Five stages of successful project management

Credit managers frequently dive into new projects, whether that’s implementing new technology or updating a credit policy. Effective project management is key to successfully completing any project, no matter its size.

Why it matters: Project management skills allow credit managers to efficiently complete projects, organize details, share feedback and collaborate with their team and stakeholders. It also helps mitigate risks and delays when completing a project.

What is project management?

Project management is the process of planning, organizing and executing a project from start to finish. It helps ensure that projects are completed on time, on budget and meet quality standards. Here, we’ve outlined the steps for effective project management from the experts themselves.

#1 Initiation. This is where all the basic elements of the project are defined in what is called a high-level scope. At this stage, you’d ask yourself, why are we doing this project? Before embarking on that project, you need to understand why this change is necessary and what is at risk. If you are stuck, artificial intelligence tools can help you brainstorm the steps needed to successfully complete your project.

Another important part of initiation is having engagement and buy-in from everyone involved. A project that involves or impacts various departments such as credit, sales and procurement, will need everyone on board. “Have a meeting with all the parties involved to go over the issue, the proposed solution and the plan to develop and execute,” said Harry McLaughlin, CCE, CICP, credit operations manager at Continental Tire the Americas, LLC (Fort Mill, SC). “Listen with the purpose of understanding and take note of any additional concerns that you hadn’t heard or overlooked. Make sure to get a top-down agreement on the direction of the project.”

#2 Planning. Planning is often the most important yet overlooked phase in the process. This is when work is broken down and tasks are assigned to owners. Scheduling is vital at this stage as well as the duration (how long) and the timing (when) of tasks. 

Part of the planning process is determining the dependencies—the relationships between tasks based on their sequence, or the order they’re completed. Identifying them helps ensure that work is completed correctly and efficiently. 

#3 Execution. Typically the longest phase, execution is where people are assigned their specific tasks and when they need to be completed. The execution stage is where risks are identified and managed, whether planned or unforeseen. However, these risks will need to be resolved as the execution of the project continues.

#4 Monitoring. The monitoring phase is when the project manager(s) track progress against the plan. Has the project followed the four main key performance indicators: scope, cost, timeline and quality? Shareholder expectations will be managed as well as the effort and the cost of the project. This is the point in time when the project is re-evaluated against its original ROI. Should the project continue or is it time to abandon ship and cut losses?

#5 Closure. Once the project is completed, new users will learn how to keep the project running after it starts. However, the project manager must review what did and did not get accomplished. This stage is also where you can recognize key team members.

Mitigating risk

Even with thorough planning, unexpected events—like accidents or natural disasters—can disrupt timelines and create project delays. Proactive organization can help blunt the impact of any unforeseen delays. “I use Excel spreadsheets with timelines and tasks so that I can keep track of what is going on,” said Nate Hutton, CICP, global credit manager at Donaldson Co Inc. (Minneapolis, MN). “We also do report outs as a project on a page. This helps keep senior leadership in the loop without an hour-long meeting with all the details.”

Project management software can integrate tools and systems, so you can keep your work organized in one platform. “With the software Asana, everyone involved in a project has visibility as to where we are at, what they’re tasked with and at what time frame,” said Terry Tucker, A/R supervisor at Peag, LLC (Carlsbad, CA). “We use it for new product development, budgeting and month-end closing at our company.”

Make sure you’re communicating often with everyone working on the project. “Communication and accountability are the two most important aspects to ensure a project is completed on time and on budget,” Hutton said. “If people are not clear on the expectations, then the deliverables are not going to happen timely.”

Bottom line: Strong project management skills are essential for credit managers to handle new projects successfully, minimizing risks and maximizing outcomes.