Types of Project Management: Best Methodologies & Industries

Project management is a universal concept that spans across industries and our daily lives. The first step in managing a project successfully is to choose the right project management methodology.

There’s no one-size-fits-all project management style. Different project types require varying approaches. While the Waterfall project management methodology is suitable for construction projects, it’s not a good fit for IT projects.

Project management statistics show that only 2.5% of companies complete 100% of their projects successfully. Picking the wrong project management methodology can lead to project failure.

This article will discuss the different project management types based on approaches and methodologies, industries, and project managers.

Let’s get started.

Types of Project Management Approaches and Methodologies

A project management approach or methodology is a set of principles, rules, and practices that serves as a guide for planning, developing, controlling, and delivering a project successfully.

One of the biggest challenges that project managers face is picking the right project management methodology for managing their projects successfully from start to finish.

Let’s check out the different project management approaches and methodologies.

1. Waterfall Project Management

The waterfall model follows a sequential order of executing tasks within a project. This linear system divides the projects into distinct phases, and the completion of one phase marks the beginning of another.

The senior project manager divides tasks and responsibilities among different project team members to ensure the smooth running of the projects.

As a project management professional, you can only apply this plan-driven approach when you have projects that span over a long period or with concrete goals or scope.

Architectural project managers involved in rigid architectural projects will find the waterfall model relevant since it follows a step-by-step principle.

The waterfall methodology is best for projects with a clear and defined end goal. Projects that face restrictions by certain levels of bureaucracy, like timelines, budgets, and organizational regulations, fall into this category.

2. Agile Project Management

Most project managers apply the Agile project management approach when they want to tackle projects that require flexibility.

The difference between Agile and Waterfall is that Agile supports flexible changes while executing the project, while waterfall uses a more rigid sequential structure.

If you apply the Agile methodology, the project will feature significant numbers of iterations or releases. These releases offer skilled project managers the opportunity to make relevant changes to the project as they proceed.

Agile project management encourages breaking down large projects into smaller and more manageable chunks called agile sprints. The project manager and team members can work on multiple sprints simultaneously to speed up the delivery time.

This approach is suitable for projects with high levels of uncertainty or changing requirements. Software development teams, startups, small teams, SaaS products, and small companies use Agile because of its focus on team collaboration and customer feedback.

3. Scrum Project Management

The Scrum project management approach is a popular subset or offspring of the Agile approach. Scrum breaks down the project into short cycles called sprints and monitors progress via constant team meetings to identify issues and find relevant solutions.

Scrum boards help you visualize your project and track its progress. You can appoint a Scrum master to monitor the day-to-day work of the team and the overall tasks. Use this approach to tackle projects that are subject to changes.

4. Kanban Project Management

The Kanban project management approach emphasizes the importance of continuous workflow and breaking down complex tasks into simple and manageable stages.

This approach uses a physical or digital board called the Kanban board that makes the visualization process easier. With Kanban boards, your project team can view tasks assigned to them, the project progress, and the end goal.

Kanban is ideal for project managers concerned about eliminating wasteful work and inconsistencies. It is suitable for teams with multiple incoming requests that vary in priority and size.

In most cases, the Kanban approach is in alliance with software development, but many project managers use it in various industries.

A comparison of Agile methodologies — **Source: BMC Software**

5. Lean Project Management

The lean project management approach has its origin in the manufacturing industry. This approach deals specifically with projects seeking to improve customer satisfaction and reduce costs significantly.

Critical thinking is necessary for this approach. The project manager must assess carefully how the customer thinks and what the customer considers as values. Use this information to organize your team and identify and focus on the project’s value stream.

After identifying the project’s value stream, get to work and focus on actions that promote value while eliminating value-depriving measures and processes.

Customer feedback is the lifeblood of this approach because it gives the manager insight into areas that require adjustment and places that are perfect. This approach works well with various project management methodologies like the Kanban model.

6. Six Sigma Project Management

Six Sigma project management is concerned about the project's output. This approach is customer-focused, like the lean project management approach.

The Six Sigma method focuses on eliminating waste and continuously improving processes to deliver a high-quality project.

As opposed to its name, the Six Sigma approach has five unique phases.

Define the project.
Measure data.
Analyze the root of any problems.
Improve processes.
Control by implementing solutions.

However, there is a downside to using this approach. Six Sigma has a relatively rigid nature that prevents the manager from being flexible and innovative during execution.

7. PRINCE2 Project Management

PRINCE2 stands for Projects in Controlled Environments. This approach pays close attention to vital details in the project, such as establishing a business justification, cost assessment, and baseline requirements.

The PRINCE2 approach aims to improve organization and manage your project lifecycle from start to finish. It emphasizes dividing projects into manageable and controllable stages. Within these stages, the project manager can introduce innovation and flexibility.

This project management methodology encourages detailed quality control and in-depth reflection on lessons learned to complete projects excellently.

PRINCE2 is a beginner-friendly methodology for project managers. However, the downside to this approach is the vast amount of time required to document the process involving various stakeholders before project completion.

8. Critical Path Method (CPM)

The critical path method helps project managers clearly define the timing and durations of each task and their activities. Creating a realistic project schedule is a significant feature of this method.

Project managers use project planning software to develop network diagrams to visually depict the sequences of tasks or paths the project team will complete. Using algorithms is vital in calculating and identifying each critical path and determining task duration.

Types of Project Management Across Industries

Project management cuts across different industries. Though the project management basics are similar for all industries, a project manager with vast experience in a field will likely be picked over one with general experience.

1. Construction

If you are a construction project manager, your primary responsibility is to manage human and material resources to ensure the successful process of building structures. Popular structures include sheds, houses, office buildings, hotels, skyscrapers, and more.

The work of construction project managers involves managing construction projects from budgeting to completion. Managing construction projects requires deep knowledge of the field and how to make each team member work together to arrive at the ultimate project goal.

Construction project managers cannot work alone. They rely on input from architects and engineers. These individuals are major players because there will be no project success without them.

Under the construction industry, you can build a thriving career as an architectural project manager.

Architectural project managers are responsible for managing architectural projects from start to finish. They visit construction sites, inspect the work of the project team, and ensure everything sticks to the architectural design.

An architectural project manager in the United States earns an average annual salary of $144,636, while a construction project manager earns $82,896.

2. Information Technology

An IT project manager ensures that every IT-related problem that arises in an organization receives solutions promptly. This professional does not operate alone but works with a team of skilled IT workers.

Within the company, the IT project team may carry out tasks such as updating and installing new software and changing the IT devices of the entire company.

The IT project manager is responsible for the success of these projects and works with a budget approved by the board. In the United States, the average annual salary of an IT project manager is $113,084.

3. Software Development

Software development is a booming industry. Grand View Research predicts that the custom software development industry will reach a revenue of $146.18 billion in 2030.

Project managers that specialize in software development play a crucial role in this industry. They are responsible for managing software development teams to execute vital tasks like providing consistent and timely software updates and timely installations.

If you want to thrive as a project manager in the software development field, experience using project management software is crucial.

The software development project manager is responsible for choosing the right project management software that suits the project team.

4. Healthcare Sector

The healthcare sector, with its vast processes, requires a skilled project manager to organize its projects and activities for maximum success.

You will find a healthcare project manager in places such as hospitals, health care facilities like primary health centers and clinics. The healthcare project manager organizes various medical activities like medical outreaches and health talks.

A healthcare project manager in the United States earns an average annual salary of $74,598.

5. Energy Sector

A project manager in the energy sector ensures the development of new energy infrastructure or improves existing ones. This individual works with a specialized team to execute energy-related projects.

The average annual salary of an energy project manager in the United States is $91,125.

6. Marketing Sector

The marketing department is the heart of every successful organization. Marketing project managers are relevant across organizations like tech companies, advertising firms, various types of retail stores, and wholesale companies.

Marketing project managers organize and manage marketing teams to create effective marketing strategies and the best ways to implement them.

Beyond creating these strategies, project managers oversee the team activities and ensure they execute tasks to help boost sales and revenue. Projects like marketing campaigns, research efforts, and new product launches are areas where the project manager thrives.

The average annual salary of a marketing project manager is $78,368.

Types of Project Managers

Knowing the different project manager types helps you properly pick the right ones for your project. Here are the different types of project managers based on their personalities.

Executor: A major characteristic of the executor includes leadership qualities and diligence while carrying out a project. The executor does not deviate from the outlined growth strategy. This project manager is perceived as a rigid individual. The executor will always get the job done with the available resources and rarely misses deadlines on project deliverables.
Prophet: He is a flexible personality and can go beyond the company’s current strategy. This project manager is a visionary who sees hidden growth opportunities with long-term benefits. The prophet is capable of managing multiple projects successfully with minimal hitches.
Expert: The expert has characteristics similar to the prophets, like pursuing hidden opportunities outside of current strategies. This professional is knowledgeable about different projects and the best ways to get results. Expert project managers act on facts and advice with the potential to make sound business decisions. They never gamble but follow the project schedules.
Gambler: The gambler is not analytical about project facts and lacks vital data to make informed decisions. On the flip side, this project manager stays within the existing strategy. Due to the lack of proper data, the gambler is forced to bet on and act on perceived growth opportunities.

Sources

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