Project Life Cycle Workbook

Introduction to the Project Life Cycle

A project life cycle is a structured framework that guides the progression of a project from its initial concept to its final completion. The life cycle is divided into distinct phases, each containing specific activities, deliverables, and objectives that help manage the project effectively. These phases ensure that the project remains organised, follows a logical sequence, and delivers successful outcomes.

The phases of a project life cycle typically include Concept, Definition, Development, Handover and Closure, and an extended life cycle that addresses Benefits Realisation and Termination. These stages mirror the more traditional project management phases of Initiation, Planning, Execution, Monitoring and Controlling, and Closeout, which are commonly understood in project management practice. In this workbook, we will align both approaches for greater clarity and understanding.

Phases of the Project Life Cycle

1. Concept Phase (Initiation)

Overview:

The Concept phase, often referred to as the Initiation phase in traditional project management, is where the project idea originates. During this phase, the project’s feasibility is explored, and the Business Case is developed. This is where high-level objectives, expected benefits, and potential risks are identified, laying the foundation for the project.

Business Case:

The business case is a vital document that justifies the need for the project. It contains:

Objectives: The main goals the project aims to achieve.

Strategic Alignment: How the project aligns with the broader strategy of the organisation.

Benefits: The expected benefits or value (financial, operational, or social) that the project will deliver.

Cost and Risk Estimation: High-level estimates of the costs involved and key risks that could affect the project.

Alternatives: A consideration of alternative solutions or approaches to achieve the same objectives.

Key Output: Approval to proceed with the project based on a well-developed business case.

2. Definition Phase (Planning)

Overview:

The Definition phase corresponds to the Planning phase in traditional project management. In this phase, the focus moves from conceptualisation to detailed planning. The main task is the development of the Project Management Plan (PMP), which provides a detailed roadmap for how the project will be executed, monitored, and closed.

Project Management Plan (PMP):

The PMP is a comprehensive document that outlines:

Scope: A detailed description of what the project will deliver and the boundaries of the project.

Schedule: A timeline identifying key milestones and the project’s completion date.

Budget: A detailed breakdown of project costs and how resources will be allocated.

Resources: Identification of the human resources, tools, and equipment required for the project.

Risk Management: A plan for identifying, assessing, and mitigating risks throughout the project lifecycle.

Quality Management: Standards the project must meet and how quality will be assured.

Communication Plan: A strategy for how information will be shared among stakeholders.

Key Output: A fully developed Project Management Plan (PMP) that serves as the blueprint for the project’s execution.

3. Development Phase (Execution and Monitoring & Controlling)

Overview:

The Development phase is the most action-oriented part of the project life cycle. It corresponds to both the Execution and Monitoring & Controlling phases in traditional project management. This is where the actual work begins, and the project deliverables are created as per the plans outlined in the PMP.

Execution:

During execution, the project team implements the project plan. Tasks are performed, resources are allocated, and progress is made towards completing the project’s deliverables.

Monitoring and Controlling:

Throughout the development phase, the project is continuously monitored and controlled to ensure it stays on track. Key performance indicators (KPIs), timelines, costs, and risks are regularly reviewed, and corrective actions are taken if necessary.

Key Output: The project deliverables are produced, and any issues that arise are addressed through ongoing monitoring.

4. Handover and Closure (Closeout)

Overview:

The Handover and Closure phase, which corresponds to the Closeout phase in traditional project management, marks the end of the project. In this phase, the completed project deliverables are handed over to the client or customer, and the project is formally closed.

Key Activities:

Handover of Deliverables: The project outputs are delivered to the customer or stakeholder.

Final Review: A review of the project is conducted to ensure that all objectives have been met.

Disbanding the Project Team: The project team is released from their duties, and all contracts are closed.

Key Output: The formal completion of the project, with the deliverables accepted by the client or customer.

5. Benefits Realisation (Extended Life Cycle)

Overview:

The Benefits Realisation phase focuses on ensuring that the benefits outlined in the business case are achieved after the project has been completed. Although not always part of the core project life cycle, this phase is essential for long-term projects or strategic initiatives.

Key Activities:

Evaluating the outcomes of the project to determine whether the anticipated benefits have been realised.

Analysing whether any corrective actions are needed to fully achieve these benefits.

Key Output: Confirmation that the project has delivered its intended benefits.

6. Operations and Termination (Extended Life Cycle)

Overview:

In some projects, particularly those involving physical assets or long-term operations, an additional phase for Operations and Termination is included. This phase involves maintaining the project outputs until they are no longer required, followed by their decommissioning.

Key Output: Termination of the product or service, including decommissioning if necessary.

Types of Reviews

Throughout the project life cycle, various reviews are conducted to ensure that the project is progressing as expected. These reviews provide opportunities for evaluating the project and making key decisions.

1. Gate Reviews:

When: At the end of key phases like the Concept and Definition phases.

Purpose: To evaluate whether the project should proceed to the next phase, ensuring it aligns with the business case and meets necessary criteria.

2. Stage Reviews:

When: Conducted during the project to assess progress.

Purpose: To evaluate KPIs, costs, risks, and quality to ensure the project stays on track.

3. Post-Project Reviews:

When: After the project is completed.

Purpose: To assess whether the project met its objectives and to capture lessons learned.

4. Benefits Realisation Reviews:

When: After the handover to the customer.

Purpose: To confirm whether the project has delivered the expected benefits and to reconcile any discrepancies.

Benefits of a Project Life Cycle

A structured project life cycle provides many advantages, including:

Clarity and Structure: Clearly defined phases and activities help organise the project and provide a roadmap for success.

Decision Points: Phase gates and reviews offer natural points for evaluating progress and making informed decisions about whether to continue, modify, or stop the project.

Resource Planning: The life cycle helps in identifying and planning resource needs at each phase, ensuring efficient allocation.

Risk Management: Early identification of risks and ongoing monitoring help mitigate potential issues before they become problems.

Stakeholder Confidence: Regular reviews and checkpoints give stakeholders confidence that the project is progressing as planned and will deliver the expected outcomes.

Lessons Learned

One of the most valuable aspects of project management is capturing lessons learned throughout the life cycle. Recording and analysing what worked well and what didn’t can significantly improve future projects by avoiding repeat mistakes and building on past successes.

Conclusion

Understanding the project life cycle and aligning it with the traditional phases of Initiation, Planning, Execution, Monitoring and Controlling, and Closeout ensures that projects are managed efficiently and effectively. By following a structured approach and conducting reviews at key points, you can significantly increase the chances of project success, meet stakeholder expectations, and ensure the project delivers its intended benefits.