Comprehensive Guide to Project Controls in Project Management

A large part of project management involves keeping track of several factors, making decisions to keep things moving on time, and ensuring that tasks get done on budget. To do this, it’s crucial to have processes, tools, and techniques to monitor, analyze, and manage aspects of the project throughout its lifecycle.

In today’s complex business environment where projects are becoming increasingly intricate, project controls that provide project managers and stakeholders information and insights required to make sound decisions are more important than ever.

In this article, we’ll go over what project controls are and how you can incorporate them into your project management process.

What are Project Controls?

Project Controls are interconnected processes and methodologies used to keep a project on track.

Data Gathering and Analysis

Data is a vital part of a project manager’s decision-making process. Factors need to be evaluated, risks have to be assessed. For this to be possible, project controls need to involve the systematic collection and analysis of data. This includes information on costs, schedules, resources, risks, and quality metrics. These are then processed into meaningful insights into the project’s status and performance. 

Forecasting and Performance Improvement

Aside from tracking data, project controls also involve forecasting likely outcomes based on current trends and historical data. This predictive aspect allows project teams to anticipate potential issues and take proactive measures to improve performance.

Variance Management

One of the key ways project controls keep a project on track is by ensuring that the plans mirror the actual project events as closely as possible. This involves constantly monitoring progress to the baseline and identifying deviations that require attention. 

Holistic Project Control

Schedule and costs are most often emphasized when evaluating if projects are on track, but quality is just as important. While project controls certainly need to track schedule and budget, there also needs to be measures to ensure that the deliverables and outputs are at par with standard, or compliant with relevant standards of performance. Other aspects that project controls need to encompass include scope, risk, and resources.

Project Reporting

Project communication is vital to a project’s success. Throughout the lifecycle, project controls ensure that the right information is accessible to all relevant stakeholders through clear and understandable reports and metrics. This ensures that all parties have a common understanding of the project’s status and performance, and the team will be better equipped to collaborate and pivot if needed.

Project Controls vs. Project Management

Now that we’ve gone over what project control is, you might be wondering how different it is from project management –they are both similar in so many ways.

While Project Controls and Project Management are closely interrelated, they have distinct focuses and responsibilities:

Project Management is about making informed and accountable decisions to drive project success, while Project Controls are about generating, maintaining, and analyzing the information needed to make those decisions. 

Project Control professionals provide the awareness and insights that enable Project Managers and Senior Managers to exercise effective control over the project.

Project Control Specialist

Project Control Specialists, often referred to as project controllers, are pivotal in implementing and maintaining effective project controls. Here are skills and expertise vital to this role:

• Analytical Skills: Project controllers must be adept at analyzing complex data sets, identifying trends, and drawing meaningful conclusions from the information available
• Technical Expertise: A strong understanding of project management methodologies, tools, and software is essential. This may include proficiency in scheduling software, cost management tools, and data visualization techniques.
• Communication Skills: As they often serve as a bridge between technical teams and management, project controllers must be able to communicate complex information in a clear, concise manner to various stakeholders.
• Strategic Thinking: Project controllers need to see the big picture, understand how individual project elements interact, and impact overall project goals.
• Adaptability: Given the dynamic nature of projects, controllers must be flexible and able to adjust their approaches as project conditions change.

The project controller may report directly to a project manager for a specific project or may oversee controls for an entire portfolio of projects, depending on the organization’s structure and project complexity.

Project Controller Reports

Project Controllers produce a variety of reports to keep stakeholders informed about the project’s status, maintain transparency, facilitate decision-making, and ensure all parties have a clear understanding of the project’s progress.

Performance Dashboard

A project dashboard summarizes how well the project team achieves key performance indicators (KPI), at a glance. It visually represents the health of a project, and can even indicate a trend analysis of critical metrics over time. Having this available can help a project manager spot red flags that need to be addressed to avoid them from causing problems moving forward.

Project Schedule

The project schedule provides a detailed breakdown of tasks and their dependencies. It can also include milestone deadlines and critical paths. The project schedule will inform resource allocation across all project phases. A project controller needs to keep track of this to manage schedule variance (planned vs actual progress). 

Project schedules can be in the form of a Gantt chart

Project Cost Document

The project cost document tracks the actual budget and what has already been consumed to date, along with committed expenditures (eg. signed contracts, and purchase orders). To create cost forecasts and manage cost variance, a project controller can use the project cost document to evaluate Earned Value Analysis (EVA) metrics.

Change Register

The change register (also known as a change log), records all proposed and approved changes in the project. Keeping track of this allows a project controller to evaluate the impact of changes on schedule, cost, and scope. Trend analysis of change requests over time can also be analyzed so the team can be better prepared for what’s to come.

Risk Register (RAID Log)

R.A.I.D. stands for risks, assumptions, issues, and dependencies, and these are what the RAID log tracks. It’s a tool that can aid in risk assessment, evaluation of assumptions made during project planning, tackling issues, and monitoring dependencies on external factors or other projects. 

Resource Utilization Report

The resource utilization report shows current and planned resource allocation. It can help a project controller evaluate if the project has what it needs to progress (resource capacity vs demand analysis).

Quality Metrics Report

Quality assurance and control metrics will vary depending on the project and deliverables, but they essentially provide criteria for the controller to evaluate if the project team’s outputs are at par with what was agreed upon. For some industries, there are strict compliance measures that need to be observed. A project controller can take these into consideration as well. 

The frequency and level of detail for these reports can vary depending on the project’s needs, stakeholder requirements, and the project’s phase. For instance, high-level summary reports might be produced weekly for senior management, while more detailed technical reports could be generated daily for the project team. More reports can also be added depending on the project’s specific needs.

Benefits and Limitations of Project Controls

Well-implemented Project Controls offer numerous benefits that can significantly enhance project success rates and overall organizational performance:

Improved Decision-Making and Risk Mitigation

Effective project control tools provide real-time data for informed decisions in several major areas such as resource allocation, scheduling, prioritizing, and more. It can also help mitigate risk by allowing project teams to identify, assess, and manage them for proactive problem-solving rather than reactive firefighting. 

Cost, Schedule, and Quality Management

Cost, schedule, and quality are crucial factors to project success. With constant monitoring, a project controller can significantly aid a project manager in managing cost and schedule variance, and ensuring quality work and/or regulatory compliance. You can’t manage what you don’t measure, and having a project control specialist ensures that these factors are always tracked so the project team can stay on top of them.

Enhanced Visibility and Stakeholder Communication

Project control reports offer a clear view of project progress and status across all dimensions.. They provide a single source of truth, which also enhances stakeholder confidence through transparency. With standardized reporting and consistent communication, alignment of expectations can be facilitated, allowing for better collaboration and support.

Alongside these significant benefits, project controls also have potential limitations:

Overhead Costs

Implementing and maintaining control systems can be expensive. It may require additional personnel or specialized software, and Initial setup and training costs can be significant as advanced control systems can be complex to implement and use.

Data Dependency

The effectiveness of project controls relies heavily on the quality and timeliness of data. Inaccurate or incomplete data can lead to poor decisions; at the same time, an over-reliance on data may overshadow qualitative factors. Moreover, there’s also a risk of tempting the project team to “game the system” to meet metrics rather than actual project goals, and stifling creativity if too rigidly applied.

Overconfidence in control systems might also lead to overlooking intuition or experience.

Cultural Resistance and Scope Creep

Data collection and analysis may be perceived as micromanagement by team members and can create a culture of blame if not implemented sensitively. Extensive controls might also contribute to scope creep due to excessive documentation and reporting requirements.

Best Practices in Project Controls

To maximize the effectiveness of Project Controls and mitigate their limitations, consider these best practices:

Be Proactive

When it comes to handling project controls, being proactive is key. This approach goes beyond mere monitoring; it involves making informed decisions based on thorough analysis and reporting. 

Anticipate potential issues and develop contingency plans to address them before they escalate. Regularly review and update control measures to ensure they remain effective throughout the project lifecycle. By adopting this forward-thinking mindset, project managers and project control specialists can stay ahead of challenges and maintain better control over project outcomes.

Foster Collaboration

Instead of adopting a "me-versus-you" approach, project control specialists should focus on building partnerships that promote unity and shared goals. Part of this means involving team members in the development of control processes, which not only leverages diverse perspectives but also increases buy-in and understanding of these measures. 

Additionally, project control specialists should actively encourage open communication and feedback on control measures, creating an environment where team members feel comfortable sharing insights and suggestions for improvement.

Integrate Controls with Existing Processes

Project controllers can integrate controls seamlessly with existing processes to maximize efficiency and effectiveness. This involves aligning project controls with organizational project management methodologies and ensuring they work in harmony with other business processes. By doing so, controllers can avoid creating additional unnecessary steps that might hinder project progress. Tailor control measures the specific needs of each project, taking into account factors such as project size, complexity, and industry requirements when designing controls. 

Additionally, project controllers should allow for flexibility in control processes to accommodate different project types, ensuring that the controls remain relevant and valuable across various scenarios.

Use Appropriate Tools and Technology

In project controls, it’s crucial to select tools that align with the organization's needs and project complexity. For example, Workamajig is an excellent and comprehensive project management solution for creative teams. 

Additionally, project controllers should make it a practice to regularly evaluate and update their technology stack to stay current with industry trends and maintain a competitive edge in project management and control.

In many cases, it’s also advised to provide thorough training to ensure team members can effectively utilize the features and functionalities of their tools, and the team can maximize the tool's potential, improving project control efficiency. 

Track Relevant Information

A project controller’s role is to help the project team make informed decisions. To do this, it’s not just about providing information but providing relevant data points to avoid information overload.

It's essential to regularly review and adjust the tracked metrics based on evolving project needs, through rigorous validation processes. Additionally, regular audits of data quality should be conducted, with any issues addressed promptly to maintain the reliability and usefulness of the information.

Promote Transparency

Data controllers should prioritize promoting transparency in their operations. This involves openly sharing control information with all relevant stakeholders, ensuring that everyone involved has access to the necessary data. By fostering this open approach, data controllers can encourage a culture of accountability, continuous improvement, and collaboration.

Balance Control and Flexibility

There’s a delicate balance between maintaining control and allowing flexibility in their approach. While robust control measures are essential, project control specialists must avoid implementing overly rigid processes that could potentially stifle innovation and creativity within the project team. Instead, aim to create an environment that allows for controlled flexibility, enabling the team to adapt swiftly to changing project conditions and unforeseen challenges. 

This balanced approach necessitates regular reviews and adjustments of control measures to ensure they remain effective and relevant throughout the project lifecycle.

Conclusion

Project Controls are an integral part of successful project management. When implemented effectively, they provide valuable insights, improve decision-making, and significantly increase the likelihood of project success. 

While challenges exist, the benefits of robust Project Controls far outweigh the limitations. By following best practices and continuously refining their approach, organizations can leverage Project Controls to deliver projects on time, within budget, and to the desired quality standards.