How to Succeed With Project Planning: Step-by-Step Guide

Who is this article for?

• Companies of all sizes, from startups to enterprises, that run projects
• Agencies and professional services firms that deliver client projects
• Product and software development companies building new offerings
• Departments like marketing, HR, finance, IT that run internal projects
• Project managers, program managers, product managers, team leaders
• Executives, directors, VPs who oversee projects and portfolios

Project planning is relevant for anyone responsible for the successful delivery of projects. A well-planned project provides clarity on objectives, tasks, timelines and resources for the entire team.

What is project planning and why is it important?

Project planning is the process of defining the scope, objectives and way in which a project will be carried out. It’s one of the most important steps in project management that sets up a project for success.

• Define clear project objectives and deliverables
• Identify all the work that needs to be done
• Estimate time, costs and resources required
• Anticipate risks and plan for contingencies
• Get everyone on the same page regarding the project

8 key steps in the project planning process

1. Define project scope and objectives

The first step is to clearly define what the project aims to accomplish – the scope and objectives. Meet with key stakeholders to understand their needs and expectations from the project.
Some questions to consider:

• What are we trying to achieve with this project?
• What will be the end deliverables?
• What are the project timelines and budget?
• Who are the stakeholders and what do they expect?

Document the project scope statement that describes the key objectives, deliverables, milestones, budget, and stakeholders. This will serve as the foundation for the rest of the planning.

2. Break down the work structure

With the high-level scope defined, the next step is to break down the project into smaller, manageable chunks of work. This is called creating the work breakdown structure (WBS).
Start by identifying the major deliverables or components of the project. Then break each of those down into specific tasks and subtasks that need to be completed.
For example, if you’re planning a website redesign project, the major deliverables could be:

1. Discovery and planning
2. Information architecture and wireframes
3. Visual design
4. Development and QA
5. Content migration
6. Launch

Each of these can be further divided into specific tasks. The discovery phase may involve tasks like stakeholder interviews, user research, content audit, etc.

3. Sequence tasks and identify dependencies

Once you have a list of all the tasks, decide the order in which they need to happen. Identify which tasks are dependent on others and which ones can happen in parallel.
For instance, development can’t start until the designs are ready. But content migration may be able to happen simultaneously with development.
Create a network diagram or Gantt chart to visualize the sequence of activities and dependencies between them. This will form the basis of your project schedule.
Creemers et al. (2015) suggest incorporating the risk of activity failure and pursuing alternative technologies while sequencing project tasks to mitigate risks.

4. Estimate effort and duration

The next step is to estimate how long each task will take. Consult with your team members who will be doing the actual work to understand the effort involved.
Ask them to provide best case, worst case and most likely case estimates. Consider things like:

• How big is the task? How complex?
• Are there any unknowns or uncertainties?
• Who will be doing the work? What’s their skill level?
• Are there any dependencies or constraints?

Based on the estimates, assign a final duration to each task. Add some buffer to account for unexpected delays or issues that may come up.

5. Assign resources to tasks

Figure out the type and number of resources needed for the project. This includes people, equipment, tools, facilities, materials, and budget.
Determine the roles and skill sets required. Identify which team members will do what based on their skills and availability. Make sure you’re not overloading people or creating conflicts between tasks.

6. Develop a project schedule

Bring together the estimates, task sequences, and resource assignments to create the project schedule. The schedule shows when each task will be done, by whom, and how long it will take.
A Gantt chart is a popular way to visualize project schedules. It shows tasks and milestones on a timeline, with dependencies between them.
Build some flexibility and buffers into the schedule to accommodate changes or delays. As Verganti (1999) suggests, planned flexibility allows you to adapt the process based on decisions made early in the project.

7. Identify and plan for risks

Every project comes with risks and uncertainties. Identify what could go wrong and how it would impact the project. Assess the likelihood and severity of each risk.
Develop contingency plans for the most significant risks. Figure out how you will avoid, mitigate or cope with them if they do occur. Build appropriate buffers into the schedule and budget.
Some common project risks include:

• Scope changes or unclear requirements
• Unforeseen technical challenges
• Resource or skill shortages
• Dependencies on external parties
• Stakeholder disagreements or lack of engagement

8. Communicate and collaborate on the plan

A project plan is only as good as the buy-in and participation it generates from the team. Make sure to review and collaborate on the plan with all key stakeholders.
Present the plan to the team and ensure everyone understands their roles and responsibilities. Provide opportunities for people to ask questions and give feedback.
Store the project plan in a central location that’s accessible to everyone, like a shared drive or project management tool. Let people know how they can access the latest version anytime.

Mistakes to avoid in project planning

• Unclear scope and objectives: If the project goals are vague or there’s no agreement on what’s included and excluded from the scope, you’re setting yourself up for problems down the road.
• Lack of stakeholder engagement: Not involving key stakeholders in planning can lead to misalignment on objectives, lack of resources or support, and difficulty getting approvals or decisions later on.
• Underestimating time and effort: Many projects suffer from overly optimistic schedules that don’t factor in the full complexity of tasks, leading to missed deadlines and overworked teams.
• Overcommitting resources: Taking on too many projects or not planning for people’s availability can lead to resource conflicts, burnout, and loss of productivity.
• Failing to manage risks: Not adequately identifying or preparing for potential risks can derail a project when issues inevitably come up.
• Skipping the planning: Jumping straight into execution without a clear plan is a recipe for chaos. Lack of clarity on objectives, roles and timelines will lead to confusion, delays and wasted effort.

How Tallyfy streamlines project planning

Tallyfy is a powerful yet simple workflow management software that helps you digitize and streamline your project planning process:

• Structure intake:Standardize project requests and collect all the necessary information upfront through online forms.
• Plan workflows: Map out the sequence of tasks, hand-offs and approvals with an intuitive visual workflow builder. Set deadlines and assign tasks to team members.
• Collaborate on tasks:Work together on tasks, share files and comments, and get notified when tasks are ready for you.
• Track progress: See the real-time status of projects and tasks on live dashboards. Identify bottlenecks and keep work moving.
• Analyze and improve: Monitor project metrics and get insights to optimize your planning process over time.

In summary, effective project planning is critical to deliver projects successfully. By following a structured process, collaborating with stakeholders, and using the right tools, you can build realistic and achievable project plans.

How Are AI and Related Technologies Changing Project Planning?

Artificial intelligence and related cutting-edge technologies are beginning to fundamentally reshape how companies approach project planning. AI-powered tools can analyze vast amounts of data, identify patterns and insights, and make intelligent recommendations to optimize project plans in ways that were not possible before.

For example, AI algorithms can analyze historical project data to accurately forecast task durations, resource needs, and potential risks. According to Creemers et al. (2015), AI can help project planners optimally schedule activities while accounting for uncertainty and the risk of task failures. The algorithms prescribe which alternative paths to explore and how to schedule them to maximize the expected value of the project.

Machine learning models can also identify the most critical tasks in a project plan – those that have the biggest impact on overall timeline and budget. This allows managers to focus their efforts on the right areas. As Kosztyán (2015) describes, matrix-based models powered by AI can rank project scenarios and structures by importance, allowing planners to prioritize the most important or least costly/time-consuming paths.

AI can also enable project plans to dynamically adapt as circumstances change. As Lévárdy and Browning (2005) propose, if a project is behind schedule, AI could automatically adjust downstream activities that may no longer be feasible as originally planned. Or if the project is ahead of schedule, AI could identify additional improvements to capture more value. The project plan essentially becomes a living, evolving entity.

Looking further ahead, we can imagine AI project management assistants that monitor progress in real-time, predict issues before they occur, and proactively recommend course corrections. Project planning may become a highly automated process, with humans mainly involved in making strategic decisions while AI handles the granular optimization and execution.

Of course, there are challenges to overcome, such as collecting sufficient high-quality data to train AI models and ensuring algorithms are not introducing harmful biases. But the impact is already being felt. A study by Tasevska et al. (2014) found that companies using AI-enhanced enterprise resource planning (ERP) systems for project management reported higher rates of customer satisfaction and project quality.

In the coming years, expect AI to become an indispensable tool for project planning – enhancing human decision-making, enabling greater adaptability, and ultimately leading to more successful project outcomes. Forward-thinking organizations will embrace these AI-driven approaches to project planning to stay ahead of the curve.

Related Questions

What are the five steps in project planning?

The five essential steps in project planning are defining the project goals, identifying tasks and resources, creating a timeline, assigning responsibilities, and analyzing risks. By carefully considering each of these areas, you can create a solid foundation for your project and increase the likelihood of success. Remember, taking the time to plan thoroughly can save you countless headaches and setbacks down the road.

What are the 5 key areas of project planning?

When it comes to project planning, there are five crucial areas to focus on: scope, schedule, budget, quality, and resources. Defining the scope helps establish clear boundaries and objectives, while creating a schedule ensures timely completion. Managing the budget keeps costs under control, and setting quality standards ensures the end result meets expectations. Finally, identifying and allocating resources, such as team members and materials, is essential for smooth execution. By giving each of these areas the attention they deserve, you’ll be well on your way to a successful project.

What are the 7 elements of a project plan?

A comprehensive project plan should include seven key elements: project objectives, scope statement, work breakdown structure (WBS), project schedule, budget, risk management plan, and communication plan. The objectives define the end goal, while the scope statement outlines what’s included (and excluded) in the project. The WBS breaks down the work into manageable tasks, and the schedule determines when each task will be completed. The budget estimates the costs involved, and the risk management plan identifies potential issues and how to mitigate them. Finally, the communication plan ensures everyone stays informed and on the same page. By incorporating these seven elements, your project plan will be thorough and effective.

What is a project plan and example?

A project plan is a detailed roadmap that outlines how a project will be executed from start to finish. It includes key elements such as objectives, scope, timeline, budget, and resources required. For example, let’s say you’re planning a charity fundraiser. Your project plan would include the event’s goals (e.g., raising a certain amount of money), the scope of what’s involved (e.g., venue, catering, entertainment), a timeline of when tasks need to be completed, a budget for expenses, and a list of volunteers and their responsibilities. By having a clear project plan, you can ensure that everyone involved knows what needs to be done and when, increasing the chances of a successful event.

References and Editorial Perspectives

Creemers, S., Reyck, B., D., & Leus, R. (2015). Project Planning With Alternative Technologies in Uncertain Environments. European journal of operational research, 242, 465 – 476. https://doi.org/10.1016/j.ejor.2014.11.014

Summary of this study

This study examines project planning in uncertain environments where activities have a risk of failure that could jeopardize the entire project. To mitigate this risk, the authors propose considering alternative technologies to reach project objectives. Their model incorporates both activity failure risk and pursuit of alternatives, using algorithms to determine optimal scheduling of alternatives to maximize project value.

Editor perspectives

As a workflow platform, we find this study highly relevant for project and process management. Tallyfy enables teams to plan projects with alternative paths and contingencies built-in, to proactively mitigate risks rather than reacting to failures. This type of flexible, risk-aware project planning is crucial in today’s uncertain business environment.

Kosztyán, Z., T. (2015). Exact Algorithm for Matrix-Based Project Planning Problems. Expert systems with applications, 42, 4460 – 4473. https://doi.org/10.1016/j.eswa.2015.01.066

Summary of this study

This paper introduces a matrix-based method for project planning that factors in task importance and probability of completion. The algorithm determines the most important project scenarios or least costly project structures, providing a foundation for project expert systems and decision-making tools.

Editor perspectives

At Tallyfy, we’re always looking for innovative approaches to structuring and optimizing projects and processes. This matrix-based method could enhance how our platform helps users design efficient project plans and make data-driven decisions. Integrating task criticality and scenario analysis would be a powerful addition.

Lévárdy, V., & Browning, T., R. (2005). 9.1.2 Adaptive Test Process – Designing a Project Plan That Adapts to the State of a Project. INCOSE International Symposium, 15, 1276 – 1295. https://doi.org/10.1002/j.2334-5837.2005.tb00749.x

Summary of this study

This research proposes an adaptive approach to project planning and control, where activity modes can dynamically recombine based on the evolving project state. By assuming the project will adapt from the outset, the resulting project plan is more accurate, realistic and flexible. The method also supports corrective action decisions during project execution.

Editor perspectives

Adaptive project planning is a game-changer. At Tallyfy, we believe workflow management should enable agility, not constrain teams with rigid plans. Building in the assumption of change from the start leads to much more resilient project plans. We’re excited to see more research on dynamic planning methods like this.

Tasevska, F., Damij, T., & Damij, N. (2014). Project Planning Practices Based on Enterprise Resource Planning Systems in Small and Medium Enterprises — A Case Study From the Republic of Macedonia. International journal of project management, 32, 529 – 539. https://doi.org/10.1016/j.ijproman.2013.08.001

Summary of this study

This case study examines project planning practices in Macedonian SMEs implementing ERP systems. The authors found that while SMEs generally followed project planning practices, they did not use specific tools like Gantt charts. Business case development, scope definition, and baseline planning were the most common, while risk planning was least practiced.

Editor perspectives

SMEs often struggle with adopting formal project management practices, especially for complex initiatives like ERP implementations. At Tallyfy, our goal is to make best-practice project and process management accessible for all organizations. This study highlights the need for intuitive tools that guide SMEs through critical planning steps.

Karakasidis, K. (1997). A Project Planning Process for Business Continuity. Information management & computer security, 5, 72 – 78. https://doi.org/10.1108/09685229710182857

Summary of this study

This paper presents a framework for business continuity planning, starting with a business recovery timeline model. It outlines the key components to consider in a business continuity project planning process as part of an overall risk reduction program.

Editor perspectives

Business continuity is an often overlooked aspect of project planning. At Tallyfy, we believe in proactive risk management, and business continuity should be a key consideration. This framework provides a helpful starting point for teams to integrate continuity planning into their project workflows.

Vareilles, É., Coudert, T., Aldanondo, M., Geneste, L., & Abeille, J. (2015). System Design and Project Planning: Model and Rules to Manage Their Interactions. Integrated computer-aided engineering, 22, 327 – 342. https://doi.org/10.3233/ica-150494

Summary of this study

This article proposes a model and rules for managing the interactions between system design processes and project planning. The authors establish a one-to-one relationship between the system structure and project structure, and define a process of interaction to carry out integrated design and project management.

Editor perspectives

At Tallyfy, we recognize that system design and project planning are tightly coupled. Misalignment between the two can derail a project. This model for systematically linking and synchronizing design and planning activities is something we’d love to explore incorporating in our platform to help teams manage these critical interactions.

Nguyễn, H., N., Exner, K., Schnürmacher, C., & Stark, R. (2014). Operationalizing IPS2 Development Process: A Method for Realizing IPS2 Developments Based on Process-Based Project Planning. Procedia CIRP, 16, 217 – 222. https://doi.org/10.1016/j.procir.2014.01.024

Summary of this study

This paper presents a method for operationalizing the development process for Industrial Product Service Systems (IPS2). The method enables transferring a generic PSS development process into concrete project plans within project management software, based on a process-based approach that results in complete, high-quality plans.

Editor perspectives

The shift towards product-service systems requires new approaches to integrated development. At Tallyfy, we’re passionate about enabling seamless workflows across functions. This method for translating a reference process into actionable project plans is a great example of the power of process-based work management.

Laufer, A. (1992). A Micro View of the Project Planning Process. Construction management & economics, 10, 31 – 43. https://doi.org/10.1080/01446199200000004

Summary of this study

This study takes a descriptive look at the decision-making process in the early stages of project planning. The author interviewed managers to assess the involvement and relative efforts of various parties in defining project scope, organization, and schedule, at both the conceptual planning and engineering design stages.

Editor perspectives

At Tallyfy, we believe that understanding how planning actually happens is key to designing effective tools. This micro-level view of the planning process interactions and decision points is invaluable. Supporting the real-world dynamics of collaborative planning is a must-have for modern work management platforms.

Verganti, R. (1999). Planned Flexibility: Linking Anticipation and Reaction in Product Development Projects. The Journal of product innovation management, 16, 363 – 376. https://doi.org/10.1016/s0737-6782(98)00067-8

Summary of this study

This article examines early development practices in companies and identifies four approaches balancing anticipation (early decision-making) and reaction (delaying decisions). The authors introduce the concept of “planned flexibility” – building flexibility into the development process through early decisions that enable later adaptation.

Editor perspectives

Planned flexibility resonates strongly with Tallyfy’s philosophy. We aim to help teams make the early decisions that create options and resilience, not lock them into rigid paths. Enabling both proactive structure and reactive agility is the sweet spot for workflow management, and an approach we strive to support.

Filipova, M. (2010). Peculiarities of Project Planning in Tourism. Perspectives of Innovations, Economics and Business, null, 57 – 59. https://doi.org/10.15208/pieb.2010.15

Summary of this study

This paper discusses the need for tourism companies to establish project teams to address unique problems not covered in strategic or operational plans, due to the dynamic nature of the tourism environment. These teams have competencies specific to solving individual, often one-off issues.

Editor perspectives

Even in industries like tourism that rely heavily on established processes, the ability to spin up focused project teams is crucial. At Tallyfy, we see enabling this kind of organizational agility as a core value of workflow management. Empowering teams to flexibly address emerging challenges is key to resilience.

Glossary of terms

Project planning

Project planning is the process of defining the scope, objectives and course of action to achieve a project’s goals. It involves determining the tasks, timeline, resources, budget and risks involved in executing the project successfully. Effective project planning sets the foundation for smooth execution and delivery.

Work breakdown structure (WBS)

A work breakdown structure is a hierarchical decomposition of the total scope of a project into smaller, more manageable components called work packages. It is a key project planning tool that organizes and defines the complete work necessary to accomplish the project objectives. The WBS provides a clear framework for execution, monitoring and control.

Gantt chart

A Gantt chart is a type of bar chart that illustrates a project schedule, showing the start and end dates of tasks and milestones. Tasks are listed vertically, with horizontal bars representing the duration of each task. Gantt charts provide a visual overview of a project’s timeline and dependencies, making them useful for planning and tracking progress.

Critical path

The critical path is the longest sequence of tasks in a project plan that must be completed on time for the project to meet its deadline. It is the series of dependent activities that directly impact the project end date. Identifying the critical path is crucial for prioritizing tasks, allocating resources and managing risk to keep the project on track.

Resource leveling

Resource leveling is a project planning technique used to adjust the start and end dates of tasks based on resource constraints, with the goal of balancing resource demand. It involves delaying non-critical tasks to resolve over-allocations and ensure that resource usage is within available limits throughout the project. Resource leveling helps optimize utilization and avoid bottlenecks.