10 Powerful Hacks for Handling Project Management Challenges

Project management challenges

Do you find project management to be a master juggling act?

Whether you’re working through team issues, assuaging a client, resisting scope creep or encountering the unexpected, there’s always something coming at you.

With so many balls in the air, you’ve probably more than once wished you had a third arm!

The good news is, whether you’re working to keep costs down, stay on schedule, or deliver premium service, there is a solution to every challenge.

Let’s look at some key challenges in project management, and the steps to take to overcome them.

No Clarity Around Project Goals

1. No Clarity Around Project Goals

Sometimes a company is so intent on bidding and winning a big project that they put no focus into carrying it out. Building the team and looking into particulars is treated like an afterthought. The scope isn’t laid out and the team doesn’t even quite understand what it’s working toward.

When a project manager goes into a project blind, a whole lot could go wrong. With no clear goal in mind, the team may well meander down side alleys, causing the project to go way over budget. Or the team may not have all of the necessary skills, resulting in a subpar deliverable and an unhappy client.

How to Handle It

The role of the project manager is to oversee and monitor a project. You’ve been hired to both get into the weeds and see the big picture at the same time.

Generally the leader isn’t interested in all the minutia, and so it falls to you to create a comprehensive plan. Gather as many details as possible in order to understand the what, the how, the when, and the why of the project. Be sure to have clarity around things like the budget, the skills needed, the timeline, and any risks the project may have.

Once you have a clear understanding, the next step in the planning process is to communicate everything to the team and the stakeholders at an all-hands-on-deck meeting. Make sure everyone understands the overall goal and the timeline. Select a software system that allows everyone to keep abreast of what’s going on and stay on the same page throughout the project.

When the team knows what the objective is from day one, it’s easier to manage expectations. Both you and they know what the project is all about.

Too Many Communication Tools and Preferences

2. Too Many Communication Tools and Preferences

At the beginning of a project, it’s easy to make expectations clear and have everyone working from the same platform. However, as the project progresses into weeks and even months, people have a tendency to slide into their preferred ways of doing things. You may have a trio who communicates with voice messages, while others exclusively use text or email.

When communication gets siloed, and decisions are made on a variety of platforms, it means that not everyone is “in” on what’s going on. This creates lag, as time is wasted bringing everyone up to speed.

How to Handle It

It’s never easy to draw people out of their habits and tendencies, but a project manager’s role is to consistently monitor the project all the way to its completion. Course correction is part of the game.

Take some time at the beginning of a project to select an effective and easy-to- use communication platform. When you see team members veering away and using other apps, don’t be shy about tapping them on the shoulder to bring them back in line.

Set a strong example by consistently using the central tool yourself, and post all critical information there.

When a team understands how central communication benefits the entire team, it’s easier to get them to cooperate.

Project Keeps Getting Bigger

3. The Project Keeps Getting Bigger…and Bigger

After a project is well underway, it’s not uncommon for a client to have a chat with a team member and ask for a few extra features to the final deliverable. Or maybe the boss, mid-way through, sends a quick text asking you if the team could take on another small task.

In the interest of being agreeable and going with the flow, it’s really easy to say “sure, no problem” to these small requests.

Pretty much every project experiences some level of scope creep. As the name implies, scope creep isn’t about making one or two big changes, but is more about making lots and lots of small changes to the deliverable. When these small changes add up, they have a huge impact on the project’s overall cost, schedule, and performance.

Too much scope creep spells disaster. It means the team has to get pretty scrappy toward the end of a project. Everyone works overtime, performance is sloppy, and people work on tasks not at all in their skill set. People aren’t duly compensated for their work, and team morale declines.

How to Handle It

In order to keep a project’s cost, schedule and performance on track, a project manager needs to have a system in place for handling scope creep.

First of all, it’s necessary to create clear demarcations about the different types of added tasks. Some changes won’t really affect a project’s cost or timeline at all. In these instances, it’s usually ok for someone to give them a green light.

However, when an added task affects a project’s budget and timeline, there needs to be protocol in place to submit the change for approval. A system that permits one team member to simply verbally agree to a task which would entail hours of additional labor from the entire team isn’t going to cut it.

Evaluating each task individually allows the leader and the project manager to judiciously decide whether or not it should be approved.

Scope creep is kind of a gray area, so at the onset, be sure everyone on the team understands what sort of tasks constitute scope creep, as well as the process for getting additional tasks approved

Communicating effectively with the client is also an important aspect of scope creep. It’s important to address requests with some flexibility, while also keeping the project on track.

The solution to handling scope creep, oftentimes, is about good processes and communication.

The Team Lacks Necessary Skills

4. The Team Lacks Necessary Skills

When a project requires specialized skills, oftentimes the team doesn’t have the expertise they need. Or, maybe some people have received training, but don’t have any on-the-job experience.

Significant skill-gaps means that a project cannot be completed, or that the deliverable is below standard.

How to Handle It

A satisfied and happy client is every project’s end-goal, and so paying attention to skill and performance levels is as important as winning the job.

A skill assessment needs to take place at the beginning of the project. When the project manager sits down with the leader to go through everything, it’s necessary to make a detailed account of all the skills required to complete the job.

At this point, you can build a skills matrix, which looks at everyone on the team, and aligns them with all the tasks required. Using this matrix, it’s easy to spot gaps and weak areas, and develop a plan to address them.

Here are a few ways to go about strengthening a project’s skill base:

  • Provide training in new skills that are necessary for completing the project.
  • In instances where only one team member possesses a critical skill, implement the practice of pairing. This is where two people work alongside each other on the same task. Pairing strengthens the skill base of the team, as it trains multiple people in the same skill. This way, when one person is absent, others can pick up the slack.
  • Identify the skills and tasks that require a freelancer or independent contractor, and look into hiring them.

With a little foresight, it’s possible to overcome gaps in your team’s skill set and to build a highly skilled team equipped to complete the project.

An Ever-Changing Team

5. An Ever-Changing Team

As discussed, a project that requires specialized skills often means hiring independent contractors and freelancers. These part-time employees always have commitments to other jobs and organizations, meaning you never have their full attention.

It’s easy for team enthusiasm to wane when everyone isn’t 100% committed to a project. When a freelancer feels sidelined from team activities, it weakens collaborative tasks, and it could result in subpar deliverables.

How to Handle It

Building a cohesive team is a hard-won achievement for any project manager. Having a freelancing onboarding process and utilizing team building activities are key.

Whenever possible, hire freelancers yourself, and take some time orienting them to the team and the project. Bringing them up to speed on what the company is about ensures their work aligns to its brand, mission and values. In order to clearly communicate job expectations, have face-to-face conversations about what you’re looking for. This helps to clear up all questions and concerns.

Explain the processes and tools that the team uses to communicate. Set them up with messaging and email accounts when necessary.

Even when people are moving in and out of a project, it’s still possible, and very important, to build camaraderie amongst the base. This collaborative spirit really improves performance.

A daily scrum or standup, where the team discusses issues, and progress, keeps everyone abreast of what’s going on. Including icebreakers or casual chats as a part of meetings builds rapport as well.

Diverse and Distributed Teams

6. Diverse and Distributed Teams

Most teams are composed of people from all sorts of backgrounds and skill sets, including engineers, marketers, graphic designers, and people from completely different cultures, with varying levels of English fluency.

If all this diversity doesn’t pose enough of a communication challenge, more and more teams have become distributed. Face-to-face conversations take place rarely, if at all.

This diversity and fragmentation can lead to communication breakdown, which poses a real threat to a project. Key decisions aren’t communicated across the team, and snafus run rampant. Sometimes, a client learns about problems from a third party, causing them to lose faith in the project manager and the team.

How to Handle It

Communication is at the heart of a project manager’s role. Processes that create channels of communication allows a project to keep on schedule, and performance levels stay high.

One process for healthy communication is a daily scrum. At these meetings, everyone explains how they are progressing, and identifies anything that is blocking them from getting things done, or slowing things down. A team might adopt the mantra of “no blockers,” meaning it decides to switch to another task while it waits for an obstacle to be removed.

It’s important to conduct the scrum in an open environment, where people are able to share frustrations and get everything out in the open.

Another healthy communication method for a distributed team is an ongoing chat, where people post daily updates and status reports on the project. The project manager keeps these chats active by checking in daily, and regularly responding to messages. This practice also keeps everyone working from the same software platform.

Regular status updates with a client keeps them abreast of everything that’s going on with a project. It’s way better for the client to hear about a snafu from the project manager than a third party. So even if the news is hard to deliver, it’s necessary to keep the channel of communication open.

Teams Conflict With the Leader

7. Teams Conflict With the Leader

Sometimes, during the course of a project, the team and the boss are on completely different pages. Maybe the team isn’t at all on board with the marketing plan, or it believes the product isn’t going to benefit the end user.

Performance declines when people are not emotionally invested in the project. And if the deliverable really is subpar, then the client won’t be satisfied, either.

How to Handle It

A project manager acts as a liaison between the team and the leader. It can feel like swaying back and forth on a seesaw at times.

When a project manager notices a real disconnect between the team and the leader, the first step is to determine if the problem merits the leader’s attention. Is this just the sentiments of one or two people, or the entire team? Additionally, are the grievances backed up by data?

It’s not always easy to bring a challenging or unexpected message to a boss, but any good leader wants to understand how the team feels about a project.

When having a difficult conversation, it’s important to keep them one-on-one if possible, and plan your message ahead of time.

Once you’ve said your piece, it’s in the leader’s hands to decide what to do with the information.

A Difficult Client

8. A Difficult Client

Clients have been known to make excessive demands. Maybe they want to meet with you every day, or impose deadlines that the team simply cannot meet. Sometimes, a client constantly wants to talk about increasing the scope of a project.

A difficult or demanding client is a recipe for overwork and burnout. Meeting all of their requests means that the project is well over cost and schedule.

How to Handle It

In the same way that a client is picky when choosing a team, it’s important for a team to be picky about choosing a client. Your client impacts your mental health, and that of the team.

Finding a good fit is a learning process. You may have to work with a few difficult clients before you’re able to identify what to look for.

It’s important to set boundaries with the client at the onset. Make sure that the work and scope of the project are mapped out, and explain the protocol for introducing new tasks to the scope. Perhaps this means filling out a change order or something like that.

The initial conversations, before a contract has been signed, is the time to look for clues as to whether the client will respect your boundaries.

After a time, it becomes easier to identify red flags. For example, when a client skimps and haggles over the contract, it could be a harbinger of difficulties to come. You want someone who respects the skills and time of the team, and is willing to pay the price.

Staying on Schedule

9. Staying on Schedule

It’s really easy to get held up on a project and to spend two weeks working on something that was supposed to only take one. When delays add up, just like scope creep, they make a huge impact on a project’s overall timeline.

A company pays a toll when it doesn’t meet deadlines. It may well lead to an unhappy client. Plus, it keeps the team from taking on more projects, which translates into less income for the team.

How to Handle It

The project manager’s role is to monitor a project and keep it on schedule. In order to achieve this, it’s helpful to have a system or two in place.

A burndown (or burnup) chart is an effective way to plot the entire scope of work for a project alongside its timeline. It plots total work on the vertical and time on the horizontal. The burndown chart provides the team, client, and the leader an easy visual to understand how the project is proceeding versus its schedule.

Regular check-ins with the team are important for staying on track. At the meeting, be sure to discuss anything that’s impeding progress, and also make sure the team has the tools and skills it needs to do the job.

When the project manager knows about things that slow the team down, he or she can work to remove and fix them.

Staying on schedule is tricky for any project, and consistent monitoring, along with good systems, is key.

Facing the Unexpected

10. Facing the Unexpected

Every project throws a pitch or two that you don’t see coming. Maybe you’re in construction, and there’s a huge storm that delays everything for a week. Or else a team member has an unplanned absence that holds everything up.

Whiffing at too many unanticipated curve balls means a project is sure to strike out. Tasks won’t be completed, creating huge delays, and the project won’t meet its deadline.

How to Handle It

Although you never know what a project may bring, it really is possible to plan for the unexpected. One critical step in a project’s planning process is sitting down with the leader at the beginning and brainstorming all the risks.

Depending on your project, risks could include things like weather, equipment failures, and licensing regulations. When there’s too many hang ups in these areas, things won’t move forward.

When you look closely at each risk, it’s possible to develop a plan for course correction.

Additionally, take a close look at the team to ensure that the skill base is strong. Consider providing training in areas that look weak.

As far as the budget is concerned, it’s always smart to set aside as much as 10% for the unexpected. If you don’t use it, then completing the project under budget will be a feather in your cap.

Mitigating risk is all about putting a plan in place beforehand. This way, when you encounter a fastball, you’ll be ready to knock it out of the park.

Conclusion

Every project faces so many challenges that it’s best to approach project management with a manta like: “expect the worst, and hope for the best.”

All of these challenges, however, are pretty similar. Going into a project with as much information as possible makes you poised for success.

When you anticipate problems, they’re much easier to handle. Working through them requires consistently monitoring, planning, and communicating to all parties throughout a project.

Teamly’s project management software provides an intuitive, easy-to-use interface that is perfect for remote teams. Our messaging services provide a strong central hub for keeping your team’s communication strong throughout a project. Come check us out today!

Who Wants to Improve Their Agile Fluency? 45 Important Terms Every Team Should Know

Agile Terminology

Are you new to agile? Just learning the ropes? There’s a whole lot of lingo, huh?

Yep, with its own ceremonies, frameworks, artifacts, and even a Manifesto, agile certainly is a world of its own.

For someone unfamiliar to the terminology, listening to people throw around phrases like failing-fast, kanban boards, mental agility, and scrum master sounds a lot more like “wah wah Wah wah wah waah, Wah.”

Just like Charlie Brown listening to his teacher drone on and on, you probably feel like putting your head down on your desk and tuning it all out.

But what if you could be in the know, and get in on this agile thing everyone is so crazy about? What if talking about swarming and retrospectives was part of your everyday jargon?

The truth is, it doesn’t take long to get up to speed with agile terminology. After nailing a few important terms and key principles, you’ll be as plugged-in as the best of them.

So don’t wait around! Grab yourself a cup of tea and have a seat, cause we’re going to get into it and cover the most important terms in the agile methodology.

Agile Terms

A – C

1. Agile Manifesto

In 2001, a team of software engineers met at a ski lodge in Utah and wrote the Agile Manifesto.

Composed of four key values and twelve principles, the manifesto advocates team collaboration with ongoing reflection and course correction.

The software engineers sought to overcome flaws with the rigid waterfall method of project management, which often resulted in subpar products.

The Agile Manifesto is an umbrella for several agle frameworks, including Kanban, Scrum, Lean Startup, Extreme Programming (XP), and Crystal. Each has a distinct method, but all utilize the iterative agile approach of producing work in small batches, reflecting, then pivoting.

Although initially designed for software teams, the principles from the Agile Manifesto have been incorporated into all types of businesses and volunteer organizations.

2. Agile Transformation

An agile transformation is when a company or organization transitions its systems to an agile methodology.

Often a company is switching from a waterfall project management framework, where projects are carefully planned and plotted out in advance.

Switching to agile means embracing principles of autonomy, reflection, and collaboration. Having highly motivated teams is central to a successful transition. It also requires buy-in from all levels of management.

3. Backlog Grooming

Backlog grooming means working through the product backlog, and carefully prioritizing the items of work. (A product backlog is a project’s prioritized to-do list.)

In the scrum framework, backlog grooming falls to the product owner. Two or three days before the end of a sprint, the product owner chooses tasks that add the most value to the project.

Effective backlog grooming prepares a scrum team for its next sprint.

4. Blockers

A blocker is anything that prevents a task or story from reaching completion. Blockers come from within the team or outside of it.

One example of a blocker is a client who hasn’t made up their mind about a facet of a project. Another may be that the team doesn’t have the tools it needs to complete a task.

Oftentimes, agile teams adopt the mantra “no blockers,” meaning that rather than wait until a blocker is removed, it switches to another task or story.

5. Burndown Chart

A burndown chart plots how much work is completed on a project over its timeline.
Time is plotted on the horizontal axis, and work is plotted on the vertical axis, starting from total work at the top and working down to completion.

At the beginning of a project, an “ideal work line” is drawn to indicate the work goals at each time interval. Completed work is measured using story points. A second line, the “actual work line,” is drawn as the project progresses.

A burndown chart helps a team visualize how far along they are, and whether they’re working according to plan. It is commonly used in the scrum framework.

Here is an example of a burn down chart:

Burndown Chart

6. Burnup Chart

A burnup chart is similar to the burndown chart in that it also plots a project’s total work versus its timeline.

However, rather than plotting work from top-down on the vertical axis, the burnup chart plots work heading up.

The burnup chart is helpful when the scope of a project increases mid-way. Whereas with the burndown chart, the total work is calculated at the beginning, on burnup chart work starts at zero and heads up.

A burnup chart, then, indicates all the work that is completed, even if it wasn’t accounted for in the initial calculation.

Here is an example of a burnup chart (for the scrum framework, total work is represented with story points and time is represented with sprints):

Burnup Chart

7. Buy-in

Buy-in is about persuading management or a team to get on board with an agile transformation.

Agile buy-in oftentimes is on somewhat of a bell curve. Some managers are all-in, while others are not convinced at all. Teams may be reluctant to make the switch because it entails a lot of meetings.

When an organization understands that the agile method results in better products and more satisfied clients, they are more likely to buy-in.

8. Cadence

Cadence refers to the rhythm of the agile workflow. When teams work around a framework and ceremonies, they create a continuous rhythm.

An agile cadence generally is about two weeks. It breaks work down into small, focused batches. Rather than focus on a finish line it cannot see, an agile team selects a small amount of work and then reflects on it.

9. Ceremony

Ceremonies are recurring meetings and processes within the scrum framework. They include sprint planning, sprints, sprint retrospectives, standups, and sprint reviews.

Through faithfully completing each ceremony, a team embodies agile principles and works toward the completion of a project.

Unlike meetings, the purpose of a ceremony isn’t always about coming to a consensus on a topic.

10. Certified ScrumMaster

A Certified ScrumMaster (CSM) has completed training in the scrum framework and is equipped to lead a scrum team.

A ScrumMaster training usually takes 14-16 hours. To become skilled, a scrum master needs a lot of on-the-job training as well.

The CSM is one of several agile certifications. Others include Professional ScrumMaster (PSM), and Agile Certified Practitioner (ACP).

11. Crystal

Crystal is one framework under the umbrella of the agile methodology.

The crystal method emphasizes teamwork, communication, simplicity, reflection, reconstruction, adjustments and improvements. It’s a simpler framework than either kanban or scrum, and generally is used for shorter projects.

It emphasizes that each project requires its own distinct approach and techniques.

Crystal has various designations depending on the group’s size, including Crystal Clear (1-6 people), Crystal Yellow (7-20), Crystal Orange (21-40), and all the way up to Crystal Maroon (80-200).

Epic

E – I

12. Epic

An epic is a collection of small related tasks that complete a single body of work.

Small tasks in agile are called stories. A bundle of related stories form an epic. Epics are organized by theme.

One example of an epic is planning a party. It consists of many stories, such as finding a location, planning a venue, inviting guests, and scheduling entertainment.

The benefit of organizing tasks under one epic is that it creates clear priorities. For a party, you know that it’s necessary to determine a location before mailing out invitations.

13. Extreme Programming (XP)

Extreme programming is a framework under the umbrella of the agile methodology. It is built around values of communication, simplicity, feedback and courage.

XP is the most industry-specific method, and is designed almost exclusively for small software teams. It does not have roles like scrum.

Pairing is often utilized in XP. This is where two members work together on the same project. This collaborative endeavor allows team members to learn from each other, and it creates a more fluid workflow, as one member helps the other through stumbling blocks.

14. Feature

A feature is a small amount of related work.

It’s smaller than an epic but larger than a story. Whereas user stories are completed in 1-2 weeks, a feature generally takes 2-3 months.

Features are helpful in long, complex projects for breaking down and grouping related work.

Golden Ratio

15. Fibonacci Numbers

Fibonacci numbers are a simple pattern of rapidly increasing numbers. It begins by adding 1+1, then continues by adding the previous two numbers together: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55…..and so on.

Agile teams use Fibonacci numbers to estimate how long an item in the product backlog takes. They call these numbers “story points.”

An estimate at the larger end of the Fibonacci sequence (e.g., 34 or 55) indicates uncertainty as to the length of a story.

16. Front Burner

Front burner means anything from the backlog that the team has decided to work on right now. In kanban, it’s also referred to as the work-in-progress.
In scrum, anything listed in the sprint backlog is a front burner item.

17. Going Agile

Going agile refers to an organization’s transition to the agile methodology. It is also known as an agile transformation.

18. Impediments

Impediments are anything that slows down the flow of work during a sprint. They can include fears about a project, or relationship issues on the team.

One impediment might be that the onboarding process takes over a month. Another could be that a manager interrupted the team during a sprint.

In scrum, the team discusses impediments at the daily standup. At the sprint retrospective, teams identify impediments and their root cause. The scrum master is responsible for removing impediments.

Impediments are similar but slightly different from blockers. A blocker completely interrupts the flow of work, whereas an impediment slows it down.

19. Increment

Increment is one artifact from the scrum framework. It is the product a scrum team creates at the end of the sprint.

The increment is presented to a project manager and the client. Their feedback informs the next sprint, keeping the team on track to achieving its goal.

Inspect and Adapt Cycle

20. Inspect and Adapt Cycle

The inspect and adapt cycle is at the heart of the agile process. It’s even the motto for some scrum teams.

At the end of one work cycle, an agile team inspects its output. If possible, it’s released to the end user for feedback.

Afterwards, based on this inspection, the team adapts its course and plans the next batch of work.

21. Iteration

Agile is about breaking a huge project into small amounts of work.

An iteration is a small batch of work that a team completes over a designated period of time that works towards a larger goal. Each iteration has a specific length, and an end date. At the end of each iteration, the output is inspected, feedback is sought, and the next iteration is planned.

In the scrum framework, iterations are referred to as sprints.

Kanban

K – R

22. Kanban

Kanban is one framework under the umbrella of the agile methodology.

Like all agile teams, kanban teams are self-organizing, highly motivated, and autonomous. However, they do not have designated roles as in the scrum framework.

With kanban, the workflow is ongoing and it limits the amount of projects a team can work on at one time.

A kanban team leans heavily on the kanban board, which allows it to visualize a project, and identify any tasks that are currently in progress.

Kanban Board

23. Kanban Board

The kanban board visually displays a team’s workflow. The board consists of several columns, each representing one stage of work: backlog, work-in-progress, peer review, tested, and blocked.

As tasks progress from start to completion, they move down the kanban board. For a physical board, the team uses paper or sticky notes to indicate a task.

The amount of tasks in each column is limited: once they reach a designated maximum, the team needs to complete them in order to introduce new tasks. This is known as the work-in-process limit.

Here is an example of a kanban board:

24. Lean Startup

Lean Startup is a production approach that seeks to identify customer feedback before excessively investing in a product.

It combines the methodologies of both agile and lean. Agile is about carefully testing and adjusting a product to ensure it’s something the client wants, and lean is about creating a simple manufacturing system.

Lean startup creates and tests for market demand, while agile works to satisfy a client.

25. Mental Agility

Agile is a way of thinking that informs how a team works. Mental agility refers to a team’s ability to adapt and course correct.

When a team works in small sprints, it’s able to fail-fast. This means it identifies something that isn’t working, scraps it, and readjusts.

The scrum master fosters a team’s mental agility by ensuring they’re not too fixated on one path or role.

26. Pairing

Pairing is a practice commonly used in extreme programming. In pairing, two programmers work together on the same piece of work.

One central principle of agile is that teams work at a steady, continuous pace. Pairing is useful as it diffuses skills and knowledge to all team members, allowing one to complete tasks in another’s absence.

Planning Poker

27. Planning Poker

Planning poker is a method of using Fibonacci numbers to estimate the difficulty of a chunk of work. Arriving at a reasonable gauge is necessary in order to determine how much work a team should take on in an iteration.

In planning poker, each team member has a set of cards with Fibonacci numbers (called story points), representing the project’s level of difficulty.

In one round, team members first discuss an item in the product backlog. Each member values the difficulty of the item by selecting a card and placing it face-down. A low value indicates the project is quite simple, while a high value means it is complex.

Then, they reveal the numbers, and discuss any disparities. When there is a lot of disagreement about the level difficulty, the team discusses and places another estimate. They continue with rounds until arriving at a consensus. The project is then assigned a story point value.

It’s important to receive each person’s individual input without any bias from others on the team. While one person may assign a project 2 points, another who’s more experienced with the specific task may assign it 13.

28. Product Backlog

A product backlog is a project’s prioritized to-do list. It breaks a large project into small tasks, also called stories.

In the scrum framework, a product backlog also includes any actionable items that come out of the retrospective.

Backlog items aren’t prioritized to keep all team members busy at all times, but rather they emphasize tasks or stories that will move a project forward.

29. Retrospective

Also known as a “sprint retrospective,” a retrospective is a ceremony in scrum that takes place at the end of a sprint.

During a retrospective, the team meets to discuss anything that held up or stopped the completion of tasks in the sprint. It’s the scrum master’s role to fix any issues.

A good retrospective seeks to unearth the root causes of blockers and impediments.

For example, let’s say a task was blocked due to someone’s absence. The real blocker, then, is that skills aren’t evenly spread to all team members.
Retrospectives aim to create action items to add to the product backlog. In this example, introducing the practice of pairing would help to remove the blocker.

S – Z

30. Scaled Agile Framework

The agile method is about a small autonomous team working collaboratively. However, many organizations cannot accommodate the small-team approach.

The Scaled Agile Framework (SAF) seeks to incorporate agile methods into large organizations.

SAF has four key roles (release train engineer, program manager, solutions architect and business owner) who work together to ensure transparency within teams, good communication, and a good product.

The SAF significantly decreases the amount of defects in a company’s product, and increases its output.

Scrum Process

31. Scrum

Scrum is the most popular framework in the agile methodology. It was developed for software teams by Jay Sutherland and Ken Schwaber in 1993, before the Agile Manifesto was even written.

Before scrum, software teams had used the waterfall method of project planning, where the entire project is plotted out at the beginning and overseen by a manager.

Scrum gives teams the autonomy to make decisions themselves. Like all agile, it’s an iterative approach to a project that emphasizes collaboration, reflection, and adjusting.

The scrum framework consists of three roles (scrum master, product owner, development team), five ceremonies (sprint planning, sprints, sprint reviews, retrospectives and standups) and three artifacts (backlog, scrum board, and increment).

Although scrum was designed for software teams, the method is now used in all sorts of industries.

32. Scrum Artifacts

Scrum artifacts are one component of the scrum framework. There are three artifacts: the scrum board, product backlog, and increment.

A product backlog is a prioritized to-do list for the team. A scrum board is a pipeline system for tracking completed work, work in process, and work yet to be done. Increment is what a team produces at the end of a sprint.

33. Scrum Board

A scrum board is one artifact in the scrum framework.

It is a pipeline system for recording work, and includes columns for work to be done from the product backlog, work in process, and completed work.

Scrum boards keep all the work front-of-mind, and help a team clarify which tasks are the most important.

Here is an example of a scrum board:

Scrum Task Board

34. Scrum Master

The scrum master oversees a scrum team and makes sure it follows the scrum framework, which consists of ceremonies, roles and artifacts. It is one of three roles in the scrum framework.

Agile is about autonomous, motivated teams, and so in order to create a high performing team, the scrum master coaches the team, rather than oversees it

The scrum master identifies impediments and blockers during retrospectives and daily standups, and works to remove them. He or she also makes sure the team has all of the tools it needs to complete a sprint.

35. Shuhari

Shuhari is a concept from Japanese martial arts. It’s the idea that when you’re just learning a new skill, you need to do everything by the book. However, when you’ve advanced and the skill becomes more like second nature, it’s possible to be flexible with the rules and transcend them.

With respect to agile, “shuhari” means that when an agile team starts out, it needs to follow the protocol closely. If the team is doing kanban, it’s necessary to use the board correctly and limit work-in-process. For scrum, the team needs to assign roles and participate in all the ceremonies.

This adherence allows a team to understand and embody agile principles of communication, simplicity, reflection, and course correction.

However, once a team gets into a good rhythm, and understands agile intuitively, it can play around with the framework.

Scrum teams, for example, adjust the scrum board to better suit their purposes, and alter or eliminate some ceremonies.

Sprint

36. Sprint

A sprint is used in the scrum framework to refer to one iteration of work.

During a sprint, an agile team completes a small batch of work outlined during sprint planning. Work is selected from the product backlog, determined by what best adds value to the project.

Sprints generally last one or two weeks. The work is laid out on the scrum board, where work in progress, completed work, and backlog items are laid out in separate columns.

37. Sprint Planning

Sprint planning is a ceremony in the scrum framework.

During this ceremony, the team looks at everything in the product backlog and selects work for the upcoming sprint.

Rather than making sure everyone will be hard at work throughout the entire sprint, the team selects work that will really move the needle for a project.

38. Sprint Reviews

The sprint review is one of five ceremonies in the scrum framework.

It’s a meeting conducted at the end of the sprint, where the team looks over what it has accomplished, and also examines the increment produced during the sprint.

The increment is passed on to the end user for feedback.

The sprint review is different from the retrospective, which also takes place at the end of the sprint.

The retrospective is about identifying impediments and looking at how the team worked together during the sprint. The sprint review focuses on the product and the increment developed.

39. Standups or Daily Scrum

A standup is one ceremony in the scrum framework.

It is a quick daily meeting, in which the team assesses how the sprint is going.

They identify progress and any impediments. The daily standup embodies the agile principle that team members communicate daily throughout a project.

40. Story Points

Story points are used to estimate how complicated, and therefore time consuming, a product backlog item is.

It’s usually pretty easy for a team to identify work that needs to be done, but it can be much trickier to figure out how long something takes, particularly with complicated tasks. However, this information is necessary in order to determine how much work a team should take on over one iteration.

Story points are based on the rapidly increasing Fibonacci pattern (1, 1, 2, 3, 5, 8, 13, 21, 34…)

A more complicated task is assigned a higher number, whereas a simple, straightforward task receives a score of 2, 3, or 5.

When an item receives a high score, it indicates uncertainty as to how long the task should take to complete.

Assigning story points is generally a team activity. Each person on the team brings different insight and experience to a project, and so all estimates are pooled and discussed to arrive at a consensus.

Swarming

41. Swarming

Swarming is when an agile team bands together to get a task done. It’s utilized especially in kanban, which has a limit on work-in-progress items, in order to allow new tasks to come into the workflow.

Swarming has several clear benefits. It increases a team’s cooperation skills, and creates a continuous workflow. Swarming also diffuses skills to all the team members, which makes it easier for teams to work continuously.

42. Themes

In agile, a project is broken down into themes, epics, stories and tasks.

Whereas an epic is a single task that takes longer than a week to complete, a theme is a grouping of related tasks.

For example, a theme might be three user stories related to marketing: a newsletter, a blog post and social media content.

An epic would be one task (say, writing an ebook) that takes longer than a sprint to accomplish, so it needs to be broken down into smaller chunks.

A theme may take several months to complete, while a single story is completed in one or two weeks.

43. User Stories

A user story is the smallest unit of work in the agile methodology. It is mapped out with the end user in mind.

The team uses story points, based on Fibonacci numbers, to estimate how long it takes to complete a story.

Stories are arranged and codified into larger groupings, including features, epics, themes and initiatives.

Waterfall

44. Waterfall

Waterfall is a big-picture, top down approach to project management. The leader states what the goal is, then working backward, plots all of the steps to achieve it.

When agile methods started to develop back in the 90s, they sought to fix some fundamental flaws in waterfall

For example, projects using waterfall work to fulfill a contract, without taking the end user into account. Agile methods lean heavily on seeking user feedback throughout a project, and adjusting accordingly.

Waterfall also emphasizes a command and control style of managing a project. Agile, on the other hand, cultivates autonomous and highly motivated teams who are coached by a leader.

45. Work-in-Process Limits

Work-in-progress (WIP) limits is the only constraint in kanban. It restricts the amount of projects that can be ongoing at one time.

Together, the kanban team determines the WIP limit, and posts it on the kanban board. When the team reaches its limit and wants to introduce a new task, they swarm to finish ongoing projects.

WIP limits create a continuous workflow, and helps to get rid of any bottlenecks. It doesn’t allow a team to push work aside due to impediments or blockers.

Conclusion

Does that help improve your agile fluency? Hopefully all the agile terminology makes a little more sense now.

Whatever framework an agile team uses, they all embody the principles of the Agile Manifesto, which include collaboration, reflecting, pivoting, and communication.

In addition to using agile in a professional capacity, a lot of people end up incorporating things like retrospectives and kanban boards into home planning as well.

Teamly’s project management software offers the very best to agile teams. From kanban boards, to voice and text messaging, to time tracking, Teamly is an all-in-one resource for distributed teams. Come check out our services today!

The 5 Pillars of Project Management – and How You Can Implement Them Today!

Pillars of Project Management

The pillars of project management success go beyond factors such as appropriate work-process systems, collective team knowledge, and strategic decision-making. These are not the only elements that contribute to effective project management.

Project management can be a nuanced process, often requiring a customized and structured workflow to ensure successful, high-quality outcomes for an organization. Understandably, the role of a Project Manager (PM) and the individuals on a team play a vital role in shepherding this entire process from beginning to end.

The Pillars For Project Management Success

The Pillars For Project Management Success

A pillar is defined as a “fundamental precept”, giving way to firm principles and practices. The pillars of any rule or vision statement upheld by an organization always provide a sense of strength, unity, and clear identity. Project management in the workplace is no different. The processes of workflow practices need well-defined pillars to support both the technical and abstract aspects of project management.

Systems and processes are integral to project management, however, in order to achieve success, project management often relies on more intangible factors, more closely resembling soft skills. For example, a new hire with exceptional hard skills in computer programming has the ability to bring a robust amount of information and methodologies to their new team. However, without clear guiding principles about the goals of the assignments, organized and thoughtful processes, room to think creatively, and growing doubts about the team’s capabilities to operate as a cohesive unit, the knowledge potentially stays stagnant. Important milestones fall through the cracks, communication within the team isn’t as fully collaborative, or hiccups in the workflow process are met with less compassion.

The company not only risks losing a valuable employee but also increases the amount of turnover to other organizations that prioritize the need to create and nurture the building blocks of project management.

These pillars can make or break project workflow, no matter the scope or level of talent from the people involved. It’s what holds the project together, not only supporting the team in carrying out the basic objectives of the assignment, but also guiding them in making productive and meaningful contributions.

Here are the five essential pillars that are the foundation of project management.

Vision

Project Management Pillar #1: Vision

A company’s vision for the present and the future is an important aspect of project management. Not only does a vision share what the company would like to do to operate better, but it also gives an undeniable visual about where the company wants to be in a few years. In order to create strong team alignment, creating a company vision that inspires and motivates its employees must be done at the leadership level. This is the first pillar of project management because of its focus on workplace transparency. Without a clear path forward, employees won’t understand where the company is going or how their efforts contribute to the overall goal.

Organizations that prioritize workplace transparency tend to have stronger employee engagement, communication, and positive work culture, according to Glassdoor.

So what does this mean for project management?

When employees are aligned with the company’s vision, their morale is significantly improved, and they’re more likely to sustain high levels of performance than those without this crucial element. With this understanding comes inspired ideas to help make the vision happen, which includes innovative project management creation based on a company’s project needs. According to Indeed, vision statements often serve as a guide when employees encounter various challenges.

It’s also essential to understand that a company’s vision isn’t limited to internal staff. This is something that can be shared with external clients, customers, and prospective employees to help with their understanding of the organization’s purpose.

For example, if a company has a clear vision that it shares on its website, this can act as a type of strategic recruitment strategy. Potential candidates will be drawn to the positive and buzzing workplace culture that a vision can so aptly describe. This also helps organizations stand out by setting themselves apart from their competitors by providing a firm sense of commitment to an employee’s wellbeing and supportive work culture. A vision prioritizes the development of an employee but also focuses on the company’s values and core business objectives.

A vision can attract top talent to the organization, whose own personal goals align with the company’s, which is important for long-term retention. As effective project management does require the team to have a high level of skill in order to function properly, having a vision that attracts these types of performers is vital to success.

Collaboration

Project Management Pillar #2: Collaboration

One of the most important aspects of project management is the idea that everyone has the ability to contribute to the process equally and fairly. Collaboration in the workplace is important for a wide variety of reasons:

  • Leverages the wide range of talent on the team for maximum impact
  • Enables the team to think creatively
  • Brings everyone together ensuring high productivity
  • Achieves the teams’ goals faster
  • Improves overall performance of the company
  • Empowers the team to learn from each other, sharpening existing skills and learning valuable new ones
  • Fosters a sense of belonging
  • Promotes more innovative problem-solving
  • Increases sense of purpose
  • Gets the team on the same page
  • Leads to more strategic and thoughtful decision-making

These are all essential, contributing factors to successful project management, especially when it comes to decision-making, which keeps the project moving and the entire team on track. Leaders and teams must work together to coordinate, execute, and monitor the projects they’re working on. Especially with larger, more complex assignments that need buy-in across several departments, collaboration amongst teams must be one of the stronger skill sets. Throughout the process, the team can work together and be more aware of each other’s unique perspectives, needs, and deadlines.

Collaboration also helps create more inspired ideas when problems arise during the project’s life cycle. The team works together to identify the problem, have a meaningful dialogue, and come up with an agreed-upon solution. Without this level of collaboration, projects cannot be delivered with high-quality outcomes. Projects tend to remain stuck or delayed until a solution can present itself.

Flexibility

Project Management Pillar #3: Flexibility

Flexibility is a vital pillar of project management. As with many projects in the workplace, circumstances can change over time, which could potentially derail timelines and deliverables. Leadership, the PM, and the relevant team members should remain flexible and adapt to the situation when there’s a disruption to the normal process. Here are a few reasons why flexibility is important in project management:

  • Anticipate the unexpected – In project management, there is a systemized workflow process that helps guide the team to the intended goal. This happens to make the vast majority of employees more comfortable as there is familiarity in established processes. However, an effective PM plans the project expecting change, anticipating deviations from the standard practice. Depending on the project needs, the team can hold tightly to the process, with short bursts to reprioritize, rework, or come up with other solutions to the problem, or, as the project moves forward, the team can have meaningful conversations as problems manifest.
  • Put the team first – Flexibility puts the people first. While the idea is to assess the issue at hand, a PM needs to check in and evaluate the workload of the team. This ensures smooth coordination and continued communication as the PM works to keep the project on track. It’s important to understand that drastic shifts in processes can negatively affect employees, especially if there’s an increasing amount of change all at once. Keeping the team together during challenges is crucial to project management success.
  • Foster dedication – Even with regular changes in workflow processes, a dedicated team member will continually “keep up” with any new developments and contribute to innovative problem-solving. The more flexible the team is the more dedication to a project the organization is likely to get even in during challenging times.

Project Management Pillar #4: Accountability

Accountability is another important aspect of project management. An individual is accountable for their contributions and will be the intended receipt of the good (or bad) consequences of their work. They are responsible for their own decisions, actions, and results. This ensures that a PM avoids micromanaging individuals on a team, which can create a variety of interpersonal issues. An effective PM empowers the team to uphold their responsibilities to the project.

Trust

Project Management Pillar #5: Trust

Trust works in a few distinct ways in project management:

  • The team is able to rely on each other
  • Allows team members to focus on their tasks with minimal distractions
  • Encourages continued collaboration
  • Has a positive effect on an employee’s physical and mental well-being in the workplace
  • Supports high productivity
  • Creates transparency
  • Demonstrates respect
  • Focuses on what the team can do to improve, and not linger on mistakes

Trust often comes with time, patience, and experience. The PM and the team usually find their rhythm after a few cycles of working together, but ultimately, it can have reverberating effects on the success of not only the project, but the professional development of the staff as well.

In Conclusion

The way organizations approach project management has transformed over the years. Instead of focusing on the finer details of workflow processes (although these are important), leadership understands that to truly build a process that works, it’s about taking a step back and giving their employees a clear path forward. This is done by providing a company vision that everyone can rally behind and a positive work environment that continues to motivate and support the way everyone works together.

Advantages And Disadvantages Of Fast Tracking. Is It Right For Your Next Project?

Advantages And Disadvantages Of Fast Tracking

As project demands increase, fast-tracking strategies have become a highly desirable addition to project management teams. We’ve all felt the pressure of a project falling behind schedule and scrambling to get it back on track. However, it’s important to know the advantages and disadvantages of fast-tracking in project management before you decide if this strategy is right for you.

What Is Fast-Tracking?

Fast-tracking is a project management technique that aims to complete a project in a shorter amount of time than usually allotted. Ultimately, fast-tracking is simply highly-organized multitasking. Most companies adopt this management technique to help minimize the time a team spends on a project, allowing for more projects to be completed throughout the course of the year, and increasing profits.

As great as that sounds, it’s a difficult technique to master and is better used in certain situations than others. Read on to determine when fast tracking is the best option for you and your situation.

When Is Fast Tracking The Best Option

When Is Fast Tracking The Best Option?

Can you remember a time when a client unexpectedly requested for their project to be done earlier than originally scheduled, leaving your team rushing to meet the new timeframe? This is a perfect example of a time when fast-tracking your project is the best option, and if done correctly, can leave you with a final project that meets the deadline and maintains your high-quality standards.

There are a few other times when fast-tracking can be useful too, including:

  • If you need more people for your project. Combining teams to complete similar tasks, not only gets them done quickly but also doesn’t increase your employee rates, maintaining your bottom line.
  • When your schedule is more demanding than usual. A great example of this would be the holiday months. Demands begin to increase, and projects need to be completed with a faster turnaround time, making fast-tracking an ideal solution.
  • When you’re trying to beat out the competition. In many cases, when it comes to big projects, it’s important to be the first one to bring it to the public (and if not the first, then the very best!), so fast-tracking can give you a strong advantage over the competition.
  • When unexpected issues arise and your project falls behind schedule. Life happens, and when your project sustains a time-altering problem, fast-tracking can be an excellent option to make that time back and get on schedule again.

Now that you have an idea of when you can use fast-tracking, let’s break down the advantages and disadvantages of fast-tracking in project management.

Advantages Of Fast-Tracking In Project Management

Advantages Of Fast-Tracking In Project Management

When done correctly, there can be many advantages of fast-tracking a project. The most beneficial aspects include:

  1. Can Increase Profit
    When you implement a fast-tracking strategy effectively, you’re able to batch similar tasks, completing projects much more quickly. When you’re consistently able to complete projects in less time than previous years, while still maintaining the same quality, you’re able to complete more projects throughout the course of the year and increase profits.
  2. Reduces Your Project Time
    One of the most desirable outcomes of fast-tracking is the significant decrease it can have on your project time. When you fast-track effectively, you’re able to align the individual tasks of your projects in a way that allows you to complete multiple tasks at the same time. While planning this takes an immense amount of project awareness, it provides a unique opportunity to cut your project time.
  3. Provides A Way To ‘Correct’ A Project
    Oftentimes when a project falls behind, it’s directly related to an error that was overlooked, leading to an increase of working hours aimed to fix the problem and get the project back on track. When you’re able to create a well-rounded fast-track plan, you create a positive work environment where you can bounce back from these pitfalls and make up for any lost time so that you can meet the deadline.
  4. Cost-Effective
    When you successfully introduce a fast-tracking strategy, you’re able to increase project output, without requiring more people. When you’re able to increase profits without also having to increase your expenses, the extra projects you’re able to complete become profit.
  5. Increase Your Industry Authority
    A company that is able to produce fast turnaround times is one that is highly desirable in the industry they serve. If you can fast-track your projects successfully, you’ll gain recognition from your clients and valuable word of mouth opportunities.

Fast-tracking can be a beneficial tool in your project management style, however, it does come with some drawbacks that are important to consider before introducing it to your team.

Disadvantages Of Fast-Tracking In Project Management

Disadvantages Of Fast-Tracking In Project Management

While there are some appealing factors to consider, there are also some disadvantages of fast-tracking that can seriously affect your project. Here’s what you need to consider:

  1. Difficult To Implement Effectively
    Fast-tracking is one of the more difficult strategies to implement in the workplace. There are a number of requirements that the management team must have in order to create an organized, and well-informed fast-tracking schedule.
  2. Requires A High Level Of Project Understanding
    Fast-tracking requires a strong managerial staff that has a firm understanding of the projects they are leading, and how they can be organized in a way that batches common tasks together, allowing them to be completed at one time. The ability to create a strict outline that reflects the project goals is a vital skill for your project managers to possess.
  3. High Risk Of Low-Quality Work
    Multitasking has been closely linked to a lower quality of work, among other things. When choosing to implement a fast-tracking project management style, you create an atmosphere that demands strong multitasking skills. If your team is not designed with this specific skill set in mind, it greatly increases the risk of the quality of work suffering due to the increased demands and the expectation that your team can easily switch between tasks.
  4. Increased Stress
    When demands are increased, stress often does as well. Fast-tracking requires your employees to complete more tasks at one time, naturally increasing the amount of effort needed during working hours. If you begin to expect more out of your staff than is reasonable, it will cause them excessive stress, affecting their quality of work, lowering their productivity, and creating an unhealthy work environment – which plays a vital role in your employee morale.
  5. Risk Of Unexpected Costs
    With the risk of increased stress rates and lower quality of work, you’re creating a work environment that is more likely to experience unexpected losses, whether it be from employee burnout, irreparable mistakes, or missed tasks altogether. When a project faces these kinds of challenges, additional costs are a common result.

How To Implement Fast-Tracking Effectively

How To Implement Fast-Tracking Effectively

If you’ve weighed the risks and have decided to introduce fast-tracking to your management team, there are a few steps that are essential for you to find success. These include:

  • Motivate Your Team
  • Communicate Effectively
  • Identify Project Goals In Concrete Terms
  • Create A Strict Plan
  • Establish A Schedule (and sharing it with your entire team)
  • Monitor And Adjust As Necessary
  • Track Problems To Continue Optimizing Your Fast-Tracking Strategy

Conclusion

Adopting a fast-tracking project management system has both enticing advantages and commonly experienced disadvantages. Ultimately, the decision to implement this type of solution is entirely based on your project demands, the strength of your team, and your management style.

An Effective Approach to Setting Business Development Goals

Setting business development goals

As we approach the end of the year, it’s a natural time to start reflecting on the past 12 months and planning for the future. For businesses and individuals alike, goal setting is an integral part of this process.

But there’s an art to goal setting. You can’t just make wild, ungrounded claims about your future success. When you’re looking to set business development goals, you can’t simply say “I want my startup to be a unicorn in 2 years”. Well, you can say that, but for 99.999% of new companies this “goal” is meaningless.

You want to be ambitious, sure, but your goals need to be achievable. More than that, you need to make sure you’re working towards the most relevant goals—the goals which will take the business where you (and your partners or shareholder) want it to go.

Let’s take a look at a well-rounded approach to setting business development goals which, if done right, can be transformative for your business.

Things to remember before goal setting

Three things to remember before goal setting

Before we dive into applying the SMART method and actually creating your game-changing business development goals, we need to tackle some perceptions and misconceptions about goal setting. These are more subtle points which, in tandem with the SMART methodology, give your company the best possible chance of reaching and exceeding its goals.

#1—Remember your company vision and values

When your business starts going places (and especially when those places are up) it’s easy to get caught up in the moment. Your decision making can suffer, you can chase short-term gains (to the detriment of your long-term success) and essentially lose track of your true objectives.

The easiest way to combat this—and set goals which not only set you up for short-term success, but which also take your company a step closer to your grander vision—is to measure every goal against that vision or your company values.

For example, let’s say you started your marketing company to help the little guys (self-employed, cash-poor startups, minority entrepreneurs) and as you’ve grown your reputation, your skillset has caught the interest of some bigger companies. One offers you a big bucks cheque and you do a project for them. It’s a success, and you spot a lucrative market opportunity for yourself.

Before you embark on that, ask yourself: is this the right path for my business? If it is, great! But perhaps you’ll realize that the track you’re headed down doesn’t align with your long-term desires. This simple trick will help you hone and fine-tune your business over time, so that in the long run you don’t only have a business that’s profitable, but one you’re proud of, too.

#2—Failure is relative and goals aren’t everything

Too often we confuse “not meeting a goal” with “failing in our business”. When reviewing how well you’ve achieved your goals, you must remember it’s rarely a pass-or-fail scenario; it’s more like a success continuum.

If your company set a truly ambitious goal and put a number on it (say, “Hit $100k per month revenue by December, compared to $10k/month current average”) and only just fell short at $95k per month, then that is a massive success. Sure you missed your “target”, but you increased your monthly revenue by 9.5x and are probably still growing rapidly!

And this is the true purpose of goals: not to hit arbitrary numbers, but to facilitate growth and ambition and forward movement within the company.

Of course it’s possible to fail to hit your goal and be failing in business. If you haven’t put any effort into realizing your goals, you won’t reap any of the secondary benefits that come with that effort.

But for most companies that are proactively working towards ambitious goals, success isn’t guaranteed. What you might do is continuously grow, move forward, and succeed in a more general sense without ever reaching your goals! So don’t take “failure” on your goals too seriously—in the proper context, you might be doing exceptionally well.

#3—Invest in short, medium and long-term goals

When most of us talk about goals, we look far into the future. “I want to be a 7-figure business” or “I want to be the industry leader in our category”. These are fine ambitions, but they aren’t concrete goals your business can actually build towards.

So if your ambition is to be a 7-figure business, it’s essential to break down the long, medium and short-term goals that will get you there. The simplest way to approach this is creating long-term goals first, breaking these down into manageable chunks and then breaking those down into even more bite-sized chunks.

There you have it: 3 levels of goals which you and your teams can follow to reach distant, apparently insurmountable heights.

SMART Business Developement Goals

How to create effective business development goals—the SMART system

The SMART approach to goal setting gets a bit of flack, but it’s actually a very astute and reliable way to set ambitious yet achievable goals—goals which are actually relevant to the business. Because this approach requires more work than simply pinning vague ambitions on the wall, it also forces business owners to consider whether some goals are truly necessary.

(Hint: if it’s not worth the effort of spending a few minutes planning, then it’s probably not crucial to the business!)

The SMART system stands for:

  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time bound

Specific Goals

Specific

Specificity is crucial for creating a clear path and objective for your goal. For example, “Increase profits by 10%” is not particularly specific. Sure there’s a specific figure, but it doesn’t describe how this goal might be reached.

A specific example would be: “Increase profits by at least 10% by relocating to a cheaper warehouse (out of town) and putting more hours into search engine optimization for our website, to drive organic traffic and sales.”

An effective way to add specificity to goals is answering the 5 W’s:

  1. Who is involved in this goal?
  2. What is the desired final outcome?
  3. Where is this goal to be achieved?
  4. When do we want to achieve this goal?
  5. Why is this goal important?

Measurable

“What is measured is improved.” These famous words have been proven true time and again over the years. If you don’t assign some metric for success to your goals, how will you know if you’ve succeeded, or to what degree? How will you assess what did or didn’t work en route to this goal?

Measurability is absolutely essential. In the above example, it’s pretty straightforward: compare next year’s profits to the previous year. This could be broken down into monthly or quarterly analyses to track progress.

Achievable Goals

Achievable

The point with this step is just to ground your ambition. It’s typical for business owners to shoot for the stars with their goals, but if this leads to an endless slog of missed targets, it can be demoralizing for both business owners and the team. Worse, it can force employees to put in massive efforts, increasing their risk of burnout or churn.

So for every goal, we need to consider if it’s realistically achievable by using our best judgement. This is best done by comparing historic efforts. For example, if you made a heavy loss in the previous year, shooting for huge profits is probably unrealistic. However, if you’ve been building for a few years and reaping the rewards, continued stretch growth is a fantastic goal.

Relevant

This step is essentially saying, “Is this goal truly valuable and can it be achieved under current circumstances?”

Let’s take our goal of increasing profits. If your company is currently going through a supply chain crisis, or is struggling to service customer support requests, is growing profits the best goal to be setting your business right now? Or should you be seeking to address other core aspects of the business first?

A few questions you could ask yourself include:

  • Does this goal align with our grander business goals and vision?
  • Is this the right time for this goal?
  • Am I the right person to lead this effort?
  • Are there economic factors which make this less desirable?

Time bound for Goals

Time-bound

A natural part of any goal-setting system is assigning a firm time cap. Goals without deadlines are just vague ideas of what your business can do; putting a hard time limit on your goals is a key driver and motivator to making it happen.

As we highlighted above, it can be useful to break longer-term goals into smaller chunks. For example if you have a 3-year plan, set up bi-annual or quarterly reviews of progress. Not only does this allow you to re-evaluate your goals (which is incredibly important) it can motivate the workforce by seeing their progress to date.

We all know what it’s like to have goals which aren’t time-bound—they just don’t work.

Conclusion

Goal setting for business development is unique to every company. Your current situation, your values and your ambitions will never fully align with what others have done. That’s why this post focuses very little on sharing specific goals from other companies: for education, it’s the process of creating highly effective goals that’s most important, not the goals themselves.

We have peppered small examples throughout to illustrate points, but the truly fun part of goal setting is examining your business and figuring out where you want to take it. Having this vision is fundamental to goal setting: without knowing where you want to go—even in general terms—how can you possibly set relevant and effective goals?

It’s important to review your goals periodically. Business development is an iterative process: your company’s identity, your personal vision and external factors always evolve over time.

So use this guide to get started on uncovering your key business development goals and objectives. And further down the line, use it again to check if your current path is still the right one for your business.

How to Choose Firm but Ambitious Goals for Your Business

Choosing firm goals for your business

Most of us know that it’s focusing on the process that brings long-term success, not fixating on achieving specific goals. If your goal is to hit $100,000 monthly revenue and then you do it…what now? Your company’s whole identity was built towards this milestone. Worse, every month you don’t make $100,000 can feel like failure.

By focusing on the process which is most likely to lead to $100k months you can keep going indefinitely—whether you hit $100k or $500k.

But goals are still fundamental to business success. The key is recognizing that there are different types of goals and some are more important than others. In this article we’re going to look at setting firm, valuable business goals and defining them in such a way as to make them more achievable and impactful.

Create your broad goals

Create your broad goals

If you’re an entrepreneur that’s just left their stable day-job, or you’ve got a small-but-steady operation you’re looking to keep on-track, then it can pay dividends to not overcomplicate goal setting.

We’re going to share a strategy for creating bigger, bolder and more specific goals (see next section: “SMART goal setting”) but it’s completely acceptable to start with less concrete goals while you’re still getting established. Until you reach that stage, taking such a granular strategic approach to goals may even hinder progress rather than enable it.

Step 1—Consider your personal ambitions and responsibilities

A major reason why young businesses fail is because their founders didn’t put enough thought into making their work sustainable. Working 80-hour weeks to get your product off the ground is admirable, but if you’re ruining your sleep, eating takeout every day, your exercise regime has fallen by the wayside and you barely see your kids anymore…you can see how it becomes unsustainable.

Business success is awesome, but it’s only one aspect of your life. Think hard about the hobbies, habits, friends, or activities you definitely don’t want to give up; the ones that help sustain your healthy, balanced life and therefore sustain your success in business.

At the same time, consider your responsibilities. If you’re a mum of 2 and want to be super present during your kids’ childhoods, how you build your business will need to work around this. Other factors to consider might be:

  • If you’re in education, how many hours a week do you need to commit?
    Are you still working another job?
  • When do you want to have vacations? Are there times during the year you need to have less work?
  • How many hours can you actually commit to every week (including all those lost hours between tasks, commuting, making tea, and banging your head against the wall)?
  • Do you have hobbies you want to maintain?
  • What are the non-negotiables when it comes to time with your kids, your pets, your spouse, or your friends?

Step 2—Understand the meaning of your business

This is a relatively small point but an important one. When you’re caught up in the minutiae of running your business, it’s very easy for your internal compass to go haywire. You can start going down paths that don’t really help you fulfil the vision you had for the company in the first place. It’s important to make clear what that vision is, or what your central motivation is, so you can stay true to it over time.

There are no limits on what this might be and each person’s answer will be different. Your purpose might be “making enough money to provide for my family”. It might be “I want to be a millionaire” or “I want to help people” or because you believe in the righteousness of what you’re doing. Whatever it is, just note this down; if you ever get lost down the road, use this to reorient yourself.

And now to goal setting!

Set Long, Medium and Short-term goals

Step 3—Set Long, Medium and Short-term goals in that order!

Say you’ve launched a legal advisory firm because you truly believe in the power of the law to protect and help vulnerable people. That’s a wonderful meaning or “why” for your business—but “helping people” isn’t a strategic goal.

You need to have a long, hard think about what success in your business would actually look like. Ignore “making $X per month” for now. You want to start with a long-term goal (because shorter-term goals are all about achieving the longer term ones) and consider what your business would look like if it was succeeding and derive goals from there. Here are a few examples:

  • Marketing business—The business is successful when my clients are signing 6+ month retainers, every team member is being paid fairly + not overworked, we have no debt, and we’re being approached regularly by new prospects.
  • Legal consultancy—The business is successful when we’ve developed a reputation for honesty and transparency in the industry and when we’re winning 3+ cases every month.
  • Tech company—The business is successful when 90% of our customers leave 5* reviews, when journalists come to us for PR stories, and we’re making net profit every month.

Notice that these aren’t precise goals just yet. They’re more like visions of how the future will look if we follow a certain path. Now is the hard part: coming up with the goals required to get you there. What you need to do is visualize the steps required to make these visions a reality.

For the marketing example, the road to 6-month retainers might involve:

  • Creating sellable “packages” at a fixed price, so customers know what they’re getting upfront
  • Curating a brilliant client experience so customers want to stay
  • Building a reporting system so you can show clients exactly what their money is doing every month

These are long-term goals. You break these down in shorter goals and then break those down even further. One popular system is the 3 year, 3 month, and 3 week goals—by steadily achieving your 3-week goals, the 3-month goals and eventually 3-year goals are slowly accomplished.

Temper your goals with realism

Step 4—Temper your goals with realism

If you’ve thought carefully about your goals and aligned them with your business’s values and your personal responsibilities, you might not need this stage. But in our experience, most young companies set overly ambitious goals. Goals that are just not possible over a 3-week or 3-month span.

Remember you’re going to review your goals regularly. It’s much better to start with something achievable and, if you’re consistently hitting your goals, aim higher if necessary. But if your goals are keeping you on-track for the future you want, don’t heap extra pressure on yourself unnecessarily; just keep on plugging away!

Enhance your goals with the SMART system

The process we’ve just gone through allows you to create goals which are true to your business. However, they are still relatively broad. We use the SMART system to refine and validate our goals. It’s an acronym that stands for Specific, Measurable, Achievable, Realistic, and Time-bound—the 5 standards against which we sharpen our goals.

SMART Goals

Specific

The more specific our goals, the more likely we are to follow-through and deliver on them. The simplest way to make goals specific is to answer the 5 W’s for each goal:

  1. Who is involved in this goal?
  2. What is the desired final outcome?
  3. Where is this goal to be achieved?
  4. When do we want to achieve this goal?
  5. Why is this goal important?

Measurable

How will you measure the success of your achievements? Even if it’s not 100% reliable, it’s important to create a metric of success for each goal. While sometimes this is straightforward (e.g. reaching a global revenue target) you may have to get creative in other cases.

“What is measured is improved.” Words to live by!

Achievable

We have touched on this already, but your goals must be achievable. So if you have goals which are particularly ambitious, make sure you consider:

  • Do I have the time, resources and people to reach this outcome?
      • If not, what needs to change?

Having powerful and ambitious goals is fantastic, but if the corresponding workload leads to burnout or frustration within the team, it might be better to pair back the goals slightly and make the road towards those goals sustainable.

Relevant

This is probably the hardest guideline for some business owners to come to grips with. Is this goal truly relevant for the business? Is this the best way to use your and your team’s time and resources? Is this the right time to pursue this goal?

Sometimes we create fantastic ideas but the company just isn’t ready to take them on. Or perhaps the industry itself isn’t in the right state to accommodate your goals. More challengingly, business owners need to accept that sometimes they aren’t the right person to lead a specific goal drive.

Take a holistic view of your goals and put them in their full context before taking action.

Time-bound

Every goal needs a deadline. Because your company will run through a continuous evolution of new goals, you need to put a firm time cap on each one. Otherwise you run the risk of never quite following through and therefore stalling on forward progress.

Time is one of the areas where companies are most likely to be overly-ambitious. Try to consider the realistic capacity of your workforce, the effect of external stakeholders, the current economic environment—anything which might significantly impact your ability to reach the goal. Then assign an ambitious but genuinely achievable deadline.

Remember as well that some goals are more mission critical than others. You can afford to set generous, slow deadlines on those less important goals. Setting ambitious targets across the board will require exceptional management of all people and resources.

Make sure your follow through

Make sure your follow through

If you’ve managed to commit and put the effort into creating goals which align with your personal life and ambitions, are S.M.A.R.T and staggered across the short, medium and long term, then you’ve set your business up extremely well.

Unfortunately, it’s the execution which often lets companies down. With that in mind, we’ve put together 3 quick points that might help you follow through and deliver on reaching these fantastic goals.

Regularly review your goals

This is especially important for longer-term ambitions. What most businesses find is that when they set a plan 3 years into the distance, they rarely ever get there. This isn’t because they “fail” but rather because the nature of the business and its longer-term ambition changes.

And this is fantastic. It means your business is growing and evolving, and hopefully chasing these long-term goals contributes to that change—even if the initial end results themselves don’t come to pass.

So every 6 months, check in on your long-term goals and see if they still represent the right future for your business. You can also use this time to review progress on your other, shorter-term goals: have you been hitting them consistently? Are you seeing the desired results from reaching these goals?

This review period is about keeping you on track, but also keeping your teams motivated by seeing the fruits of their labor pay off.

Celebrate achievements and milestones

Celebrate achievements and milestones

This sounds like a tiny factor but it couldn’t be more important. Your staff aren’t machines and neither are you. When you hit any of your goals, acknowledge it. Sure you aren’t going to throw a party for every successful 3-week goal, but you can enjoy it. And for bigger goals, it’s important to celebrate a bit more—it helps everyone in the team to let their stress ease away and believe it was a worthwhile effort.

Some companies will introduce rewards or treats, but simple acknowledgement of good work goes a long way for most employees.

Use a project scheduling tool to up your success rate

Project and task scheduling tools are designed purely to increase your odds of consistently meeting your goals. The ability to see every goal, each team member’s responsibilities and progress, as well as the ability to access all files associated with the work makes building towards goals so much easier.

Teamly is built to help you accomplish projects faster and more efficiently, giving you a clear advantage over the competition by turning every SMART goal into a happily ticked box.

Conclusion

There is definitely an art to setting firm business goals which are ambitious, relevant, feasible and genuinely impactful. By following the process laid out in this article, your business should be able to convert its vibrant energy and ambition into bite-sized, actionable chunks that elevate you to ever-higher levels of success.

To give your business the best possible chance of success, consider signing up for early bird access to Teamly—you won’t believe just how easily you’ll clear your targets!

Decision-Making Techniques In Project Management—With Examples!

Decision making in project management

Productive project management can drive a company towards success, giving employees a clear, easy-to-follow path towards completing their work objectives in a highly efficient manner. If done strategically, project management can keep everyone on track, including upper management, and create much-needed transparency in business processes.

To be able to create realistic goals in line with the company’s vision and still retain flexibility for any unseen circumstances during the project’s life cycle, making effective decisions is crucial to adhere to a structure that keeps the team’s momentum moving forward.

The decision-making process in project management can heavily influence the success employees feel as individuals (and as a team) or, unfortunately, create a litany of workflow issues and interpersonal misunderstandings.

Importance Of Decision-Making In Project Management

Importance Of Decision-Making In Project Management

There are many reasons why the decision-making process is important to project management:

  • Lessens the risk of continued project delays or, in worst cases, delivery of an unfinished assignment
  • Takes into account unexpected hurdles and seamlessly keeps the progress of the project going
  • Sets up individuals on the team for success in the part of the project they own
  • Reduces the amount of overwhelm employees feel by providing achievable deadlines and clarity on relevant processes
  • Leverages the various talents on the team so they can operate within their zone of genius and produce high-quality work within the scheduled timeline
  • Provides an organized structure that’s easy for everyone to understand and follow
  • Helps clarify the goals of the project from start to finish
  • Keeps the workflow focused so the team can achieve essential milestones
  • Avoids costly mistakes due to repetitive project failures

Strategic decisions in project management are made with these four vital factors in mind:

  1. The goals of the project – What are the milestones that need to be achieved from the beginning of the project to the very end?
  2. The resources available – Who on the team will be responsible for particular tasks? What platforms, budget, services, and communication channels are available to the organization, ensuring collaboration and idea-sharing is an easy process?
  3. The intended outcome – With this project, what do we want to achieve? What does success look like? And what type of value does the organization want to provide?
  4. The value the result will have on the company overall – How does it impact the organization’s bottom line? Are the goals of the various projects in line with the company’s big-picture mission?

These are key elements of the decision-making process in project management. However, these types of decisions can create challenges for those involved with leading and managing various company initiatives.

Challenges of Decision-Making In Project Management

Challenges of Decision-Making In Project Management

According to PMI’s “Pulse of the Profession: High Cost of Low Performance,” only 42% of organizations report high alignment with or projects to organizational business strategy. As little as 32% of organizations report that their projects are better aligned than previous years. In other words, if the goals of the project don’t align with the company’s overall strategy, the less success there will be for that organization.

To help overcome some of the inevitable challenges with project management, it’s important to understand the barriers that block efficient decision-making in the workplace:

  • Engagement with PM tools – Much of this comes down to how familiar and comfortable employees are with using the company’s chosen systems, allowing for more streamlined project management. Using new technology and adapting to its various updates is a familiar challenge in the workplace. To combat this, training and development should remain a top priority for new and more senior team members to keep their knowledge up-to-date. If a team cannot keep up with evolving technology, they’ll fall behind quickly, unable to properly use these resources to their (and the company’s) benefit. For example, when a new team member is not thoroughly trained in the platforms used to keep track of a project’s progress, this lack of understanding and engagement with the tool can cause disruptive delays. They may not know when to mark a task as complete or how to provide an update so the project manager can make appropriate adjustments to the timeline and notify all relevant parties. This creates an unnecessary, negative domino effect for the entire team.
  • Scheduling – Conflicts in scheduling happen frequently, especially if an organization is working on multiple projects at a time. A successful project manager (PM) takes this into consideration when proposing and implementing a timeline that is manageable for everyone. Issues occur when there is a lack of communication about vacation or time-off requests, demands of other projects and how it impacts specific groups, and no organization when it comes time to sync all the relevant calendars together and pull in the necessary resources, enabling a smooth pipeline of simultaneous assignments.
  • Rapid changes – Of course, changes occur all the time during the life cycle of any project. External customers or clients can have unique demands, which potentially stray from standard company procedures. Sometimes, the changes to procedures can come from internal management trying to discover new and improved ways of doing different tasks. The PM, in coordination with the project’s key players and leadership, must be able to have thorough conversations about the changes and discover workarounds that benefit everyone involved. It becomes a struggle for the team when project demands are constantly outside of normal practices. This slows down the workflow, causing a backlog of work until a solution can be found. If this happens across multiple projects at the same time, the team may not be able to produce high-quality results. For this type of barrier to be overcome, the team should collectively be upfront about their capacities and what they’re able to accommodate so that the appropriate decisions can be made.
  • No existing practices – There are many occasions when a company is in the process of developing new methods and processes in order to find what works best for their team. Since this often takes time and consistent input from all the relevant parties about what’s working and what isn’t, more robust decision-making can be impacted as it can be a trial-and-error process. Those in managerial positions may have different approaches to problem-solving or the process needs to be tested multiple times before the team finds its rhythm.

Team Skills

  • Team skills – One of the biggest roadblocks to effective decision-making in project management can be the resources available, including the team’s skill set. The success of a project depends on the people involved with its completion. The team must be able to rely on each other to do their respective parts, with firm checks and balances in place to guarantee a successful outcome and limit mistakes. Managers should be aware of their direct report’s strengths (and provide training for areas needing improvement), assign them tasks that encourage their growth as employees, and understand how the team as a whole works together in order to ensure effective collaboration. This is a crucial part of the decision-making process: making sure that the right people are in the right seats so the project moves forward successfully. Managers should also be able to identify when it’s time to recruit for positions requiring particular skill sets to address any gaps in the current team structure and provide further support.
  • Budget constraints – Budgets act as a guide on how to best move forward and can make it clear what projects take priority and what may be consuming too much time without enough return. It can also determine what resources are currently available and what needs to be allocated to other areas of the company. Put simply, budgets can help give a company direction in what’s possible. In order to make good decisions for the short and long term, the leadership team needs to be clear on where it stands financially to ensure productive operations and continued growth and expansion. Another challenge is creating a realistic budget that takes into account all the individual costs that go into a project. A stricter, smaller budget may impede some teams’ ability to get their work done efficiently if not coordinated strategically.
  • Communication – In a survey of 400 companies with 100,00 employees, it was revealed that companies lose an average of $62.4 million dollars per year due to poor communication to and between their employees. Companies with poor communication often host a workplace environment where employees find it difficult to stay focused and feel motivated. As project management largely depends on how well a team communicates with one another to get a project to the finish line and problem-solve along the way, any breakdown in communication between leadership and employees can have disastrous results that extend beyond project management.

While many challenges exist that can heavily impact decision-making in project management, there are ways to help facilitate this process that can set the team up for success.

The Decision-Making Process In Project Management

The Decision-Making Process In Project Management

There are a few steps to consider when approaching decision-making in project management:

  1. Identify the purpose of your decision. This is the essential first step in decision-making. You must be able to clearly define the goal behind the decision needing to be made. For example, let’s say we have a PM who is working on putting together a structure for a writing project that will be read aloud on a podcast. Aside from creating a solid timeline of milestones, the PM will need to have a clear goal in mind in order to make effective decisions. The goal in this specific case would be to identify and choose the few individuals to comprise the team, whose expertise will deliver the final product in a faster manner than usual. Since this particular example is considered a high-priority project needing a finer eye, extra care and diligence must be top of mind when making choosing the appropriate team.
  2. Have all the information you need directly related to the problem. Before you make a decision, you need to collect all the relevant information, both internally and externally. Let’s take our example of the PM whose team was tasked with writing a project that will be read aloud on a podcast, expanding the company’s visibility. Internally, the PM needs to know the team’s availability to be able to make a decision on a feasible timeline while simultaneously understanding the needs of the external client and their own expectations. This ensures that the team is meeting important milestones.
  3. Consider the impact it will have on the rest of the team. When it comes to decision-making, you’ll need to keep in mind the proposed decision will have a ripple effect on the rest of the team. If the decision of a PM causes an imbalance of work – with one person getting more work than another – a new decision should be made in order to rectify the situation. Workplace initiatives often require regular feedback from the individuals on a team so that better, well-thought-out decisions can be made. In our example, the PM will need to review the workload of the team against the needs of the project. If there is considerable conflict in schedules or availability, a team discussion may be needed to identify a solution.
  4. Identify different methods as alternatives. Part of a PM’s job is to think about different workflow paths in the event the process doesn’t go as originally planned, or identify if there is a way to work more effectively given the circumstances of the situation. When considering different alternatives, it’s best to keep in mind that whichever secondary options exist still need to be in line with reaching the ultimate goal of the project. If the alternative option can help the team complete the project faster and more efficiently, this would be the time to evaluate all the information available and make a well-rounded decision.
  5. Execute your decision. Now that you have all the information you need and have considered the overall impact it will have on the relevant parties, it’s time to execute the decision. The team will carry it out as discussed with relevant check-ins during the process, especially if it is new to the organization. This ensures the workflow process is running smoothly and gives an opportunity to identify, solve, and discuss any issues that arise needing the team’s input.
  6. Evaluate continuously. As with any other decisions that impact the team and the work product, evaluation is necessary to help keep processes fresh and effective. You must consider the results of your decisions and whether or not it has met the needs of the project. If not, additional information may be needed in order to make better, more informed decisions when reviewing and improving the processes in the future.

Now that we understand the initial stages of decision-making, let’s talk about the different techniques you can apply in the workplace.

Examples Of Decision-Making In Project Management

Examples Of Decision-Making In Project Management

Effective decision-making techniques are a healthy combination of intuition, experience, and analysis. Let’s take a look at examples of decision-making in project management.

  • Heuristic Technique – This is a method of problem-solving when you want to make quick decisions given a limited time frame, accelerated deadline, or have complex data. This involves relying on past experience, recalling similar situations, intuitive guesswork, trial and error, and mental shortcuts to arrive at a fast solution. This method is intended to be flexible, leaving room for future adjustments. The one downside to this approach is that it can produce errors later in the project’s life cycle. If a particular project is similar in scope and circumstances to a previous assignment, the team can use estimations based on this prior data to make decisions.
  • Multi-voting – Multi-voting is a group decision-making technique structured to reduce a large number of action items to a manageable amount based on a team discussion and subsequent vote. The result is a prioritized list that identifies what is most important to the team. Often used during brainstorming sessions, each team member selects from a large number of items what they feel is the most important in the bunch. Depending on the group, this can be done electronically, physically (via a ballot), or through raised hands in a meeting. Each person casts one vote. Then the votes are tallied and the process is repeated until there is a prioritized list of top items. In the case of project management, multi-voting can manifest when the PM works with leadership on an upcoming project. After some discussion about the assignment and the potential issues that may be relevant, the group can then come up with an organized list of the high-priority action items needing to be done.

Pros & Cons

  • Pros/Cons – Quantifying the pros and cons of a decision is one of the most standard approaches. This simple method allows you to think about your decision from all perspectives before confidently making a choice. It’s a quick, easy method to implement that results in objective decisions. This is especially useful when you have doubts about the decision you’re about to make. Whether you decide to do this electronically or on a piece of paper, you can start by writing down your decision at the top. Then, using two columns, write down all the benefits your decision will have on the team. In the other column, you can then jot down your thoughts on any negative outcomes you potentially foresee. An effective way to fully utilize this approach is to get your initial thoughts down as quickly as you can. After you have something on paper, you can then consider the more thoughtful additions to either column. The limitation to this technique is that this is best used when offered up two concrete choices and doesn’t offer much flexibility when you’re faced with multiple issues. Project management often involves various amounts of problem-solving, so if a quick decision needs to be made that has been thoroughly vetted, then evaluating the pros and cons of a decision can prove useful.
  • Decision-Tree Analysis – Decision-tree analysis is a visual representation of decisions, potential outcomes, consequences, and possible costs. Using a series of branches and nodes, this support tool can help the project management team identify solutions and evaluate their readiness for implementation. Conversely, branches holding alternative options can be cut entirely from the diagram based on their usefulness to the project. This method is most useful for complex problem-solving, operations, strategies, and cost management. Undeniably, the greatest advantage of the technique is that it is a visual tool, allowing you to see all the possible scenarios in combination with expected outcomes. To use this method in project management, you first need to define the problem in which a decision is needed. Then you can start drawing the decision tree with all the possible solutions and consequences. Anything relevant to the outcome goes into the tree. This includes the monetary value and potential payoffs.

SWOT Analysis

  • SWOT analysis – SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It can reveal areas that need improvement and what is likely to succeed. In project management, Strengths will be your internal factors such as the resources you have available like software, the expertise of the team members, customer relationship, etc. Weaknesses, on the other hand, are the factors that hinder the project’s completion such as budget constraints, an inexperienced team, or lack of transparency into established processes. Opportunities are the external factors that support the project such as another task finishing early, freeing up more resources for the team. Threats are what can impair the success of the project. When you understand how all these components work together, it’s easier to come up with a strategic decision so you can take appropriate action.

In Conclusion

Decision-making in project management can be a painstaking process. So much of the success of a project depends on the types of decisions made within the team.

It’s critical to understand the examples of decision-making in project management and how they can support you in making the best, most informed choices for your team and organization.

SMART Goals For Email Marketing With 10 Actionable Examples!

SMART goals for email marketing

Email marketing is at the heart of business growth because connectivity is now the largest driving force for many company’s success, whether it be online sales, podcast listeners, or masterclass participants! This has created a high demand for precise and achievable email campaign goals to keep your audience up-to-date and engaged with your offerings.

Creating a list of goals is great, however, how you develop your goals is the determining factor in whether you achieve them! There is one method for goal creation that stands above the rest, allowing you to plan your goals in a specific way that can help skyrocket your email campaigns: SMART Goals.

SMART Goals

What Are SMART Goals?

This isn’t referring to your goals being smart choices. This is an exact method for choosing and planning your goals so you can execute and achieve them.

When you make SMART goals, you are creating goals intentionally, with a well-rounded plan to set your team up for success. SMART goals include 5 essential elements:

S: Specific
M: Measurable
A: Achievable
R: Relevant
T: Time-Bound

Before we jump into why these goals are so powerful (and we share our best examples of SMART goals for email marketing), let’s look at each step of this goal-setting formula.

Specific

When you create a new goal for your team, it is essential that it’s defined in clear terms that each team member understands. Everyone needs to know exactly what the goal is and what its success looks like. This will ensure your whole team is on the same page, and have concrete understandings of what they’re working towards (and how their role affects the outcome).

There are two vital components to this: being clear about what the goal is, and how it can be achieved. For example:

❌ – “I want to increase our engagement.”
✔️ – “I want to increase our email open rates with intriguing subject lines and increase click-through by offering valuable content with regular promotions of xyz.”

 

By defining your goals in this way, you are helping your team understand exactly what they are aiming to achieve and giving them a starting point to begin working towards the goal.

Measurable

In order to continuously improve, certain metrics must be measured and tracked. Define how you will measure your progress throughout the goal’s lifetime so that you can celebrate your success and adjust your action plan when needed. When you include measuring success in your action plan, you are better able to pivot, regroup, and adjust, allowing your goals to be met much more frequently.

One essential aspect of making a goal measurable is to make your check-ins frequent enough that you can catch any issues quickly, allowing you to respond to them and optimize your action plan as early as possible.

❌ – “Every 6 months we will review our goals to see how close we are to achieving them”
✔️ – “We will review our email marketing goals bi-monthly by using both previous years’ open rate metrics, as well as comparing each set of 2 months with the previous 2 reviewed to examine current growth patterns.”

 

Achievable

Challenging your team is great and can be a huge motivator, however, if the challenge puts too much stress on your team, it can be detrimental not only to the success of your goals but also to your employee morale. When your goals are unrealistic or impractical, your team may become discouraged and become burnt out from the added stress of working towards an unattainable goal.

In order to keep your goals achievable, plan them alongside your team, taking their skill sets into consideration, and allowing them to have input on their roles. When you create an action plan for your goal and your team agrees on it, you’ll have much higher rates of success.

❌ – “We will increase our open rates to 100% each month.”
✔️ – “We will implement new strategies to our email campaigns and review the open rates each time to determine the most effective approaches to our audience. Once determined, we will aim to scale our open rates to 50% by the end of the year.”

 

Relevant

When we talk about relevance, we aren’t just talking about if the goal matches what you’re customer is looking for (though that’s important as well). When creating SMART goals, relevant refers to your individual goals in relation to the company’s bigger aspirations.

How does your goal help the company reach theirs?

Clearly evaluate how your goal aligns with your company’s values and the role it plays in helping the company find success in its larger goals.

❌ – “We’ll bring new customers to the company by increasing open rates and click-through rates on our email campaigns.”
✔️ – “The company’s goal is to increase profits by 25% this year. By increasing our open rate and click-through rates by 50% this year, we will be able to help the company reach that goal.”

 

Time-Bound

One major part of every goal is when that goal is expected to be completed. Having a firm deadline for your team to work towards serves a few different purposes.

First, it helps your team measure their success at any point in the goal’s lifetime. Having a solid end date allows them to view current progress in comparison to the amount of time left to achieve success.

Secondly, it motivates the team to accomplish the goal in a specific timeframe. Parkinson’s Law says that work expands to fill the time allotted for its completion. Having a deadline often drives people to perform at a higher caliber and work more efficiently.

Lastly, it places the team on the same timeline. When everyone is focused on their own roles, it’s easy to become detached from the group and lose sight of the project as a whole. However, when there is a firm deadline that everyone must meet, it naturally aligns your team members to work together to meet that expectation and remain aware of how their progress affects those relying on them.

❌ – “Your goal is to increase open rates and click-through rates with engaging content throughout the year”
✔️ – “Our email marketing goal is to increase click-through rates and open rates by 50% by the end of this fiscal year.”

 

Now that we know the fundamentals of each component, let’s discuss why SMART goals are so beneficial for email marketing!

Why Are SMART Goals So Powerful For Email Marketing

Why Are SMART Goals So Powerful For Email Marketing?

When goals are set using the SMART method, they can become an incredibly powerful tool for a marketing team. Here are a few of the best reasons to start incorporating SMART goals into your marketing strategy.

  1. Developing SMART goals helps your team become clear on their goals, allowing them to make informed and actionable plans.
  2. These goals protect you from over-extending your employees with unachievable goals, risking burnout, and decreasing employee morale.
  3. SMART goals help you ensure your marketing goals reflect your company’s values and are beneficial to the company’s big picture goals.
  4. They help every member of your team have a strong understanding of their role and how they are expected to measure and achieve their tasks.
  5. SMART goals set your team up for intentional success!

It’s clear how smart goals can benefit your business. When it comes to email marketing, there are email campaign goals that should be at the top of your list.

Email marketing SMART goals examples

Top 10 Examples Of SMART Goals For Email Marketing To Maximize Your Next Campaign!

Now that you know what SMART goals are, let’s talk about some SMART goals you can implement today (and how to get started!).

1. Brand Exposure

Getting your brand out into the world can be difficult. The market is saturated and competition is steep, however with the right marketing techniques you can drive up your brand awareness and start expanding your reach. Brand exposure is more than just making your company known. It’s also how you’re going to build trust with your consumers, and if they’ll be confident in what you’re offering.

To boost your brand’s exposure, it’s essential that you provide your subscribers with valuable material. Share stories with them to show them how your offer is transformative and highlight why you started your company. Share educational articles that will resonate with your audience (even if they aren’t yours; sharing the spotlight to highlight some of your favorite brands is always well received!). Stick to your brand voice to create a coherent experience for your consumers across all your channels.

2. Build Loyalty

One of the best ways to create loyalty is by creating nurture email campaigns. These emails aren’t about selling. They aren’t asking your subscribers to sign up for a new program or alerting them of a flash sale or discount opportunity. These emails are about creating a solid, personal relationship with your subscribers that makes them feel involved and valued. Create a series of emails that updates them on your business, without any attempt to sell anything. Include emails about passion projects you’re working on, current stressors and successes, and most importantly, thank them for being part of your inner circle. Building your subscribers into eager consumers takes intentional work, but it is worth it with the right tools and strategies.

3. Gain New Customers

Signing up for your email list is only the first step. Having a strong email campaign that brings your subscribers through your funnel and right to your check-out page is essential. Before that can happen, you need to build a relationship with them, so that they trust you. People don’t love to be sold to, so it’s important to get the perfect mix of personality, transparency, and intrigue for future offers.

4. Increase Email Open Rates

Emails fill up with offers all day long. Most people have signed up to so many lists that they get 5-10 emails every day trying to sell them something, resulting in low open rates and higher chances of being sent to the trash bin right away.

Don’t let that discourage you, because this is where you get to be different! If your aim is to drive up open rates, don’t sell to them in every email. Take a couple of emails to build intrigue in what you have planned, or simply to touch base and stay top of mind by giving them free value or educational content. Make your subject lines different from what comes through from every other company so that they stand out.

Expand Your Subscriber List

5. Expand Your Subscriber List

There are multiple ways to grow your number of subscribers, but there are a few ways that have higher success rates than others. This is where high-value content comes in. Consider creating free offers (lead magnets) for people to sign up for, or exclusive promos and bonuses that only subscribers can access. People love being rewarded, which creates the perfect opportunity for you to gain new subscribers.

6. Boost Your Click-Through Rates

When you offer something that’s interesting that doesn’t immediately lead the consumer to a sales page, you’re much more likely to have a higher click-through rate. These initial links need to provide something that’s entertaining, relevant, and valuable to your consumer and provide a great opportunity to introduce them to a secondary lead. High value content is still the strategy here.

7. Become An Authority In Your Industry

People trust companies that are leaders in their field. Email your list to share your knowledge of the industry with your subscribers. By teaching them aspects of your business, you’re showing them that you are authentic, passionate, and deeply involved in the industry. When you are able to show your expertise to your clients, it naturally builds trust and they see you as an authority.

Drive Traffic To Your Landing Pages

8. Drive Traffic To Your Landing Pages

Landing pages don’t always have to be sales pages. An easy way to bring traffic to your site’s pages is by creating a double opt-in when people subscribe. This gives them the opportunity to confirm they actually want to be part of your subscriber list, while also providing you a unique opportunity to redirect them to your site after they’ve clicked through the confirmation link. Take this a step further by adding a discount code on that landing page to welcome them!

You can also increase traffic through thank you emails. It’s a simple thing that’s commonly overlooked, but a quick email that thanks a subscriber for joining or for a recent purchase, is a great way to show them you value their involvement, while also providing them a way to return back to your page through an added link to a highly trafficked page.

9. Gain Valuable Subscriber Insights

Learning about your subscribers is vital to your growth. A great way to do this is to send out occasional surveys with appropriate timing (not too often, and typically after they’ve made a purchase, or when they become involved in an exclusive offer). Asking for feedback shows them that you care about their opinion and that you are always working to improve their experience. This is also a great way to get a deeper understanding of your audience and compare it to your current target audience.

10. Increase Subscriber Participation

A great way to get your community involved is through webinars, podcasts, free guides, and masterclasses. Not only does this provide them with value, but it also increases their awareness of your brand, your mission, creates authority in your industry, and shows them that you genuinely want them to be involved.

Conclusion

Email marketing has many benefits when implemented with SMART goals. Improve your customer relationship with email campaigns so that you set yourself up to find higher rates of success, and create the possibility of your company surpassing its goals.

Lack of Resources at Work? Here’s What You Need to Do for Your Projects

Lack of resources in project management

A lack of resources in project management doesn’t need to spell disaster. In fact, a key part of a project manager’s role is finding a way to make things work without exceeding the budget with the resources they have available. Resources can be anything from material to equipment to staff power.

Good project managers will be able to navigate through their projects and supply their deliverables on time. They will know how to make the most out of the resources available and get more out of their staff. In this article, we’ll be looking at how to deal with a lack of resources and some tricks for meeting deadlines.

There are many reasons that could cause resources to be stretched and it’s the job of the project manager and their team to figure out the next move. Let’s take a look at some of the most common causes for a lack of resources at work.

Causes A Lack of Resources In Project Management

What Causes A Lack of Resources In Project Management?

If only everything could operate as planned all the time, we’d never have any issues. Unfortunately, that is not the reality that project managers will face. Problems will rear their ugly face as often as they can if you’re not prepared.

The saying “everything that can go wrong will go wrong” is never more true than when you undertake a new project. Lack of resources can sometimes be identified early enough to prevent. However, there will be unexpected events that can derail a project’s progress.

Some of the issues that project managers can expect at work include:

Higher Priorities

Businesses often have more than one project running at any given time. On occasion, there may be a call to redeploy your resources to another project that needs them more. These decisions can be made by executives and are entirely out of your hands.

When this happens, the project manager will need to assist the company by relinquishing some of its resources to the other project. It could be moving materials, equipment, or staff which can lead to delays in the project.

Staff Absence

Team members may have to take unexpected time off such as sickness or personal days. Vacation days on the other hand can be planned ahead of time and shouldn’t affect the overall progress too much. However, when a staff member falls ill or suffers a bereavement they may need to take an undisclosed amount of time off.

The problem can accelerate when multiple team members need to take sick days at the same time. To combat this you may need to hire temporary workers or redistribute staff to make up the workload.

Broken Equipment

Broken Equipment

When equipment breaks it can be a major setback for any project no matter the size. For example, if your intranet system breaks and no one can access shared files, a project could be forced to stand still. Some issues are temporary and can be resolved quickly whereas others can be ongoing with a costly fix.

If you’re using expensive equipment that requires a significant portion of the budget and it breaks, the project is in serious jeopardy. An engineer will need to be deployed to fix the issue which is an added expense not budgeted. This stretches the time and cost of the project.

Supply Issues

Not all issues will stem from in-house. Supply issues can catch you off guard and there’s not a lot you can do if the other companies in the supply chain aren’t delivering. These issues can stem from a lack of materials at the warehouse, or not enough drivers to deliver the goods.

Despite exchanging contracts and agreeing on a delivery date, things get missed. If the delivery is crucial to project progression it can hold things up. Your team members will have to sit twiddling their thumbs until the goods arrive. As a project manager, you can jump on the phone and try to speed the delivery up but sometimes it’s completely out of your hands.

Poor Planning

Sometimes it just boils down to poor planning during the early stages of the project. Blaming the issues on poor planning should not be the last resort. The sooner the issue is identified the quicker problems can be rectified.

This is why a project needs to be properly planned ahead of time with all the relevant documents. A baseline budget is a great document to help anticipate and plan for a lack of resources in project management.

Plan the project thoroughly in the early phases and use these plans to compare actual progress with projected progress. That way projects can be kept on the right track as best as possible.

Technology Issues

In many ways, technology has increased productivity across all industries. However, it presents its own challenges that can hold up project development. One such problem is where people aren’t familiar with the technology you want to use and how large the learning curve is for it.

If you’re working with outdated technology such as desktop hardware, your productivity can be affected as things take longer to respond. This eats into the time your team has available to use on actual work.

Software that is no longer supported by the developer can hinder development. If the budget doesn’t allow for new software, staff will have to make do but their progress may be slowed down.

Prevent a Lack of Resources At Work

How To Prevent a Lack of Resources At Work

Prevention is the best course of action to deal with a lack of resources. If you can spot potential issues early enough, you can work on a plan to ensure the worst doesn’t come to pass. Of course, it’s not always going to be possible but preventing a lack of resources in project management is a big part of the job.

The easiest way to do this is by developing a method of monitoring the resources as the project is underway. At the start of the project, you should compile documents on resource allocation, budget limitations, and the project schedules. It may be worth splitting the project into phases which can be easier to monitor and control the risks.

Here are some things you should consider doing at the start of the project:

  • Understand the deliverables
  • Set a deadline
  • Define the scope of the project
  • Identify any project lags
  • Estimating activity levels
  • Forecast and estimations based on prior projects
  • Develop a baseline budget
  • Create a RAID log (risks, actions, issues, decisions)
  • Project communication plan
  • Use project management software

The more prepared you are at the start of a project the smoother the development will be. When compiling the necessary documents in the early stages you’ll be able to identify potential issues and plan accordingly. Preventing a resource shortage should be a top priority throughout the life cycle of a project and the best way to do that is through monitoring and control.

Using a good project management tool such as Teamly can make all the difference for your projects. We’ve designed it to be the only tool you’ll need for all your project management requirements. It allows you to connect your entire team remotely which gives you more flexibility to finish projects faster than your competition.

By having all your information in one place, you’ll be able to monitor project progression with ease. If there is an opportunity to spot a lack of resources early, software like this can give you a nice head start.

How To Plan Your Resources Efficiently

How To Plan Your Resources Efficiently

During the early phases of a project, you can put together a resource plan which documents what’s available to you and how to split it up during the project. This is a document that should be as thorough as possible when you create it. Include details of staffing, materials, equipment, and anything else you deem necessary.

Work out exactly what resources you need to complete the project on time and on budget. You can use previous projects as a benchmark when deciding on what’s needed for the new one. At this point, you’ll be able to anticipate if the budget and resources available are adequate.

Next, you’ll need to understand when each resource will be needed during each phase of the project. You may not need every staff member working on the project at the beginning but as production ramps up, you’ll need to bring more people in. If you can plan this ahead of time, you’ll know the impact the resources will have on project development.

If you’re dealing with limited resources you should figure out how often you’ll need to use them. Break down usage according to days, weeks, and months. If certain things are only needed for a single day in the project, you’ll know the best time to deploy them to keep costs down.

A good project manager will be able to identify what resources can be stretched to fulfill more requirements. Look at the unmoveable aspects of the project such as deadline and budget and work on getting the most out of every resource you have.

What to Do When You Notice A Lack of Resources

What to Do When You Notice A Lack of Resources?

When you first realize that the resources available are dwindling you need to figure out why before anything else. The reason could be obvious such as staff sickness and the fix is obvious as well, such as adding another member to the team temporarily. Other issues may take longer to identify but it’s an important first step to know what to do next.

Small problems that require an easy fix can be remedied by looking at the task list and rearranging priorities if there is any wiggle room. If it’s a major problem then you need to understand what the impact is going to be on the project, including time and cost considerations.

Once you have a clear understanding of the impact, note down if this will affect the scope or quality of the project. Now you’ll need to devise a plan to work around the issues and speak with the other stakeholders in the project. You may be tempted to try and fix the problem alone but involving more people can help address the issues better.

The other stakeholders in the project could include the product owner, executives, the client, and key members of the team. Put your heads together to devise a plan to address the lack of resources at work and how to move forward on time and on budget.

It’s at this point a request can be put into the control board to allocate more resources, whether additional staff or a budget increase. Ultimately, it will be their decision so including them in the discussion at this stage is vital. Avoid putting off the discussion if it becomes apparent more resources are required.

Once the plan is made, you’ll then need to implement and oversee the decisions. Keep a close eye on resource allocation to ensure the new agreements are sufficient to see the project through to completion.

Use the Experience to Plan More Effectively in the Future

Use the Experience to Plan More Effectively in the Future

Although a lack of resources can be stressful for project managers it can be a great way to learn and level up your abilities. Think about how the lack of resources impacted the project. Did you have to go over budget or ask for a deadline extension?

There will be clear lessons to learn when this happens and you should be open to them. Sit down with the stakeholders at the end of the project to discuss any inefficiencies and what led to the lack of resources at work in the first place.

Take on board any criticism or advice people have and grow from the opportunity. Unfortunately, the possibility of poor resource allocation is a common issue for project managers.

Think about what caused the issues and if there was a chance to spot things earlier. People can learn a lot from adversity and dealing with a lack of resources provides a great opportunity for growth.

Conclusion

There’s nothing a project manager can’t overcome! A lack of resources in project management may seem like an impossible mountain to climb, but if you keep your cool, you’ll get things under control in no time.

It’s not always possible to anticipate problems in project development. Resources can be depleted in an instance if the wrong thing happens. As long as you make a thorough plan at the start of the project and monitor your resources throughout development, you’ll be well-positioned for any changes.

Remember to involve key stakeholders early on when you realize resources are running out. Work together to allocate more resources or figure out how to work with what you’ve got.

Mastering the Art of Prognostication: How to Value a Startup With No Revenue

Valuation of startups without revenue

Have you ever been out driving on a winter morning, when the fog is so thick you can barely see a few feet in front of you? Just to keep from veering off the road, you have to crawl along at ten miles an hour.

The funny thing about fog, however, is that even while it completely surrounds you in a thick layer, it’s impossible to grasp.

Estimating the value of a startup with no revenue is just as elusive. By looking at the product and meeting the team, it’s easy to determine whether or not the business has merit. But as for pinning down a precise number on its value? That’s about as nebulous as reaching out for a handful of fog and putting it into a jar.

Yet, if you’re the owner of a startup, there’s an urgent need to communicate to investors just how much your business is worth. And investors need some black and white assurance before they feel comfortable taking the risk.

Why can’t there just be a quick and easy equation, where you punch in a few numbers and viola! -An accurate appraisal comes out every time?

Unfortunately, startups without any revenue are missing some key financial metrics. And so sizing them up means looking at a lot of subjective criteria.

However, anyone who has good business acumen and is eager to do some thorough research can come up with a reasonable estimate.

Let’s take a look at just what this research entails. But first, let’s clarify some key terms, and define what a business valuation even means.

Defining Key Terms

Defining Key Terms

When people discuss business and finance, a lot of similar-sounding terms get thrown around and treated like synonyms. For example, it’s easy to think that saying “this company hasn’t turned an income” is akin to saying “this company has no revenue.”

When in fact, these two statements mean completely different things!

Let’s go over a few terms to arrive at some clarity as to just what it means to talk about a “startup with no revenue.”

Revenue is how much money a business earns from selling a product or providing a service. Take a lemonade stand. Its revenue is the total amount of money it earns from selling cups of lemonade over a given period.

A profit is the money left over after subtracting the cost of goods sold from the revenue. Calculating the profit of a lemonade stand means subtracting the cost of cups and lemonade ingredients from revenue.

Income is the company’s bottom line. Calculating income means subtracting any and all operating expenses from the profit. This includes things like wages, equipment, and interest expense.

Any company with a profit or income, then, has already been in the game for some time.

A startup with no revenue, however, hasn’t even gotten out of the gate. It may have a product, and certainly has an idea for one, but until now it hasn’t sold anything at all.

And what exactly is a startup?

In the realm of venture capitalists and angel investors, a startup means a business that promises to be high growth. It’s run by a group of entrepreneurs and oftentimes posits to upset an industry.

So although the pizza place that’s just opened up down the street is a startup in one sense, it’s not the same as a high-growth startup.

A startup goes through several stages with clear demarcations, including pre-seed, seed stage, early stage, growth stage, and expansion phase.

A startup with no revenue is in a pre-seed or seed stage.

A seed stage startup, then, is like a lemonade stand that’s still brainstorming all its plans in the garage. And who, once it starts selling, intends to make a killing.

Making a Normal Business Valuation

Making a Normal Business Valuation

Valuing a business, even when it’s up and running, is never cut and dry. Traditional methods for determining value lean entirely on a company’s financial statements: the income statement, the balance sheet, and the statement of cash flows.

Arriving at business’ book value uses the balance sheet. The discounted cash flow considers a company’s net cash flow (found on the statement of cash flows) and overall risk to arrive at valuation. Another method for calculating value considers a company’s revenue and earnings (found on the income statement) alongside an industry standard.

All this is to say, using the established methods, it’s impossible to make a business valuation without financial statements.

A startup with no revenue, as we discussed, isn’t selling anything at all, and so it cannot generate financial statements. Trying to make a traditional business valuation of a seed stage startup, then, is like trying to bake bread without any yeast, salt, or flour.

Calculating the value of a business without any revenue means jettisoning these established methods. It entails approaching business valuation from a completely different point of view.

Finding the Goose to Lay the Golden Egg

Finding the Goose to Lay the Golden Egg

Back in 2007, at the South by Southwest film and music festival in Austin, a team of Silicon Valley entrepreneurs made an auspicious showing.

Their recently-developed product was the brainchild of months and months of scheming. After scrapping podcasting ambitions, the small crew forayed into the realm of text messaging.

Spending only eleven thousand dollars, they rented several large screens, and positioned them in hallways throughout the festival, displaying 140 character messages onto them.

People walking between music performances took note, and enthusiasm for the product started to crackle. Attendees communicated with each other in messages such as: “I see other people using Twitter in the audience… identify yourself! ;)”

The foursome became the buzz of South by Southwest that year, receiving the “Best Blog Startup” award. And their micro-blogging service started to take off. The overall number of tweets tripled that weekend, and the concept of hashtags was born.

Notwithstanding the enthusiasm, how could any investor witness this unveiling and foresee that Twitter would become the monolith it is today: a social media platform with 330 million users, and a company with a net income of over a billion dollars?

What did investors look at to determine Twitter’s value, lacking any financial statements? How did Biz Stone, Jack Dorsey, Noah Glass and Ev Williams pitch the significance of their business, when nothing had even been sold?

Let’s look at some of the criteria that determine the value of a startup with no revenue.

The Team

1. The Team

We’ve all seen those companies on Shark Tank with a brilliant product but the wrong person at the helm.

Even more than the product or service, an investor assessing a startup takes a close look at who comprises the team.

“Older entrepreneurs with a lot of DNA in the vertical that you’re attacking, with a really good network, get a higher mark than somebody who comes in off the street with the same idea,” says Jeffery Carter, a general partner at West Loop Ventures.


The Twitter crew received high marks in this area. Amongst other ventures, they had previously invented Blogger.

A dedicated, scrappy team has the potential to deliver a powerful product and upset a market. When an investor loves a team, he or she is much more willing to support the enterprise.

Some things an investor looks for in a team include:

  • Experience in the industry.
  • Leadership experience such as a CEO and CFO.
  • Product Management experience.
  • Willingness for the leader to step down and allow someone else to be the CEO.
  • A leader with a sound team in place.
  • Technology experience.

Some red flags to look out for include:

  • A solo entrepreneur with no management team.
  • An unwillingness to be coached.

This character assessment is largely based on intuition. And leading with our gut sometimes goes south.

Take Softbank investor Masayoshi Son. After demonstrating a penchant for identifying and supporting the most up-and-coming, he became enamored with none other than WeWork founder Adam Neumann.

And we all know how that story ended. WeWork’s attempted IPO ended in epic and humiliating failure, when its SEC filing failed to entice investors and generated peals of laughter across the nation (it dedicated the S-1 to the “energy of we” and stated that its mission was to “elevate the world’s consciousness”). Neumann eventually resigned from his position as CEO.

In sum, a team is integral to a startup’s value. But sizing up a team is pretty subjective and certainly not foolproof.

Size of the Market

2. Size of the Market

The market into which a startup launches also determines its value.

A company who makes an auspicious debut into an enormous industry such as pharmaceutical drugs would probably have a higher value than, say, Ping, which is a startup that provides a timekeeping method for lawyers.

3. Impact on the Market

It’s also important to understand how a startup positions itself within an industry.

A product dependent on another company’s software is weak and tenuous. When the company updates its software, the business is over.

However, a product or service that really upsets the existing paradigm could have tremendous value.

Take Uber, for example. It launched into a market dominated by taxis, and offered the same service using a very different method. People ordered rides from their phone, and nearly anyone could become a driver.

Airbnb, as well, turned the lodging industry on its head. Whereas hotels and bed and breakfasts formerly had exclusive reins on the market, Airbnb allowed anyone and everyone to offer their spare bedroom or basement as a destination for travelers.

Both these companies eliminated middlemen and created entirely new markets within the industry. They started a trend and they aren’t going away anytime soon.

In order to understand how a product will impact an industry, it’s important to acquire domain knowledge and talk to people.

Identifying current trends also plays a key role.

Take Substack, for example. Its model of subscription newsletters came along as journalism jobs were on the decline. Yet, everyone was still committed to checking their emails every single day. They spotted a need in the market and filled it.

4. Companies With Similar Products

Trying to evaluate a startup with no revenue is a little like looking at a puppy and determining what he’ll look like when full grown.

In order to arrive at greater certainty around all the unknowns, it’s helpful to look to animals of the same species—or, that is, similar startups at the seed stage.

By researching similar businesses and understanding any obstacles they faced, it’s easier to make an accurate prediction about a given startup.

Customer Feedback

5. Customer Feedback

When Twitter became all the rage at South by Southwest, with new users excitedly punching in messages and creating personal hashtags, it no doubt sent some wake up calls to a few investors.

A startup is looking for validation at the seed-stage, and the best way it can find this is through the way a customer reacts to a product.

It sometimes happens that a startup is so progressive that the market isn’t yet ready for it. Take the company Uico, for example. When they started rolling out touchscreen technology around 2007 and 2008, the very first iPhone had only just come out. Everyday people at the time had no capacity for using touchscreens.

Fast forward eleven years, and most of us use this technology every day.

This is to say, the end user provides a strong indication of a product’s value. However, it’s also important to have domain knowledge about the industry. It may be that the business will be viable within a short time.

6. Product Evaluation

Taking a good hard look at the product itself naturally is central to understanding the value of a startup.

When evaluating a product, it’s important to take into account things such as:

  • Is the product easily duplicated?
  • Is the product in its final form? Or is it a prototype?
  • Does the product have patent protection?
  • Does the product have strong competition?

It’s also important to understand if a team is willing to pivot. As it so often turns out, the end user reacts quite differently to a product than anticipated, and so major tweaking is usually part of the game.

7. Entrepreneur’s Pitch

The team plays a large role in determining the value of its product and company.

In order to secure smart money, the team educates the investor about the value of the product. An effective communication strategy enhances the startup’s value.

It’s important for the team not to overvalue itself, however, as that could make it difficult to secure more financing during the next stage.

As you can see, identifying the value of a startup with no revenue entails quite a bit of research.

Much of the criteria is subjective. Even with in-depth knowledge about a particular industry, different people arrive at completely different assessments of a product’s risk and potential.

Valuing startups requires being proactive. Greater knowledge about a team, the product, and the industry increases the likelihood of making an accurate valuation.

Putting a Number on It

Putting a Number on It

We just looked at various criteria to use when valuing a startup with no revenue. But what about arriving at a precise number? How would someone, say, put the value for a given startup at $5 million rather than $10 million?

Determining a precise number is more art than science.

The methods are nothing like those used for evaluating most companies, where financial statements provide solid numbers.

Arriving at a value for a startup with no revenue is more about putting quantitative values onto qualitative evaluations.

Here are two methods for estimating the dollar value of a startup without any revenue.

1. The Scorecard Method

The scorecard method compares a seed-stage startup to other startups of a similar size, with a similar product, and at the same (or nearly the same) stage in the startup journey.

A. How to Calculate

The first step in the scorecard method is to determine the median pre-seed valuation of similar companies within the region. Let’s say this valuation is determined to be $5 million.

Next, evaluate the target company according to a list of weighted criteria. The importance of each item is reflected in how it’s weighted against the others. Here’s one possible breakdown:

  • Team: 30%
  • Size of the Market: 20%
  • Product: 15%
  • Marketing: 15%
  • Competitive Environment: 10%
  • Other: 10%

(Items on the list and their designated weights can be adjusted.)

The next step entails looking at each category, and determining how the target company stacks up against its competitors.

For example, if the startup has an exceptional team, it’d receive a score of 150% in the “team” category. If the product isn’t so good, it scores “70%” (or so) for this category. If one category is about the same as competition, it receives a weight of 100%.

Column 2
Weight
Column 3
How Target Co.
Stacks Up
Column 4
Weighted Value
Team
Size of Market
Product
Marketing
Competitive Environment
Other
30%
20%
15%
10%
10%
10%
150%
100%
70%
120%
80%
100%
.45
.2
.105
.12
.08
.01
Sum .965

Now, the values in columns 2 and 3 are multiplied to reach the value in column 4. These products are then added up to reach a final sum, which in this case is .965.

This final sum (.965) is multiplied by the median pre-seed startup value ($5 million). In this example, we arrive at a startup valuation of $4.825 million.

B. Analysis

The scorecard method accentuates the enormous impact a team has on a startup’s success.

An experienced, flexible and collaborative team can navigate the many challenges a startup faces, and so a great team is more important than a great product.

A weakness of this method is that all the estimates are subjective. One investor may well arrive at a very different valuation than another, and there’s no telling who is right.

Risk Summation Method

2. Risk Summation Method

Valuing a startup is all about asking “Will this product be successful? And if so, by how much?” The flip side to estimating success is evaluating risk.

The risk summation method seeks to systematically evaluate and measure all the various risks a company faces, and in doing so determine the company’s overall value.

A. How to Calculate

The first step with the risk summation method is the same as the scorecard method: determine the median value of other similar startups in the region, with a similar product and at a similar stage. Again, let’s put this value at $5 million.

The next step is to come up with a summary of all of the risks associated with startups, and the target company in particular. A possible looks like this:

  • Management Risk
  • Capital Raising Risk
  • Startup Stage Risk
  • Sales and Marketing Risk
  • Manufacturing Risk
  • Legislation Risk
  • Reputation Risk
  • Technology Risk
  • International Risk
  • Exit Risk

Next, carefully research the company, the industry, and the team. Then weigh the risk for each category by assigning it a negative or positive value between -2 and 2. A negative value means high risk, while a positive value means low risk.

Next, multiply each “Risk Rating” by $250,000. Then, add together all the values in the third column.

Risk Rating Add/Subtract $250K
Management Risk 2 $500K
Capital Raising Risk 1 $250K
Startup Stage Risk -2 -$500K
Sales & Marketing Risk -2 -$500K
Manufacturing Risk 1 $250K
Legislation Risk -1 -$250K
Reputation Risk 1 $250K
Technology Risk 2 $500K
International Risk -1 -$250K
Exit Risk 0 0
Sum $250K

Finally, we take the sum from the third column and add it to the median startup value. In this example, we add $250 thousand to $5 million to reach a final value of $5.25 million.

B. Analysis

The power of the risk summation method is that it judiciously examines and weighs all known risks. It’s easy to, say, overlook the legal risk a product poses if you’re super enthusiastic about the product and the team.

Again, the estimations are really subjective, and can vary widely.

And finally, it’s probably clear that this $250 thousand value needs to be scaled. For example, $250 thousand is quite a different beast for startups valued at $20 million than those valued at $2 million. So one gauge would be to make the “point” value equal about 10% of whatever value you determine the average startup value to be.

In sum, you can’t exactly cut the goose in half to see if there’s any gold inside of it. All of these methods for evaluating a startup at the seed stage are helpful, yet highly subjective.

Startup valuation, in many ways, comes down to projection, conjecture, and trusting your gut.

Conclusion

Just like capturing a handful of fog, putting some hard and fast numbers around a startup with no revenue is elusive.

Coming up with a value for a startup at the seed stage entails looking carefully at several criteria, including the team, the size of the market, and the product and its position within the market.

Acquiring domain knowledge about the industry is instrumental in making an assessment. It’s also important to have an understanding of current and upcoming trends, in order to determine if the product will make a promising debut.

Arriving at a good valuation means being proactive.

Although it is possible to come up with a round number, this value is highly subjective, and many will arrive at wildly disparate numbers for the same company.

In a lot of ways, valuing a startup at the seed stage is sheer prognostication. And as it turns out, some people are a lot better at this than others.

What do you see when you look into the crystal ball of your seed stage startup?