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Project management vs business management explained

Running a business requires both project management and business management skills, but they’re actually two different fields of management. The leadership roles within these fields come with different responsibilities.

In this article, you’ll learn about the significant differences between project management vs business management, and how they each contribute to achieving a business’s objectives and goals. We’ll also share how you can leverage many of monday.com’s project features to optimize your projects and manage your business better.

Project management vs business management: what’s the difference?

Ultimately, the key difference between project management and business management lies in the nature of the work.

Project management refers to the successful execution of one or several projects within limitations such as time, scope, cost, and quality. The project manager in question focuses on tasks such as coordinating resources, project planning, allocating the budget, acting as an intermediary between clients, and keeping the team motivated and on track to complete the project with optimal results.

Business management refers to the oversight of business operations in a specific area to ensure everything is running smoothly. This could include sales, marketing, manufacturing, and more.

Let’s take a closer look at what project management vs business management looks like side-by-side:

How does a project manager differ from a business manager?

A project manager focuses on tasks such as coordinating resources, project planning, allocating a budget, acting as an intermediary between clients, and motivating the team to complete a project with optimal results.

A business manager, on the other hand, focuses on daily operational tasks such as sales, marketing, manufacturing, and so on.

Let’s take a look at what the roles of a project manager and business manager look like side-by-side:

How to use project management to support positive business management

When you consider project management vs business management, you’re essentially comparing apples and oranges. While the necessary tasks in running a small business are to those of running a corporation, both will use some essential management skills to allocate resources, direct staff, and market their products.

For example, as a business grows, several operational aspects can lose efficacy. Signs of this can include:

• Missed deadlines
• Prioritization mistakes
• Conflicts regarding resources and effort
• Task planning and execution issues
• A lack of required information
• Poor communication and mediation with clients

A general business manager will often find themselves overwhelmed as operations grow and objectives change. Project management can help by implementing a structured framework by which a specific goal is achieved, which works by maximizing resources and productivity.

Generally speaking, project management gives businesses greater control over their operations by managing them on a smaller scale.

In other words, things like product or service quality, customer service, marketing, and more can be optimized by having a project manager prioritize specific tasks and assign teams to them. Not only does this free up time for business managers to focus on operational goals and productivity, it streamlines business growth by properly delegating tasks and resources — all within a specific timeframe.

monday.com features to optimize your project and business management

If you want to successfully implement project management strategies to complement your business management and overall operational goals, you’ll need a platform that will allow you to prioritize and streamline all of your tasks, tools, documents, and more.

monday.com can help you drive growth by enabling you to create effective workflows that bring your teams together to reach project goals more efficiently.

monday.com Work OS allows you to manage multiple projects from one place. From strategic planning to project management, these features help you and your team drive your projects home:

• Gantt charts: Create a project road map that keeps track of a project’s scope, schedule, milestones, dependencies, resources, and metrics.
• Project dashboards: Get access to real-time and high-level data for your project’s goals, budget, scheduling, resources, and more to make better-informed decisions in seconds.
• Workload View: Manage your team resources, assign tasks, and adapt to changing priorities.
• Milestone calendars: Mark and manage significant checkpoints in a project’s timeline and measure and share progress with clients and team members.
• Advanced integrations: Connect to your most important tools like Google Drive, Slack, and Salesforce to align teams across your business.
• Project templates: Choose from a variety of pre-designed templates from our template center that you can customize for every new project.

monday.com is also made me to be used by project managers and business managers alike. For example, you can use the Portfolio Management Template to manage multiple project dashboards and workflows.

What is the next role after a project manager?

After gaining experience and becoming a senior project manager, you have several options: You can become a chief operating officer (COO) of a company, management consultant, program manager, or even a portfolio manager.

Is PMO a stressful job?

Yes, project management can be very stressful. PMOs are responsible for on-time delivery of projects that are also on budget, meeting client expectations, and handling hefty to-do lists.

What is the career path of a project manager?

After gaining experience in the field, a project manager will typically be on track to senior- or executive-level positions in project management. This includes project management office (PMO) and director or chief operating officer (COO) positions and more.

Master project and business workflows with monday.com 

Strategic project management can complement your business management processes by zeroing in on priority tasks and ensuring they’re completed efficiently. This will give your business management team more time to focus on operational growth and other overall business objectives. It also ensures product and service objectives are delivered on time and surpass client expectations.

You can set up the solid processes and analysis you need for both project management and business management using monday.com.

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Project Charter vs. Project Plan: 4 Clear Differences

Alessandro Maggio

• July 22, 2021

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Project Charter vs. Project Plan, what are the differences? In project management, we often encounter these two documents, Project Charter vs. Project Plan, or project management plan. However, difference between the two is not always clear. Today, we will explain it in plain English.

Introduction to Project Charter vs. Project Plan

Before diving into the difference, it is worth spending a few words to discuss what a project charter is, and then what a project plan is.

What is a Project Charter?

A project charter is a brief document that defines the goals and scope of the project at high level. It is the first document you create after the business case is approved. It does not go into technical details but gives a summary description of what needs to be done. Anyone can understand the content of a project charter, and it is particularly useful because it generally confers authority to the project manager.

Conferring authority to the project manager means that the document says: “this is what needs to be done, now go out there, find a way to do it, and do it”.

At an abstract level it might be all clear, but what does this mean in practice? In practice, a project charter may say something like:

 “We need to build a new factory, the factory must be located in Greenville (South Carolina), and it must be able to produce 10 tons of cereal boxes per day at max capacity. This project will have a $40m budget”

Of course, a real project charter will be more detailed and contain about 10 pages, but for the sake of this example just a sentence is fine. This single sentence, together with the definition of the budget at the end basically tells us all our expectations.

We need to create a factory for our cereal company, and it must be in Greenville. We need to structure it in such a way that it will be able to produce these 10 tons of cereal boxes per day if used at 100% of the capacity. If we know that one production line can produce 1 ton per day, then it means it must host 10 lines, so we need to find a building that is large enough or build one.

In this brief example many things are left to figure out. Should we buy the property, or should we rent it? Should we buy the equipment, or should lease it? If we are renting, how long we must secure the rent? In a real case, the project charter will pose more constraints than this.

What is a Project Plan?

Most people use the words project plan and project management plan interchangeably. However, they are different things, and you should understand both.

A project plan is not a term defined in the PMBOK, but even if it is not a formal term of project management, it is widely used. It indicates, guess what, the plan of the project. That is, the set of activities that must be completed, how long will they last, and what are the dependencies between activities. The best practice is to represent it with a Gantt diagram.

Instead, the project management plan tells us how to do project management stuff. It is like a plan for the planner or, more correctly, a guideline for the planner. This document is officially recognized from the Project Management Institute . Even if for some small projects it may be overkill, for large projects it is especially important.

It defines things such as how to manage risks, how and when to involve stakeholders, what strategies to manage the schedule are allowed (waterfall planning? Agile planning?) and so on. Depending on the circumstances, the project manager may create it from scratch, or use a standard project management plan that the organization always uses.

More realistically, the project manager will take a standard project management plan from the organization and adapt it to better suit the project. For example, if the company tends to work with agile methodology, constructing a new factory may be better managed with waterfall planning (sequential planning).

Now that all these documents are clear, we can focus on comparing project charter vs. project plan.

Project Charter vs. Project Plan

In this section, we will see all the key difference of project charter vs. project plan, uncovering them one by one. No difference is more important than the others, we just selected our order arbitrarily.

1. When they are prepared

Project charter is written right before the project has started; project plan is written right after the project has started.

The project charter authorizes the project, so it must be prepared before the project can start. Before the project start, we do not know if it is actually going to start at all, so there is no need to define how to manage a project that does not exist. Of course, there is not even the need to plan for actual activities.

2. Who prepares them

The sponsor writes the project charter, the project manager writes the project plan.

Since the project is yet to start when we are creating the project charter, there is no project manager just yet. The person who wants the project to be completed (the sponsor) has to prepare the project charter to outline the requirements and the high-level scope. Sometimes, the sponsor already knows who would be the project manager that he wants to appoint to the project, if it is to start. In that case, the project manager may work together with the sponsor on the project charter.

Instead, the project plan is created after the charter and exclusively by the project manager. It is much of the work of the project manager to define how to go about planning, and then plan with a Gantt diagram.

As we briefly mentioned before discussing project charter vs. project plan, the project management plan may be a predefined document coming from the organization Project Management Office as well.

3. Their mission

The project charter aims to authorize the project, the project plans aim to guide the implementation of the project.

Our next item in this project charter vs. project plan comparison relates to the mission of each document. As we know, they are two different documents that serve two clear different purposes.

The project charter authorizes the project, and with that it also authorizes what needs to be done at high level and sets a budget. Instead, the project plan does not need to authorize anything. It only provides guidance on how to executes the activities that have been authorized.

4. Intended Audience

The project charter is for stakeholders and project manager, the project plan is for the project team.

Finally, we can turn to the last item of our project charter vs. project plan comparison: the intended audience. Since the project charter and the project plan are two different documents, it is no surprise that they are meant for different people.

The project charter authorizes the project to be done. So, it is for the project manager to know he is authorized to run the project, and also for all other stakeholders to recognize his authority and allow him to run the work. Instead, the project plan does not talk about authorization: it assumes authorization already exists. Instead, the project plan clarifies to the project team (people actually doing the work) what are the things that are to be done, and how to go about them.

Project Charter vs. Project Plan in Summary

In this brief comparison we saw what it means to compare project charter vs. project plan. In short, the project charter defines what needs to be done and gives the project manager the authority to do so. Instead, the project plan is created afterwards, and defines how activities will actually be executed.

Knowing the difference between project charter and project plan is crucial for any project manager, or really any member of a project team. With this knowledge, you can easily navigate complex projects and understand what is going on behind the curtains. Yet, the road to be a good project manager does not stop here. A good point to continue your journey is to learn about soft powers such as referent power .

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Project Charter Vs Project Plan: What’s the Difference?

A project charter and a project plan are two of the most important documents that a project manager needs to create to ensure a project’s success. Both documents serve different purposes, but they are both essential in their own way.

In this blog post, we will compare and contrast the project charter Vs project plan and explain when to use each.

What is a Project Charter?

A project charter is a document that details the objectives, goals, and approach for a project. It is typically created at the beginning of a project and serves as a roadmap for the project team. 

The charter should be concise and straightforward and include all stakeholders’ input. A well-crafted charter can help keep a project on track and prevent scope creep. Furthermore, you can use the charter can as a reference point throughout the project lifecycle.

Overall, a project charter is an essential tool for any project manager

Parts of a Project Charter

Several key components should be included in a project charter. These include the purpose and objectives of the project, a list of stakeholders, a description of deliverables and timelines, risks and assumptions, and any other relevant information about the project. 

Additionally, relevant stakeholders should sign the charter to indicate their commitment to the project’s success. 

What is a Project Plan?

A project plan is a document that sets out the detailed steps that will be taken to complete a project. It includes a schedule of activities, milestones, and deliverables, as well as a clear indication of who is responsible for each task.

A w ell-written project plan is essential for ensuring that a project stays on track and is completed on time. With a project plan, it can be easier to identify potential problems or roadblocks, leading to costly delays. In addition, a project plan can help keep all team members aligned and focused on the same goal.

By clearly outlining the steps to be taken to complete, a project plan helps ensure that everyone is working towards the same objective. The project plan can be in word or excel .You can download project plan template here

Parts of a Project Plan

Several different elements typically make up a project plan. These may include timelines, objectives, deliverables, budget requirements, risk assessments, work breakdown structures (WBSs), and resource allocation information. Other vital components can consist of stakeholder management plans and communication plans.

One of the most important aspects of a project plan is its schedule. It should indicate all key milestones and deadlines for the project, as well as specific tasks and responsibilities for each team member involved in the project.

The budget section of the plan is also crucial in a project plan. A project budget is an estimation of the total costs required to finish a project within a set time frame. This includes all anticipated costs for each stage of the project.

Finally, it is crucial to identify any potential risks or challenges associated with the project and to outline how they will be addressed. Check out examples of project plans for different industries here

What’s the Difference Between a Project Charter and a Project Plan?

A few key differences exist between a project charter and a project plan. A project charter sets the overall vision and scope for the project, while a project plan details the steps that need to be taken to achieve the project goals. The charter also defines the roles and responsibilities of all team members, as well as the resources that will be required. 

The project plan, on the other hand, focuses on the timeline and budget for the project. It includes milestones and deliverables and outlines how these will be achieved within the set timeframe. While both documents are essential for ensuring the success of a project, they serve different purposes and should be used accordingly.

Role of a Project Manager in the Project Charter and a Project Plan

A project manager’s role is essential in the project charter and the project plan. 

In the charter, the project manager is responsible for ensuring that all key stakeholders are aligned around the goals and objectives of the project, as well as defining any risks or potential roadblocks that may arise. The manager also helps identify any resources or support needed to complete the project successfully.

In a project plan, the primary role of a project manager is to lead and manage team members throughout the various stages of the project. It includes assigning tasks, monitoring progress, resolving conflicts, and addressing any issues or challenges. The manager must also maintain effective communication within the team and with other stakeholders to keep

A project charter and a project plan are two of the most important documents that a project manager needs to ensure a project’s success. Both documents serve different purposes, but they are both essential. We hope our comparison of the project charter and project plan will be beneficial for you to manage your next project better.

Learn the Difference Between the Project Charter and Project Plan

• On March 9, 2024
• By David Usifo (PSM, MBCS, PMP®)

While the Agile methodology which is the rave of the moment prioritizes working software over comprehensive documentation , waterfall or traditional project management places a premium on project documentation.

Every project irrespective of size needs a roadmap that details what the project is about, and a guide to get the team through the project life cycle and achieve the desired result.

The project charter and project plan are two key documents that serve as roadmaps for your project from the initiation to the closing phase.

In this blog post, we’ll explore the differences between project charter vs project plan, why they are important, and how they complement each other in project management.

Table of Contents

What is a Project Charter?

A project charter is a key project document that gives a high-level overview of the project scope , deliverables, stakeholders, and success criteria.

This document is developed in the project initiation phase and this process according to the Project Management Book of Knowledge (PMBOK) is the first in the project integration knowledge area.

The project charter selects a project manager, bestows authority to use resources, and secures the commitment of management.

It also identifies high-level constraints, assumptions, and risks.

How to Create a Project Charter

Creating a project charter is an excellent way to get your project off to a good start as it defines the project’s goals, objectives, and scope, as well as provides a framework for decision-making and communication.

Here’s how to make a project charter:

1. Determine the Project Goal

Begin by identifying the project’s purpose and its outcome. This will assist you in determining what steps must be taken to achieve it.

2. Define the Project Scope

Determine the project’s scope by answering questions such as: What will be included in the project? What will be excluded? Who will be involved?

3. Assign Responsibilities and Roles

Assign team members, including a project manager, roles and responsibilities. Ascertain that everyone is aware of their roles and the expectations for their performance.

4. Create a Timeline and Milestones.

Set a completion date for the project and identify key milestones. This will help everyone stay on track and complete the project on time.

5. Create Project Metrics

Determine the key metrics that will be used to assess the project’s success . This will assist the team in tracking progress and identifying areas for improvement.

6. Define Project Risks

Identify any project-related risks and explain how they will be managed. This will assist the team in anticipating and addressing potential issues.

7. Finalize the Project Charter.

Once all of the details are completed, create a written project charter and distribute it to the team to ensure that everyone is on the same page and that the project is properly managed.

Project Charter Sample

Here’s a sample of a project charter to give you a more visual understanding:

• Project title and description
• Project manager and authority level
• Business case
• Preassigned resources
• Key stakeholders
• Stakeholder requirements
• High-level product requirements
• Key deliverables and milestones
• High-level assumptions
• High-level constraints
• Measurable project objectives
• Project approval requirements
• Exit criteria
• Project sponsor sign-off

What is a Project Plan?

A project plan is a document that outlines how a project will be carried out from beginning to end. It provides an overview of the project’s goals, objectives, timeline, and resources needed.

It also outlines the tasks that must be completed, each stakeholder’s roles and responsibilities, and any potential risks or challenges that may arise.

The project plan is critical for ensuring that the project runs smoothly and successfully as it serves as a project roadmap and a framework for tracking progress.

The project plan helps to ensure that everyone involved in the project is on the same page and working towards the same goals by providing a clear plan of action.

While most people use the project plan and project management plan interchangeably, the project management plan is more focused on planning how to manage the project activities.

What is a Project Management Plan?

A project management plan is a document that outlines the activities and processes required to manage a project. It includes the scope, timeline, budget, resources, and deliverables.

It also describes the team members’ roles and responsibilities, as well as the risk management and communication plans.

How to Create a Project Plan

Developing a project plan is an important step in project management because it ensures that the project is completed on time, within budget, and to the required quality standards.

The following are the steps to creating a project plan:

1. Define the Project Scope and Objectives

The first step in developing a project plan is to define the scope and objectives of the project.

This includes determining what the project’s goals are, what work needs to be done, and what resources will be needed.

2. Break the Project into Tasks

Once the project scope and objectives have been defined, the next step is to decompose the project into smaller, more manageable tasks.

This will allow you to create a more effective timeline and allocate resources.

3. Estimate Task Duration and Resource Requirements

Once the project has been broken down into smaller tasks, you must estimate the duration of each task as well as the resources needed to complete it.

This will assist you in developing a more accurate timeline and budget.

4. Create a Project Schedule

Using the estimated task durations, create a project schedule outlining when each task will begin and end.

This will assist you in ensuring that the project is completed on time and that resources are effectively allocated.

5. Allocate Resources

Allocate resources to each task based on the resource requirements identified for each task.

This will help to ensure that the resources are available when they are needed.

6. Create a Budget

Once you’ve estimated the resource requirements and created a project schedule, you can create a budget outlining the project’s costs.

This will assist you in ensuring that the project is completed on time and within budget.

7. Define Project Roles and Responsibilities

Finally, define the roles and responsibilities of each project team member.

This will help ensure that everyone understands what is expected of them and that the project is completed as quickly as possible.

Project Charter vs Project Plan

Now we take a look at the contrast between these documents to have a deeper understanding of what they represent in the project management life cycle.

1. Time of Creation

Both of these documents are created at different timelines of the project life cycle. The project is created during project initiation which is basically before the project has officially started.

It is the formal approval of the project charter that officially starts the project before planning can begin. The project plan on the other hand is created during the project planning phase.

2. Who Creates the Document

Another difference lies in the party responsible for the creation of these project documents. Typically, the project charter is created by the project sponsor.

While this role may be delegated, it remains the sponsor’s responsibility. The project plan is exclusively the responsibility of the project manager.

3. Purpose and Scope

The project charter is a high-level document that outlines the purpose, goals, and stakeholders of the project.

It focuses on establishing a shared understanding of the project’s goals and aligning stakeholders to achieve them.

In comparison, the project plan is a more detailed document that outlines the specific activities, timelines, and resources needed to complete the project.

4. Level of Detail

The project charter gives a high-level overview of the project, whereas the project plan goes into greater detail about the activities, timelines, and resources.

The project charter serves as a reference point throughout the project lifecycle, whereas the project plan guides day-to-day project management.

5. Audience

Typically, the project charter is written for an external audience, such as project sponsors, senior management, or other stakeholders.

It’s often a public-facing document that aids in project buy-in and support.

In contrast, the project plan is typically intended for internal use by the project team. It provides the detailed information required for the project team to effectively execute and monitor the project.

6. Flexibility

In general, the project charter is less adaptable than the project plan. It describes the project’s high-level objectives and scope, which are typically fixed and can only be changed with the approval of project sponsors or senior management.

The project plan, on the other hand, is more adaptable and can be revised and updated throughout the duration of the project.

How do the Project Charter and Project Plan Work Together?

While the project charter and project plan serve different roles, they are both necessary documents that must be used in tandem to ensure project success.

The project charter contains high-level information that guides the development of the project plan, whereas the project plan contains detailed information required to execute and monitor the project.

The project charter and project plan are linked, and changes to one can have an impact on the other. If the project’s scope changes, for example, the project charter may need to be updated, and the project plan may need to be revised to accommodate the new scope.

It’s critical to keep both documents up to date throughout the project lifecycle in order to keep the project on track.

With your understanding of the roles of these documents, their differences, and how they work together towards achieving project objectives, you can ensure that your projects are completed on time, within budget, and to the required quality standards.

It’s essential to keep both documents up-to-date throughout the project lifecycle, as changes to one document can impact the other.

Is Project Plan part of Project Charter?

No, a project plan is not part of a project charter.

A project charter is a document that formally authorizes a project and defines the project’s objectives, while a project plan is a document that outlines the tasks, resources, and timeline for completing a project.

Does the Project Charter come before the Project Plan?

Yes, the project charter typically comes before the project plan.

The project charter serves as a foundation for the project plan, providing high-level information such as the project’s goals, stakeholders, and scope, while the project plan provides more specific details on activities, timelines, and resources.

David Usifo (PSM, MBCS, PMP®)

David Usifo is a certified project manager professional, professional Scrum Master, and a BCS certified Business Analyst with a background in product development and database management.

He enjoys using his knowledge and skills to share with aspiring and experienced project managers and product developers the core concept of value-creation through adaptive solutions.

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Project Planning v. Project Management

In this video, Jennifer Bridges discusses why project planning is not the same as project management—and why you need to know the difference.

In Review: Project Planning Isn’t Project Management

Jennifer discussed the definitions of project planning as compared to project management . The PMBOK® Guide, produced by the Project Management Institute (PMI) defines five processes that comprise the lifecycle of a project: initiation, planning, executing, monitoring & controlling and closing.

Planning your project is just one another phase in project management. We dig into more detail in our Ultimate Guide to Project Planning , but know now that the planning phase is made up of a whole host of other activities, such as:

• Developing the project plan
• Resource planning
• Scope Definition
• Cost Estimation

And that’s just to name a few! Each of those activities are practically fields of study in and of themselves and discreet skills that the project manager uses when managing a project. That’s why most project managers advise using a project planning software to keep track of all the planning phase activities.

Hopefully that clarifies. To learn more about the roles of a project manager, check out Jennifer’s video The Project Manager & Team Roles .

Thanks for watching!

Transcription

Hello, I’m Jennifer Whitt, Director of ProjectManager.

Hello and welcome to our whiteboard session today on why project planning isn’t project management. Have you ever wondered the difference? Well, it’s two terms that often get misused in the marketplace, and we wanted to take the time to distinguish the difference.

If you look on the board here, we have a diagram and it’s actually referenced from “The Project Management Body of Knowledge,” the Fourth Edition by PMI, the Project Management Institute. They have a great diagram there that distinguishes the two this way.

If you look at the diagram, we have the start of the project and the end of the project and a lot of things going on in between. There are five process groups identified by the Project Management Institute. There are the initiating processes, there are planning processes, executing processes, monitoring and controlling processes, and the closing processes. That’s five project management process groups here that make up the whole life cycle of the project.

As you can see, the project planning process group is only one of five. Here’s what happens in the planning process or the planning phase of the project. Here are some sample project planning activities. Developing the project management plan, so the project management plan includes all of the plans that identify how the project is run, when it’s run, by who, who does what, when, and where for each of the planning documents. In here also the project manager collects requirements, helps define the scope, creates a work breakdown structure, develops a schedule, estimates costs, defines the budget, and many other activities that go on in the planning process.

Then what happens in the project management process, so this is the whole thing. Sample project management activities include the application of knowledge, skills, tools, techniques to the project activities to meet the project requirements. You can actually see what the difference is. Many times you may see project managers who do all the planning for the project, and they actually sit those project plans on the desk and not use them. As you can see, the difference of this, the management part, the project management is actually utilizing these planning documents to execute, monitor and control, and actually close out the project.

You can see the difference between the two. You need both. Project planning isn’t project management.

If you need a tool to help you plan your project and manage it as well, then sign up for our software now at ProjectManager.com.

Deliver your projects on time and under budget

Start planning your projects.

Project Management vs Business Management: Understanding the Key Differences

Project management and business management - while sharing some similarities - are two distinct disciplines with different focuses and responsibilities. In this comprehensive guide, we’ll outline the key differences between project management vs business management to help you understand where each role fits within an organization.

Whether you’re interested in pursuing a career in one of these fields or simply want to learn more about how they operate, read on as we compare and contrast project management vs business management roles, responsibilities, skills, objectives and more.

What is the Main Difference Between Project Management and Business Management?

The main difference between project management and business management lies in the scope and timelines of the work.

Project management refers to the process of overseeing operations for a specific project with a clearly defined scope, budget and timeline. The role revolves around efficiently coordinating resources and tasks to complete the project on time and on budget.

Business management involves overseeing a company's strategy, operations and employees to meet business goals and objectives. It focuses on the long-term growth and sustainability of the business rather than a single project.

While a project manager concentrates on the successful execution of a particular project, a business manager focuses on the overall health and direction of the company.

What is Project Management?

Project management refers to the process of organizing and managing resources to complete a specific, predefined project successfully. It involves carefully planning, coordinating and controlling a project’s scope, budget, timing and quality.

The role of a project manager is to oversee the execution of a project, while ensuring it is completed on time, on budget and to the required specifications. They act as an intermediary between various stakeholders like team members, clients, vendors and the organization's management.

Common responsibilities of a project manager include:

Developing project plans and timelines

Assembling project teams and allocating tasks

Managing budgets and resources 

Monitoring progress and performance

Reporting on metrics and KPIs

Managing communications and expectations

Identifying and resolving issues

Ensuring quality control

The focus is solely on the successful delivery of the singular project at hand. Once that project is complete, the project manager and team either disbands or moves on to the next unrelated project.

What is Business Management?

Business management refers to the administration of an organization's operations and employees. It involves strategic planning, setting objectives, directing operations and coordinating resources to achieve an organization's overarching goals.

The role of a business manager is to oversee the overall functioning and output of a business. They make high-level decisions on things like budgets, marketing, policies, hiring and business development.

Typical responsibilities include:

Developing business strategies and plans

Setting objectives and performance goals

Overseeing daily operations and processes

Managing budgets and finding growth opportunities

Hiring, training and managing employees

Liaising with stakeholders and business partners

Ensuring legal and regulatory compliance

The focus is on the big picture vision, direction and viability of the business in its entirety. Business managers take a high-level view and long-term approach to managing all aspects of a company.

What are the Main Similarities Between Project Management and Business Management?

While having different focuses, project management and business management do share some common skills and responsibilities, including:

Leadership - Both roles involve leading and motivating teams to meet objectives

Planning - Developing project plans and business plans require strategic planning

Budgeting - Managing budgets, forecasting and controlling costs

Resource management - Distributing resources efficiently is vital 

Stakeholder management - Liaising with stakeholders inside and outside the organization

Risk management - Identifying and mitigating risks is key in both fields

Metrics and KPIs - Tracking performance indicators to meet targets

Problem-solving - Finding solutions to unexpected challenges and issues

Both project managers and business managers rely on strong leadership, organization, communication and analytical thinking to be effective. Some universal management skills like delegation, decision-making and negotiation are important for success in either role.

What are the Key Differences Between Project Management and Business Management?

While sharing some universal management traits, project management and business management have distinct differences including:

Scope and Timelines

Project management has clearly defined scope, timelines, budgets and deliverables for singular projects.

Business management involves broader, high-level oversight of a company's operations and strategy.

Project managers concentrate on the tactical execution of individual projects.

Business managers focus on strategic leadership of overall business.

Projects have set timelines and definitive start/end dates.

Business management is continuous over the lifetime of an organization.

Responsibilities

Project managers handle tasks like scheduling, task management, communication, budgeting and quality control.

Business managers oversee strategy, hiring, financial planning and driving growth.

Project goals center on on-time, on-budget delivery with required specifications.

Business goals focus on profitability, expansion and longevity.

Project teams disband after project completion.

Business teams are permanent company employees.

What are the Responsibilities of a Project Manager?

Project managers are responsible for planning and executing projects successfully. Typical project manager duties include:

Project Planning - Developing project plans, budgets, timelines, risk management plans, resources plans and quality standards.

Assembling Project Teams - Recruiting, hiring and managing project team members based on skills and experience.

Managing Resources - Obtaining and allocating resources like staff, technology, equipment and information.

Budget Management - Creating budgets, managing costs and controlling expenditures.

Task Management - Creating schedules, assigning tasks, overseeing progress and monitoring deliverables.

Communication - Liaising between project stakeholders to manage expectations and share information.

Risk Mitigation - Identifying, analyzing and mitigating potential project risks.

Quality Assurance - Setting quality metrics and validating those standards are met consistently.

Reporting & Documentation - Reporting on project performance with metrics, milestones and documentation.

Issue Resolution - Resolving any problems, conflicts or uncertainties that arise to keep projects on track.

What are the Responsibilities of a Business Manager?

Business managers oversee company operations in alignment with business objectives. Common business management responsibilities include:

Strategic Planning - Developing long-term business plans, strategies and initiatives to meet objectives.

Financial Planning - Managing budgets, controlling costs, seeking investment and driving profitability.

Setting Goals & Objectives - Establishing benchmarks, metrics and performance targets for the company.

Operations Management - Overseeing the execution of all business operations and processes.

Talent Management - Recruiting, hiring, training and providing professional development opportunities.

Stakeholder Relations - Fostering relationships with stakeholders like shareholders, partners and clients.

Analysis & Reporting - Reviewing performance reports and financial statements to gain business insights.

Business Function Oversight - Providing leadership and guidance to business functions like sales, marketing, HR, IT etc.

Regulatory Compliance - Ensuring company adherence with legal and regulatory requirements.

What are the Required Skills for a Project Manager vs a Business Manager?

Key skills for project managers.

Planning & scheduling

Risk management

Resource allocation

Team leadership

Task delegation

Quality control

Vendor management

Strong communication

Organizational skills

Time management

Documentation skills

Vital Skills for Business Managers

Strategic thinking

Financial planning 

Data analysis

Decision-making

Communication

Partner relationship management

Regulatory knowledge

Talent development

Sales & marketing knowledge

Growth mindset

While some skills crossover, project managers need stronger tactical and technical skills while business managers require more visionary and industry know-how.

What are the Typical Education Requirements?

Project manager education.

Most project manager roles require:

Bachelor's degree in business, management or related field

Project management certification (PMP, PRINCE2 etc)

Business Manager Education

Typical education for a business manager role includes:

Bachelor’s or Master’s degree in Business Administration (MBA), Finance or related field

Extensive business management experience

Advanced leadership training or development programs

Given the strategic nature of the role, most business manager positions necessitate an advanced business degree and proven business acumen.

How Does Salary Compare for Project Managers vs Business Managers?

According to the U.S Bureau of Labor Statistics:

The average salary for a Project Manager is $93,000 annually.

The median pay for a Business Operations Manager role is $100,930 per year.

While there is some overlap in salary ranges, business manager roles tend to offer higher pay and income potential reflecting the strategic value and complexities of overseeing all business operations.

Key Takeaways: Project Management vs Business Management

Project management focuses on the execution of singular projects while business management oversees the high-level strategy and operations of an organization.

Project managers concentrate on tactical project delivery while business managers focus on strategic leadership and long-term growth.

Project management deals with clearly defined scopes, budgets and timelines while business management is continuous over the lifetime of a company.

Project manager duties include planning, task management, budgeting, team leadership and risk mitigation while business managers handle areas like strategic planning, financial management and driving business growth.

While sharing some universal management skills like leadership and planning, the roles require different core competencies to be successful.

Both project management and business management play crucial but distinct roles within most organizations. Understanding the key differences allows businesses to align each role's responsibilities with strategic business goals and objectives.

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Understanding The Distinction Between a Business Plan & Business Planning

In the dynamic world of entrepreneurship, our choice of words matters. Our vocabulary can often become a veritable alphabet soup of jargon, acronyms, and those buzzwords (I'm looking at you, "disrupt").

And let's not get started on business cliches – "circle back," "synergy," “deep-dive,” etc.

Yet sometimes, it's worth pausing to consider the words we casually sprinkle around in our business conversations. In a previous article, we explored the differences between strategic and tactical business planning , two related but distinct approaches to guiding a business. Now, we're going to delve into another pair of terms that often get used interchangeably but have unique implications: "business plan" (the noun) and "business planning" (the verb).

The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan . Think of it as a road map – it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan), it often gets shoved in the glove compartment, forgotten as part of the organization's action plan until the next road trip (i.e., additional funding ).

Business planning is not a static concept, but rather a dynamic verb. It's an ongoing process that necessitates continual adjustments. It's about creating a holistic, interconnected value-creating strategic plan that benefits all stakeholders. This includes attracting top-tier employees, ensuring a return on lending or investment, and making a positive impact on the community, whether online or in real life.

That being said, the customer remains at the heart of this process. Without customers, there are no sales, no revenue, and no value. Everything else is contingent on this key element.

If we were to compare the business plan to a map, then business planning would be the journey. It's a continuous process of making strategic decisions, adapting to new paths, and steering the business towards its goals. Sometimes, it even involves redefining objectives midway.

So, let's do a "deep-dive" (I couldn't resist) into these two terms, examining their application in the real world. Along the way, we'll uncover some tools that can aid us in the ever-evolving process of strategic business planning and the more finite task of crafting a winning business plan.

The Business Plan is a Document

Alright, let's take a closer look at a phrase we've all tossed around: the business plan. Imagine it as the detailed blueprint of your organization's goals, strategies, and tactics. It's like the North Star for your entrepreneurial ship, shedding light on the key questions: what, why, how, and when (speaking of questions, here are some FAQs about the business plan ).

Writing a solid business plan isn't easy , especially if you're just dipping your toes into the world of business planning. But don’t worry; we'll get to that (eventually).

So, let's break it down. What does a business plan document consist of, exactly?

• Executive Summary: Just as it sounds, this is a quick overview of the nitty-gritty that's in the rest of your business plan. It's the introduction to your organization, highlighting your mission statement and serving up the essential details like ownership, location, and structure.
• Company Overview: This is where you will detail your products and/or services, their pricing, and the operational plan. If you're opening a restaurant, this section is where you present your menu, and it's also where you talk about your ingredient sourcing, the type of service you'll provide, and the ambiance you're aiming for. 
• Market Analysis Summary: This section demands a comprehensive analysis of your industry, target market, competitors, and your unique selling proposition. Without access to top-notch (and often not free) research tools, it can be challenging to find current industry data. Check out our  guide on the best market research tools to get started.
• Strategy and Implementation Summary: Here, you'll lay out your short-term and long-term objectives along with the strategies you'll implement to attract and retain customers. This is where you’ll talk about all the different marketing and sales strategies you'll use to charm your future customers.
• Management Summary: This is your chance to spotlight your company's key personnel. Detail the profiles of your key leaders, their roles, and why they're perfect for it. Don't shy away from acknowledging talent gaps that need to be filled, and do share how you plan to fill them!
• Pro Forma Financials: This is where you get down to the dollars and cents with a detailed five-year revenue forecast along with crucial financial statements like the balance sheet and the profit & loss statement.

A business plan is an essential instrument, not just for securing funding, but also for communicating long-term goals and objectives to key stakeholders. But, while a business plan is essential for many circumstances, it's important to understand its scope and limitations. It's a tactical tool, an important one, but it's not the be-all and end-all of business strategy. Which brings us to our next point of discussion: business planning.

Business Planning is a Process

If we view the business plan as a blueprint, then business planning is the architect. But let's be clear: we're not building just any old house here. We're building the  Winchester Mystery House of business. Just as the infamous Winchester House was  constantly under construction , with new rooms being added and old ones revamped, so too is your business in a state of perpetual evolution. It's a dynamic, ongoing process, not a one-and-done event.

In the realm of business planning, we're always adding 'rooms' and 'corridors' – new products, services, and market strategies – to our 'house'. And just as  Sarah Winchester reputedly consulted spirits in her Séance Room to guide her construction decisions, we consult our customers, market data, and strategic insights to guide our strategy. We're in a constant state of assessing, evolving, executing, and improving.

Business planning touches all corners of your venture. It includes areas such as product development, market research, and strategic management. It's not about predicting the future with absolute certainty – we’re planners, not fortune tellers. It's about setting a course and making calculated decisions, preparing to pivot when circumstances demand it (think global pandemics).

Business planning is not a 'set it and forget it' endeavor. It's akin to being your company's personal fitness coach, nudging it to continually strive for better. Much like physical fitness, if you stop the maintenance, you risk losing your hard-earned progress.

Business Planning Case Study: Solo Stove

Now that summer is here, my Solo Stove stands as a tangible testament to effective business planning.

For those unfamiliar, Solo Stove started with a simple yet innovative product – a smoke-limiting outdoor fire pit that garnered over $1.1 million on Kickstarter in 2016, far exceeding its original objective. Since then, it has expanded its portfolio with products tailored to outdoor enthusiasts. From flame screens and fire tools to color-changing flame additives, each product is designed to fit seamlessly into modern outdoor spaces, exuding a rugged elegance that resonates with their target audience.

This strategic product development, a cornerstone of business planning, has allowed Solo Stove to evolve from a product to a lifestyle brand. By continually listening to their customers, probing their desires and needs, and innovating to meet those needs, they've built a brand that extends beyond the products they sell.

Their strategy also includes a primary "Direct To Consumer" (DTC) revenue model, executed via their e-commerce website. This model, while challenging due to increased customer acquisition costs, offers significant benefits, including higher margins since revenue isn’t split with a retailer or distributor, and direct interaction with the customer.

Through its primary business model,  Solo Stove has amassed an email database of over 3.4 million customers . This competitive advantage allows for ongoing evaluation of customer needs, driving product innovation and improvement, and enabling effective marketing that strengthens their mission. The success of this approach is evident in the company's growth: from 2018 to 2020,  Solo Stove’s revenue grew from $16 million to $130 million , a 185% CAGR.

While  85% of their revenue comes from online DTC channels, Solo Stove has also enhanced their strategic objectives by partnering with select retailers that align with their reputation, demographic, and commitment to showcasing Solo Brands’ product portfolio and providing superior customer service.

Solo Stove's success underscores how comprehensive business planning fosters regular assessment, constant evolution, and continual improvement. It's more than setting goals – it's about ceaselessly uncovering ways to deliver value to your customers and grow your business.

However, even successful businesses like Solo Stove can explore additional strategic initiatives for growth and diversification, aligning with their strategic direction and operational planning. For instance, a subscription model could provide regular deliveries of products or a service warranty, creating a consistent revenue stream and increasing customer loyalty. Alternatively, a B2B model could involve partnerships with adventure tourism operators, who could purchase Solo Stove products in bulk.

These complementary business models, when integrated into the operational plan, could support the primary DTC model by driving customer acquisition, providing ongoing revenue streams and expanding the customer base. This strategic direction ensures that Solo Stove continues to thrive in a competitive market.

The Interplay between the Business Plan (Noun) and Business Planning (Verb)

In the realm of business strategy, there's an intriguing chicken-and-egg conundrum: which comes first, the business plan or business planning? The answer is both straightforward and complex: they're two sides of the same coin, each indispensable in its own right and yet inextricably linked.

The process of business planning informs and modifies the business plan, just as the business plan provides a strategic foundation for the planning process. This interplay embodies the concept of Model-Based Planning™, where the business model serves as a guide, yet remains flexible to the insights and adaptations borne out of proactive business planning.

Let's revisit the Solo Stove story to elucidate this concept. Their business model, primarily direct-to-consumer, laid the groundwork for their strategy. Yet, it was through continuous business planning  –  the assessment of customer feedback, market trends, and sales performance –  that they were able to refine their model, expand their product portfolio, and enhance their growth objectives. Their business plan wasn't a static document but a living entity, evolving through the insights gleaned from ongoing business planning.

So, how can you harness the power of both the tactical business plan and strategic business planning in your organization? Here are a few guiding principles:

• Embrace Model-Based Planning™: Start with a robust business model that outlines your strategic plan. But remember, this isn't set in stone—it's a guiding framework that will evolve over time as you gain insights from your strategic planning process.
• Make business planning a routine: Regularly review and update your business plan based on your findings from market research, customer feedback, and internal assessments. Use it as a living document that grows and adapts with your business.
• Foster open communication: Keep all stakeholders informed about updates to your business plan and the insights that informed these changes. This promotes alignment and ensures everyone is working towards the same goals.
• Be agile and adaptable: A key part of business planning is being ready to pivot when necessary . Whether it's a global pandemic or a shift in consumer preferences, your ability to respond swiftly and strategically to changing circumstances is crucial for long-term success.

Fanning the Flames: From Planning to Plan

The sparks truly ignite when you understand the symbiotic relationship between tactical business plans, strategic business planning, and the achievement of strategic goals. Crafting a tactical business plan (the noun) requires initial planning (the verb), but then you need to embark on continuous strategic planning (the verb) to review, refine, and realign your strategic business plan (the noun). It's a rhythm of planning, execution, review, and adjustment, all guided by key performance indicators.

Business planning, therefore, isn't a one-off event, but rather an active, ongoing process. A business plan needs constant nurturing and adjustment to stay relevant and guide your organization's path to success. This understanding frames your business plan not as a static document, but as a living, breathing entity, evolving with each step your business takes and each shift in the business landscape. It's a strategic roadmap, continually updated to reflect your organization's objectives and the ever-changing business environment.

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Business Plan and Proposal: Everything You Need to Know

A business plan and proposal are two different documents with two different purposes and functions. 3 min read updated on February 01, 2023

A business plan and proposal are two different documents with two different purposes and functions. A business plan is a document that clearly spells out how a business intends to realize its objectives and goals, while a business proposal is a sales document that a business entity uses to request a contract from a client.

Business Plan vs. Business Proposal

A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices.

A Business Plan

You can think of a business plan as the documentation of a company's grand vision. Business plans are naturally tactical. It's like stating where and when you want to start, when you want to get to the next point in view, and how you intend to accomplish that progress. A business plan includes descriptions of how the business is intended to run, the details of financial goals, possible business rivalry, marketing strategy, executive summary, and other factors that affect a company's planned business growth.

A business plan is particularly effective in making potential investors interested in a company (especially a startup company that's yet to make a name in its industry). Additionally, a business plan can provide an idea of what a company requires for professionals such as attorneys, accountants, and potential employees. A business plan distinctly describes the scope of the business, and in so doing, clears your thoughts as a business owner.

The business plan should be honestly made because it's the outline of the company's vision. It indicates whether or not the business goals of the company are realistically achievable. Experts say an effective business plan would take approximately six weeks of thorough research and groundwork to create. In other words, you typically can't create an effective business plan in one day, present it to potential investors the next day, and achieve desired results.

A Business Proposal

A business proposal goes to a prospective client directly from an established business. It's an attempt to sell a business entity's service or product to a client, and not an attempt to sell the business itself. Also, a business proposal isn't an estimate. Though costs and certain other details will be provided in the business proposal, an estimate is a lot more unofficial and simply a provision to skim over the costs. It doesn't present the entire picture.

Basically, business proposals show a particular idea, such as a new, profitable undertaking. The proposal is intended to get investors to support the particular business endeavor being suggested. For instance, a well-known eatery chain may wish to extend its business to a nearby state. Such an eatery would have to compose a business proposal in order to get the financial support of its target investors.

Though the business proposal provides an overview of what the company does (similar to a business plan), its major objective is to provide the details of the suggested business idea, including providing answers in advance for any concerns that could be raised by potential investors.

Components of a Business Plan

Basically, a business plan has three components: business model description, sales tactics, and financial goals. However, more elaborately, it has the following sections of information:

• Executive summary
• Description of products and services
• Industry analysis (analysis of possible business rivalry)
• Marketing strategy
• Operating plan
• Structure of leadership
• Internal analysis
• Built-out plan
• Introduction of management
• Financial goals (deliberations on monetary concerns, and how to address them and achieve expected results).

Solicited vs. Unsolicited Business Proposals

A solicited business proposal, when presented in response to a request for proposal (RFP), should be in the format requested by the client in their RFP. The same format may or may not be used for an unsolicited business proposal. Its purpose is to suggest and develop a business idea. Therefore, it's recommended to use the same format or some other format that's well-known in the field of endeavor.

An unsolicited business proposal offers a business entity the flexibility to choose what structure they deem appropriate. However, the proposal is expected to meet industry standards, no matter what format is used. For instance, it should emphasize major areas of interest, be thoroughly researched, offer a proposition of value, and feature a call to action.

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Project Plan Vs Project Management Plan

Fahad Usmani, PMP

January 6, 2024

A few months back, I attended a local PMI chapter seminar. This topic arose while conversing with other professionals: “Are project plan and project management plan the same?”

This discussion led us to some interesting discoveries, which I will share, along with my research on the topic.

During our conversation, we concluded that there was no standard difference between the project plan and the project management plan.

The organization you work for determines the difference. They may decide to stick with only one term, both terms may be used as synonyms for each other, or they can refer to different types of plans.

Let’s discuss these two plans in detail.

Project Plan

The project plan is also called a work plan in some organizations.

A project plan can simply be defined as a formal, approved document used to broadly guide the project and facilitate communication among the stakeholders . The project plan takes its objective from the project charter and the scope statement .

The project plan speaks in general, for example:

• Why was the project undertaken?
• What value will it add to the organization?
• What will the output or deliverables of the project be?
• Who will be involved in the project?
• What is the deadline?
• What are the project milestones ?
• What are the scope, budget, and schedule?
• What technology is going to be used to accomplish the objective?

Project Management Plan

The project management plan is a formal, approved document that guides you precisely on how the work of a project will be done.

For example:

• How will the project work be carried out?
• How will the scope be managed?
• How will you monitor and control the various project activities?
• How will you deliver the product and close the project?

A project management plan comprises many subsidiary plans, such as scope management, cost management, risk management , and procurement management plans.

The project management plan is a meta-plan of the project plan. It contains the plan that guides the project management team to complete the project successfully.

The Difference Between the Project Plan and Project Management Plan

Some of the differences between these two plans are as follows:

• The project plan describes the plan broadly with less attention to detail. It deals with high-level planning, while the project management plan uses every possible detail.
• The project plan deals with the “what” part of the project, while the project management plan deals with the “how.”
• The project plan is a visionary document, while the project management plan is executed to achieve the vision.
• The project plan gives you the vision to complete the project successfully, while the project management plan defines and develops the system to be used to complete the project successfully.
• These two terms differ for large projects but can be merged for smaller projects.

Please note that the PMBOK Guide does not differentiate between the project plan and the project management plan; therefore, this topic is not very important for the PMP exam . I have written this blog post because I thought it would be a good read for you, and you should now be able to differentiate these two terms if you ever encounter them.

A project plan and a project management plan can refer to the same thing or be different. In some organizations, you may see a distinction between these terms, and others will use them interchangeably. You should speak with your seniors to find out how the company uses these terms.

How about your organization? Do you differentiate, or is there no difference at all? Please share your experience through the comments section.

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.

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23 Comments

Thanks for sharing really appreciate. If possible fo you have template or sample of what a High-Level Project Plan will look like

Hello Fahad. I am pmp professional and currently preparing for CCM. for me project management plan deals with the goals of the project within the organization objectives that’s aligned with the objectives of the organization and the program iwhich this project is part of. A project plan is dealing with safely constructing the project components to achieve the bigger picture( the project management plan)- project plan deals with the constructability of the project, safety, mobilization, commissioning, projects as built drawing and handover proceedures. its a contractor and CM at risk responsibility to execute construction plan while its the owner agent’s responsibility to execute the project management plan to make sure owner put his investment in the right spot. generally speaking prject plan is site specifi while management plan is organization specific.

Thanks Hatem for sharing.

Do’n you think the content of Project Plan as mentioned above similar to the content of Charter? If this is the case then why we are creating 02 separate documents i.e. Project Plan and charter?

The project charter is only one or two page document while the project plan is more detailed.

what is the difference between Project Management Plan & Statement of Work (SoW) ?

Project management plan is a detail plan about how are you going to accomplish the task. The project statement of work is a document which explains high level description of the deliverables of the project.

What is the difference between Project schedule and schedule baseline?

Project schedule is your performance and schedule baseline is what your performance should be.

how about Project Management Plan Vs Project Charter ? can u explain details?

Read about the project charter:

https://pmstudycircle.com/2012/05/project-charter-a-document-to-formally-authorize-the-project/

Who approves Project Management plan (PMP) ? Is it a PM or Sponsor or both? As PM prepares the PMP, is it sponsor who approves it?

Most of the times, sponsor is worried about deliverables not the plan. Usually the approved by the senior management of your company.

I agree with you to differentiate Project Plan and Project Management Plan. Project Plan is a high-level document which is usually prepared by a consultant who works for BOD or the company’s owner before a project manager is assigned to handle the next process of the project. Project Plan is sometimes called Project Execution Plan. Project Plan usually consist of strategy, policies, and other important information required by a project manager who will handle the project. Starting with reviewing the Project Plan, the project manager will prepare Project Charter dan Project Management Plan. That’s why Project Plan is not included in PMBOK.

I hope it might get included in a future version of the PMBOK Guide.

Hi Fahad, What is the difference project Management Plan and Project Document? Please explain with examples.

Thank you so much. Neil

Management plan help you run the project; for example, cost management plan, risk management plan, etc. While any document can be a project document such as risk register, stakeholder register, issue log, etc.

thanks for your explanation but i have a question. what is the relationship between project and planning? am waiting your answer thank youuu sooooooooo

To complete any project you develop the project plan.

Below blog posts will help you understand the concepts better:

https://pmstudycircle.com/2012/01/project-plan-vs-project-management-plan/

https://pmstudycircle.com/2012/03/what-are-the-project-and-operation-difference-between-them/

https://pmstudycircle.com/2012/03/project-management-vs-program-management-vs-portfolio-management/

Hi Fahad, Thanks for this. Is the project plan the same with project charter? Contractor call it as project plan while project owner call it as project charter?

Or would you please explain what is the Project Charter in the view of the contractor?

Thanks in advance.

No, project charter is not same as the project plan. Project plan is a detail description about how you’re going to complete your project. On the other hand, the project charter is a document which authorizes the project existence, and give the project manager authority to run the project. Project charter is consist of just one or two pages.

Visit below link to read about the project charter:

so the project plan is considered as statement of work (SOW) from contractors point of view?

Statement of work includes only job description. While the project management plan describe how you are going to achieve it.

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Product Plan vs Project Plan: Understanding the Key Differences

In today's fast-paced business environment, organizations rely on effective planning to ensure the successful execution of their initiatives. Two crucial planning methods that are often used are the product plan and the project plan. While these terms may sound similar, they actually have distinct differences that need to be understood to effectively manage and achieve desired outcomes.

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Defining the Concepts: Product Plan and Project Plan

Before delving into the differences, let's start by clarifying what exactly a product plan and a project plan entail.

A product plan is a strategic roadmap that outlines the steps needed to develop, release, and manage a specific product. It presents a high-level overview of the product's vision, objectives, and target market. The product plan guides the entire lifecycle of the product, from its conception to its retirement.

When creating a product plan, various factors need to be considered. These factors include market research, competitor analysis, customer needs and preferences, and technological advancements. The product plan also takes into account the product's unique selling proposition (USP) and how it differentiates itself from existing offerings in the market.

Furthermore, a product plan typically includes a timeline that outlines the key milestones and deliverables throughout the product's development and launch. It also incorporates a budget allocation for various activities such as research and development, marketing, and production.

On the other hand, a project plan is a detailed document that defines the scope, tasks, resources, and milestones required to complete a specific project. It focuses on the execution and implementation of a particular endeavor within a predetermined timeframe and budget.

When creating a project plan, it is essential to identify and define the project's objectives, deliverables, and success criteria. This involves breaking down the project into smaller tasks and assigning responsibilities to team members. The project plan also includes a schedule that outlines the start and end dates of each task, as well as any dependencies between them.

In addition, a project plan considers the resources required for the project, such as human resources, equipment, and materials. It also takes into account potential risks and identifies strategies to mitigate them. The project plan serves as a roadmap for the project team, providing them with a clear understanding of their roles and responsibilities, as well as the overall project timeline.

Distinguishing Between Product and Project Plans

Purpose and objectives.

One fundamental difference between a product plan and a project plan is their purpose and objectives. A product plan aligns with a company's overall business strategy and product portfolio. It aims to outline the long-term vision and goals for a specific product line. This includes considering market trends, customer needs, and competitive analysis to ensure the product's success in the marketplace. Additionally, a product plan takes into account the financial aspects, such as pricing, revenue projections, and profit margins, to determine the product's viability and potential return on investment.

On the other hand, a project plan is more focused, catering to the specific needs of a particular project with well-defined objectives and deliverables. It outlines the tasks, timelines, and resources required to complete the project successfully. A project plan includes a detailed breakdown of the project scope, milestones, and dependencies, allowing for effective project management and coordination among team members.

Time Frame and Scope

Time frame and scope also diverge between the two planning approaches. A product plan usually encompasses a longer time horizon, extending beyond a single project. It considers product enhancements, updates, and potential expansion. This long-term perspective allows companies to strategically position their product in the market, adapt to changing customer needs, and stay ahead of competitors.

Conversely, a project plan has a defined duration, typically ranging from a few weeks to several months, depending on the complexity of the project. It focuses on the specific tasks and activities required to achieve the project's objectives within the given timeframe. A project plan includes a detailed project schedule, resource allocation, and risk management strategies to ensure timely completion and successful delivery of the project.

Stakeholders Involved

Moreover, the stakeholders involved in product and project planning differ significantly. A product plan involves various stakeholders, including product managers, marketing teams, designers, engineers, and business executives. This collaborative effort ensures that the product vision is aligned with market demands and internal capabilities. Product managers play a crucial role in defining the product strategy, conducting market research, and gathering customer feedback to inform product development decisions. Marketing teams contribute by developing marketing strategies, positioning the product in the market, and creating awareness among potential customers. Designers and engineers work together to transform the product vision into tangible features and functionalities, ensuring a seamless user experience. Business executives provide strategic guidance and allocate resources to support the product's development and launch.

In contrast, a project plan typically involves a more focused team, consisting of project managers, team members, and other relevant contributors who work together to accomplish project-specific tasks and objectives. Project managers play a central role in planning, organizing, and controlling the project's activities. They are responsible for defining project goals, creating a project schedule, managing resources, and monitoring progress. Team members, with their specific expertise and skills, contribute to the execution of project tasks, ensuring the project's successful completion. Other stakeholders, such as clients or external consultants, may also be involved in project planning, depending on the nature and requirements of the project.

Key Components of a Product Plan

A product plan is a comprehensive roadmap that outlines the strategy and vision for a product. It encompasses various key components that are essential for the success of the product. Let's delve deeper into these components:

Vision and Strategy

At the core of a product plan lies the product vision and strategy. This encompasses the product's purpose, the problem it solves, and how it differentiates itself from competitors. A well-defined product vision provides a clear direction for the development and marketing efforts. The strategy outlines the target market, pricing, distribution channels, and marketing plans to drive product success. It involves analyzing market trends, customer needs, and competitive landscape to formulate a winning strategy.

Prioritization and Roadmap

A product plan involves prioritizing the features and functionalities that will be developed over time. It requires careful consideration of market demand, customer feedback, and business goals. The prioritization process helps in determining which features should be included in the initial release and which ones can be added later. The roadmap, part of the product plan, visualizes the timeline for the release of different product features, allowing stakeholders to understand the product's evolution and plan resources accordingly. It provides a clear picture of the product's development journey and helps in aligning the team's efforts.

Progress Tracking

Another integral component of the product plan is progress tracking. Regular monitoring of key performance indicators (KPIs) enables stakeholders to evaluate the product's success and make informed decisions regarding updates, further investments, or retiring the product if necessary. Tracking KPIs such as sales, customer satisfaction, and market share helps in assessing the product's performance against the set goals. This ongoing assessment ensures that the product remains relevant in a dynamic market landscape and allows for timely adjustments and improvements.

In conclusion, a well-crafted product plan is crucial for the success of any product. It provides a roadmap for the development, marketing, and evaluation of the product. By defining the vision and strategy, prioritizing features, and tracking progress, a product plan enables stakeholders to make informed decisions and ensure the product's long-term success.

Key Components of a Project Plan

A project plan is a crucial document that outlines the necessary steps and resources required to successfully complete a project. It serves as a roadmap, guiding project managers and team members towards achieving their goals. Let's explore the key components of a project plan in more detail:

Project Goals and Objectives

At the heart of every project plan are clear and well-defined goals and objectives. These goals provide a sense of direction and purpose, ensuring that everyone involved understands what needs to be accomplished. To make these goals effective, they should be SMART - specific, measurable, attainable, relevant, and time-bound. By setting SMART goals, project managers can create a solid foundation for planning project tasks, allocating resources, and evaluating project success.

Project Schedule and Tasks

A project plan includes a detailed schedule that outlines the sequence of activities and the estimated time required for each task. This schedule acts as a timeline, helping project managers and team members understand the order in which tasks need to be completed and the deadlines associated with them. By having a clear schedule, project teams can effectively manage their time and ensure that tasks are completed in a timely manner. Additionally, the project plan identifies the individuals responsible for each task, ensuring clear accountability and coordination.

Risk Management

Managing and mitigating risks is a critical aspect of any project plan. In order to ensure project success, it is important to identify potential risks and develop strategies to address them. The project plan's risk management section outlines the steps and actions required to identify, assess, and mitigate risks. This includes identifying potential risks, assessing their potential impact, and developing contingency plans to minimize their effects. By proactively addressing risks, project teams can maintain project progress and minimize the impact of unforeseen obstacles.

Understanding the differences between product plans and project plans is also vital for effective planning and strategic decision-making. While a product plan provides a high-level roadmap for the overall development and management of a product line, a project plan focuses on the execution of a specific project within a defined timeframe. By leveraging these planning methodologies correctly, organizations can align their resources, maximize efficiency, and achieve their strategic objectives.

As you can see, a project plan is a comprehensive document that encompasses various components to ensure successful project execution. By paying attention to these key components and incorporating them into the project plan, project managers can increase the likelihood of achieving project objectives and delivering successful outcomes.

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Business Plan vs. Business Proposal

The terms “business plan” and “business proposal” are sometimes used interchangeably, however, they are very different. The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.).

In this article, we will define a business plan and a business proposal and give you examples of when each is appropriate for you to use.  

What is a Business Plan?

Download our Ultimate Business Plan Template here

Business Plan Structure

Typically, the business plan structure contains the following 10 components:

• Executive Summary
• Business Description & Overview
• Market Research & Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy & Plan
• Operations Plan
• Management Team
• Financial Projections & Plan

It is recommended that a business plan is updated annually to adjust for changes in the industry trends and the business itself.  

What is a Business Proposal?

In terms of what you are asking from them, it can be anything that involves funds and time on their end including cash investment, product development assistance, and even employees if they have applicable skill sets.  

Business Proposal Structure

An invited business proposal is written in response to an RFP. A request for proposal (RFP) is a document that invites potential suppliers to submit business proposals. How to write a business proposal depends on the format requested and the questions included in the RFP.

The following are the components that usually make up a business proposal:

• Brief description of your company’s services/products as the proposed solution to the goals of the RFP
• Reiteration of the scope of the particular project
• Responses to questions asked in the RFP
• Cost of the project, including drafting services, materials, tools, labor, delivery and other expenses

An unsolicited business proposal is essentially the same format, but it will solicit the client’s business while anticipating the clients’ concerns and issues. A business proposal is more of a marketing document than an offer because it attempts to persuade the potential client to do business by demonstrating your value proposition and a call to action.  

So, What’s the Difference Between a Business Proposal vs. a Business Plan?

In a business proposal, company representatives typically work with the customer to tailor a business proposition that is attractive to both parties. This usually comes in the form of a written document detailing the services and cost associated with fulfilling an offer or request but can also include electronic contracts.

In contrast, a business plan is a description of your company on the executive and operational levels aimed at investors for raising financial support or other stakeholders in order to facilitate long-term growth. For example, an investor will want to know about how different departments within your business interact with one another, while somebody who will be implementing your product probably only needs more limited information such as design specs because they are not going into production themselves.

A business proposal may provide you with more details of the project, but it does not include information about your company’s operations or future plans.  

Examples of Business Plans vs. Business Proposals

• When you give a potential investor your business plan which includes all sorts of information about how we will achieve your goals together as well as the amount of money it’s going to take. The business proposal is for them to write you a check in return for interest/principal payments or a percentage of your company.
• You might be getting partners involved in your business who will help with product development and distribution. You are offering them a business proposal to work together. However, they may request to see your business plan to better understand your goals, potential profitability, and how you plan to reach these goals before deciding to work with you.
• Your existing business has been so successful that you decide to outsource the social media marketing efforts to a freelancer to free up more of your time. The freelancer would provide a business proposal stating their terms and conditions along with the agreed-upon pay arrangement for their services. This change in organizational structure may be noted in your business plan to demonstrate expansion and financial stability to continue growth.
• In your business plan , one of your goals is to grow your client base by 5% each month. You identify potential clients in need of your services or products and send an unsolicited business proposal to demonstrate how your products or services can benefit them in order to develop a new prospective client list.

The business plan is a roadmap for your company’s present and future, while the business proposal has to do with what you are asking someone else for money.  Applying this difference into practice can be difficult at times because business plans are often marketed as business proposals. However, it is important to be able to identify the difference between a business plan and business proposal in order to maximize their effectiveness and importance with potential investors or partners.

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What’s the Difference? Project Plan vs. Project Proposal

By Alta Alonzi

Project plans and project proposals both lay out a road map for how the project will be run and what the results will be. The two phrases are often used interchangeably, and some organizations are indeed the same document. However, there are some key differences that are important to keep in mind.

Project Plan : a document outlining how a project will be implemented.

Project Proposal : a document used to request funding to implement a project.

Spot the differences? Let’s go through how these details matter in practice.

One big difference between plan and a proposal is the people who read them. Internal project implementors or officers read project plans. External donors or evaluators read project proposals. As in all writing, it is important to take your audience into consideration in word choice and topics covered. Abbreviations commonly used within your organization may be fine for the plan, but donors will not know what you are talking about. Additionally, donors may not have as clear an understanding of local issues like you do, so make sure to provide adequate project background in the proposal.

Project officers need the project plan to inform their actions in implementing the project. Donors need a proposal to make a funding decision. This means that the readers are looking for different pieces of information. Project officers will want to look for technical details like deadlines, deliverables, resources, etc. Evaluators will need some of this information as well, but only to evaluate the cohesiveness of the plan, not to act on it. Evaluators also ask another question which implementors typically do not: why support this project instead of another? For this, proposals also need to provide a broader rationale for their project and why it is so important.

The tone, which sets the mood or attitude of the writing, in both plans and proposals are often very formal. Plans are typically formal documents with an impersonal tone that focuses on the technical details. Proposals, by contrast, still should be formal but also can experiment with more personal tones. Proposals convince donors to take action. To accomplish this, they can be written as an emotional appeal, a factual argument, an optimistic vision for the future, a dire warning of the current situation, etc.

A good project plan explains how the project will be implemented. A good project proposal explains why the project will be implemented. The difference here is very slight, but this shift in tone and writing style has a big impact on applications. Understanding this difference and implementing it will improve both your plans and proposals.

Also, read this article from Tople that explores the bane of many a project manager’s existences: scope creep . 

About the author

Alta Alonzi is a writer and researcher focusing on international development funding and grassroots NGOs. She works with the fundraising consulting company Philantropia conducting research for clients ranging from small NGOs to UN organizations. She also works closely with FundsforNGOs running training webinars, contributing resource guides, and updating the Premium donor database.

Nicely explained

I loved the way you explained the differences of project work plan and project proposal based on the audience, message , tone and purpose. I wish you may also tell the link between both.

Hi Claudine,

thank you for your comment. We will keep this in mind for a future article!

Project proposal is broad in scope and include the project/business plan

Wow thank you you use simple and clear

Good job.I understand now clearly.thanks

Simple and clear

Dear Bert: I am glad you found this article helpful!

Thank you! for your explanation of the difference between project proposal and project plan

Dear Jane: I am glad you found this article helpful!

So if I work in the maintenance department with it’s own director. Yet see an area that is being neglected that I feel I could be a good fit for and bring a definite improvement and lasting value to my company. What would be the best way to put it out there? And maybe help some of the upper level decision makers see that by creating this position will in the long run be more beneficial for the company. Even if it might take a small investment to get it rolling?

Business plan vs business case: what's the difference?

Do a business case and a business plan sound pretty similar to you? We think so, too! However, those two words don't mean the same thing at all. So it's vital to understand the difference between a business case and a business plan.

What kind of entrepreneur would you be if you didn't know how to differentiate the two? In this guide on business plan vs business case, The Business Plan Shop helps you get your facts right.

What is a business case?

A business case is a document that provides the necessary justification to invest time or money in a new project, generally within a company.

Commonly used in bigger companies, the business case helps the decision-making process in the prioritisation of one project over another.

Big companies often have a vast variety of teams, and with all of them likely believing that their project is top priority, the company's money needs to be used carefully.

The difference between a business case and a business plan here is that the business case will be used for decision making inside the company.

What is the business case's purpose?

The business case must answer 4 questions:

What is the project?

Why should this project get picked over another?

Who will be involved?

How much will it cost?

The business case presents the project in detail. Whether it's a product or a service, a business case demonstrates what the project will achieve for the company.

The business case highlights the project's benefits, and how valuable it is for the company.

It could be a business opportunity, such as adding a feature to an existing product to boost sales, or implementing an organisational improvement, such as changing the customer support software to gain in productivity and serve customers better.

The business case introduces the people involved in the project, whether they're in the company or not.

It also gives an approximative value of how much the project will cost from start to end, including which team will be in charge and if external support or a third party will be used.

The business case should also underline that the team has the required skills to complete the project.

The business case gives an accurate overall cost of the project, as well as how much profit or cost savings it will bring.

This section shows how long the project will last, and what equipment, financial, and human resources will be needed.

Business case sample

When deciphering the difference between a business plan and a business case, looking at a short sample version of what a business case should look like might help:

The management is looking at improving Coventry's factory production line. The project would involve replacing the equipment on production lines 3 and 4 which were installed in 2004 with more recent equipment.

The cost for this modernisation is estimated at £150k, and would reduce the production cost by 5%, along with reducing the yearly maintenance cost by £5k, which would result in a total gain of £175k, taking into account the expected production volume in the yearly budget.

The replacement should take 3 days and line 3 and 4 will have to cease production during this period. The rest of the lines should continue to run as normal.

Business plans and business cases are not too dissimilar, but it's important to discern why they're not the same.

They both highlight an opportunity. The business case, however, is a short-term gain, whereas the business plan takes on a global and long-term approach.

The difference between a business case and a business plan also derives from the fact that the business case usually refers to a project and one aspect of the business, whereas the business plan presents a detailed plan of action for the entire organisation over several years.

The business plan cannot be completely accurate, as it cannot predict the future and will evolve regularly based on market trends and inflation.

The business plan is based on a series of hypothesis, action plans, and a long-term calendar. Contrastingly, a business case is concrete - mainly because it's aimed at creating a short-term gain for the business with a well defined return on investment.

To sum-up: a business plan is a strategic document, whereas a business plan is a tactical one.

We hope this article helped you in understand the difference between the two. Please do not hesitate to get in touch if you have any questions.

Also on The Business Plan Shop

• What is a business plan and how do I create one?
• Download our free business plan template
• Business model vs business plan: what's the difference?

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Difference between Feasibility Study and Business Plan

Feasibility Study and Business Plan are essential tools in the business development process. They serve different purposes and are conducted at different stages. A feasibility study helps determine the viability of a business idea; whereas, a business plan provides a detailed roadmap for executing that idea and achieving business goals.

What is a Feasibility Study?

A feasibility study is a comprehensive assessment conducted at the early stages of a business idea or project to evaluate its potential viability and identify potential risks and challenges. The primary purpose of a feasibility study is to determine whether the proposed business venture is feasible and worth pursuing further.

Features of the Feasibility Study are:

• Market Analysis: Feasibility Study evaluates the target market , including its size, growth potential, demographics, and competition. This involves researching customer needs, preferences, and behavior to assess demand for the proposed product or service .
• Technical Feasibility: A feasibility study assesses the technical requirements and capabilities needed to develop and deliver the product or service. This may involve evaluating technology, equipment, facilities, and expertise required for production or implementation.
• Financial Feasibility: A feasibility study conducts financial analysis to estimate the costs involved in starting and operating the business, as well as potential revenue and profitability. This includes preparing financial projections, such as income statements , cash flow statements , and Return on Investment (ROI) calculations.

What is a Business Plan?

A business plan is a comprehensive document that outlines the goals, strategies, operations, and financial projections of a business. It serves as a roadmap for the organization’s future direction and provides a detailed blueprint for how the business will be structured, managed, and operated.

Features of a Business Plan are:

• Executive Summary: A business plan gives a brief overview of the business concept, objectives, products or services offered, target market, competitive advantage, and financial projections.
• Company Description: It gives detailed information about the business, including its history, mission statement, vision, values, legal structure, location, and ownership.
• Market Analysis: A business plan is formed after analyzing the target market, including its size, growth potential, demographics, buying behavior , market trends, and competition. This section also outlines the business’s market positioning and competitive strategy.

Feasibility Study and Business Plan – FAQs

When should a feasibility study be conducted.

A feasibility study is typically conducted at the early stages of developing a business idea or project, before significant resources are invested. It helps entrepreneurs and stakeholders make informed decisions about whether to proceed with the venture.

Who conducts a feasibility study?

Feasibility Studies are often conducted by entrepreneurs, business owners, project managers, consultants, or other professionals with expertise in the relevant industry or field. They may also involve collaboration with specialists such as market researchers, engineers, financial analysts, and legal advisors.

When should a business plan be developed?

A business plan is typically developed after a feasibility study has been conducted and the decision to move forward with the business venture has been made. It provides a detailed blueprint for executing the business idea and achieving its objectives.

Who uses a business plan?

Business plans are used by entrepreneurs, startups, existing businesses, investors, lenders, partners, employees, and other stakeholders interested in understanding the organization’s goals, strategies, operations, and financial prospects.

What are the benefits of conducting a feasibility study?

Benefits of conducting a feasibility study include minimizing risks, identifying potential challenges and opportunities, validating assumptions, attracting investors or lenders, guiding decision-making , and increasing the likelihood of success for the proposed business venture.

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WBS vs Project Plan: Difference and Comparison

‘project management tools’ refers to tools that help teams or individuals organize and manage their tasks and projects better. These are not for the project managers alone.

These tools provide various customizations that make them useful for all kinds of teams. They help plan, collaborate, document, and evaluate the various projects at hand.

Key Takeaways A Work Breakdown Structure (WBS) organizes project tasks into hierarchical levels, defining deliverables and objectives. A project plan includes the WBS and timelines, resources, budgets, and risk management strategies. Developing a WBS is critical to creating a comprehensive project plan.

WBS vs Project Plan

Work Breakdown Structure (WBS) is a hierarchical decomposition of the project scope into smaller, more manageable components called work packages. A project Plan is a comprehensive document that outlines the project’s objectives, scope, timelines, budgets, resources, risks, and quality requirements.

WBS stands for work breakdown structure. It forms the core of project planning and is used by project managers to divide the main project into smaller parts.

In this , work is represented hierarchically and visually to better understand the work at hand. The project may be divided into partial projects, work packages, and deliverables.

The project plan gives a broad framework that acts as the basis of all further planning. It is a document made with a word processing tool and is formally approved.

Its main use is for documenting planning assumptions and facilitating communication among various stakeholders of the project. It also contains illustrations to help in the visualization of the key aspects.

Comparison Table

What is wbs.

Work Breakdown Structure is a common productivity technique that helps in making the work at hand more approachable and manageable.

It breaks the work into smaller parts and serves as a very useful project management document. It alone integrates cost, scope, and schedule for the whole project.

WBS is defined by the Project Management Institute (PMI) as the decomposition of work based on a hierarchy that is to be executed by the project handling team.

It is of two types: 1. Deliverable-based and 2. Phase-based. The former is the most preferred approach and common too.

WBS decomposes the main project into partial projects, work packages, and deliverables. Work packages are part of the lowest planning level assigned to individuals.

Various work packages together form deliverables which in turn join together to form partial projects that finally form the end project.

The main use of WBS is as a planning tool to help the team plan and organise the project’s scope with deliverables. It acts as a tool to monitor and control the project.

Various software tools help in the successful creation of WBS. It is created before a project plan.

What is Project Plan?

A project plan defines goals and objectives, how they are achieved, resources needed, associated timelines, and budgets for completing the same.

It also defines who will be responsible for a particular job. It comprises a resource list, risk plan, statement of work, and a project schedule.

It holds a very important role in the successful completion of any project. It contains all the necessary information and thus guides the project at every step.

It also clearly states the duties and responsibilities of every stakeholder. It helps in getting clarity and ridding the project of any confusion that may arise in the future.

It contains the entire scope of the project, covering deliverables, business needs and problems, objectives, and key achievements of the project.

The main proponents of the project plan are as follows:

• Objectives and goals
• Resource plan
• Projects and tasks of the project

It is the end product of all the planning efforts, covering every small part of the project in detail. A well-defined project plan helps in the successful completion and smooth execution of the project. Thus, a lot of time is spent by project managers on the same.

Main Differences Between WBS and Project Plan

• Work Breakdown Structure essentially deals with the project as a whole and decomposes the project into various small parts. On the other hand, the project plan gives comprehensive detail about each of these parts.
• WBS is created before a project plan. On the other hand, a project plan is always created after WBS is made and approved.
• WBS shows the scale and cost of the whole project, whereas the project plan provides the scale and cost for every part of the project.
• WBS gives the budget for the entire project, and the project plan helps in ensuring that each part adheres to the same.
• WBS is a result-oriented tool, whereas a project plan is action-oriented.

• https://stumejournals.com/journals/sbs/2018/2/87
• https://link.springer.com/chapter/10.1007/978-1-4615-0947-9_11

Last Updated : 13 July, 2023

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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page .

Similar Reads

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12 thoughts on “wbs vs project plan: difference and comparison”.

This article provides a comprehensive overview of project management tools and their use in planning and managing projects.

This article delivers clear and well-structured information.

I agree. The WBS vs Project Plan section was particularly insightful.

Great article. Thank you for sharing this valuable information.

The comparison table is an excellent way to understand the differences.

The difference between Work Breakdown Structure and Project Plan is clearly explained in this article.

Well-written article with clear explanations about WBS and Project Plan.

Work Breakdown Structure and Project Plan are explained in great detail here, making the article a great resource for project managers.

The article has definitely added to my understanding of project management tools.

I found the explanation of the WBS types particularly helpful.

Interesting article, well researched.

The article effectively highlights the main differences between WBS and Project Plan.

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Jared Kushner's $500 million investment deal in Serbia mirrors plans Donald Trump had a decade ago

• Jared Kushner is partnering with Serbian officials to build a luxury hotel in Belgrade, per the NYT.
• The $500 million contract mirrors plans Donald Trump had made nearly a decade ago, per the outlet.
• Kushner has in recent years stepped away from his father-in-law's inner circle.

A tentative deal has been struck between Jared Kushner , his investment firm Affinity Partners , and Serbian officials to build a luxury hotel in Belgrade. And it looks remarkably similar to decade-old plans Kushner's father-in-law, former President Donald Trump, once had, per The New York Times .

The $500 million contract, which The Times reviewed a draft of, offers Kushner a 99-year lease at no charge in exchange for his company's development of the hotel, a museum, and luxury residential units.

The development would be built at the site of the former Yugoslav Ministry of Defense headquarters in Serbia's capitol of Belgrade .

Related stories

The Trump Organization previously eyed the location as a potential plot to develop into a luxury hotel , but The Times reported a deal couldn't be inked before Trump was elected president in 2016.

Despite the close ties to his wife's father's business, Kushner says he never spoke with Trump about current and former development plans in the area.

"I had no idea my father-in-law had been interested in that region, and I doubt he has any awareness of this deal we are working on," Kushner told The Times.

The draft of the new deal included a clause that offers Kushner an opportunity to take ownership of the property for free once the development is complete, the outlet reported. Kushner told The Times that the parties had reached a tentative agreement for the Serbian government to receive a 22% share of the project's profits.

Representatives for Kushner and Trump did not immediately respond to requests for comment from Business Insider.

Kushner, once a key advisor in the Trump White House, and his wife, Trump's eldest daughter Ivanka , have quietly distanced themselves from Trump's inner circle in recent years .

Bloomberg reported Kushner recently ruled out re-joining the Trump administration if his father-in-law wins his reelection bid. Similarly, Ivanka has stayed off the campaign trail, saying she's "done" with politics .

Even after distancing himself from the Trump administration, Kushner has made big money through his investment and development firms. He received $2 billion in Saudi-backed funds roughly six months after leaving the White House, and he had mixed success fundraising for his investment firm in the Persian Gulf.

Watch: Photos show Elon Musk hanging out with Jared Kushner at the World Cup final

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• What is a risk register: a project mana ...

What is a risk register: a project manager’s guide (and example)

Looking for tools to set your team up for success? A risk register can do just that.

A risk register is shared with project stakeholders to ensure information is stored in one accessible place. Since it’s usually up to project managers (we’re talking about you!), it’s a good idea to learn how and when to use a risk register so you’re prepared for your next project. 

What is a risk register?

A risk register is a document that is used as a risk management tool to identify potential setbacks within a project. This process aims to collectively identify, analyze, and solve risks before they become problems. While usually centered around projects, other circumstances where risk management is helpful include product launches and manufacturing. 

A risk register document, otherwise known as a risk register log, tracks potential risks specifically within a project. It also includes information about the priority of the risk and the likelihood of it happening. 

A project risk register should not only identify and analyze risks, but also provide tangible mitigation measures. This way, if the risk becomes a larger threat, your team is prepared with solutions and empowered to solve the issues. 

When should you use a risk register?

There are many instances when a risk register comes in handy. Ideally, it should be used—or available for use when needed—for every project. It can be used for both small and large projects, though your risk log may look different depending on the scope and complexity of your initiative. 

While a small project may only include basic information about the risk such as likelihood, priority, and solutions, a more complicated project may require around 10 different document fields. 

While some companies employ risk management professionals to manage a risk log, it often falls on the project manager or team lead to oversee it. If your team doesn’t already use a risk management or incident management process, it may be helpful to know common risk scenarios to decide whether a risk register is right for you and your team. 

Some risk scenarios ranked by priority could include:

Low priority: Risks such as lack of communication and scheduling errors can leave projects open to scope creep and missed deliverables. 

Medium priority: Risks such as unplanned or additional work can cause teams to struggle with productivity and create unclear objectives. 

High priority: Risks such as data security and theft can leave your company open to revenue loss and should be prioritized. 

Once you know when to use a risk register, you can properly define high priority risks when you come across them. 

Common risk scenarios

Multiple risks could arise during a new project. Anything from data security to unplanned work can risk projects going over budget and scope. Nobody wants to imagine the consequences of missed due dates, which is why it’s important to identify potential risks before they happen.

It’s a good idea to include common risk categories in your risk register log so you’re prepared when they occur. Learn a little more about these risks and determine which ones could apply to your team. 

Data security 

If you’re working on projects that could affect data security, it’s extremely important to track and mitigate potential risks. Unmanaged risks could result in:

Information being stolen: Without proper mitigation, your business could become vulnerable to private information being stolen. This is especially harmful if it’s customer information being stolen.

Credit card fraud: This is dangerous for a number of reasons, but could result in a loss of revenue and potentially require legal action. 

Data security is a top risk and should be prioritized accordingly in order to prevent long-term security issues.  

Communication issues

Communication issues can arise no matter the size of your project and team. While a risk register can help identify where communication areas live, it can be helpful to also implement work management software to streamline communication at work .

Here are some risks that could arise from lack of communication:

Project inconsistencies: Without proper communication, inconsistencies in deliverables can cause confusion. 

Missed deadlines: No one wants to miss a deadline but without clear communication, your team may not be aware of due dates for deliverables. 

Creating a proper communication plan can also help prevent risks from surfacing in the first place. 

Scheduling delays

If scheduling errors and delays go unnoticed, they can become a big problem when deadlines are missed. Tools such as timelines and team calendar software can help prevent scheduling errors in the first place. 

Project scheduling delays could result in:

Rushed deliverables: There’s nothing worse than a project that hasn’t been properly executed, which can cause goals to be missed and work to appear sloppy.

Confusion: Teams can become overwhelmed and confused without a proper schedule in place. 

Implementing a schedule can help keep deliverables on track for both daily tasks and one-off projects. 

Unplanned work

We’ve all been in a situation where a project goes over scope. It’s a common risk that can be fairly easy to mitigate if tracked properly. Catching unplanned work early on allows you to properly delegate it to the project lead. 

Without a proper risk register, you could experience:

Missed deliverables: If work slips through the cracks, you may be at risk of missing a deadline altogether. 

Employee burnout: Overscheduling your team members with unplanned work can create tension and even cause overwork and burnout. That’s why it’s important to scope projects correctly. 

If you do run into issues with unplanned work, implementing a change control process can help communicate additional work to your team members.  

Theft of materials

While hopefully uncommon, businesses that have a large inventory of products could run the risk of theft or reporting errors. By tracking inventory consistently and frequently, you can catch risks early on to determine the cause.  

Theft can leave your business open to:

Loss of revenue: Whether products are being stolen or there are errors in reporting, theft will have a negative impact on revenue. 

Uncertainty: When theft happens, employee and business uncertainty can cause internal stress. 

Misuse of time: Along with theft of tangible goods, there’s a risk of time theft. In a remote working environment, it can be more difficult to track where your team is spending their time. 

Similar to data security, theft is a high-priority risk that should be handled as quickly as possible. 

What’s included in a risk register?

A risk register is made of a list of risks and tracking fields. Your team’s risk log will most likely look different than others as you’ll have unique risks associated with your projects. 

No matter the differences, most risk registers are made up of a few essential parts, including risk identification, risk likelihood, and risk mitigation. These parts work to create a fluid log of information on potential risks. These logs are also helpful to look back on when working on new projects that could face similar risks. 

Additional fields that are good to include are details like risk identification, description, and priority. The more specific you get, the more likely you’ll be prepared to mitigate whatever risks come your way. 

A great rule of thumb to keep in mind is the more complicated the project is, the more intricate your risk register is likely to be. That means it’s a good idea to be as specific as possible within your log for large projects that span multiple months and have a number of different stakeholders. 

Here are some of the most important fields to include in your project risk management plan. 

1. Risk identification  

One of the first entries included in a risk register is the identification of the risk. This is usually in the form of a risk name or identification number. A risk identification field should include:

The risk name

The identification date

A subtitle if needed

You don’t need to get super creative when naming your risks, a simple summary will do. On the other hand, if you want to get creative, you can craft personas for each type of risk. For example, using the persona “Daniela” as your data security risk name to help team members understand how to quickly identify risks. 

Along with a name, you may also choose to include a short subtitle and the date of the risk identification. This will help track how long mitigation methods are taking and allow you to identify which risks are taking the longest to resolve. 

2. Risk description

After the identification is complete, a short description should be added to your log. A risk description should include:

A short, high-level overview of the risk

Why the risk is a potential issue

How long you choose to make your descriptions is up to how detailed you want your log to be, but the average length is typically 80 to 100 characters.

More importantly than the length, a description should include the key points of the risk and why it’s a potential issue. The main takeaway is that a description should accurately describe the risk without getting in the weeds so it can be easily identified. 

3. Risk category

There are a number of risk categories that help quickly identify the potential risk. Quickly identifying the risk makes it easier to assign to the correct team—especially when working on a complicated project with multiple risks. A risk category could be any of the following:

Operations 

Information 

Project plan

To determine the category type, you’ll first need to evaluate where the risk is coming from and who can help solve it. You may need to work with department heads if the solution isn’t obvious. 

4. Risk likelihood

If risks are caught early enough, it’s possible the team will be able to sort them out before any real action is needed. So it’s possible that risks that are flagged on your risk register won’t actually become problems. 

The likelihood of a risk can be documented with a simple selection of: 

Not likely 

Very likely 

Categorizing your risks by likelihood can help identify which risks to tackle first and which you should wait on. 

5. Risk analysis

A risk analysis gauges the potential impact the risk could have on your project. This helps to quickly identify the most important risks to tackle. This is not to be confused with priority, which takes into account both likelihood and analysis. 

While teams document risk levels differently, you can start with this simple five-point scale:

If you’re struggling to identify the risk level, you may want to get a second opinion by working with a department head. This way you can accurately gauge how high the impact might be. 

6. Risk mitigation

A mitigation plan, also called a risk response plan, is one of the most important parts of a risk register. After all, the point of a risk management plan is to identify and mitigate possible risks. Basically, it’s an action plan. A risk mitigation plan should include:

A step-by-step solution on how to lessen the risk

A brief description of the intended outcome

How the plan will affect the impact 

While small risk assessments may be easy to mitigate, some risks are much more complex and don’t have obvious solutions. In this case, the mitigation plan will need a bit of teamwork to solve. This usually happens beyond the actual risk register document, such as during a meeting or team huddle. 

However you choose to conduct your mitigation plan, you should document a high-level description within the log for reference and clear communication. This will not only ensure everyone on the project team understands the response plans, but it will also help you visualize the solution. 

7. Risk priority 

While the impact of a risk will help determine priority, it’s good to also include this entry on your log. Priority should take into account both the likelihood of the risk and the risk analysis. Both of these aspects will make it clear which risks are likely to have harmful consequences on the project. 

Priority can be documented by a simple number scale:

If you’re looking to make your risk register more visually appealing, you may want to document priority by using a color-coded scale instead. This can be used in place of or alongside the three options. Love organizing by color? Then color-coding your log is the perfect option for you! 

8. Risk ownership

Once the risk has been identified, reviewed, and prioritized, it’s time to assign the mitigation deliverables to be implemented. Risk ownership should include:

The person assigned to oversee the implementation of deliverables

Any additional team members, if applicable

The risk ownership field can help quickly determine which department the risk should be handled by. It can also help visualize which team members have ownership of specific risks. 

9. Risk status

The last field to include in your risk register is the status of the risk. This helps communicate whether a risk has been successfully mitigated or not. A risk status field should be filled out with one of the following:

In progress

If you want to get more granular with your status options, you may choose a more specific list such as active, not started, hold, ongoing, and complete. 

Additional risk register fields

While there are a handful of main entries that every risk register should include, there are additional optional items you can include as well. It’s always better to over-prepare than be caught off guard when the time comes, so take a look at these additional fields to decide if you need them. 

Risk trigger: Adding a risk trigger entry can help you evaluate why the risk happened in order to prevent future risks. 

Response type: While many risks will be on the negative end of the spectrum, there is a possibility for a positive outcome. In this case, you can add a field for a positive or negative response. 

Timeline: You can also include the schedule or timeline of the mitigation plan within the log in order to keep information in one place. Timeline software is a great tool to help with this. 

How to create a risk register (with example)

A risk register contains a lot of information and can be challenging to create for the first time. While you may know what information you need to include, getting started can be difficult. That’s why we put together an example to help you get started on your own risk management plan. 

Here’s what your risk register log might look like:

The key objective of a risk register is to log the information of potential risks, so don’t get too caught up in the details. You should choose the fields necessary to communicate potential risks to your team members. 

Some teams may only need a simple risk register with few fields, while others may need something more complex. It may be helpful to start simple and work your way up to a more complex log if needed.

Here’s an example of a risk register entry to get you started on your own risk log. 

Risk name: Design delay

Risk description: Design team is overbooked with work, which could result in a timeline delay. 

Risk category: Schedule

Risk likelihood: Likely

Risk analysis: Medium

Risk mitigation: Hire a freelancer to create project graphics. Move meetings from Kabir’s calendar during the week of 7/12 to free up time to edit graphics and send to Kat for final approval. 

Risk priority: 2

Risk ownership: Kat Mooney

Risk status: In progress

Once you get the hang of filling out your risk register, you can work to continuously improve and perfect your data log for future projects.   

Don’t risk your risk management plan

Identifying risks is a large part of any successful risk management strategy. While identifying and mitigating new risks isn’t always easy, it’s essential in order to keep your business on track for success. Once you nail down your risk register, project risks won’t seem as hard to manage. Plus, your team will have more time to spend on important things, like delivering impact. 

If you’re looking for additional resources on risk management, check out how to create a contingency plan to prevent business risks. 

Related resources

15 project management interview questions, answers, and tips

Critical path method: How to use CPM for project management

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

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• Potrero Yard Modernization Project Bus...

Potrero Yard Modernization Project Bus Facility Updated Local Business Enterprise (LBE) Plan, March 2024

The SFMTA and Potrero Neighborhood Collective (PNC) are pleased to announce that the updated Local Business Enterprise (LBE) Plan for the Potrero Yard Bus Yard Infrastructure Facility has been posted. Visit here to view the updated LBE Plan .

The LBE Plan includes the approach to LBE participation for the Bus Yard. It also outlines the expectations that PNC (the Lead Developer) and its Design-Builder will need to adhere to for LBE compliance purposes. The updated LBE Plan for the Bus Yard was developed following feedback received on the draft LBE Plan during the comment period from January 12–29, 2024. Thank you for your input. If you have questions about the LBE Plan, please reach out to SFMTA Contract Compliance Office at [email protected] or PNC LBE Liaisons at [email protected] .

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