Project Management: Differences between Agile Methodology and Traditional Approach Communication - Coursework Example

Project Management Introduction There are two main approaches to project management that if applied can lead to a success of the project. The two approaches include agile project management approach and traditional management approach. Application of the two approaches depend on the choice made by the project team considering whether modern technology is the most appropriate or the traditional methods still have advantages. However, due to complexity and the manner in which businesses have interconnections today than ever before, traditional methods are becoming less popular. In addition, businesses decline traditional organizational structures characterized with complex communities. Such complex communities comprise of outsourcing vendors, competitors, strategic suppliers, network suppliers, customers and partnerships. Consequently, the alliances enable organizations to address the pressure of new changes, time-to-market compression, increasing complexity at different times, global competition and rapidly changing technologies. Such multifaceted nature of businesses means that projects that implements new systems of businesses also become complex. Differences between Agile Methodology and Traditional Approach Communication Traditional approach to project management uses formal type of communication between management and workers. The formal language makes interactions between the junior staff and management to be more official and restricted. However, agile methodology applies informal type of communication among its workers. The informal communication creates freedom among the employees as they interact freely with their bosses and amongst themselves. Consequently, collaboration becomes fundamental to this methodology of agile project management. Development Model Traditional approach to project development model is life cycle model that also refer to waterfall, modified models and spiral. Agile development on the contrary mainly utilizes delivery model that is evolutionary in nature. Developers Traditional approach to project management has plan orientation together with adequate abilities in the production of new items. Traditional methods also have access to external knowledge outside the boundaries of the firm. Agile methodology on the other hand has advanced knowledge that is co-located and corporative (Journal 2013, p. 1978). Thus, agile model becomes more inclusive than the traditional methods. In traditional approach, there is no additional ability required from the developer. However, basic knowledge of the business and interpersonal abilities are essential from developers in the case of agile methodology. Clients Both traditional and agile methodology show some similarities and comparison. For instance, in both cases, clients have access to knowledge and representatives who are empowered. Fundamental Hypothesis In traditional approach, systems have full predictability and specification and its development is through a detailed plan with extensions. In agile methodology of project management, small teams develop adaptive software that is of high quality. Agile methodology also utilizes the use of continuous design improvement principle together with change and feedback based on testing. Management Style Agile methodology emphasizes on leadership and collaboration while traditional approach mainly capitalizes on control and command. Agile project management methods link closely to the leadership under no time limits (Milosevic et al., 2009, p 72). Compared to traditional approach to project management, agile provides more solutions to measures that facilitate leadership. The manager of any project that incorporates agile type of project management works efficiently and effectively with the IT management, client management as well as other key stakeholders. Consequently, all the stakeholders become familiar with the project status and progress. Moreover, through leadership and collaboration, agile methodology enables project manager to eliminate any barriers that hinder the core values of the project team. Cost of Restart Agile approach moves focus from cost to revenue. The approach gives priority to features based on value, for instance, market share and increased revenue. Business analysts do everything possible to control investments of new solution developments. Traditional approach in contrary neither factors in control measures of mitigating cost nor guarantees value to the project team. Despite such limitations, traditional method involves deliberate and disciplined planning methods of control. Traditional methods enable accomplishment of projects in an orderly sequence, meaning one after the other. In construction, for instance, the team under traditional project management needs to determine first the project requirements. Thereafter, the team designs and plans for the entire construction and understands the team’s full effort scope. Assessment of Importance of Effective and Efficient Project Management Practices Monitor the Budget and Schedule Best practices in project management enable the project team to manage the work plan as they monitor the budget and schedule. The management comes after project team has sufficiently planned and the following step is the execution of the actual work (Sarker). After reconciling project definition with workplan and procedures, correct execution of the plans remains as the only challenge. Monitoring includes regular review of the workplan to determine project progress in relation to schedule and budget. Weekly review is sufficient for small projects while larger projects are suitable for at least two weeks. Managing and monitoring of workplan is also useful in identifying projects already done as well as updating the workplan about the accomplishment. Alongside updating the workplan, monitoring is also essential in determine whether there are activities that ought to be finished but still lying uncompleted. Monitoring the project is also essential in the sense that the team assesses money consumption. At this stage, the project team finds out if the project has consumed more funds that those budgeted for originally or it is still within the estimated budget. Consequently, the team can raise a risk to the stakeholders that the initial budget is inadequate for early remedies. Warning Signs The second importance of best practices in project management is that it provides room for looking at warning signs. The project team assesses signs that the project is likely to be in trouble. Such trouble include minor variance in budget or schedule that may gradually grow bigger more so at the early stages of the project. Creation of a Planning Horizon Effective and efficient project management is important in creating a planning horizon. During the process, the project team is capable of drawing systematic instructions for the workplan on project deliverables to manage the project (Dou, 2013, p. 520). A prior workplan may be applicable to assist the team in coming up with a model in case one exists. If there is none, the team can create one even if its old fashioned through utilization of break-down structure of work as well as network diagram. Creation of a detailed workplan lay project foundation at levels that are higher and reflects the increased uncertainty level. Consequently, vague higher-level uncertainties get more detailed definitions as set timeframe get nearer. Such definitions include timely assigning of resources where there are shortages and do the work estimation to the comfortable extent. Planning For Project Management Procedures In Advance The project procedure planning is a good method of outlining resources that will be useful during the project management. Such planning includes sections that handle how the team manages issues, communication, risk, and quality and scope issues. Through planning, project team gives the process a proactive and rigorous approach ensuring that the project team and the rest of the stakeholders develop a common understanding of the project management plans. In cases where procedures are already in place, the team simply utilizes them on the project. Guarding the Project against Scope Creep Effective and efficient project management practices are important in guarding the project against scope creep. Such measures enable managers to invoke management procedures that create scope change. Consequently, project managers remain capable of adding other major new deliverables and functions to the ongoing project. Efficient and effective management practices are useful because they enable project managers to recognize even minor scope changes that come as addition over time. Many projects come to stall when management fails to recognize scope creep and the project managers who use best practices of project management manage to guard. Identification of Risks Up Front Effective and efficient project management practices give project management an opportunity to identify risks up front. The project team manages to do known risks identification and eventually determine the chances that the risk will occur and all the potential implications it may have on the project. Management lays down strategies in place to mitigate such risks. In addition, project managers also get an opportunity to evaluate medium risks and decide if they need proactive management or not. Assessment of Potential Risks as the Project Proceeds Effective and efficient project management is also important in continuous assessment of potential risks as the project proceeds. The project team must periodically carry out an updated assessment of risk to determine possibility of other risks that have emerged to warrant a solution. Once the risk identification is complete, quick resolution or mitigation measures follow to ensure such risks do not spread beyond control. New Product Extended Lifecycle Project Plan for the Extended Lifecycle Using MS Project For the development of a new product that involves a software component, agile methodology becomes more effective to use than the rigid traditional method. Agile is largely a process that is iterative and incremental. Consequently, it provides for a collaborative environment to management and all the stakeholders to participate actively in the entire project management process. As project manager who is planning to launch a new handset, strategies for handling available challenges is vital. Such challenges include high competition, the short period of marketing and technicality of the new handset product. Conclusive measures must be in place to provide a tangible solution to such challenges (Brown et al., 2011, p. 70). Agile project management approach remains the most efficient because it gives room for fast implementation of the required features of the new handset using modern technology. Because agile methodology provides for collaboration, great ideas and creativity from various stakeholders can contribute immensely to the establishment of the technically complex handset. Moreover, agile model does not require large sums of funding therefore remaining the only best methodology to apply where there is little funding. Traditional approach has the characteristic of difficulty in planning and non-flexible control. Such approach may be inappropriate for the new product development considering that the product should reach the market as early as possible to beat the competitors. Moreover, the complexity of the product also requires the collaborative type of work that will enable early and easy testing of the product. It is evident that agile approach should be the best approach to use for the handset production and launch. (Source: Hass 2009, p. 3) Microsoft project is a powerful tool for software that requires wide skills and knowledge to utilize to its maximum potential. The fully revised edition gives users everything they need to manage projects with ease and effectiveness for a successful termination. Robust Approach to Risk Management Benefits Protection and Value Creation Robust approach protects and creates value. Through robust approach to risk management, he project team achieves improved performance and objectives in areas that revolve around corporate governance, project management and program together with safety and health of workers (Brown, Gutterman & Curry, 2011, p. 71). Robust management is an integral section of every organizational process. Risk management is not an independent variable performed in seclusion. It rather plays an integral role in accountability arrangements and governance, planning and reporting processes and in performance management as well. Significant Part of Decision Making Robust approach in risk management is a significant part of decision-making. It enables those responsible for projects decision making to reach an informed choice, identify most effective and efficient action to take and prioritize activities. In addition, robust risk management leads project team to address uncertainties explicitly (Poitras, 2013, p. 70). The approach makes sufficient efforts to identify nature of any uncertainty and means of addressing it. The approach suggests various ways of such as through sourcing of risk assessment information and risks control information. Uses Best Available Information Robust risk management approach is also useful in utilization of best available information. Risk management draws on historical data that are diverse and provides expert judgment based on stakeholders’ feedback to provide decisions that are evidence based (D OE, 2012-2016, p. 3). Furthermore, robust risk management approach is transparent and inclusive. Risk management finds timely and appropriate involvement with stakeholders in efforts to ensuring that the project stays relevant and up to date. By involving stakeholders in decision-making, the risk management team manages to accumulate diverse views that consequently help in determination of risk criteria. Dynamic, Responsive To Change and Iterative Furthermore, robust approach to risk management is dynamic, responsive to change and iterative. This feature enables risk management to have swift response to events both internally and externally. Such responses also cover any change in the environmental context as well as knowledge, monitoring and reviewing activities. Organizational Improvement Finally, robust approach in risk management provides the management with the ability to of continuously improving the organization. Robust approach facilitates improvement of continuous operations through development and implementation of strategies to improving the maturity of risk management. Bibliography Brown, R., Gutterman, A. S., & Curry, J. E. (2011). A Short Course In International Business Plans: Charting A Strategy For Success In Global Commerce. Petaluma, CA: World Trade Press. Cobb, C.G., 2011. Making Sense of Agile Project Management: Balancing Control and Agility. John Wiley & Sons, London. Department of Education, (2012-2016). Enterprise Risk Management Framework: Strengthening Our Commitment to Risk Management. Queensland Government, London. Hass, K. (May, 2009). The Blending Of Traditional and Agile Project Management. London: Project Smart. International Conference on Industrial Engineering and Engineering Management (IEEE), Qi, E., Shen, J., & Dou, R. (2013). The 19th International Conference on Industrial Engineering and Engineering Management. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=593068. Journal, P.M., 2013. Agile Project Management: Essentials from the Project Management Journal. John Wiley & Sons, Hoboken, NJ. Milosevic, D.Z., Martinelli, R., Waddell, J.M., 2009. Program Management for Improved Business Results. John Wiley & Sons, London. Poitras, G., 2013. Commodity Risk Management: Theory and Application. Routledge, London. Sarker, A. (2012). Improving the effectiveness and efficiency of project management technique for IT product/service development. Auctionwave. Vasteras: Malardalen University. Read More