Agile Project Management: Basics, Strategies and Software
| Translated by Julian Hammer
We speak of agile project management when complex projects are divided into smaller stages, regular feedback takes place and the individual project stages allow flexibility for adjustments. For companies, agile project management methods present advantages such as a clear design, high quality results as well as close communication with employees and customers.
Unlike traditional project management, agile methods are significantly more flexible and adaptable. The most important methods for agile project management include Scrum, Kanban and Design Thinking. They all make it easier to work on projects in the course of which it is necessary to react to changes.
A suitable project management software is decisive for successful project implementation and should be chosen carefully. Below we explain what agile project management is all about, what advantages and disadvantages it offers and how you can find the perfect software for your projects.
Table of contents
- What Is Agile Project Management?
- What Are the Basic Principles of Agile Project Management?
- What Are the 5 Phases of Agile Project Management?
- Why Is Agile Project Management Important for Companies?
- When Does Agile Project Management Make Sense?
- What Are the Advantages and Disadvantages of Agile Project Management?
- What Are the Challenges and Risks of Agile Project Management?
- What Are Agile Methods?
- What Is The Difference Between Agile, Traditional, and Hybrid Project Management?
- What Is the Best Software for Agile Project Management?
- Conclusion On Agile Project Management
- FAQ
What Is Agile Project Management?
The definition of agile project management is simple: It is an approach in which complex projects are worked on across teams and in short, clearly defined sections (sprints). Instead of planning the course of the project from the beginning, the main focus is on clearly defined, more easily manageable project sections.
Teams that work in an agile manner can react flexibly to changes and unforeseen events. The main objectives of agile working methods include improving the quality of results, increasing customer satisfaction and shortening the time to completion.
The basic principles of agile project management – the pillars on which agile methods are based – are the following:
- Individual and personal interaction between employees and customers
- Provision of high-quality end products
- Independent task management by the project participants
- Independent recording of working hours
- Independent project planning
- Flexible working in Kanban boards
Another essential factor is the improvement of collaboration and communication in teams. This is possible with the help of Kanban boards, which keep all team members up to date at all times – regardless of location and time zone, even on the move.
External service providers can also be invited to the boards if required, which streamlines communication and collaboration and reduces e-mail traffic. External project participants are quickly integrated thanks to intuitive operation and uncomplicated onboarding.
With agile tools such as PLANTA Project, all information and data are visible in the respective task. Via e-mail, messaging or in-app notifications, project participants are informed about changes made in the boards. All changes can be tracked via activity tracking. The comment function allows you to write comments directly below a card.
What Are the Basic Principles of Agile Project Management?
The 12 basic principles of agile project management originate from the Agile Manifesto, which was drawn up in 2001. Although the principles were originally intended for software development, they can also be applied to other sectors and modern agile project management.
- Customer satisfaction: Top priority is given to the regular provision of valuable services according to customer requirements.
- Advantages by flexibility: Adjustments to requirements are possible at any time, giving customers a competitive advantage.
- Provision of results: Results are provided at regular intervals that are as short as possible, ideally within weeks or a few months.
- Collaboration across teams: Regular communication between all participants is indispensable for project success.
- Motivation: A supportive working environment and the provision of required resources motivate the team members.
- Personal communication: Face-to-face conversations are the most effective way to exchange information.
- Functioning products: Project progress is measured by how well the product works.
- Sustainable development: A consistent and continuous approach by all persons involved promotes sustainable development.
- Constant improvements: Continuous improvements of the technical quality and design increase agility.
- Simple: Striving for simple solutions is essential for efficient work. (KISS principle: keep it simple and stupid)
- Self-organized teams: The best results are achieved by teams that work and make decisions independently. Teams manage their tasks in a flexible manner using Kanban boards. Each team member can see the current status on the task card in the board – even when working across different time zones and in remote teams.
- Reflexion on a regular basis: Teams regularly review the way they work and adapt to become more efficient.
A step-by-step approach and constant feedback play a central role in agile project management. This makes it possible to react quickly to changes and adapt the implementation accordingly. Regular communication with customers and team members helps to increase product quality and ensure that the project objectives can be achieved.
What Are the 5 Phases of Agile Project Management?
Agile project management has 5 phases that structure the course of a project and ensure that it is realized effectively and in a targeted manner. These phases are designed to regularly check the progress of the project and make adjustments if necessary.
1) Planning
In the planning phase, the project scope is defined and the project objectives are determined. Furthermore, the project team is put together. A coarse schedule is drawn that defines the objectives for the upcoming sprints. This phase lays the foundation for the entire project and is decisive for its successful completion.
2) Conception
The draft pahse is focused on the creation of concepts or prototypes. In this phase, the basic product features and processes are defined, which serve as a guide for the rest of the process. Decisions on the project structure are made to ensure smooth implementation.
3) Development
In the development phase, the project is realized. This phase is iterative, whereas in each cycle specific results are achieved. The teams work closely together to ensure that the defined objectives and quality standards are achieved. This approach allows corrections and improvements to be made quickly in order to continuously optimize progress.
4) Monitoring
Testing is carried out in parallel with development to ensure that each project phase is successfully completed and expectations are met. Through continuous testing, problems are identified and resolved at an early stage. Regular feedback by team members and customers are decisive for an objective oriented way of working.
5) Conclusion
Finally, the results are handed over to the customer. This phase includes the final implementation and handover of the completed work. Feedback is collected to check whether all requirements have been met and whether any improvements are required. Subsequently, the process can be run through again.
Why Is Agile Project Management Important for Companies?
Companies rely on agile project management because it allows them to act quickly and effectively in a market environment which is subject to constant transformation. The flexibility of agile methods allows teams to react immediately to new developments and customer requirements.
Furthermore, agile work promotes an open and collaborative team culture in which employees can actively contribute their ideas. This increases motivation and commitment and leads to a creative working atmosphere.
When Does Agile Project Management Make Sense?
The agile way of working is particularly useful for projects that are characterized by planning uncertainties and rapid changes. E.g. in software development, in service projects, in marketing or in innovation projects, teams benefit from such processes. Projects which require close cooperation with customers or the requirements of which evolve over time, are perfect candidates for agile methods.
Start-ups and companies operating in dynamic markets also appreciate the opportunity to react quickly to new developments and optimize products effectively.
What Are the Advantages and Disadvantages of Agile Project Management?
One of the main advantages of agile project management methods lies in their adaptability. This makes it possible to react quickly to changes in customer requirements or project conditions. By dividing the project into smaller units and continuously providing interim results, the risk for delays and high costs is minimized.
Agile teams organize their tasks independently. The entire task management and team communication run transparently within the team with the help of features such as Kanban boards.
Close cooperation with the customer and continuous feedback ensure that expectations are better met. Agile project management also offers more precise metrics for efficiency and data-driven decisions, which makes planning and control easier.
What are the disadvantages?
Working with agile project management requires a high degree of discipline and self-organization in the teams. A lack of clear structures can result in uncertainties and inefficient processes – especially in projects that require a fixed objective. The challenge could also lie in ensuring that team members adhere to the new processes, always communicate transparently and adhere to this agile way of working.
In addition, constant adjustment and change can increase the workload and lead to a fragmentation of resources, which can make it difficult to focus on long-term objectives. Overall, however, agile project management offers considerable advantages.
Advantages and disadvantages of agile project management at a glance:
| Advantages | Disadvantages |
|---|---|
| Flexibility in the realization of projects | Insecurities due to a lack of clear structures |
| Facilitated planning and controlling of complex projects | Risk of inefficient processes due to self-organization |
| Minimization of the risk of high costs and delays | Difficult to focus on long-term objectives |
| Efficiency through regular feedback | |
| Close communication | |
| Portfolio analysis and prioritization tools | |
| Workflow management systems | |
| Collaboration tools |
Agile project management offers clear advantages vis-à-vis traditional approaches. Compared to the waterfall model, for example, which follows a linear and rigid sequence of project phases, agile project management is more flexible and allows to react more quickly to changes. Tasks can be flexibly assigned to individual team members and project participants can work on tasks simultaneously.
Agile project management must also be distinguished from the Critical Path Method (CPM) which has a strong focus on schedules and dependencies. While CPM provides a clear overview of the project progress, the agile working method offers a continuous change of the initial planning, which is particularly helpful in changing projects.
This is how you can minimize the disadvantages
Various measures are helpful in reducing the disadvantages of agile project management. Uncertainties can be avoided, for example, through clearly defined roles (Product Owner, Scrum Master, Stakeholder) and regular exchanges between different team members. Agile projects also require planning and the collection of tasks in backlogs as well as the prioritization of these tasks.
Hybrid approaches that combine elements from traditional and agile methods are ideal for many project types. For example, the clear structure of the waterfall model can be used in the planning phases, while the adaptability of the agile approach comes into play in the execution phase. Short daily or weekly consultations and regular reflections within the team also help to promote discipline and efficiency in an agile environment.
What Are the Challenges and Risks of Agile Project Management?
If the teams have been working with traditional methods up to now, difficulties can sometimes arise during the transition to agile working methods. Typical challenges are the transition from rigid processes to flexibly working, self-organized teams, the establishment of a culture of continuous learning as well as the adjustment of existing processes.
Furthermore, a lack of comprehension and skepticism in the team can also complicate the transition. The risks that come with the introduction of agile methods include misunderstandings about roles and responsibilities, inadequate employee/team member training and the risk that agility leads to a chaotic working method.
Possible challenges at a glance:
- Transition to self.organized teams
- Establishment of a culture of continuous learning
- Adjustment of existing processes and tools
- Skepticism in the team
- Insufficient training
Possible risks of the agile working method
- Misconceptions about roles and responsibilities
- Risk of chaotic working methods
What Are Agile Methods?
Agile project management methods are specific approaches that offer different procedures for the efficient and variable implementation of projects. The main objectives of methods such as Scrum and Kanban are to accelerate the project process, minimize risks and create the possibility to easily adapt planning to changing circumstances.
Traditional methods often fail due to their rigidity and inability to react quickly to unforeseen changes. In a market that is constantly evolving, such methods are too restrictive to meet requirements.
The most important methods in agile project management at a glance:
1) Scrum
Scrum is an agile framework that helps teams to manage complex projects in a clear and efficient way. The main components are sprints, short work phases with defined objectives, and daily stand-ups, short daily meetings for coordination. Retrospectives are also a component of these agile project management methods, in which the team reflects their work after each project phase in order to identify any need for improvement.
The roles in the Scrum team include the Scrum Master, who moderates the process, and the Product Owner, who is responsible for prioritizing the backlog. Of course this also requires team members who realize the actual work. A typical Scrum project process begins with planning, followed by implementation and a final review and retrospective.
2) Kanban
Kanban is focused on the visualization of working processes. A central idea is to limit the number of tasks being worked on simultaneously (work in progress) in order to avoid overload and increase focus.
A Kanban board structures the workflow and organizes tasks into columns that represent different phases of the process. Each task is represented as a card and is moved across the board from left to right until it is completed. This visualization allows project team members to quickly identify bottlenecks and optimize the workflow.
In comparison with Scrum, Kanban is even more flexible and less structured. There are no fixed sprints or roles, and tasks are processed continuously, while Scrum relies on iterative cycles and a clearly defined distribution of roles.
3) External Programming (XP)
This agile project management method emphasizes speed, simplicity and short development cycles with a smaller scope of documentation. The main practices include pair programming, in which two people work together on a task, and test-driven development (TDD), in which tests form the basis for further work.
Besides simplicity and communication, XP also demands courage and respect. If these values are implemented in the teams, they help to talk openly about problems and find solutions together for successful project implementation.
4) Scrumban
Scrumban is a hybrid method that combines the structured approaches of Scrum with the flexibility of Kanban. Originally developed to ease the transition from Scrum teams to Kanban, Scrumban combines the best elements of both methods. It uses the sprints and roles of Scrum, while integrating the visualization of work processes of Kanban.
This method is particularly suitable for projects that require regular planning intervals and a high degree of adaptability, as well as for teams that operate in dynamic environments and want to maintain a clear structure at the same time. Typical use cases include ongoing product development and maintenance, where priorities change frequently.
5) Design Thinking
Design Thinking is a human-centered approach to creative problem solving that is divided into five phases:
The empathize phase is about understanding the requirements and challenges of the users.
Define means translating these findings into clear problem definitions.
In the ideate phase, creative solutions are developed.
These ideas are turned into tangible models in the prototype phase.
Finally, the results are checked and optimized in the test phase.
Design thinking promotes creative problem solving by encouraging interdisciplinary teams to think from the user’s perspective and develop efficient solutions. This approach allows you to tackle complex problems in a structured yet individualized way, always focusing on the actual needs of the users.
6) Design Sprint
A sprint design is a process that also consists of five phases. The agile project management method was developed to find and test innovative solutions to complex problems in a short space of time. The phases include Understand, Sketch, Decide, Prototype and Test.
The Understand phase focuses on analyzing the problem and collecting all relevant information.
In the sketch phase, the project participants develop various proposed solutions.
The decide phase serves to choose the best ideas and create a clear plan.
It is followed by the prototype phase during which a functional prototype of the chosen solution is developed.
At the end, there is the test phase in which it is tested by real users.
The benefit of this method lies in the ability to get from a problem to a tested solution within a short period of time. This makes it possible to go through rapid innovation cycles and minimize risks by validating ideas at an early stage. Design sprints are particularly valuable in changeable markets where creative solutions are required.
7) Lean Startup Method
The lean startup method aims to think big but start small. It is primarily an approach for founding companies and implementing business ideas. The focus is on efficient processes and continuous learning through customer-oriented testing. The lean startup cycle, which is called Build Measure Learn (BML), is central to this.
The first step is to develop a minimum viable product (MVP) that is reduced to the most important functions. Before the next phase begins, the assumptions are clearly defined and prioritized so that they can be checked in the learning phase. They are evaluated according to the expected customer benefit and risk, and the test ideally starts with the most critical hypothesis.
After the development, the MVP is tested together with customers. The results of these tests are used to refine the product ar change the course. The focus is on solving customer problems and adapting the idea based on feedback. Non-functional features are eliminated and the knowledge gained is incorporated into the next cycle to further optimize the product.
What Is The Difference Between Agile, Traditional, and Hybrid Project Management?
Agile project management relies on the cross-team processing of tasks in time-limited sections of a project, constant feedback cycles and the ability to react quickly to changing conditions. Traditional project management follows a linear, phase-based structure with clearly defined objectives and schedules.
Hybrid project management combines elements of both approaches by uniting the flexibility of the agile approach with the structure of the classic model. Commonalities between the approaches include the objective of completing projects efficiently, the need for clear communication and the importance of planning and control.
Agile vs. traditional project management
Looking at different project management methods, it becomes clear that they differ in fundamental aspects. Traditional project management is characterized by clear and rather rigid planning with linear phases like a waterfall. It is suitable for projects with fixed objectives and little room for change. The advantages are the high degree of predictability and control, while the disadvantage is the lack of adaptability.
Agile project management, on the other hand, is constantly changing and ideal for projects in which the interim results play just as important a role as the final objective.
Agile vs. hybrid project management
Hybrid project management arose from the desire to combine a structured approach with flexibility. It combines the dynamics of agile project management with the planned stability of classic methods. Hybrid project management allows to combine fixed outline plans with agile sprints.
The advantage of hybrid approaches lies in their versatility. However, such project management also requires the ability to seamlessly integrate different methods while maintaining a balance between predictability and adaptability. This requires integrated PM software that supports the hybrid approach so that the use of the two different types of planning does not turn into a complex coordination of different tools.
What Is the Best Software for Agile Project Management?
Although every project naturally comes with its own requirements and special features, the right project management software ensures that companies are equipped for every challenge. Agile PM tools should have a number of features including adjustable board views such as task cards, lists and calendars as well as easy conversion to specific workflows.
Other important aspects include the ability to prioritize tasks, plan stages and receive updates on changes to tasks in real time. Integrated communication functions and analysis tools should also be available to monitor progress and make changes quickly. The software must be intuitive and user-friendly in order to meet the diverse requirements of flexible teams in agile projects.
Here you can see the list of the best software for agile project management, including the advantages of the tools:
1) PLANTA
Compared to other project management software, PLANTA impresses with its excellent price-performance ratio and the manufacturer’s many years of expertise. With over 40 years of experience, PLANTA offers flexible solutions “Made in Germany” that support both traditional and agile methods. The software is suitable for companies of all sizes and adapts easily to the requirements of simple and complex projects.
Integrated task management is the ideal introduction to agile project management. The intuitive user interface allows for quick familiarization, supported by video instructions and tutorials. PLANTA Project contains comprehensive functions such as Kanban boards, time recording and intuitive task management.
The software offers extensive communication, clear structuring of projects and simple integration of external participants. With functions such as activity tracking, comment function and board archiving, it supports location- and time-independent working and efficient team collaboration.
While PLANTA Project combines the best features of the agile way of working, the PLANTA Software Suite offers hybrid project management. It is an integration of two software solutions that combines the traditional project methods with the agile methods.
PLANTA already helped lots of companies to take their project management to a new level. Losan Pharma GmbH, for example, used the tool to establish hybrid project management throughout their company. The proven traditional planning method is continued, while it supports the agile task management via Kanban boards.
Hermes has implemented PLANTA Project as well for their agile project management. This tool facilitated web-based collaboration in distributed teams, especially during the pandemic. Increased transparency, faster project planning, better information transfer for all team members and more up-to-date data were the benefits of the implementation.
2) Jira
Jira is a versatile project management software that was developed especially for agile teams and can also be linked to PLANTA. With powerful Scrum and Kanban boards, Jira enables the visualization of workflows and the efficient management of tasks. Adjustable boards support teams in dividing large projects into more manageable tasks and to limit work in progress in order to boost productivity. The timeline view helps to maintain an overview and communicate changes quickly.
Jira also offers extensive integration with other tools and supports customized workflows that meet the needs of every team. With real-time centralization and automation functions, Jira ensures that everyone involved is always up to date. It is therefore a central tool that brings teams together under one roof and increases the efficiency of project implementation.
3) Asana
Asana supports teams in organizing tasks effectively and concluding projects with more success. The most important functions include task and project management in different views such as lists, calendars, timelines or Kanban boards. This flexibility allows teams to structure their work according to their workflow.
The PM tool facilitates collaboration by making it possible to assign responsibilities, set due dates and define dependencies between tasks. Team members can directly write comments on the tasks, attach files and exchange information about progress. Asana also offers custom fields and forms to capture information consistently and manage work requests centrally.
With real-time reporting tools and resource management functions, project participants and managers always have an overview of their capacities and the progress of their projects. Asana promotes transparency and efficiency in the team by bringing all relevant information together in one central location and synchronizing work in real time.
Conclusion On Agile Project Management
Agile project management offers numerous advantages. In addition to the increased clarity, project team members benefit from an intensive exchange, can implement customer requests directly and work in a self-organized manner. The result is increased efficiency.
If you want to combine agile with traditional methods, hybrid project management software is the best choice. Such PM tools are suitable for a wide range of projects and combine the best of both worlds. So take your time to test various PM software tools. Many providers offer free test phases, allowing you to find out directly what best suits the requirements of your projects.
FAQ
Can I also use agile project management for large-scale projects?
Yes, if a large, complex project does not necessarily have to run in a linear fashion, it can benefit from the flexibility of the agile method. By dividing the project into smaller, manageable units and regularly optimizing interim objectives, even a mammoth project remains easy to manage.
How is the success of an agile project measured?
The success of an agile project is measured by the continuous delivery of qualitative results and the team’s ability to react quickly to changes. Other indicators include adherence to schedules and budgets as well as the effectiveness of cooperation. Customer satisfaction is also a measure of project success.
What is the difference between agile and traditional project management?
Agile project management is flexible and transformable. It allows you to quickly react to changes and promotes collaboration across different teams. Traditional project management, on the other hand, follows a fixed plan with clear phases and objectives, with improvements often only being made at the end.
