Escalation Management in Project Management: Reasons, Types and Strategies
| Translated by Julian Hammer
Escalation management is about passing on problems that could jeopardize a project to higher levels in a structured manner in order to facilitate quick decisions and solutions. In many cases, escalation in a project is caused by communication problems which entail misunderstandings and delays. There are different types of escalation – e.g. functional, temporal or financial.
How can escalation in projects be avoided? To avoid escalation in projects, fast and direct communication between the project participants is necessary. This way, the problem can be identified at an early stage and rectified before it becomes more serious.
Companies use established procedures, best practices and strategies to successfully manage escalations. Not everybody knows the difference between escalation management and conflict management, but there is a clear difference: escalation management is focused on factual, formal problem solving, while conflict management aims to defuse interpersonal tensions.
Table of Contents
- What Does Escalation Mean in Project Management?
- What Are the Roles and Responsibilities in the Escalation Process in Project Management??
- What Are the Types of Escalation in Project Management?
- What Is the Escalation Procedure in Project Management?
- What Steps Are Necessary for Successful Escalation in Project Management?
- Escalation vs. Conflict Management
- How Can Companies Implement Escalation Management?
- Conclusion on Escalation in Project Management
- FAQ
What Is Escalation in Project Management?
Although the word “escalation” has a negative connotation in most people’s minds, escalation is a useful and sometimes even indispensable tool in project management. Projects rarely go according to plan and a crisis situation cannot or must not always be resolved by the team and project management.
In such cases, “escalating” means reporting the incident to decision-makers. If an effective problem solution is required, structured escalation management (EM) is often the only option.
Successful EM is based on a clearly described escalation process. All persons ivolved in the project must know who they can talk to about certain topics or in certain situations. At the same time, a project manager should master the art of escalation.
What are common causes of escalation in project management?
There are various causes of escalation in a project and they can occur in all project phases:
- Communication problems: One of the most common reasons for escalation is poor communication between those involved in the project or even the lack thereof. Insufficient communication can result in misunderstandings, wrong decisions and delays in the process.
- Interpersonal conflicts: Different personalities with individual views and opinions work in a team. Conflicts between project members therefore occur time and again and sometimes require escalation.
- Unclear responsibilities: If responsibilities are not clearly defined, this can lead to problems — tasks that are not assigned to anyone may remain unfinished and delays may occur that require escalation if they take on serious proportions.
- Resource bottlenecks: Resource bottlenecks are a common problem, especially in multi-project management, and often require escalation. Therefore, effective resource management and a good overview of resource utilization are particularly important to be able to replan quickly where required.
- Date delays: If milestones and deadlines cannot be met, the entire project can falter. Delays are often caused by inadequate risk management in the planning phase. In order to prevent a delay or even a standstill of the project, higher authorities sometimes have to intervene.
- Changes in requirements: In the event of changing requirements that have a significant impact on the project, a decision must sometimes be made at a higher level.
- Technical problems: Unexpected technical difficulties that jeopardize the progress or quality of the project may require escalation in order to find solutions quickly.
- Budget overrun: If it becomes apparent that the project budget will be overrun and an internal solution does not seem feasible, a higher decision-making level must usually be informed.
- Contractual or supplier problems: Conflicts with external partners, suppliers or subcontractors that affect the progress of the project may also require escalation.
Effective risk management often helps to avoid escalation by identifying and preventing potential problems at an early stage.
Why is escalation often misunderstood?
The main reason is probably that the word evokes negative associations for most people. Some interpret the need for escalation in projects as personal failure or a sign of insufficient individual responsibility in the team and is thus deferred or entirely avoided. Project escalations are also often seen as a last resort or a sign that the project is out of control.
Here, the term is actually misinterpreted – and escalation in project management is confused with escalation in conflict management:
- In conflict management, the term escalation is often used to describe the process in which tensions are increasingly intensifying and becoming potentially threatening.
- Escalation in project management on the other hand does not refer to growing potential for conflict but to a regulated procedure. It’s about communicating issues and their potential impact to decision-makers in a structured way so that they can make informed decisions and move the project forward.
The reasons for this misinterpretation can have their cause in the corporate culture. If there is no transparency regarding the procedure or if no structure for escalation has been established at all, this can lead to fears and misunderstandings.
What Are the Roles and Responsibilities in the Escalation Process in Project Management?
In an escalation in projects, the project managers and the decision-makers play different but clearly defined roles. This separation of areas of responsibility ensures that problems are forwarded to the right persons and that they are resolved quickly. This clarifies which competences a person has at each escalation level.
What Is the Role of the Project Managers?
At the lower escalation levels, the project management or project manager is responsible for escalation. It is the managers’ job to identify problems at an early stage and to analyze them. If schedules, resources, budget or quality deviate from the original plan, the management must first collect and evaluate all relevant information during the escalation process.
The project management must then try to find operational solutions as part of risk management in order to resolve the problem within the team or department before it is passed on to a higher level. If it cannot be resolved at this stage, the next step is to initiate escalation.
Clear communication vis-à-vis the decision-makers is important. This includes a detailed description of the problem, the potential impact on the project and the attempts already made to solve it.
What Is the Role of the Decision-Makers?
At the higher level of the escalation hierarchy, the responsibilities of decision-makers include assessing the situation based on the information provided and carrying out effective risk management. This includes a detailed verification of possible impact on the entire project as well as on the company or other projects in the portfolio.
If escalation is required because of a lack of resources, decision-makers are responsible for the provision of complementary means or for changing priorities to resolve the problem.
They are usually the ones that have the final say in decision-making and decide whether proposed solutions are approved or alternative measures are taken. Ultimately, they are responsible for the major decisions that will get the project back on track.
What Types of Escalation Are There in Project Management?
In the context of project management, a distinction is made between two types of escalation: formal and informal escalation. They differ in how structured and comprehensive the whole process is:
- Formal escalation: This process is structured and follows a precise plan. Protocols and reports are often drawn up to document the process. First and foremost, formal escalation takes place if the informal approach is not successful or if there is a serious problem that could jeopardize the entire project without rapid intervention.
- Informal escalation: If a problem arises, it is often attempted to solve it at an informal level. Informal escalation is therefore mainly limited to personal discussions within the team or with management. If the difficulties are not yet too far advanced, a formal escalation process may not even be necessary because the informal approach is effective.
All escalation types at a glance:
| Escalation type | Description | Typical causes |
|---|---|---|
| Formal escalation | Formal process which runs strictly according to specifications | Serious or advanced difficult situations that cannot be resolved informally |
| Informal escalation | Often without personal communication | Difficulties at an early stage and minor problems |
What Types of Escalation Are There?
When it comes to risk management in project management, there are different escalation types. They depend on the type of problem that has arisen. The reasons for such escalations can relate to time, content or persons. A precise classification of escalation types helps to solve the problem in a targeted manner and minimize project risks.
Escalation in time and quantity
This escalation type occurs when the entire project falls behind the schedule because certain milestones are not achieved in good time. If a problem arises, attempts are often first made to solve it at an informal level.
For example, in a construction project that is delayed due to supply bottlenecks for building materials. The project manager must escalate this to management in order to find alternative suppliers or organize additional resources.
Delays often cause domino-effects. Missed deadlines can result in financial losses, dissatisfied stakeholders and a lower overall project quality. In extreme cases, contractual penalties may be imposed or the project may be terminated.
Escalation in content and quality
Escalation in terms of content and quality refers to problems that are connected to the quality of products or services. This is the case, for example, if the delivered results do not meet expectations or the agreed specifications. The reasons for this include planning errors, a lack of coordination or inadequate quality control.
Let us look at a practical example: A software development project delivers a version that does not meet the agreed functionalities and contains numerous errors. The project manager must escalate this in order to obtain additional resources for improvements or to request an extension of the project duration.
Quality problems can result in considerable rework costs and damage the relationship with customers or stakeholders. They impair trust in the project team and increase the risk of contractual penalties and a lack of follow-up orders.
Escalation related to persons
The personal escalation concerns interpersonal conflicts, poor performance or personnel problems in the team. This type of escalation occurs when individual team members or groups do not work together efficiently. Conflicts can arise due to differing opinions, a lack of communication or personal tensions.
If, for example, a dispute arises between two departments in a project that blocks the flow of information and cooperation, action is required. The project manager must escalate this so that the management can intervene and find a solution to resolve the conflict.
Person-related escalation is particularly risky, as it has the potential to disrupt the team dynamic in the long term. Persistent conflicts lead to a loss of motivation, falling productivity and increased staff turnover.
What Is the Escalation Procedure in Project Management?
Ideally, the escalation procedure is a clearly defined process with defined responsibilities that all project participants know and can understand. Below we provide a detailed presentation of the typical escalation levels:
- Step 1 — Problem identification: The process of escalation begins as soon as a problem is identified that cannot be solved at the current hierarchical level.
- Step 2 — Problem analysis and preparation: Before escalation is initiated, the situation must be analyzed in detail. An escalation report is created on this basis.
- Step 3 — Escalation on the next level: Once the escalation has been decided and prepared, the decision-makers must be informed through formal procedures — and in a clear and comprehensible manner.
- Step 4 — Solution finding: The higher authority assesses the escalated problem and decides what action should be taken.
- Step 5 — Implementation of the measures: The project manager and the team implement the new instructions.
- Step 6 — Monitoring and success control: Once the measures have been implemented, the situation is monitored. Regular status reports and prompt communication are essential here.
- Step 7 — Conclusion and documentation: Once the problem has been resolved, the escalation process is formally closed. Complete documentation helps to better understand future escalations and avoid similar situations.
What Escalation Procedure Is Used in Multi-Project Management?
In multi-project management (MPM), the escalation procedure is usually more complex than in single project management. In MPM, multiple projects (often with links between them) are involved at the same time. This means that an escalation not only affects a single project, but that it can affect several projects, especially when shared resources are used or dependencies exist.
Different project managers and stakeholders must be coordinated, which complicates communication and decision-making. The escalation paths are less clear and often longer, as different management levels are involved, which leads to additional challenges.
What Steps Are Necessary for Successful Escalation in Project Management?
Not only in general project planning but also in escalation, a planned and structured approach is essential for the process to lead to success. We therefore want to explain the process of effective project escalation and also provide you with practical tips.
Here are the steps for a successful escalation at a glance:
- Preparation of an escalation
- Presentation of the escalation
- Monitoring the success of the escalation
1) Preparation of an escalation
First of all, the project management must gather all relevant information. This includes a problem analysis to identify causes and effects, as well as a risk analysis that identifies possible consequences for the overall project.
A clearly structured escalation report helps to document previous solution approaches and estimate potential risks. Precise and fact-based documentation makes it easier for decision-makers to recognize the scope of the problem and take appropriate action.
Early communication with the project team is of pivotal importance. All parties involved should be informed of the impending escalation to ensure that everyone is on the same page. This creates transparency and enables the team to support the escalation process as a whole.
Pro tip:
A high quality project management software such as the PLANTA system renders the escalation process quite simple. Project managers usually do not have much time for extensive preparation. PLANTA helps you to save valuable resources by indicating in good time if there is a risk of escalation.
2) Reporting to the next escalation instance
In order for an escalation to be successful, the facts should be reported clearly and transparently to the stakeholders, e.g. whether it is about exceeding deadlines and budgets or quality problems. The problem should be presented in such a way that everyone involved immediately recognizes the urgency of the escalation.
In his/her presentation, the project manager should always proceed in a solution-oriented manner. Stakeholders expect not only a precise description of the problem, but also a clear approach to solving it. A clear escalation report can help to make quick decisions.
Pro tip:
With PLANTA Project you can create status reports with traffic lights at the click of a button. The reports are sent to the decision-makers, who recognize the problem immediately. A workflow can be used to define approval via a specific position so that the project manager can then start implementing the measures with his team. This renders stakeholder communication short and effective.
3) Monitoring success after escalation
It is essential to continuously monitor the success of the measures introduced and to carry out measure evaluations on a regular basis. This ensures that the escalation achieves the desired results and that the problem is solved sustainably.
A key method for monitoring success is monitoring the implemented measures. This involves checking whether the agreed steps have been implemented as planned and what impact they will have on the further course of the project. Regular status reports help to document progress and provide stakeholders with up-to-date information on the project status.
Overall, a careful monitoring of success supports the project controlling and helps to strengthen trust in the escalation process. It shows that the escalation has not only led to problem identification, but also to a solution, and ensures that the project is back on track.
Pro tip:
The PLANTA system helps to analyze and document all findings gathered in the course of the project. This helps project managers to carry out future projects even more successfully, as they can learn from previous mistakes and obstacles.
Escalation vs. Conflict Management
Escalation and conflict management are two different concepts that are interconnected. Both processes aim to address problems or tensions. However, they take different approaches.
- Escalation refers to a formal process in which a problem that cannot be resolved on a certain level is passed on to senior decision-makers. It is a deliberate and formalized action to overcome obstacles and move the project forward.
- Conflict management, on the other hand, is about identifying interpersonal conflicts in teams or between stakeholders, moderating and resolving them. Here, the focus is on deescalating tensions and promoting a constructive conflict solution which is acceptable for all parties.
Sometimes, escalation can become a part of conflict management, e.g. when a conflict cannot be resolved within the team and is escalated to a higher level.
What are the three stages of escalation according to Glasl?
The esclation levels according to Friedrich Glasl describe the escalation process of conflicts in a step-by-step model. Glasl was a conflict researcher and developed this model to illustrate how conflicts can develop from cooperative to destructive phases.
He divides the conflict process into nine escalation stages, which are divided into three main levels:
Level 1: Win-Win
- Hardening: At the beginning, differences of opinion and tensions arise. The positions harden but both sides still believe in a solution that benefits all parties.
- Debate and polemics: The conflict intensifies. The conflicting parties begin to play off their arguments against each other and try to convince the other party.
- Actions instead of words: The parties no longer accept arguments and instead act independently without responding to the opponents in the conflict.
Level 2: Win-Lose
- Coalitions: An alliance begins to form and those involved try to win others over to their position.
- Loss of face: In this phase the goal is to attack the opponent on a personal level to damage his/her reputation or credibility.
- Threat strategies: Both parties use threats to force the other side to give in. Psychological pressure is built up in order to assert one’s own position.
Level 3: Lose-Lose
- Limited destructive strikes: The behavior has an extremely destructive effect. The parties use targeted strikes to inflict damage on the opponent, even if this entails losses for themselves.
- Fragmentation: The conflict is almost exclusively conducted in a destructive way and there is little hope that a solution can be found.
- Common abyss: The final stage involves total confrontation. Both parties to the conflict are prepared to lose everything just to plunge their opponent into the abyss. It is almost impossible to restore trust.
In project management, Glasl’s model is helpful for recognizing conflict dynamics at an early stage and taking targeted measures for deescalation so that a higher level of escalation does not occur in the first place. The more the conflict escalates, the more difficult it becomes to find a solution.
How Can Companies Implement Escalation Management?
In order for escalation in a project to run efficiently and effectively, companies need to position themselves accordingly. It is necessary to establish clear processes and structures that provide orientation for the persons involved. Here are some tips for successful escalation management:
Develop an escalation plan
First of all, a detailed escalation plan is required, that provides orientation for all project participants. This plan defines how to proceed in the case of an escalation. Among other things, it sets out the exact procedures for various escalation levels and the specific responsibilities at different hierarchical levels.
Protocols and standard procedures
Companies should develop standardized protocols for escalation management. They help to ensure that all relevant information such as problem description, previous solution attempts and risks are documented.
Escalation levels and responsibilities
It is important that clear escalation levels are defined that determine when and how problems are escalated. Each level should clearly describe what kind of problems are dealt with at that level and who has the decision-making authority.
Company guidelines for escalation
In order to integrate the escalation plan into everyday working life, guidelines that regulate the various escalation processes are important. They should be made available to the employees. This way, companies ensure that everyone in the company understands the escalation process and knows how to act in the event of a problem.
Regular trainings and sensibilization
To make escalation management effective, companies should offer regular training. These should aim to explain the escalation processes and ensure that employees are able to recognize problems at an early stage and escalate them correctly. This promotes a proactive culture of problem solving.
All in all, escalation management is a key success factor in project management. It contributes significantly to risk minimization and assurance of success. This allows problems to be identified at an early stage and forwarded to the right decision-makers in order to achieve the project goals as planned.
Conclusion on Escalation in Project Management
In many people’s minds, the definition of escalation is a negative one. But escalation in the project based on current status reports and PLANNED-ACTUAL comparisons is often the only way to successfully conclude the project in terms of dates, budget and quality. The prerequisite is, of course, that a clear escalation process has been agreed with the project teams, to which all those involved adhere in the event of an emergency.
FAQ
Why is escalation important for project success?
Time and again, difficulties arise during the course of a project that cannot be resolved by the team or project management. To prevent the entire project from coming to a standstill, the higher level in the hierarchy must intervene and make decisions that are not possible at the previous level, such as releasing additional resources like budget or additional personnel resources for the project.
When should I initiate escalation in project management?
Before escalation takes place, the problem must first be identified and analyzed. Once an escalation report containing all relevant information has been created, the project manager can escalate the issue to more senior decision-makers. Ideally, regular status reports in the project management software facilitate monitoring and reporting to the decision-makers in the escalation process.
What role does communication play in escalation?
Oftentimes, escalations only become necessary because communication in the run-up was not right. It is therefore all the more important to communicate with decision-makers in a fact-based, understandable and solution-oriented manner as part of the escalation process. To avoid escalations, efficient software support for optimum transparency in project communication is essential.
