Why Flexible Project Management Important? 7 Best Tips for 2023

Conservative approaches to project management assume a stable environment with predictable influencing factors. The idea that correct planning in a stable environment leads to an effective result is formally correct because every change in the project process is usually associated with additional costs and jeopardizes meeting the deadlines.

However, developing new products and services in a global economy is all about innovation. Developments across locations and countries with unforeseeable changing customer requirements, employee fluctuation, resource bottlenecks, and a rapid change in technology in the digital age require flexible project management.

The software industry revolutionized project management a few years ago by introducing agile techniques. Agile project management relates to some specific characteristics of software development, such as programming object technology, automated testing procedures, and the ability to make changes quickly and inexpensively. For this reason, iterative solutions were created, which led the product development towards the goal in short project sections of usually only two weeks.

But can such solutions be transferred to other projects? It is only sometimes possible to plan short development cycles with working models.

Flexible project management is not just the future. It is already firmly anchored in the present. Even if agile software development methods cannot be fully applied to any project, this technology at least gives food for thought. Use the seven tips and decide which ones you can use for your upcoming project.

7 Proven Flexible Project Management Tips

1. Understand why flexible project management is necessary.

Project management is based on flawless planning, technically qualified employees, an experienced manager, and project management software suitable for the task at hand. That's what the theory says; ideally, this mix is ​​right. In practice, however, factors play a role that can limit error-free planning and the use of human resources. In Germany and large parts of Europe, there is currently an acute shortage of skilled workers, along with delivery bottlenecks for many accessories and a critical energy situation. To include all these factors in the planning of projects, a high degree of flexibility in project management is required.

Flexible project management plans for unexpected events - such as delays within supply chains or the absence of a highly qualified employee due to illness. Such project management is characterized by the ability to assess and evaluate risks. Project managers must be able to deal with suddenly changing circumstances and scale activities to meet tasks that vary in timing. A good opportunity for this is agile project management as a methodology and using Kanban boards for technical support. Agile project management will be discussed in more detail later.

But there is also a completely different reason for the need for flexibility in project management. No project is like the other, even if it appears at first glance. Framework conditions change, new technologies require the qualification of employees, or site conditions in cross-border project work develop in an unforeseen direction. Here, too, flexibility will be able to demonstrate its advantages.

2. Uncover risks to manage projects better.

To design projects successfully, it is first necessary to identify possible risks and, after they have been uncovered, to manage them continuously. Adherence to planned resources must be monitored. The right software for human resources management offers support in adapting the availability and capacity of employees and their workload. It proves to be helpful for flexible project management. It is made possible by the graphic representation of the company structure, on the one hand, the selection of suitable employees for the project team and access to the most suitable specialists in the event of illness-related absences or urgently needed additional human resources. Based on the existing employee data, which includes qualifications, work reports, HR documents, recorded working hours, and all contact details, it becomes possible for the project manager to fall back on alternatives if additional employees are needed for the project team.

One proven way to uncover risks that require flexible project management is to look at existing data from previous projects. Efficient document management with the reports of all project teams makes it possible to find challenges that have faced other teams and have been overcome by them and to develop your solution approaches.

Incorporating risk into project planning will prove successful whenever the planning is based on a firm set of project goals, budgets, and schedules. However, it reaches its limits when these parameters have to be changed repeatedly. Flexible project management, in this case, means that risk management becomes one of the main tasks. Resource shifts require contact with suppliers, flexible working time management for employees, and good communication within the team and with customers.

3. Project planning with the expectation of changes as a promising concept

The traditional approach to project management is based on the fact that detailed planning of all project details is the basis for successful implementation. In many companies, it is common practice that a project can only start once the complete planning has been documented. Such a detailed plan has many merits, but reality often overtakes them. Project managers then spend a lot of time adjusting resources and updating deadlines.

On the other hand, if project changes during the processing time are considered normal, there are more effective options for planning. The first of these methods is called rolling wave planning and is based on the following principle:

Initially, only the imminent project phase is planned in detail. The other tasks are only roughly outlined. Once the first phase has been completed - supported by suitable task management software - the next phase can be planned. This seems plausible at first, but it has one disadvantage. An initial rough work planning of later project sections can be associated with underestimating or overestimating the required time or other resources. This can be remedied by the experience gained from working on comparable projects.

Another approach is agile project implementation. This way of working was created for software development but is becoming increasingly popular in other sectors and enables flexible project management. Projects are divided into short development phases - usually referred to as sprints. These sprints are planned in detail, and future project sections still need to be completed. During the sprint, the team follows the specifications exactly. At the same time, a list of the next tasks is being worked on, and the following sprint is being planned. Changes to project goals, deadlines, and resources can thus be flexibly integrated into the overall process.

4. Manage projects through customer interaction.

The classic view in most product development textbooks is that product requirements are defined based on thorough market research. Once these requirements have been defined, the project is planned.

However, the method can only be implemented in rare cases. Ever-faster innovation cycles in a digitized world ensure customer requirements change during project development. Flexible project management is required so that the goal can still be achieved. Constant customer contact and adapting the needs to the project goals is one way to achieve the goal. This can be a promising path if a product is specially developed for a customer.

However, this methodology cannot be implemented for projects and products aimed at a mass market. Since it is impossible to stay in constant contact with many customers, the definition of so-called personas as selected representatives of a target group helps. They represent a specific customer group's characteristics, expectations, and user behavior. The alignment and adjustment of the project goals to the defined personas characterize flexible project management. Among other things, companies rely on the collection of their own experiences. Manufacturers of outdoor equipment organize special challenges under difficult conditions to test products still in development.

5. Extension of agile techniques to all areas of project management

Agile techniques were originally used for software development. However, the principles of this way of working can also be transferred to other sectors, at least in a similar form. The Agile way of working prioritizes the tenet that interacting with the customer is more important than using specific tools and deploying preferred technologies. Continuous cooperation with the customer is given priority over strict compliance with the contract components defined before the start of the project. The reaction to changing conditions in the course of the project is preferred. Agile project management involves the customer in the development process, uses their feedback, and develops new solutions in workshops.

Scrum is favored as the working method of agile project management. In contrast to classic project management, Scrum is based on the self-organization and flexibility of small teams, which coordinate their work tasks in short, mostly daily meetings. The project's progress is characterized by short intervals (sprints) in which new functionalities are created or existing ones are tested or improved. Necessary changes are fed back into the development process via a backlog and get into newsprint. This way of working is successfully supported by using the right Scrum software.

One of the most important aspects of the success of agile project management is the high level of customer satisfaction achieved through this way of working. Because the customer practically becomes part of the development team through his continuous feedback and actively contributes to finding the best solutions.

6. Timing decisions based on available information

In conventional project management, the planning is based on the available information. Based on this information, the team leader makes decisions about the distribution of tasks and the chronological sequence. The decisions made, in turn, require certain processes in the project work. If requirements change while work is in progress, decisions may have to be revised, work tasks repeated, and additional resources consumed.

Flexible project management is characterized by the fact that those responsible do not make certain decisions at the start of the project but only when necessary. This is also referred to as the last possible moment of decision. The final moment of decision is when it must be made without having consequences for the ongoing progress of the project. The technology ensures that certain critical decisions can be made correctly.

Two benefits demonstrate the value of making decisions in this way. The flexibility in project management is significantly increased and does not cause higher costs. Only resources are consumed if orders are made when necessary. The second advantage is that information can be collected for critical options from the start of the project work, and customer feedback can be obtained, which ultimately puts the decision on a sound basis.

7. Use of the flexibility matrix in project management

In the previous sections, it was pointed out that only flexible project management can often achieve the defined objectives. This finding leads to the question: What can be designed flexibly? The management of a project is fundamentally based on the optimization process from the scope of the project (Scope), the resources or costs (Cost), and the time spent (Time). These attributes of each project, known as the triple constraint, are closely related. Any change in one of the attributes has an immediate effect on the other two.

A "flexibility matrix project management" allows the project manager, depending on the customer's priority, to make the right decisions when the project requirements change to meet the objectives.

An example should explain the function of the flexibility matrix. The completion date has a top priority for the client. There are no compromises for a deviation here. If changing project work requirements will increase or at least not decrease the scope of work, increasing resources is the best way to meet the specified deadline.

One of the important tasks of project management is to document the influence of the attributes of the triple constraint. For the customer, the impact of the change in requirements about the flexibility matrix must be proven in an audit-proof manner in the project documentation, in the example, the necessary increase in resources. The appropriate online document management with the customer's ability to access all interim reports of the project documentation is a suitable means for this.

FAQ

What is flexible project management?

Flexible project management plans with unpredictable or difficult-to-foresee events during project processing. Such unforeseeable factors are, for example, the sudden absence of highly qualified employees or delivery bottlenecks, as well as changes in requirements by the customer. Flexible project management calculates the mentioned risks and develops concepts to achieve the project goals.

Which project management methodology is flexible?

Agile project management is one of the most important methods that can be used flexibly. It offers a dynamic way of working together. The project is divided into short phases of work called sprints. New functionalities are created or improved in the sprints. Necessary changes can be fed back into the development process via a backlog.

What is a flexibility matrix in project management?

A flexibility matrix in project management is used for project changes. Adjustments to the planning are made depending on the client's specifications for the scope of the project (scope), the costs (cost) or time (time), and the priorities high, medium, and low. If, for example, the costs are specified with the highest priority, the project scope or project duration must be adjusted if the requirements change.