Glossary > Project Life Cycle

Project Life Cycle

By DealHub Experts -Published May 24, 2023

What is the Project Life Cycle?

In its simplest terms, the project life cycle describes the high-level timeline of a project. It is the set of phases that all projects go through, from start to finish.

Its five stages—initiation, planning, execution, monitoring, and closing—mirror those of a traditional product life cycle. Each represents a separate stage of work that requires distinctive skill sets and resources.

In a business context, the project life cycle is essential to any successful initiative. It creates structure and focus for projects, making them easier to manage and control. By breaking down project deliverables into smaller chunks, teams can better track progress and form strategies to help ensure that objectives are met.

Use cases for the project life cycle include:

Software development
Marketing campaigns
Business process reengineering
Construction projects
Product launches
Event planning
Corporate training initiatives
Manufacturing process development
Research projects
IT infrastructure updates
Organizational change management
Public policy initiatives
Healthcare initiatives
Real estate development

A company’s project life cycle varies depending on its industry and project management style. A project manager spearheading a research project, for example, will follow a different set of processes than an IT specialist leading an infrastructure upgrade.

Regardless of how a project team chooses to manage its tasks, understanding its project life cycle helps them mitigate risks and devise effective strategies to ensure success.

Synonyms

Agile project life cycle: A specific type of project life cycle defined by phased activities and rapid iterations (i.e., Agile project management).
Project delivery process: The systematic process of delivering a project from conception to completion.
Project management life cycle: A process made up of multiple phases through which a project passes in order to be successfully completed.
Project scope: The collection of tasks required to complete a project.

Benefits of Analyzing the Project Life Cycle

Effective project management entails more than simply identifying goals and meeting deadlines. A thorough analysis of the project life cycle helps teams:

Set Project Goals

Most importantly, the project life cycle framework encourages teams to define a clear, actionable project plan at the outset.

Over 70% of projects fail, and “unclear goals” is one of the primary reasons for unmet expectations. Early identification of targets and task dependencies forms the cornerstone of the entire project.

Not only do these goals guide the planning and execution phases, but they also provide a benchmark for evaluating project success. For instance, a software development team might set an initial goal to release a new application within a six-month timeframe, with specific features that address identified market needs.

Throughout the project life cycle, this primary goal will inform decision-making and shape the team’s approach.

Establish Project Scope

Understanding the scope ahead of time helps project stakeholders identify which tasks will take priority and how resources will be allocated. This helps teams plan more accurately and adjust their workloads as needed.

It also enables better management of project risks, including the possibility that goals might change or become unrealistic over time. Having a clear scope in place reduces the chance of costly surprises later in the process.

Plan Resources and Schedules

In the project planning phase, numerous issues can arise:

Unrealistic timelines. Often, teams underestimate the amount of time needed for certain tasks, resulting in pressure and potentially subpar work.
Understaffed project teams. If too few people are assigned to the project, tasks may be delayed or overlooked entirely.
Overallocation of resources. Conversely, too many resources might be committed to the project, leading to wasteful spending.
Poor task sequencing. If tasks are not logically ordered, there may be delays as teams wait for preceding tasks to be completed.
Lack of risk assessment. Without careful consideration of potential risks, unanticipated issues can derail the project.

Understanding the project life cycle ahead of time is invaluable during the project initiation phase, where a high-level overview of the project’s scope and objectives is established.

By breaking down the project into distinct phases and tasks, project managers can better anticipate their needs and develop a project timeline that accurately reflects the reality of the project.

Team members can also be assigned to specific tasks with appropriate allowances given for each stage, so that deadlines are met and resources aren’t wasted.

Monitor Project Progress

Throughout every project life cycle phase, the initial plan serves as a North Star to ensure the project stays on track. Without a plan, teams struggle to identify when tasks are overdue or if certain goals have been met.

Without guidance, teams might find themselves lost in the day-to-day details of project execution, struggling to maintain an overall perspective. Especially if they use a phased implementation approach, they could miss critical milestones or fail to notice if tasks fall behind schedule.

Enhance Team Communication

At each stage of the life cycle, team members should be kept updated on progress and provided with feedback where necessary. This provides them with a better understanding of how their work contributes to the overall project and ensures that resources are allocated as efficiently as possible.

Regular communication also enables teams to identify any unexpected issues or changes in scope before they become unmanageable.

Mitigate Risks

Risk management should be a key part of every project life cycle. By assessing potential risks in the planning phase, teams can develop mitigation strategies to reduce or eliminate any threats that could derail progress.

Risks can range from technical issues to human errors. Regular monitoring and communication helps teams identify these problems early on and adjust plans as needed, so that resources are not wasted.

Five Stages of the Project Life Cycle

Every successful project goes through five distinct project phases: initiation, planning, execution, monitoring, and closure.

Initiation

The initiation phase is the starting point of the project life cycle. Here, the project team will define the scope and objectives of the project, as well as lay out the timeline and resources needed to complete it.

Key activities in the initiation phase include:

Identifying project needs. This involves understanding the problem or opportunity that the project will address. It might include market research, stakeholder interviews, or a detailed review of business operations.
Defining project objectives. Once the need is identified, the team sets specific, measurable, achievable, relevant, and time-bound (SMART) objectives aligning with the organization’s goals.
Establishing project scope. The scope outlines what the project will and will not include, which is crucial for managing stakeholder expectations. It delineates the project’s boundaries in terms of tasks, resources, timelines, and outcomes.
Identifying stakeholders. Identifying all individuals, teams, or organizations with a vested interest in the project outcome, including clients, end-users, project team members, and senior management.
Developing a business case. This document justifies the need for the project, outlining the expected benefits, costs, risks, and timeline. It’s used to secure approval and resources for the project from decision-makers.
Appointing the project team. The project manager, along with other key team members who will be instrumental in planning and executing the project, are usually appointed during the initiation phase.
Drafting a project charter. This formal document gives the project manager the authority to use organizational resources to carry out the project. It typically includes the project’s objectives, scope, stakeholders, risks, budget, and preliminary timeline.

Planning

The planning phase is where the bulk of the project details are defined and organized. It acts as the blueprint for the project, detailing the who, what, when, where, and how of execution.

During this stage of the project management process, vested stakeholders carry out the following processes:

Documenting the project plan in detail
Defining resource requirements (e.g., personnel, equipment, materials)
Establishing a budget to ensure profitability
Creating a risk management framework
Developing a communication plan
Setting quality standards

Planning is an essential step to ensure the project runs smoothly. Especially in the case of complex projects (e.g., software development), it’s important to break down tasks into manageable chunks and decide how they will be tracked and reported on.

Execution

Execution can take many different forms, depending on the project’s initial purpose.

Product innovation, for instance, might involve prototyping and testing, while the development of a new marketing campaign can include creative tasks such as writing content or designing visuals.

During the execution phase, project managers will take care of the following:

Assigning tasks and organizing workflows
Briefing team members on assigned tasks
Managing stakeholder communication
Quality monitoring
Budget management

The execution phase heavily relies on the groundwork laid during the initiation and planning stages. A well-documented and thorough plan makes the execution process more efficient and effective.

Depending on the project management methodology used, various visual tools, like Kanban boards or Gantt charts, can be utilized to track progress and ensure that deliverables are completed as planned.

These tools, along with regular communication and vigilance regarding quality and budget, are critical to keeping the project on track during execution.

Monitoring

Monitoring. project performance is essential to ensure that the project is on track and able to meet established objectives. The monitoring phase involves tracking team progress against the baseline plan, evaluating results, and making adjustments as needed.

During this stage of the project life cycle, stakeholders carry out the following tasks:

Gathering data and performance metrics
Reporting on progress
Evaluating risks versus performance
Making decisions to adjust processes and resources as needed

Project managers may use tracking tools such as burn-up charts or control charts to monitor the progress of the project.

Visual aids help identify areas that require attention, including those where team members are falling behind schedule or budget constraints need to be revisited.

Closing

The closing phase entails project completion. In this phase, all final deliverables are submitted, resources are released, and the project’s success is evaluated. Even though the primary project work has been finished, the project manager still has several key tasks to carry out to ensure a comprehensive and successful project wrap-up.

These include:

Analyzing performance retrospectively
Analyzing team performance
Documenting project closure
Conducting post-implementation reviews
Accounting for used and unused budget

Even when the project’s work is completed, staying on task during the closing phase is essential for capturing learnings and preparing for future projects.

The closing phase ensures a thorough wrap-up and allows the project team to reflect on successes and areas of improvement, fostering continuous growth and improvement within the organization.