The success of any project can make or break an organization’s competitive edge. Project management methodologies bring order to the process, providing structured approaches for planning, executing, and controlling projects efficiently. By following an established framework—some fixed, some flexible, and some that fall in between—project management leaders and their teams can optimize resources, boost productivity, and mitigate risks culminating in successful outcomes that satisfy customers and drive business growth.

What Are Project Management Methodologies?

Project management methodologies are the frameworks that guide how a project is planned, executed, and completed. Project management is “the practice of planning, organizing, and executing the tasks needed to turn a brilliant idea into a tangible product, service, or deliverable,” as defined by the Project Management Institute (PMI), and key aspects of project management include defining project scope, identifying deliverables, managing risks, and communicating effectively across teams.

Mature organizations—those with well-defined processes, methodologies, and tools in place— are likely to deliver projects with greater success, completed on time, within budget, to the satisfaction of stakeholders, and in line with the project’s goals, according to a KPMG study.

Key Takeaways

  • Project management methodologies range from traditional, linear approaches to agile methods.
  • The most effective project management methodology will depend on the project’s complexity, team size, industry standards, stakeholder involvement, and other factors.
  • Many organizations are combining elements from different methodologies to suit their specific needs and project requirements.

Project Management Methodologies Explained

Project management methodologies provide a systematic way to plan, manage, and control projects through frameworks, processes, and tools that guide teams through the life cycle of a project. Methodologies range from traditional, linear approaches—such as the Waterfall method, which emphasizes sequential phases and detailed, up-front planning—to more flexible, iterative methods, such as Scrum.

Each methodology has something to offer. Traditional methods are best suited to projects with clear, stable requirements and defined outcomes, while Agile approaches lend themselves to dynamic environments where speed is crucial. Other methodologies—such as Lean and Six Sigma—focus on efficiency and quality, while hybrid methodologies combine elements from various methodologies to create approaches for specific needs.

Team productivity, stakeholder satisfaction, risk management, and overall project outcomes are all important factors to consider when choosing a project management methodology. However, they all share the same goal: to deliver projects that meet or exceed their project benchmarks. By focusing on efficient resource utilization, effective risk management, and continuous improvement, these methodologies help organizations consistently deliver high-quality projects on time and within budget, leading to increased customer satisfaction and improved bottom-line results.

Traditional Project Management Methodologies

Traditional project management methodologies have been the cornerstone of project execution for decades. Characterized by their linear, sequential processes and high degree of predictability, they are particularly suitable for projects with well-defined requirements, clear objectives, and minimal expected changes. These tried-and-true methods are often preferred in industries where regulatory compliance and extensive documentation are crucial.

Traditional methods and tools include the Waterfall model, critical path method, Program Evaluation and Review Technique, and Gantt charts.

  • The Waterfall Model: This is appropriate for projects with well-defined, fixed requirements and minimal expected changes, such as construction, manufacturing, and healthcare projects. Introduced in 1970 by Winston W. Royce, a computer scientist and one-time director of Lockheed Software Technology Center, the Waterfall model follows a strict order of phases, involving requirements-gathering, design, implementation, testing, and maintenance. Each step must be completed before moving on to the next. Of note, while this model offers simplicity and clear structure, it lacks flexibility for changes.
  • Waterfall Model

    Benefits Limitations
    • Clear structure and defined phases
    • Easy to understand and manage
    • Well suited for projects with stable requirements
    • Facilitates thorough documentation
    • Inflexible on changes mid-project
    • Lengthy delivery of working product
    • Difficulty in accurately estimating time and resources up front
    • Risk of discovering issues late in the project
  • Critical Path Method (CPM): CPM identifies the longest sequence of dependent tasks in a project—i.e., “the critical path”—which determines the minimum time required for project completion. This project-modeling technique, developed in the late 1950s by Morgan R. Walker of DuPont and James E. Kelley Jr. of Remington Rand, helps project managers prioritize tasks and allocate resources efficiently. It is also useful for identifying potential bottlenecks and calculating “float” (aka “slack”), which is the amount of time a project can be delayed without impacting the overall schedule. CPM is particularly useful for complex projects with interdependent tasks, such as construction projects, software development, and product launches. It is often visualized using network diagrams or Gantt charts (described next).
  • Critical Path Method (CPM)

    Benefits Limitations
    • Identifies critical tasks that directly impact project duration
    • Helps optimize resource allocation
    • Provides clear visualization of project timeline
    • Facilitates effective scheduling and prioritization
    • Can become complex for large projects
    • Assumes task durations are fixed and known
    • Doesn’t account for resource limitations
    • May oversimplify task interdependencies
  • A Gantt chart: Thisvisualization tool represents a project’s schedule and displays tasks as horizontal bars with start and end dates and connects dependent tasks with lines or arrows. Henry Gantt, an American mechanical engineer and management consultant, created the first version of the Gantt chart in the early 1900s. Gantt charts help project managers allocate resources appropriately, track progress, identify potential scheduling conflicts, and communicate project timelines to stakeholders. Modern project management software often incorporates Gantt chart functionality. Over time, Gantt charts have been adapted for use in various fields, including software development, event planning, and academic research.
  • Gantt Chart

    Benefits Limitations
    • Provides clear visual representation of project timeline
    • Easy for stakeholders to understand
    • Helps track progress and dependencies
    • Facilitates resource allocation
    • Can become cluttered for complex projects
    • Doesn’t show task relationships clearly
    • Difficult to maintain for projects with frequent changes
    • May oversimplify complex project dynamics
  • The Program Evaluation and Review Technique (PERT): PERT is a statistical tool developed by the U.S. Navy in 1958 for managing complex projects. It focuses on analyzing the tasks involved in completing a project, with an emphasis on the time required for each task. PERT uses three distinct time estimates for each activity—optimistic, most likely, and pessimistic—to calculate the expected project duration, based on the formula: Estimated time = (O + 4M + P) / 6. PERT, which is often used in conjunction with CPM for more comprehensive project planning and control, is particularly useful for projects with uncertain timelines, common in fields like research and development or those involving innovation or new technologies.
  • Program Evaluation and Review Technique (PERT)

    Benefits Limitations
    • Accounts for uncertainty in task durations
    • Helps in risk assessment and management
    • Provides probabilistic time estimates
    • Useful for projects with unclear timelines
    • Can be time-consuming to implement
    • Relies on subjective time estimates
    • May overemphasize the longest path
    • Can become complex for large projects

Agile Project Management Methodologies

Agile project management methodologies emerged in response to the limitations of traditional approaches, particularly in fast-paced and dynamic environments such as software development. These methodologies prioritize flexibility, adaptability, collaboration, and the rapid delivery of working products. Agile approaches are iterative and incremental, emphasizing frequent reassessment and modification of goals and methods.

Agile methods include Scrum, Kanban, extreme programming, and feature-driven development.

  • Scrum is a framework for managing complex projects, particularly in software development. Developed by Ken Schwaber and Jeff Sutherland in the early 1990s, both of whom had significant experience in software development and project management, this framework divides projects into short, fixed-length (aka time-boxed) iterations called “sprints,” which typically last one to four weeks. Scrum teams are self-organizing and cross-functional, with three main roles: scrum master, product owner, and the development team. Brief, daily stand-up meetings (team members are, literally, encouraged to stand), sprint planning, and “retrospective” meetings to assess how the previous stint went are key elements of the scrum process, promoting transparency and continuous improvement.
  • Scrum

    Benefits Limitations
    • Offers flexibility and adaptability to change
    • Encourages frequent stakeholder feedback
    • Improves team collaboration and communication
    • Delivers working product increments regularly
    • Can be challenging for teams new to the Agile method
    • May not work well with projects that have fixed scope and deadlines
    • Requires significant time commitment from team members
    • Can be less effective for large or distributed teams
  • Kanban is a visual workflow management tool that originated as part of Toyota’s automobile manufacturing process. Later adapted for knowledge work and software development, Kanban uses boards, with columns that represent different stages of work, and cards representing individual tasks. Cards are moved across the board as stages are completed. Kanban focuses on limiting unfinished works in progress in order to maximize the number of active tasks that result in project completion. This approach is suitable for projects with numerous tasks or deliverables, such as IT services management, which must deal with a constant stream of user requests, bug fixes, and system improvements.
  • Kanban

    Benefits Limitations
    • Provides clear visualization of workflow
    • Limits works in progress, reducing bottlenecks
    • Allows for continuous delivery and improvement
    • Flexible and adaptable for various project types
    • Lack of time-boxed iterations may lead to complacency
    • May not provide enough structure for some teams
    • Can be challenging to prioritize work effectively
    • Requires discipline to maintain and update boards
  • Extreme Programming (XP) is a software development methodology thataims to produce higher-quality software and to improve the quality of life for development teams, which often work under extreme pressure. Created in the late 1990s by Kent Beck, a renowned American software engineer, XP emphasizes technical excellence, teamwork, and customer collaboration. It incorporates practices such as pair programming, where two programmers work together; test-driven development; continuous integration of code; and frequent, small software releases for rapid feedback. XP, which encourages developers to embrace change and respond quickly to evolving customer needs, is well matched for time-critical, small-scale software development projects in which customers are heavily involved, such as the launch of a minimum viable product.
  • Extreme Programming (XP)

    Benefits Limitations
    • Emphasizes technical excellence and code quality
    • Promotes continuous feedback and improvement
    • Encourages close collaboration between developers and customers
    • Adapts quickly to changing requirements
    • Intensive customer involvement might not always be feasible
    • Pair programming can be resource-intensive
    • Can be challenging to implement in large or distributed teams
    • Some practices might be difficult to adopt in certain organizational cultures
  • Feature-Driven Development (FDD) is a software development methodology formulated to plan projects around short iterations and frequent releases of product features. Developed in 1997 by Australian software engineer Jeff De Luca, the methodology consists of five main steps: develop an overall model, build a features list, plan by feature, design by feature, and build by feature. FDD is effective for large-scale software projects with clear requirements and a need for structured feature implementation.
  • Feature-Driven Development (FDD)

    Benefits Limitations
    • Focuses on delivering tangible features regularly
    • Provides a clear, easy-to-understand process
    • Emphasizes design and code quality
    • Supports scalability for larger projects
    • Might not be as flexible as other Agile methodologies
    • Requires experienced developers and designers
    • Can be documentation-heavy compared with other Agile approaches
    • Not always suitable for projects with rapidly changing requirements

Lean and Six Sigma Project Management Methodologies

Lean and Six Sigma methodologies take a data-driven approach to project management, focusing on continuous improvement and the reduction of waste and variability in processes. Originally developed for manufacturing settings, these methodologies, along with a few complementary techniques—e.g., value stream mapping and DMAIC (see below)—provide a powerful toolkit for improving efficiency, quality, and customer satisfaction.

  • Lean project management is derived from the lean manufacturing principles developed by Toyota in the mid-20th century. Its core concept is to maximize value to the customer by reducing waste (in the form of non-value-adding activities) and using fewer resources, which taken together are meant to shorten project timelines. Lean project management also emphasizes a culture of ongoing learning and improvement, and respect for team members’ input and contributions. It uses tools such as value stream mapping (described next); the 5S method of creating and maintaining an organized, clean, and efficient workspace; and Kanban to streamline workflows and improve processes. Lean project management is especially useful for projects with tight deadlines, limited resources, a high degree of uncertainty, and the need for continuous improvement.
  • Lean Project Management

    Benefits Limitations
    • Reduces waste and increases efficiency
    • Focuses on delivering customer value
    • Promotes continuous learning and improvement
    • Enhances team collaboration and engagement
    • Can require significant cultural change
    • Is challenging to implement in non-manufacturing contexts
    • Potential for over-optimization, leading to reduced flexibility
    • Might not be suitable for highly innovative or unpredictable projects
  • Value Stream Mapping (VSM) is used to analyze and manage the flow of materials and information required to bring a product or service to consumers. It provides a visual representation of all the steps in a workflow, helping to identify waste, bottlenecks, and opportunities for improvement. With VSM, the team maps out the current process, identifies areas for improvement, and then creates a map of the improved process. By focusing on value and systematically eliminating waste, organizations can optimize their processes, reduce costs, and improve overall performance. This technique is particularly useful for complex processes, such as manufacturing processes involving multiple steps, components, and sub-assemblies, or software development processes with multiple stages and dependencies.
  • Value Stream Mapping (VSM)

    Benefits Limitations
    • Provides a clear visualization of entire process flow
    • Identifies waste and inefficiencies
    • Facilitates holistic process improvement
    • Enhances cross-functional collaboration
    • Can be time-consuming to create and maintain
    • May oversimplify complex processes
    • Requires buy-in and input from all stakeholders
    • Static and not always able to capture dynamic process changes
  • Six Sigma employs statistical methods to identify, analyze, and eliminate sources of defects and variation. Developed by Motorola in the 1980s, its goal is to achieve a near-perfect quality level of 3.4 defects per million opportunities—the basis for the term “Six Sigma” (referring to six standard deviations between the mean and the nearest specification limit in a normal distribution). Six Sigma projects are led by trained professionals with designations that mirror the martial arts: Green Belt, Black Belt, and Master Black Belt. Six Sigma is most effective for projects that involve processes with measurable inputs and outputs, have a high volume of transactions or a significant impact on business outcomes, and possess a history of performance issues, such as high defect rates, long cycle times, or customer complaints.
  • Six Sigma

    Benefits Limitations
    • Significantly reduces defects and process variation
    • Data-driven decision-making
    • Structured approach to problem-solving
    • Requires extensive training and expertise
    • Can be resource-intensive and time-consuming
    • May overemphasize process improvement at the expense of innovation
    • Not always suitable for small-scale projects or creative processes
  • DMAIC (define, measure, analyze, improve, and control) provides a structured approach to problem-solving and process improvement. It is an integral part of Six Sigma but can also be used as a standalone quality-improvement framework. The acronym represents the five phases of the improvement process: define the problem and project goals, measure key aspects of the current process, analyze the data to find root causes of defects, improve the process as indicated by data analysis, and control the improved process to ensure sustained success. DMAIC is particularly useful for projects that aim to enhance existing processes or improve products by reducing defects, increasing efficiency, or enhancing customer satisfaction.
  • DMAIC (Define, Measure, Analyze, Improve, Control)

    Benefits Limitations
    • Provides a structured approach to problem-solving
    • Emphasizes data-driven decision-making
    • Ensures thorough analysis before implementation
    • Includes a control phase for sustaining improvements
    • Can be time-consuming for simpler problems
    • Requires significant data collection and analysis skills
    • Not always suitable when rapid improvement needed
    • Can become overly rigid if not applied flexibly

Hybrid Project Management Methodologies

Hybrid project management methodologies combine elements from different methodologies. They are typically employed by organizations that are transitioning between methodologies or undertaking complex projects that are not well served by a single approach. Indeed, the use of hybrid project management methodologies has been on the rise, up from 20% of organizations in 2020 to 31.5% in 2023, according to PMI. During that same period, the use of traditional approaches declined from 58% to 43.9%. Hybrid models include Waterfall-Agile, ScrumFall, Scrumban, and Lean-Agile.

  • Waterfall-Agile uses Waterfall for the initial planning and design phases, then turns to Agile methodologies for development and implementation. It aims to leverage the structured approach of Waterfall for clear project definition and requirements, while benefiting from Agile’s flexibility and iterative development. This hybrid approach works well for large-scale projects that require extensive planning but also need adaptability during execution.
  • ScrumFall, aka Water-Scrum-Fall, integrates Scrum practices within a Waterfall framework. It typically maintains the linear progression of Waterfall for overall project phases but implements Scrum practices within each phase or for specific stages of the project. This approach is often adopted by organizations transitioning from Waterfall to Agile, allowing them to maintain familiar structures while introducing Agile practices. ScrumFall can be beneficial for projects that require regulatory compliance or extensive documentation.
  • Scrumban combines elements of Scrum and Kanban. Developed by Corey Ladas and described in his book “Scrumban: Essays on Kanban Systems for Lean Software Development,” Scrumban retains Scrum’s iterative nature and some of its ceremonies, such as daily stand-ups, while incorporating Kanban’s visual workflow management and focus on limiting work in progress. This methodology is useful for teams that find pure Scrum too prescriptive or that need to handle both planned and unplanned work efficiently.
  • The Lean-Agile hybridapproach focuses on maximizing value delivery while minimizing waste, thereby combining lean’s emphasis on efficiency and continuous improvement with Agile’s iterative development and customer focus. Frameworks such as the Scaled Agile Framework (SAFe)—which aims to align strategy, execution, and delivery across large numbers of Agile teams—incorporate Lean-Agile principles for enterprise-scale project management. This model is particularly effective for organizations looking to improve project delivery speed and quality while maintaining a strong focus on customer value. Lean-Agile methodologies are particularly fitting for software and product development.

Tips to Choose a Project Management Methodology

Using the right project management methodology is critical to the success of any project. Project managers should carefully evaluate the following key factors in order to choose a methodology that aligns with both the organization’s goals and the project’s specific needs.

  1. Analyze the project’s complexity, scale, and specific requirements: Understanding the nature of the project is the first step in selecting a methodology. Large, complex projects with multiple stakeholders may be better suited for a structured approach, such as Waterfall, while smaller, more flexible projects might be a better match for an Agile approach, such as Scrum. Clearly define the project scope, deliverables, and critical requirements to pair the methodology to the project’s unique demands.
  2. Evaluate your team’s experience with different methodologies: Assess your team’s familiarity with various project management methodologies. A team experienced in an Agile technique might be able to execute a project more effectively using Scrum or Kanban, while a team accustomed to more traditional methods might perform better with PERT. Aligning the methodology with the team’s skill set can reduce learning curves and improve overall efficiency.
  3. Determine how involved stakeholders want to be: The level of stakeholder involvement will vary depending on the project and organization. Agile methodologies rely on frequent feedback and participation from stakeholders throughout the project, whereas traditional methodologies are limited with regard to outside engagement.
  4. Factor in budget constraints: Each methodology has associated costs. Agile methodologies allow for iterative changes that can sometimes alter the scope of work and, in turn, increase costs. On the other hand, the sequential nature of traditional approaches lock in project costs earlier in the process, making it easier to control the budget (though harder to adapt to changes). The question becomes one of what a budget can accommodate.
  5. Consider industry-specific practices and standards: Different industries favor specific project management methodologies. For example, intricate software development projects often lean toward an Agile approach, while construction projects often favor Waterfall or another traditional technique, due to the linear progression of tasks. A review of industry trends and standards can provide insights into which methodologies work best for a given project.
  6. Review past project performance: Analyzing the performance of previous projects can offer valuable insights when choosing a methodology. If a specific approach led to successful outcomes for similar projects, it might be wise to apply the same methodology. However, don’t outright reject a methodology if it previously fell short of expectations; consider adjusting the approach to address lessons learned. And in the same vein as tip No. 5, research other organizations’ projects, outcomes, and case studies for real-world guidance.
  7. Consider organizational culture: An organization’s culture can greatly influence the success of a project management methodology. A company that values flexibility and collaboration might very well thrive with Agile methodologies, while a more structured, hierarchical organization might be better off using traditional approaches. To ensure a smooth adoption, make sure the chosen methodology fits with the company’s values and work style.
  8. Be open to hybrid approaches: As noted above, hybrid methodologies are becoming more the norm. By selecting the best features from multiple methodologies, an organization can create a kind of customized approach tailored to a project’s unique needs.

The Future of Project Management

As in many other fields, the integration of artificial intelligence (AI) into project management promises to enhance efficiency, improve decision-making, and provide more accurate insights into project performance. The following key areas illustrate how AI is being applied in project management.

  • Predictive analytics: By analyzing vast amounts of historical and current project data, predictive analytics tools can help project leaders create more accurate forecasts for project timelines, costs, and potential risks.
  • Automation: Routine tasks, such as scheduling, resource allocation, and progress reporting, will become increasingly automated, allowing project managers and their teams to focus on higher-level work.
  • Enhanced risk management: Machine learning algorithms will be able to identify potential projects risks earlier and with greater accuracy, allowing for the proactive planning of effective mitigation strategies.
  • Personalized project management: AI will facilitate more tailored approaches to project management by adapting to the specific needs and characteristics of each project and team.
  • Generative AI: With its ability to develop content based on project requirements and stakeholder needs, GenAI technology will facilitate the creation of project plans, documentation, and communication materials.

From Kickoff to Completion: Manage Projects in NetSuite

Project management professionals have a multitude of moving parts to monitor, for which manual processes are impractical. NetSuite Project Management provides a cloud-based solution that addresses their needs. This comprehensive tool manages multiple project types and tasks, including time-and-materials and fixed-price jobs, providing real-time visibility into project status, financials, and resources. It also offers customizable project templates, interactive dashboards and Gantt charts for clear visualization of a project’s progression, detailed budgeting capabilities that include project and labor cost tracking, and collaborative tools that enhance communication and productivity. With its real-time reporting capability on key metrics, such as project profitability and resource utilization, NetSuite Project Management helps organizations boost productivity, enhance client satisfaction, and improve their bottom line.

infographic ns project dashboard
NetSuite Project Management allows stakeholders to easily monitor the status of their projects whenever and from wherever they want.

Selecting the right project management methodology is crucial for project success, from both a customer and a business perspective. Organizations need to consider factors such as project size, complexity, industry requirements, and team dynamics when making a choice. Remember, no single methodology is perfect for all situations; the ability to adapt and combine approaches often leads to the best outcomes.

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Project Management Methodologies FAQs

What methodology do you use to manage projects?

The methodology depends on the project’s requirements, the team’s expertise, and the stakeholders’ expectations. For projects that demand flexibility and continual feedback, Agile methodologies, such as Scrum or Kanban, are popular. For projects with fixed timelines and well-defined scopes, Waterfall or the Critical Path Method might be more suitable.

What is the easiest methodology for project management?

The “easiest” methodology for project management depends on the team’s familiarity with it and the project’s nature. But for smaller projects or teams new to project management, Kanban is considered a good choice. It focuses on visualizing the different stages of work and managing tasks in a continuous flow, making it straightforward to implement and easy to understand.

What is Agile vs. Waterfall?

Agile and Waterfall are project management approaches. Agile takes an iterative, incremental approach that emphasizes flexibility, continuous improvement, and rapid delivery. It’s well suited for projects where requirements can evolve or when frequent stakeholder feedback is valuable. Waterfall takes a linear, sequential approach that requires each phase to be completed before the next begins. It’s best for projects with well-defined requirements and minimal expected changes.

Is Agile the same as Scrum?

Agile and Scrum are related but not the same. Agile is a broad project management philosophy that emphasizes flexibility, customer collaboration, and rapid delivery. Scrum is an Agile methodology that features defined roles, sprints, daily stand-up meetings, and retrospectives.