

In practice, a project is characterized not only by time constraints and resource availability but also by a high degree of uncertainty. Unlike ongoing operations, projects have a defined beginning and end, a clear objective, and produce unique results.

Project Management vs. Product Management

But what if there's high uncertainty but no definite end? In such cases, project management approaches can still be used, but they typically become inefficient. It's better to apply product management approaches like Scrum. 

If project management is about accomplishing something complex within constraints, then product management is when there are no critical constraints but high uncertainty. 

For example, we're developing Google Maps. In Google's case, budget constraints are likely less critical, especially compared to contracting with a customer or being a significantly smaller company. Is it important for Google to meet deadlines? Probably not, as a few months' delays are also not critical. What's significant is making the product perfect, ensuring people like it, and avoiding user churn. There's no pronounced end, but uncertainty exists, and we're fully focused on the content, making product approaches more logical.

Project Management vs. Operations Management

Another case, which is actually the antithesis of project management, is operations management, like the assembly line in car manufacturing. This is not a project at all. There's no time constraint, no high uncertainty, and tasks repeat day after day. Activities can be broken down into simple, understandable instructions. These enterprises are easy to manage, and operational managers are not needed in large numbers; even one person can manage 500–700 people. While in IT, a team might consist of 10 — max 20 people.

However, if an enterprise begins to expand or introduces new products, elements of project activity emerge, as specific time and resource constraints appear, and tasks become unique, requiring project management.

What is a Project Objective and Deliverables?

Every project has clear objectives, a guiding light for the team. These objectives answer the question: What are we trying to achieve? They’re specific, measurable, and central to the project’s purpose.

What is a project deliverable? Project deliverables, on the other hand, are the tangible results produced along the way. Each deliverable is like a landmark in a journey, whether it’s a report, a prototype, or the final product itself. Deliverables mark progress and bring the project closer to its ultimate goal.

Exploring Project Types: Funding, Industries, and Approaches

When you look at the range of projects that organizations tackle, they can appear wildly different. Each project is unique in purpose and structure, but most fall into categories defined by their funding sources, industry focus, and management methodologies.

Funding: The Financial Backbone

The way a project is funded can shape everything from its scope to its urgency. Projects may be:

• Privately Funded. These projects are typically driven by businesses or investors who expect a return, so efficiency and speed are often paramount.
• Government-Sponsored. Here, the goal may be public good or social impact. Government-funded projects might range from infrastructure to community services, with a focus on accountability.
• Grant-Supported. Projects backed by non-profits or foundations aim to create social change, often tackling issues like healthcare, education, or environmental protection. Success is measured not just in results but in the impact they make on communities.

Industry: A Wide World of Applications

If we search for a Project Manager position without limiting the industry, we’ll find that a significant portion of such vacancies are across three sectors: IT, construction, and applied science. Why is that? In these fields, tasks are bound by time, budget, and resource constraints and are often associated with high uncertainty. For example, developing toothpaste in applied science involves a clear goal but no straightforward path, introducing unknowns. In software development, goals often evolve, requiring flexibility.

Construction might initially seem different because it typically involves standard projects. Yet, due to the large number of participants needing coordination, high uncertainty remains. In contrast to smaller IT or research teams, construction teams can consist of hundreds of people, making coordination complex and unpredictable.

Methodologies: Finding the Right Approach

How a project is managed often depends on its complexity and flexibility needs. Methodologies act like different roads to the same destination:

• Agile. For projects that require flexibility, Agile is ideal. It’s a method often found in IT, where software teams benefit from quick iterations and constant feedback. Think of it as a series of sprints, each moving closer to the final goal.
• Waterfall. When you have a well-defined project where each step builds on the last, Waterfall offers a clear, step-by-step approach. Construction projects often rely on this methodology because each phase must be carefully completed before moving to the next.
• Lean and Hybrid Approaches. These combine elements of Agile and Waterfall, balancing speed with structure. They’re often used when projects need to be efficient and adaptable, such as in manufacturing or healthcare.

Specialized Project Types: Tailoring for Purpose

Some projects are so unique they warrant their own labels:

• Pilot Project. Think of a pilot as the ‘test drive’ of a project. A company might run a small version of a new initiative to gauge feasibility, time, cost, and risk before going all in.
• Research Project. Imagine a team diving into a new scientific territory. Research projects aim to explore, test, and gather insights that will shape future decisions, especially in R&D and academic fields.
• Turnkey Project. With a turnkey project, the goal is to deliver something fully operational, ready for the client to use immediately—think of a completed facility, software platform, or complex machine, handed over with the “keys” to start immediately.

Project Documentation: The Roadmap and Safety Net

Documentation in project management is like a compass, keeping teams on course while ensuring accountability. Successful projects depend on these essential documents:

• Project Charter. This document officially authorizes the project. Imagine it as a project’s birth certificate, outlining objectives, stakeholders, and key requirements.
• Scope Statement. Defines the boundaries of the project, what is included and what is excluded, and sets expectations for stakeholders. It ensures that everyone is aligned on what the project aims to achieve.
• Project Roadmap. The detailed roadmap that outlines how the project will be executed, including timelines, milestones, tasks, and resources. It often includes the work breakdown structure (WBS), which breaks the project into smaller, manageable parts.
• Risk Management Plan. Identifies potential risks, assesses their impact, and outlines mitigation strategies. This ensures that the project team is prepared for potential obstacles and can address them proactively.
• Budget and Resource Allocation. Documents the financial aspects of the project, including the budget, resources required, and how they will be allocated. This is crucial for managing costs and ensuring that the project remains within scope.
• Communication Plan. Specifies how information will be communicated within the team and to stakeholders, including meeting schedules, reporting methods, and the frequency of updates.
• Quality Assurance Plan. Describes how the project's outputs will be measured for quality, including standards, testing processes, and review mechanisms to ensure that deliverables meet agreed-upon criteria.
• Change Management Plan. Outlines the process for managing changes to the project, whether they relate to scope, timelines, or other factors. This plan ensures that any adjustments are made in a controlled and documented manner.
• Project Status Reports. Regularly updated documentation that tracks the progress of the project, highlighting completed tasks, upcoming milestones, and any issues or delays. These reports keep stakeholders informed and allow the team to adjust as needed.

Conclusion

Thus, the key to understanding project meaning lies in the combination of definitive ends and high uncertainty. If a task has clear time constraints and is associated with unknowns that make its completion complex and unpredictable, it's most likely a project and project management approaches should be applied. Otherwise, if a task is regular and predictable, or does not have a clear time constraint, it likely does not fall under project activities.

🔎 Read our next article in this series: “How Does a Good Project Manager Differ from a Bad One?”