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Asset management is a term that describes any process or procedure that an organization uses to keep track of mission critical assets, such as tools, equipment, and software. Due to the importance of asset management in many organizations, there’s a wide variety of software products available to help make the tracking of assets easier, which this guide reviews.
AssetExplorer by ManageEngine is a web-based asset management system that gives you powerful tools for managing and monitoring both hardware and virtual IT assets. It gives you the ability to track the status of your assets, ensure software license compliance, and track the lifecycle of your assets from procurement to disposal.
Further, AssetExplorer has robust functionality for purchase order and contract management, can generate detailed reports, and offers a mobile app for iOS and Android. AssetExplorer also provides a Configuration Management Database (CMDB), which can be used to integrate with service management.
Overall, AssetExplorer provides an excellent balance of features, usability, and customization, giving users a comprehensive solution for both physical and virtual assets.
Pricing:
There are three tiers for AssetExplorer: Free, Trial, and Professional. However, a custom quote is required to get any pricing information.
Automatically scans and audits all your network devices
IT lifecycle management features give you an complete view of your assets
Integration with a Configuration Management Database (CMDB)
Ivanti Neurons for ITAM is a cloud-based IT asset management tool with comprehensive reporting and auditing features that allow you to do effective lifecycle tracking, cost analysis, and asset monitoring. These powerful tools give Ivanti Neurons an edge over competitors if having advanced analytical tools is important to you.
Beyond just allowing you to monitor your IT assets, Ivanti ITAM also provides a mobile app, vendor management, and can integrate with other Ivanti service management tools via a CMDB. Another thing that distinguishes Ivanti Neurons from many other ITAM products is that it allows you to create, attach, and scan barcodes, which distinguishes it when keeping close track of physical assets is important to you.
If you need sophisticated reporting and auditing functionalities with your IT asset management system, or like the idea of being able to create barcodes, then Ivanti Neurons for ITAM is a strong contender.
Pricing:
Custom quote required for pricing information
Advanced reporting and auditing tools
Barcode creation and scanning tool
Ability to integrate with service management using a CMDB
Invgate Assets is a powerful IT asset management tool that provides remote support while also allowing you to track all of your IT assets like software, computers, printers, and routers. The remote support lets your staff take control of end-user workstations, which allows them to provide tech support and helps connect your organization across locations.
Other potent features include the ability to to track over 500 different indicators such as financial information, license details, and software categories, create audit trails of actions by administrators, and secure network computers. Additionally, you can deploy patches automatically and meter usage of your apps.
Invgate Assets is one of the few stand-alone IT asset management tools that has remote capabilities, so if you’re looking for that functionality, then it should be at the top of your list.
Pricing:
Custom quote required for pricing information
Robust IT asset management tools
Discovers your network devices automatically
Strong audit and report capabilities
Only works for IT assets, so no physical assets outside of IT hardware can be tracked
Using Servicenow ITAM’s system gives you a powerful set of tools to track the end-to-end lifecycle of virtual assets, hardware assets, and cloud services. The product gives you the ability you record and access information about your IT assets so that you can optimize their usage, reduce costs, and reduce risk of failures.
Along with that, there are premium features like automated discovery of network devices, SaaS service monitoring, and advanced reports. Servicenow ITAM also integrates with other products in the Servicenow suite that offer features like service management, operation management, and security operations through their Now platform.
If you’re looking for an asset management system solution that’s designed to give you a big picture look at your assets through lifecycle analysis, then you’ll want to take a look at Servicenow ITAM.
Pricing:
Custom quote required for pricing information
Advanced lifecycle analysis that provides a comprehensive look at your IT assets
Integrates with a Configuration Management Database system
Part of an connected suite of products from Servicenow
Integrates with third-party services like Salesforce, Azure, and SAP
Not designed to track physical assets outside of hardware
Service management features require a separate product
Solarwinds Service Desk is a cloud-based asset management system that offers excellent IT service tools for internal systems in addition to its IT asset management capabilities.
You’ll be able to automatically detect and monitor all your IP-connected hardware devices through a discovery agent that can be installed on computers, servers, and mobile devices. It also allows you to monitor virtual assets like software, manage procurement of licenses, and track purchase orders.
While Service Desk’s asset management features are robust, what sets it apart are its integrated service management features. There’s a service portal where users can submit tickets and requests and a self-service help desk with step-by-step articles and tutorials.
Customizable dashboards and reporting tools give you the ability to keep track of your service requests and group them together for comprehensive problem management. You’ll also have access to a mobile app, chat tools, and a vendor database system.
Solarwinds Service Desk is an excellent choice for companies that want to be able to provide tech support to their in-house staff while also in need of asset management. One other thing to note is that Solarwinds also has a product with less robust service tools called Web Help Desk that might be worth considering for those with less extensive service needs.
Pricing:
Team: $19 per month per user / Business: $39 per month per user / Professional: $69 per month per user / Enterprise: $89 per month per user
Potent IT service management features for internal systems
Automatic hardware discovery feature saves you time in cataloging your assets
Integrates with over 200 third-party cloud applications
Service management tools can’t be separated from asset management tools
Asset Panda is an asset management system that excels in keeping track of physical items like tools, supplies, and equipment, though it also can handle IT assets such as software and hardware. The product’s sophisticated feature set lets you track assets individually or in groups, attach supplemental information like maintenance records, and then access and analyze that data using a variety of custom reports, audits, and automated workflows.
To facilitate physical asset tracking, there’s a barcode feature that allows you to create barcodes for assets with GPS data that can be read through a mobile app. One useful thing about Asset Panda is that it is highly customizable and lets you create an unlimited number of inventory configurations that you can adapt for your own needs. Likewise, you can have an unlimited number of users, giving everyone on your team the opportunity to be part of the asset management process. You’re also able to track a wide array of information with Asset Panda, such as contracts, lifecycle history, maintenance, repairs, and funding.
Asset Panda has a powerful and versatile feature set, but its strength lies in its sophisticated tools for tracking physical assets, and that’s who we’d recommend it for.
Pricing:
Custom quote required for pricing information
Mobile app with barcode scanning
Can be customized for nearly any situation
Sophisticated tracking tools and reporting abilities
Freshservice is an enterprise-level IT asset management and IT service management software product. It gives you powerful IT asset management features, such as lifecycle monitoring, automated network discovery tools, a full-fledged CMDB, SaaS app integration and comprehensive analytics and reporting tools.
In addition to that, you’ll get IT service management tools including a self-service portal with additional service channels, incident management, service-level agreement monitoring, and artificial intelligence/machine learning automations. On top of all that are operations and project management functions which can, for example, allow you to manage software project from end to end.
If your organization is at the medium or enterprise-level size and in need not only of an asset management system, but also integrated service, operations, and project management functions, then Freshservice is an option well worth considering.
Pricing:
Starter: $29 per agent per month / Growth: $59 per agent per month / Pro: $89 for agent per month / Enterprise: $109 per agent per month (All prices for monthly service, discounts for annual plans)
Integrated asset, service, project, and operations management functions
Artificial intelligence tools that automate some tasks
Integration with third-party tools like Slack, G-Suite, and GitHub
Spiceworks Inventory is a free IT asset management system that allows you to track and organize all your IT assets, both virtual and physical. Among its features include automatic detection of every IT device connected to your network and the ability to track software licenses and compile reports on your assets. Further, you’ll be able to manage an unlimited number of devices, users, tickets and technicians, making Spiceworks quite a useful tool for basic IT asset management.
While Spiceworks Inventory is lighter on features than many other products, it does have the benefit of being free and having support included. For companies on a budget who don’t need a lot of bells and whistles, Spiceworks’ functional–if limited–asset management features could be all that is necessary.
Pricing:
Free with in-app advertising
Free plan with unlimited devices and users
Automatic detection of network devices
Uses display advertising in the app, which could be distracting
Lacks service management features
Methodology for the Best Asset Management Software
It’s important to note that there is a prominent subcategory of asset management known as ITAM, or Information Technology Asset Management. ITAM specifically concerns the monitoring and tracking of assets that are related to the delivery of information technology (IT) services. These include IT assets that are both virtual, like software or license contracts, and physical, such as computer hardware, printers, and mobile devices.
Because of the importance of asset management for IT infrastructure, there is a wide selection of products on the market that are tailored towards managing IT assets. Reflecting that, a majority of the products reviewed here are focused on IT asset management, though some also have the capability of tracking non-IT physical assets.
One other thing to note is that most of the products listed require getting a custom price, which means that you may have to contact several of the providers in order to determine which product is best for you and your budget.
In judging the asset management systems in this article, we looked at the following criteria:
Pricing: When available, the pricing of the product was assessed based on factors like licensing fees, monthly fees, and fees per user.
Virtual Asset Management: The product was assessed on the features it had for tracking and monitoring virtual assets, like software, SLAs, contracts and purchase orders.
Physical Asset Management: The product was assessed for how well it could track physical assets, like computers, mobile devices, tools, equipment, and supplies
IT Service Management: The product was assessed on its IT service features, such as help desks, ticking systems, knowledge bases, and remote access.
Reports and Analytics: The product was assessed for what kinds of reporting and analytic features it had.
Frequently Asked Questions (FAQs) for Asset Management Software
This section is a list of frequently asked questions about asset management software.
What is asset management?
Asset management is a collection of business practices intended to organize, track, and monitor an organization’s business assets. These assets can include virtual assets, such as software and contracts, as well as physical assets like equipment, tools, and supplies. Done systematically, asset management can help an organization reduce costs, manage risk, and facilitate a stable operating environment.
What is ITIL?
ITIL, which stands for Information Technology Infrastructure Library, is a grouping of best practices for improving IT support levels and managing IT services. The term was coined in the 1980s by the British government’s Central Computer and Telecommunications Agency (CCTA). A key part of ITIL is a Configuration Management Database, or CMDB, which acts as a central repository for all components, including hardware, software, documentation, services, and users, and also allows for integration into service management.
What are the benefits of IT asset management?
IT asset management, or ITAM, is designed to help an organization minimize risk, increase returns, and contribute to overall business value. It does this by increasing efficiency, reducing costs, and improving security. An organization also gains greater insight into their IT systems and business operations through effective IT asset management.
What are examples of IT assets?
IT assets include physical and software devices that fall under the responsibility of IT staff. They can include hardware, like computers, mobile devices, routers, printers, and servers. Software assets also include any associated licenses.
What is IT service management?
IT service management, or ITSM, is the practice of designing and managing the IT services that an organization delivers to its users. Amongst other activities, it includes incident management, configuration management, and ITIL help desk management. ITSM ensures that problems, incidents, and changes related to IT assets are taken care of in a streamlined way.
Bottom Line: Asset Management Software
The benefits of acquiring an asset management system are numerous. Organizations will be able to better serve their clients, reduce their costs, and minimize risk of equipment failure with a solid asset management framework and accompanying tools in place.
While there is no lack of excellent asset management products out there, we think that ManageEngine’s AssetExplorer provides the best overall mix of features. However, as each of the products reviewed have their own strengths, it’s possible that another asset management system would work better for your organization.
It’s a great time for small businesses to expand into online selling, as there’s an expansive range of excellent the best ecommerce platforms software available. But there are so many features and pricing options, it can be difficult to choose one. Use this guide to find the best ecommerce platform so you can jumpstart your online sales.
With comprehensive features, flexible pricing, and a variety of plans, Shopify lives up to its reputation as one of the best products in the ecommerce space for small businesses. Shopify gives you five tiers to choose from, ranging from the basic payment functionality of the Lite plan all the way to the Enterprise-level Plus offering.
In the mid-range plans, you’ll have access to a full-featured website builder with unlimited storage and bandwidth and Shopify’s in-house payment service, Shopify Payments. Beyond that, there’s advanced inventory management, point-of-sale (POS) integration, wholesale capabilities, and the ability to sell directly on Facebook and Instagram.
Shopify gets our Best Overall rating thanks to its comprehensive feature set, expansive sales channel support, and shipping discounts up to 77% on all plans (and more at higher tiers). One notable caveat, however, is if you’re dedicated to using a payment system that isn’t Shopify’s; without using their in-house payment service, you’ll pay additional transaction fees.
Pricing
Monthly plans:
Shopify Lite: $9 / Basic: $29 per month / Shopify: $79 per month / Advanced: $299 per month / Shopify Plus: $2000+ per month
(Annual discounts available)
Shopify Payments Fees:
Basic: 2.9% + 30¢ USD per transaction / Shopify 2.6% + 30¢ USD per transaction / Advanced 2.4% + 30¢ USD per transaction. If not using Shopify Payments, then there are additional transaction fees Basic: 2% / Shopify: 1% / Advanced: 0.5% plus whatever fees your party payment processor charges
Robust app store provides extensive outside integrations
Strong inventory management and shipping features
Reduced payment processing fees at higher tiers
There are additional transaction fees if you don’t use Shopify as your payment provider
Integration with Amazon and eBay requires paying for third-party apps
Wix’s ecommerce platform is one of the best if you want to get your products and services in front of customers in as many ways as possible. It has a market-leading website builder that includes seamless integrations with third-party marketplaces like Amazon, eBay, Facebook and Instagram. Further, Wix allows you to sell event tickets, service bookings, hotel reservations, and food orders, so you can reach your customers in a wide variety of channels and selling formats.
Wix has its own in-house payment service as well as the ability to use another payment provider with no additional fees. There’s also integrated dropshipping services by Modalyst for physical items, a built-in CRM, and moderate pricing that matches or exceeds other products on the market.
If you’re a small business who has service offerings that don’t fit into the traditional ecommerce box or you want to sell products on third-party channels, then Wix is a very strong option.
Pricing
Business Basic: $23 per month / Business Unlimited: $27 per month / Business VIP: $49 per month / Enterprise plans starting at $500 per month
Wix Payments: US: 2.9% of the transaction amount + 0.30 USD per transaction
Website builder is one of the best on the market
Strong third-party integrations
Excellent shipping features
Reports are only available on the highest tier plan
There are limits to storage space and video bandwidth
Transaction fees on Wix Payments are flat regardless of tier
BigCommerce is a robust ecommerce product that gives small businesses advanced features and tiered plans that allow room to grow. It presents a full-featured website builder with a blog, unlimited storage, unlimited bandwidth, and product listings, compatibility with more than 65 different payment vendors, and point of sale integrations such as Square, Vend, and Clover..
In addition, you’ll be able to integrate directly with sales channels like Amazon, eBay, Walmart, Facebook/Instagram, and Google Shopping. There’s also excellent integration with a variety of third-party apps and tools that can help you run your business more efficiently and effectively.
If your business has high sales volume or is growing rapidly, then you’ll want to take BigCommerce into consideration. The wide breadth of features and flexibility in payment processing and shipping options makes BigCommerce a competitive product.
Pricing
Standard: $29.95 per month / Plus: $79.95 per month / Pro $299.95 per month / Enterprise plan with custom pricing. Discounts for annual payment available.
Excellent variety of features designed to help boost your sales
No additional transaction fees on payment processing
Priority customer support at Pro level
Higher tier plans are more significantly more expensive than competitors
Some features–customer reviews, cart tools– are only available at higher tier plans
Square is well-known for their POS systems that allow small businesses to take credit and debit card payments on mobile devices. The company also offers an ecommerce solution called Square Online that gives companies the ability to create online shops with strong feature sets and affordable prices.
Square Online offers four plans that are priced competitively, including a free tier. All plans integrate seamlessly with Square’s POS solutions and have a website builder that can be customized at higher tiers. Marketing functionality is built in with Square Online, giving you access to SEO tools, a blog platform, and the ability to sync up with external ad networks like Facebook Ads and Google Ads. While payment processing fees equivalent to their competitors for most plans, you’ll get a better rate at the premium tier.
We recommend Square Online because it offers a comprehensive solution that has a competitive set of features that provide good money for the cost. An additional benefit is that if you already use Square for your in-person sales, then you’ll be able to keep all of your inventory synchronized with Square Online.
Pricing
Monthly plan:
Free / Professional: $12 per month / Performance: $26 per month / Premium: $72 per month (All rates billed annually)
Square Pay Processing fees: Professional and Performance: 2.9% + 30¢ per transaction / Premium: 2.6% + 30¢ per transaction
Attractive pricing that includes a free plan
Excellent website building options, including SEO tools and a blog platform
Free online ordering service for restaurants
Free plan has limited website functionality and features
Payments are limited to Square Pay, Apple Pay, Google Pay, Cash App, Afterpay (PayPal on high-tier plan)
Website builder is only customizable on higher-priced plans
Shift4Shop offers something unique in the ecommerce space: a free plan with advanced features that other companies make you pay for. As long as you’re willing to use Shift4’s payment service–which has industry standard pricing of 2.9% plus 30 cents per transaction –you’ll get a premium ecommerce solution with features like website hosting with unlimited bandwidth and storage, excellent marketing tools, and a wide variety of external integrations completely for free.
In addition to its free plan, there are a number of paid tiers that allow you to choose from over a hundred payment providers with no additional transaction fees. All of Shift4Shop’s plans have access to a suite of marketing features, such as built-in SEO tools, email newsletters, and a blog.
There’s also real-time shipping rates from major carriers, inventory control, and a number of sophisticated product listing features standard. Every plan also integrates with Facebook Shop, Google Shopping Feed, and eBay, so you’ll have plenty of options when it comes to selling on third-party channels.
While each one of Shift4Shop’s ecommerce software plans have extensive features and are worth taking a look at, we’d recommend the service especially to small businesses who want a robust ecommerce solution without having to pay monthly service fees.
Pricing
Basic: $29 per month / Plus: $79 per month / Pro: $229 per month / End-to-End Ecommerce: free. No additional transaction fees charged beyond payment processing.
Free plan offers premium features without monthly fees
Strong marketing and multi-channel tools
Wide variety of payment vendors available outside of Shift4’s in-house service
Payment fees are on the free plan are higher than competitor offerings
Website builder could be more user friendly
Lower-level plans lack some features that some competitors provide
If you’re looking to build an online store that offers excellent website design options and usability while also providing solid ecommerce features, then Squarespace should be at or near the top of your list. Squarespace’s website building and hosting services are well regarded for good reason, and their ecommerce functionality provides everything most small businesses will need to get up and running.
You can choose from three plans that offer reasonable pricing and solid, if not overwhelming, payment processing choices, with Stripe, PayPal, Apple Pay, and Afterpay all available. Facebook and Instagram store integration are also possible.
On the higher tier plans, there’s support for Square’s POS hardware and real-time shipping information. You can also integrate third-party apps such as CRM or email marketing software, but you’ll have to use external services like Zapier or Automate.io to do so.
With Squarespace, you’ll get a beautiful website that supports the ecommerce needs of most small businesses at a reasonable price.
Pricing
Business: $23 per month / Basic Commerce: $27 per month / Advanced Commerce: $49 per month.
The Business plan has a 3% transaction fee in addition to payment processing fees, the other two plans have no transaction fees.
Top of class website design features
Reasonable Pricing
Shipping and POS support at higher tiers
Relatively limited choices in payment processing
Additional transaction fees at lower tier
Fewer possibilities for omnichannel selling than competitors
Ecwid, part of Canadian company Lightspeed, is an ecommerce product that allows you to sell your products or services in a variety of sales channels including your own website, third-party marketplaces like Amazon or eBay, and social media stores such as Facebook.
The service can be a plug-in that you add to your existing website or integrated as part of a stand-alone storefront called Instant Site. Ecwid is competitively priced for small businesses and offers a free tier.
Ecwid can integrate into a variety of web hosting platforms such as WordPress, Weebly, and Squarespace, giving you control over how your store is presented and ensuring a smooth customer experience. You’ll be able to choose from over 70 credit card payment providers and there’s no additional transaction fees beyond payment processing fees.
The highest level Unlimited Plan also integrates with Ecwid’s POS system that is compatible with Square, Clover, and Alice, giving you the capability to sell both online and in-person using the same payment system.
If you’re a business who wants their online shop to be fully integrated into their website while also keeping a great deal of flexibility in terms of payment vendors and POS services, then Ecwid is worth taking a serious look at.
Pricing
Free / Venture: $15 per month / Business: $35 per month / Unlimited: $99 per month (with annual discounts)
A top choice if you have an existing website that you want to augment with an online store
Excellent integration with a variety of POS systems
App market that provides extensive third-party integrations
The lower tier plans have limits on product listings
Lower tiers don’t allow listing on Amazon or eBay
Competitors have more robust website builder tools
Methodology for the Best Ecommerce Platform for Small Business
This ecommerce software comparison guide is designed to help you uncover the ideal platform for your small business. We evaluated the candidates using the following criteria:
Pricing: We looked at monthly fees and transaction fees, with a focus value for money for paid plans and feature set and transactions fees for free plans
Payment processing options: We considered the fee structure, which is typically a percentage of the transaction amount and a small flat fee. Weight was also given to products that allow you to choose your payment provider without additional fees.
Website hosting platform: We looked at the quality of the website builder, including the availability of templates, customizability, ease of use, and mobile compatibility.
Sales channels capability: We evaluated the ability of an ecommerce platform to integrate their stores into POS systems, marketplaces like eBay, Etsy, or Amazon, or social media sales channels like Facebook and Instagram.
Shipping: We considered availability of shipping options, including real-time rate calculation, discounts, and the availability of dropshipping services.
External integrations: The ability of an online store to be connected to third-party apps like customer relationship management (CRM) software, online marketing tools such as email newsletters, or other platforms.
Our rating took into account these criteria when arriving at a final score on a scale of zero to five for each category.
Frequently Asked Questions (FAQs) for Best Ecommerce Platforms for Small Business
Why do small businesses need an ecommerce platform?
Small businesses can greatly expand their sales and customer base with an online store. An ecommerce software platform can provide them the technical infrastructure needed to complete online sales and take payment.
Can I use my own website to host an online store?
Most ecommerce platforms provide you with a website hosting platform at no extra cost. Some can be integrated directly into your own website.
What ecommerce platforms are best for small businesses?
Best Overall – Shopify Best for Multiple Sales Channels – Wix Best for Growing Businesses with High Sales Volume – BigCommerce Best for Affordability – Square Online Best for Businesses Wanting a Free Plan – Shift4Shop Best for Website Design – Squarespace Best for Businesses Who Want to Keep Their Website – Ecwid
What about selling on third-party marketplaces like eBay, Amazon, or Etsy?
Small businesses can sell on online marketplaces. However, those marketplaces have their own fees, which can be higher than having your own independent online store. Using an ecommerce platform allows you to sell directly to your customers, reducing transaction costs and giving you greater control over presentation.
An online store also allows you to build a closer relationship with your customer and gather information about them that you might not have on a third-party marketplace.
Bottom Line: Best Ecommerce Platforms for Small Business
With a wealth of ecommerce software products on the market, it’s never been a better time to jump into online selling. We think that any of the products reviewed here are strong choices that will get your small business up and running with an online shop.
While the best ecommerce platform for small business will depend on your specific needs and budget, we think that most will find Shopify provides the greatest overall value for the money.
Scope creep is one of the biggest culprits for delayed large projects. A lack of clear requirements, involving the wrong stakeholders, lack of documented functional and non-functional requirements, and poorly defined map process flows all contribute to scope creep.
Luckily, there are many strategies a project manager and all project stakeholders can put in place to manage scope creep. These include but are not limited to maintaining an open feedback loop with all stakeholders, gathering feedback early, working in sprints, and keeping detailed records of all changes within the set project scope.
Keep reading to learn more about what scope creep is, what the consequences are, and ways to avoid scope creep for your next successful projects.
What Is Scope Creep?
Scope creep causes projects to take longer than originally planned. Also known as requirement creep, there is no single agreed-upon definition of scope creep. Scope creep is when the original project’s scope expands with new features without taking into account time, budget, and project resources. As a result, it can lead to project delays or even project failure.
For example, your project scope demands building software with three key features within 3 months. At the end of the development, there are seven features, taking 8 months to build with massive overruns and unforeseen costs. These scope changes impact time, costs, and resources in a project, resulting in a change to the project scope, project schedule, and project deliverables.
Sources of scope creep can come from all angles, including the client, end-users, internal stakeholders, and external partners. It could rear its head with something as minuscule as a couple of project changes requested by the client or a lack of feature prioritization by internal stakeholders.
What Are the Consequences of Scope Creep?
There are endless consequences if scope creep turns up in a project. Some of the major effects of requirement creep include too much time spent on unapproved changes, cost overruns, changing project goals, hidden agendas, decreasing time and resources for approved tasks, and missing deadlines.
Coincidentally, one or more of these factors could result in employee attrition and furious clients, leading to a zero-sum game and ever-changing scope, even when using project management tools.
In the most extreme causes, scope creep can cause an entire project to be discontinued.
What Causes Scope Creep?
There are many major causes of scope creep in project management, including the following:
Lack of feature prioritization.
Poorly defined project scope.
Varying stakeholder opinion.
Missing leadership.
Too much user feedback.
Lack of stakeholder involvement.
Lack of client discipline.
Long projects.
Lack of Feature Prioritization
From the onset, requirement creep can be caused by failing to organize a project’s requirements from highest to lowest priority. This may create a disproportionate amount of time spent on lower priority tasks over higher priority tasks.
Poorly Defined Project Scope
Failing to outline and define project scope when the project begins could cause disruptions and iterations led by stakeholders and project managers, not the project plan itself. We highly recommend creating a project scope statement or similar mission statement document to clearly outline all project requirements, and sharing it with stakeholders and clients before the project starts.
Varying Stakeholder Opinion
In a typical project, input to the change control process can come from many key stakeholders, including project owners, engineers, designers, team members, and others. Stakeholders are those individuals who either are involved in the project or are affected by them. Generally, scope creeps caused by dissenting opinions can be addressed by reducing the number of stakeholders.
Missing Leadership
Leadership is integral to the success of any project. A leader who does not effectively communicate and manage scope and requirements is bound to have project direction turn a full 180 degrees. Any new requests for project features should have full buy-in from the managers and all stakeholders before starting work.
Too Much User Feedback
User feedback can often derail projects rather than move projects forward. Many amateur-level project management teams that fail to prioritize changes and differential deal breakers from “nice-to-have” changes often see project scope creep. Any customer feedback should be gathered and incorporated as early in the process as possible for managing scope creep later.
Lack of Stakeholder Involvement
One of the biggest causes of project scope creep is a lack of stakeholder involvement in defining a project’s objectives. These may include higher-level executives or another project team member who does not devote enough time to chime in on new features, which can force other project team members to make decisions on their own.
Lack of Client Discipline
One major cause of creep is not setting boundaries with the client early on in the project plan. If boundaries are not set, too many change requests are bound to occur, costing more time and resources than originally planned. It is critical to be firm with clients and maintain an open line of communication around potentially missed deadlines so everyone is on the same page.
Long Projects
In general, the longer the particular project is, the greater the likelihood of scope creep. When projects run over a long period, it gives stakeholders more time to change their minds and to come up with new requirements that may not fit within the overall project scope.
How To Identify Scope Creep
A few examples of how to minimize and limit scope creep include poor estimations and lacking user involvement early in the process.
Poor Estimation
Estimating small adjustments on entirely new tasks and incorporating them into a project plan is challenging for project managers everywhere. One way to prevent creep is to involve the whole team in the estimation process and to establish all tasks and deadlines upfront, preferably using project management software such as ClickUp.
No User Involvement Early in the Process
Especially true with software and product project management phases, not involving and incorporating customer feedback early in the process can cause your project to go downhill quickly. Early user validation confirms your project is on the correct track. If users are involved too late in the process and go against the grain, your entire project could be in jeopardy.
When using project management software like ClickUp, it is easy to identify a lack of user involvement early. Simply create sub-tasks for collecting feedback from users at regular stages of the project or upon each important milestone to stay on track.
Tips To Avoid and Prevent Scope Creep
In scope creep project management, there are a lot of actionable items a project manager and all stakeholders can do to limit creep, including the following:
Make a clear statement of work.
Hold a kickoff meeting.
Do not be afraid to say no.
Document, document, and document some more.
Embrace change.
Keep simple changes and new tasks separate.
Keep your clients informed.
Make a Clear Statement of Work
A statement of work (SOW) is a project roadmap that contains a list of all tasks, due dates, and a description for each task, along with all assigned resources. It is a helpful tool to manage projects and make sure everyone is on the same page.
Remember, an SOW ensures that the client and project owner are aligned with all requirements, stating work exactly how the customer explained it and how project leaders, engineers, programmers, and other stakeholders understand and respond to new requests and additional project details. With a clear statement of work, expect a lower risk of scope creep.
Hold a Kickoff Meeting
Hold a kick-off meeting as soon as your detailed scope of work is finalized. This allows the opportunity for all project stakeholders to get together and review all requirements before starting work. This meeting should discuss roles, project milestones, allocated results, and reiterate the check-in process, whether they be daily or weekly meetings, to go over progress.
Do Not Be Afraid To Say No
Oftentimes, scope creep can occur due to a lack of discipline. With every client change request, be ready to present a case arguing against it or gather all requests and label them as part of a new project to start once the current work is complete.
Document, Document, and Document Some More
One major cause of scope creep is a lack of communication between the client and the project team, resulting in a poor change control process. With any change to the project scope, be sure to put the additional time and costs to be incurred in writing. If conducting meetings by phone, send a written recap to all people on the call.
Although creep cannot be eliminated, proper documentation can slow it down or extend deadlines as needed. This is one of the most effective ways of preventing requirement creep.
Embrace Change
Even with the best project managers and project teams, change is inevitable with every project. To limit scope creep with constant changes, it is important for a project manager to define detailed requirements, log changes, re-plan, collect feedback, and request additional resources to the project. If necessary, project managers can reduce scope creep, depending on the project’s objective.
Every change should keep a detailed record and every baseline should be kept up to date to help match project progress to resources. Detailed records should take into account new project overruns, resources, or tasks needed for completion. Too many requested changes should be led by a request for additional funding, either from internal stakeholders or the client.
Remember, any change can put a serious dent in budgets, task deadlines, and resources.
Keep Simple Changes and New Tasks Separate
When addressing scope creep, there is a difference between tweaking existing functionality and creating an entirely new function. Any new tasks outside of the project scope could be met with a new estimation of time, resources, and deadlines. If the new task or scope change is agreed upon, enter it into your project charter as part of a new or existing milestone.
Keep Your Clients Informed
To handle scope creep, clients should be informed of how decision-making is made with new change requests from the original scope. It is vital to document and agree upon all current project objectives and change requests with the client, as part of daily or weekly status meetings.
Frequently Asked Questions (FAQs) for How to Avoid Scope Creep
What Causes Scope Creep?
There are five primary reasons for scope creep. These include poor communication on time and estimates of budget to internal stakeholders and clients, as well as adequately defined requirements, a lack of documentation, lack of control over changes, and an absurdly long project run time. All project management methodologies try to address these issues.
Why Should Scope Creep Be Avoided?
Scope creep adds features and functionality to the project scope without any consideration paid to time, cost, and resources. This could cause projects to exceed their initial deadlines, exceed budgets, or have a completely different set of project deliverables than the ones initially outlined.
All of these have a major impact from multiple angles, from putting stakeholders’ jobs at risk to a potential breach of contract, which could result in project failure and loss of professional reputation.
How Do You Limit Scope Creep? How Do You Handle It When That Is Inevitable?
The best way to mitigate scope creep is by being overly communicative. Establish all project objectives with time and budget estimates upfront, letting the client know any changes to the scope will require revised estimates for a new agreed-upon scope. All of these are effective ways to control scope creep or manage it as soon as it occurs.
Secondly, be sure to prioritize features upfront. Identify what is necessary for finalizing your project and set clauses in your statement of work on how the change will be handled.
Thirdly, be sure to estimate properly. For all new client and business requirements, ensure to involve your entire team in the estimate process and do not make decisions in a vacuum.
Relatedly, have a plan to incorporate feedback and identify adjustments versus new tasks. Simple adjustments can be incorporated as part of an existing project plan where new tasks could be entered as part of a new project.
Final Thoughts on How to Avoid Scope Creep
One of the biggest factors in making or breaking a project is scope creep. Scope creep causes project overruns, wasted resources, and unclear expectations between the project owner, internal stakeholders, and the client. We highly recommend understanding scope creep, the causes, and how to avoid and prevent scope creep to move any project forward.
One project management software that could account for change management to limit requirement creep is ClickUp. ClickUp is a helpful project management tool for small to large-sized businesses managing projects across all industries from software engineering to design.
If you want to know how to do payroll for your business the easy way, use payroll software. You can automate everything from gathering employee information on tax forms to calculating, paying, and filing payroll taxes with a quality payroll software solution.
Invest in a payroll processing solution that suits your needs to save yourself the trouble of running into payroll mistakes and paying FLSA fines and tax penalties. We researched the market for the best payroll software and shortlisted a handful to make the pick easier for you.
Gusto is a robust platform that unifies payroll, benefits administration, HR, and compliance functions into a single, easy-to-use package. Read our Gusto review for an in-depth analysis of the software.
It’s made for small firms who want to remain on top of their employees’ basic HR needs. Many businesses in the United States use the app owing to its robust collection of payroll functions, a well-designed user interface, and automation possibilities.
Gusto includes unlimited pay runs and basic reporting in all its plans, providing everything a small business needs in a payroll software. Its core plan offers full-service payroll including employee tax forms, benefits management, and integrations with a range of other tools.
Why we chose it: Gusto includes unlimited pay runs and basic reporting in all its plans, providing everything a small business needs in a payroll software. Its collection of features also makes it suitable for mid-sized and large companies.
More affordable than similar platforms
Offers unlimited payroll runs and PTO tracking
Available in all states
Dedicated support is exclusive to higher-tier subscribers only
Next-day direct deposits available only with Complete and Concierge plans
No time tracking features offered in Core plan
Pricing: Gusto offers three different plans for businesses with permanent W-2 employees and a Contractor Only plan for businesses that hire independent contractors only.
Contractor Only Plan: No base fee. $6/mo per person
Core Plan: $39/mo + $6/mo per person
Complete Plan: $39/mo + $12/mo per person
Concierge Plan: $149/mo + $12/mo per person
Rippling – Best Payroll Software for Mid-Sized Businesses
Rippling offers a great mix of HR and payroll functionalities, making it a great option for mid-sized businesses as it simplifies personnel management.
Users may sync data from other personnel management systems to automate data entry and guarantee that each employee receives pay as soon as feasible with this platform. It also includes task management tools, personalized alarms, and a built-in unified personnel database, as well as reporting capabilities that allow HR teams to analyze salary trends.
Rippling offers loads of integrations with accounting, time tracking, attendance, and other tools. Its integrations are one of the biggest factors that makes it an attractive option. You can streamline your payroll and get your employees paid as quickly as possible with this payroll software.
Why we chose it: Rippling’s offers a depth of service and flexibility which make it a great choice for companies with complex payroll needs. Although its price and user experience appeals to small businesses, we recommend it for mid-sized companies employing more than 10 employees.
Offers a decent price point for mid-sized and small businesses
Can pay any employee anywhere on the globe
Can be integrated with hundreds of apps
Pricing isn’t transparent
Gets pricey as you add more features
Limited customer support
Pricing: Rippling has a quote-based pricing plan where you can get a custom price by setting up an appointment with a Rippling advisor. That said, here’s what you should expect it to cost:
Core: $35/mo. + $8/employee/mo.
Paychex Flex – Best Payroll Software for Scaling Businesses
Pricing: Plans starting at $39/mo. + $5/employee/mo
Paychex Flex offers a variety of reporting features and gives users upgrade options, which is vital for scaling businesses. It offers around 160 different kinds of reports so you can have a better look at your business’ expenses. If you prioritize data and reports to gain insight into your business operations, Paychex has everything you need.
Although it’s one of the more costly payroll services in this guide, its features make up for the cost. Paychex offers automatic federal, state, and local tax filing for your business. It offers next-day direct deposit even with the basic plan, plus new hire reporting, a mobile app, and a library with HR resources.
If you opt for advanced plans like Select and Pro plans, you get extra features including a dedicated payroll specialist to help you out with tax and payroll problems. Integrations are an important aspect of quality payroll software and Paychex does well in this department. It integrates with Xero accounting and QuickBooks, health insurance and benefits, time tracking, and attendance apps.
One drawback is that pricing isn’t transparent on the Paychex site. This makes it a little difficult to compare its services.
Why we chose it: Paychex Flex is recommended for business owners who want to have insightful reports on their company’s payroll. Plus, it’s an excellent option for scaling businesses as it lets you easily upgrade to advanced plans as needed. Read the Paychex review to learn more about it.
Interface is quite user-friendly
HR add-ons are available
Reporting feature is quite robust and useful
Additional fees for payroll tax administration
There are some hidden fees when it comes to initial setup
Additional fees for third-party software integration
Pricing: Paychex’s payroll service is divided into three categories. The most basic option costs $39 a month plus $5 per payee. Paychex Flex Select and Paychex Flex Pro are two other Flex plans offered by Paychex.
Paychex Flex Essentials: $39/mo. + $5/mo. per employee
Paychex Flex Select: Quote-based
Paychex Flex Pro: Quote-based
OnPay – Best Payroll Software for Restaurant Payroll
Pricing: Plans starting at $36/mo. + $4/employee/mo.
OnPay is a cloud-based payroll solution that offers a comprehensive set of payroll and HR features. It’s a great choice for small businesses looking for simple and affordable payroll management.
OnPay provides highly scalable apps with easy-to-use features which makes it ideal for SMBs with the potential to grow. This cloud-based service can automate tax filing and payment while improving payroll operations.
Additionally, it has several features specifically for restaurateurs such as overtime calculations and minimum wage tip makeup which makes it the best restaurant payroll software. But at the same time, it lacks features like automatic payroll, fast direct deposits, and offers limited integrations. This can make running payroll with OnPay much more tedious and time-consuming.
Because it has a simple interface, you can enter payroll data such as hours, reimbursements, tips, and bonuses with ease. Other responsibilities, such as benefits and compensation insurance for employees who work on a pay-as-you-go basis, can also be administered using the system. OnPay doesn’t have a dedicated mobile app, but it has a mobile-friendly website for on-the-go payroll runs.
Why we chose it: OnPay has a really simple pricing structure that involves no hidden fees or costs for added features. We chose it for its simplicity and scalability which makes it perfect for small businesses, especially restaurants.
No hidden fees
Unlimited monthly pay runs
Great user experience
Limited integrations
Doesn’t offer fast direct deposit
No mobile app
Pricing: OnPay’s pricing structure is one of the simplest out there. It comprises a single plan with one base fee and a per-employee fee that increases the cost as you pay more employees. The site has a slider feature that lets you calculate the exact cost of running payroll according to the number of employees you pay each month.
OnPay Pricing: $36/mo. + $4/employee/mo.
Note that everything is included in this price and OnPay won’t charge you additional fees. Plus, it only bills you for the number of workers you actually pay in a month.
Paycor – Best All-in-One Payroll Software Solution
Pricing: Plans starting at $99/mo. + $5/employee/mo.
Paycor is a great choice for small businesses that need help with HR and payroll tasks but can’t afford to have an in-house HR department. With a wide range of tools, Paycor is an all-in-one solution. It can help you handle recruitment, onboarding, employee management, benefits management, payroll, and other aspects of HR and payroll effectively.
Paycor is a unified human capital management (HCM) solution that keeps employee data in one place (online database), eliminating the need to move platforms, access various systems, or re-key data. The software consolidates employee payroll and HR data, making it easier to manage human capital without switching systems.
When it comes to payroll, Paycor offers full-service payroll including tax calculation, withholding, and filing, real-time payroll analytics, and employee self-service. It also has a mobile app to help streamline payroll for you and your employees.
Users may use Paycor to automate repetitive tasks, reduce compliance risk, increase efficiency, empower staff to manage their own finances, and obtain a better knowledge of their organization through sophisticated analytics and insights.
Why we chose it: Paycor stands out because it’s not just payroll software. Its range of HR services makes it a great all-in-one solution for businesses that can’t afford to hire an in-house HR professional.
Offers plenty of options for training and support
Can be deployed via desktop, mobile, and cloud platforms
Offers recruiting and HR solutions in addition to payroll
HR tools not included in basic plan
More expensive than other payroll software
Doesn’t have native time tracking
Pricing: The Paycor pricing plan that applies to you depends on the size of your business. The plans mentioned below apply to you if you’ve got less than 50 employees. But if you’ve got more than that, you can get a custom quote and get to try out the service free for three months.
Paycor Basic: $99/mo. + $5/mo. per employee (no setup fee)
Paycor Essential: $149/mo.+ $6/mo. per employee (setup fee waived)
Paycor Complete: $199/mo.+ $7/mo. per employee (setup fee waived)
HCM: $199/mo.+ $12/mo. per employee (setup fee waived)
ADP is one of the oldest players on the market. With more than 70 years of payroll experience under its belt, ADP offers you the knowledge and expertise you can trust. It offers a wide variety of plans to choose from for both small and large businesses. You will certainly find a plan that suits your needs from this payroll software.
ADP makes its mark with its ability to meet your needs as your business grows. If you’re a small business, it does a good job of handling payroll, taxes, and compliance for you. But as you grow, its advanced plans have additional features that help make things simple for larger, more complex businesses. These include HR support, recruiting, and onboarding.
ADP’s more costly plans include employee background checks, ZipRecruiter help, and specialist HR assistance if you need more than the HR fundamentals to support your expanding workforce.
Direct payment, automated payroll tax filing, and W-2 submissions are included in all ADP payroll system plans. It also has an employee portal for employees to view their pay stubs and change their information as required. All plans give you access to customer support that is available 24/7, so you can get answers and assistance whenever you need it.
With ADP Payroll, you can’t see the cost of all plans upfront to compare them. You must first request a quote after answering some questions about your business to see the pricing structure.
Why we chose it: Apart from a top-quality payroll processing service, ADP’s powerful HR features make it an excellent substitute for an in-house HR professional. If you plan to grow with ADP or already need an HR department, ADP can meet your needs with ease.
24/7 customer service availability
Customizable for growing companies
Mobile access
Difficult to access pricing without requesting a quote
Hidden and additional fees
Interface may be overly complex for small businesses
Pricing: ADP has four pricing plans for its payroll service, Essential Payroll, Enhanced Payroll, Complete Payroll & HR+, and HR Pro Payroll & HR. The cost of each of these plans remains unclear as ADP employs a quote-based pricing model. You can get your quote by entering your company size and details on the ADP website.
If you currently use QuickBooks for accounting, QuickBooks Payroll is the simplest choice to set up because it integrates seamlessly. One of its best features is fast same-day direct deposit, which allows you to make quick payments. Also, you can expect automated functions and a user-friendly interface.
Because the training and knowledge base is so comprehensive here, you’re unlikely to need to contact support for assistance. If in doubt, a short search on the internet will lead you to a plethora of walkthroughs.
Why we chose it: QuickBooks Payroll is a great choice if you already use QuickBooks for accounting and want to integrate your payroll software with it. Go for it if you’ve got less than 50 employees. Plus, its same-day direct deposit is one of the biggest reasons why we chose it as it lets you pay your employees as quickly as possible.
QuickBooks Online integration feature
Same day and next business day direct deposit options
Extended customer service hours
Extra tax filing fees for Premium and Core plans
Limited HR features for numerous employees
QuickBooks Online integrations are somewhat limited
Pricing:
Intuit QuickBooks payroll software comes in four different pricing plans. They only have a base fee and no extra charges per person paid.
Simple Start: 12.50/mo.
Essentials: 25/mo.
Plus: 40/mo.
Advanced: 90/mo.
Square Payroll – Best Payroll Software for Contractor Payroll
Pricing: Plans starting at $35/mo. + $5/employee/mo.
Square Payroll is an excellent option for businesses that just need to do contractor payroll. While any of the payroll software on our list should be able to do this, Square Payroll is the most cost-effective solution.
We recommend Square Payroll if you already use Square POS. The two integrate very well which means paying employees is much easier. That said, this payroll software is not a good option for larger teams.
Because Square Payroll doesn’t charge a price for inactive months, it’s also a good option for seasonal firms that don’t work every month of the year. Read our complete Square Payroll review to learn more about it.
Why we chose it: Square is a top-quality payroll software that offers a range of features that make running payroll a cakewalk. It’s a great option if you hire contractors only since you only have to pay $4 per worker. Furthermore, if you already use Square POS, then look no further. This is for you.
Low pricing
Easy to use
Integrates with other tools
Basic HR functionality only
Slow customer support
Basic payroll reports
Pricing: Square offers two pricing plans for its online payroll processing service:
Pay Employees & Contractors: $35/mo. + $5/mo. per employee
Pay Contractors only: $5/mo. per employee
Patriot – Best Payroll Software for New Businesses and Startups
Pricing: Plans starting at $10-30/mo. + $4/employee/mo.
Patriot is an excellent option for budget-conscious startups and small companies because it has one of the most affordable pricing plans. It’s also extremely easy to use, making it ideal for new users.
Patriot’s Basic Payroll plan is only $10 per month and $4 per employee, making it the most affordable payroll software on our list. This is a fantastic deal on payroll software since it allows you to conduct limitless payrolls at any frequency without costing you an arm and a leg.
However, if you want Patriot to handle your tax filings, you’ll have to upgrade your subscription to Patriot’s Full Service Payroll package.
Why we chose it: Patriot has a simple, intuitive user interface and easy-to-follow training materials making it suitable for business owners who are new to payroll. Plus, it has one of the most affordable plans so if you’re on a tight budget, go for Patriot.
Very user-friendly, especially for beginners
Offers excellent payroll flexibility
Employee portals are decent
Limited pay types
Add-on fees for some features
Payroll runs slower than competitors
Pricing: Patriot payroll software offers two pricing options, Basic Payroll, and Full Service Payroll. The Basic plan assists you with running payroll but you have to do your taxes yourself. With the Full Service plan, Patriot handles your taxes for you.
Basic Payroll: $10/mo. + $4/mo. per employee
Full Service Payroll: $30/mo.+ $4/mo. per employee
Methodology for the Best Payroll Software
If you try doing payroll yourself, you’ll learn that it’s one of the most complicated admin tasks. You have to take care of a variety of things from paying employees on time to calculating payroll taxes and filing them on time.
You’ve got a range of aspects to take care of to stay in compliance with payroll laws, and this is why we always recommend you use payroll software instead. But choosing the right payroll software isn’t much easier either.
We consider multiple factors from pricing to quality of service and customer support to bring you the best payroll software on the market. Here are the criteria we use to evaluate our picks.
Cost: We understand that wise spending is crucial for a small business’s success. This is why payroll software pricing carries the most weight in our methodology. If price is the most important factor for you, you might also want to consider free payroll software.
Quality of service: When it comes to payroll processing software, quality of service comprises the speed of payroll, fast direct deposits, tax filing for all states, and integrations. These aspects are essential to give users a hassle-free payroll experience.
Ease of Use: Entrepreneurs invest in payroll software to take the load off their shoulders and be able to pay their employees with ease. This wouldn’t be possible without an easy to use payroll software. We ranked software with a simpler and more intuitive user interface higher than those that have a bit of a learning curve.
Features: HR tools, reports, analytics, available payment options, a mobile app, and an employee self-service portal are some important features a payroll software should have. Each payroll software offers a distinct range of features, so we considered them to identify which software suits different businesses. By identifying the solutions available from each provider, we were able to categorize our top picks based on their strengths.
Customer Support: When picking a software solution, good customer service is one of the most important considerations for many people. You never know when you’re going to run into a payroll issue, but responsive customer service makes sure you can resolve any issues right away.
Frequently Asked Questions (FAQs) for Best Payroll Software
Here are some of the more common questions about the best payroll software.
What is payroll software?
Payroll software is used to simplify and manage the process of paying employees. Payroll software allows businesses to automate tasks such as calculating paychecks, deducting taxes, and transferring monthly payments into workers’ specified bank accounts.
Once an employee’s typical payment information, such as their wage, the number of hours they work per week, and their bank account information, has been put into the software system, minimal upkeep is necessary.
What are the advantages of payroll software?
Payroll software has the advantage of relieving accounting professionals of many of the administrative processes connected with making employee payments, which would otherwise be quite time-consuming. It also lowers the number of issues caused by human error.
Payroll software and its reporting tools are essential for businesses with a big number of employees to keep their finances in order.
Can anyone use the best payroll software?
For the most part, yes. Payroll software should be considered by every company that employs people, whether full-time, part-time, or on a contract basis. Payroll automation may save you time, eliminate human error, and ensure that everyone is paid correctly and on time.
Depending on the size of your company, you might want to hire someone to manage your payroll software. There is still administrative work to be done, even when payroll software automates computations, manages payroll for full-time employees, and submits payroll taxes.
Is there a difference between bi-weekly and bi-monthly payroll payments?
Payroll processing on a bi-weekly basis is the most prevalent payroll schedule. Direct deposit on alternate Fridays is common, with 26 paycheck dates throughout the year. Because there are fewer fund transfers, the payroll processing cost is lower than the weekly payroll.
Semi-monthly Payroll is ideal for businesses that pay commissions on a regular basis or have a lag in receiving payments from a vendor or governmental entity. There are a lot of 1st and 15th check dates, as well as some unusual ones like the 4th and 18th. This frequency of processing occurs 24 times each year.
Conclusion – The Best Payroll Software
While all of the best payroll software on this list are pretty good options, nothing quite beats Gusto. In addition to top-notch full-service payroll capabilities, Gusto covers everything from health insurance to tax accounts to HR to team management.
Pricing is affordable, and the interface of Gusto is extremely user-friendly. This modern and robust online platform is the best payroll software for small businesses as well as larger teams. Gusto currently offers a completely free one-month trial.
In some ways, the history of project management is the history of the 20th century. It begins with Henry Gantt inventing his handy chart and continues through many of the most significant events in modern history. World wars, space shots, and the Internet all depended in some way on the development of project management.
Today, project managers may be more likely to be building a photo app than calculating ballistics. However, that may just be a testament to the ubiquitous usefulness of the techniques developed by past managers.
There are four periods in project management history: Before 1958, 1958 to 1979, 1980 to 1994, 1995 to the present.
Modern project management is considered to start in 1958, characterized by the development of CPM and PERT methods.
Earlier project management innovations include the Gantt chart around 1910 and administrative work on the Manhattan Project.
NASA and the Apollo programs contributed to the advancement of project management, mandating use of work breakdown structure, CPM, PERT, and other tools.
Computer analysis was used in the 1970s, but became much more common in the 1980s and after.
The first lightweight methodologies were developed in the 1980s in response to the growing needs of software developers.
Agile Manifesto defined the values and principles underlying modern Agile methodologies.
The Four Historical Stages of Modern Project Management
The history of project management is broken into four stages of advancement. A quick look reveals that it’s a fairly brief history, with the first stage including all of human history prior to 1958. It’s around that year that the term ‘project manager’ was first used as we now do.
Before that, project managers couldn’t benefit from project management methodologies. Instead, it’s assumed the project’s success depended on random factors like the talent of individual project members or a particular project management style. Additionally, even large projects usually had one goal everyone focused on, making organization straightforward.
It’s safe to assume the areas project management focuses on have always been of interest, wherever or whenever you happen to be managing projects. However, it was the huge, multi-faceted projects of the cold war that first required modern methods.
Stage 1 (Prior to 1958)
While we could reach back to the projects which produced the Great Wall or the Pyramids, most histories look to the period around the two world wars for the first true project management techniques.
Henry Gantt popularized the Gantt chart only a few decades earlier in about 1910, allowing a new way to visualize projects. Modern mass production and construction, particularly combined with war efforts, led to more ambitious projects.
Throughout history, project management was considered just another skill, rather than its own discipline. However, historical projects like the Manhattan Project required a more organized approach for effective project management. Moreover, in many cases there was more depending on project success than a profit or deadline.
While there wasn’t anything we would consider a proper project management methodology, many tools we use were developed in this period. Innovators, both in government roles and private industry, created project management tools for their own use. They were then further tested and popularized in other projects.
Selected Key Advancements:
Gantt Chart: A new way of visualizing tasks is by using Gantt charts which allowed project leadership to see relationships and project end dates. Introduced in the beginning of the 1900s, Gantt charts became popularized after use in the Hoover Dam and Interstate Highway projects.
Precedence Diagramming Method: A visual way to outline the connections between tasks. The term used today is more often ‘action-on-node’ (AON) network. This method allowed mapping of predecessor-successor relationships throughout a project.
Critical Path Method (CPM): One of several network analysis techniques, CPM is a ubiquitous project management tool. Using CPM, project leaders plan out the longest-duration path to estimate the project’s duration.
Project Evaluation Review Technique (PERT): Another tool often used to manage projects, it was developed for use in such projects as the Polaris project and the space program.
Defining Projects:
Manhattan Project: An iconic and successful project, it required a sprawling, multifaceted approach but was nevertheless vital. Project leadership had a purely administrative role, separate from any engineering or research duties.
Polaris Project: The first submarine-launched nuclear missiles were developed by the Navy Special Projects Office early in the Cold War. On this project, tools like PERT analysis were developed by project managers to help manage schedules.
Interstate Highway System: Construction of the highway system was one of many capital projects, in the USA and elsewhere, that were begun around this time. Adequate project progress required work to happen in many places at once, requiring tight organization.
Stage 2 (1958 to 1979)
Most historians agree the modern project management era began around this time. In 1965, Europe’s overarching project management body, the International Project Management Association (IPMA), was founded. Shortly afterwards, in 1969, the Project Management Institute was founded in North America.
The role of project manager was becoming more important in itself, rather than as part of the chief engineer’s job. The space program, including the Apollo moon-shot, was at its peak activity. Due to those projects and others, techniques like CPM and PERT continued to be developed.
Until the early 70s, project management was still applied primarily in defense, construction, and aerospace industries. It wasn’t yet seen as vital to managing successful projects. However, throughout the 70s it began to be applied more widely in other areas. The heavy use of tools like CPM formed an association between project management and systems analysis.
The 70s also saw the development of some tools we now considered essential, such as the work breakdown structure (WBS). Some early inkling of Agile concepts, such as working iteratively, could also be seen.
Selected Key Advancements:
Work Breakdown Structure (WBS): Another indispensable tool, the WBS is a step-by-step plan to achieving the project objectives. Its use was mandated for government projects over a certain size, which likely led to its popularization.
Conflict Management: Managing conflicting interests is recognized as an important part of project management. The adoption of matrix organizational techniques, among other things, made conflict management essential for good project outcomes.
Iterative Project Planning: A practice recognizable to any modern software development team, iterative planning and development was used in some projects, for example, in the space program’s Project Mercury.
Defining Projects:
Space Program and Apollo: Including some of the most significant projects in history, the space program relied heavily on project scheduling models and other project planning tools. Refinements on CPM, PERT, and the WBS were all used.
ARPANET: First coming online in 1971, this network linking various learning and research institutions would form the basis of the modern Internet. Without specific project leaders, it was a collaborative effort.
Stage 3 (1980 to 1994)
In the 1980s, project managers began to develop new attitudes to project risk management. The methods used at that point usually referred to now as Waterfall methods often focused on resolving problems as they arose. That had led to project failures and increased cost, if not worse.
Instead, more time was spent planning complex projects from the start, using new methods to anticipate and avoid risks. At the same time, software engineering was becoming useful in every field. Software development projects might be very complex, but not have large administrative teams. Leaner methodologies started to be developed.
In 1981, the Project Management Institute released the Ethics, Standards, and Accreditation project report. It offered the first few project management process groups. In 1986, PMI would go on to issue an expanded version in the first edition of the PMBOK in an international journal, the Project Management Journal.
Selected Key Advancements:
First ‘Lightweight’ Methodologies: While the term ‘Agile’ won’t be used for over a decade, early experiments were underway. For example, Scrum was introduced in 1986. Rapid Application Development was developed by 1991 and development of Crystal Methods began the same year.
Risk Management: In 1987, a new version of the PMBOK first introduced the idea of managing risk as a business process and knowledge area. Focus on this area was prompted by the Challenger disaster and its design project failure.
Widespread Use of PM Software: Large, mainframe computers were replaced by smaller personal models. With the help of powerful software, increasingly sophisticated techniques became common project management practices.
Certification Programs for PM: The first certification test for project management was held by the PMI in 1984. Soon after, more stringent certifications were introduced internationally. Management science is formally recognized as a separate discipline, including sub-disciplines like program management.
Defining Projects:
English-France Channel Tunnel: The Channel project was complex not only because of its international nature, requiring coordination of governments, financial institutions, and more. It also was complicated by multiple measuring systems, as well as the need to have two groups digging from opposite sides meet in the middle.
Challenger Investigation: A project in itself, the aftermath of the Challenger disaster was primarily an investigation of another project’s failure. A focus on managing risk and quality assurance followed.
Stage 4 (1995 to Present)
The modern age is defined by the Internet, as true in project management as anywhere. The access and connectivity it allows have transformed methods for organizing and performing work. The project manager role is filled by a project management professional, a career specialist.
The demands of software development prompted the development of new ideas. As a result, in 2001 the Agile Manifesto was published, outlining a new philosophical approach. It brought earlier techniques together as the Agile project management method.
On a wider scale, project management ideas are now applied in corporate management. As a result, concepts from project management have begun to shape business strategy overall, benefiting strategic management. Additionally, a globalized economy means projects have to take multi-cultural considerations into account.
Selected Key Advancements:
Agile Methodologies: Originally developed for software development, Agile methods emphasize collaboration and reiterative processes. Projects run using Agile methods are self-directed and deliver working products quickly.
Remote Work: Recently, remote work allowed a significant increase in the work-from-home rate. Before that, it played an important role in off-shoring tech work beyond local borders. In many ways, team location is no longer a constraint.
Critical Chain Project Management (CCPM): CCPM is a refinement of the ubiquitous CPM. Where CPM did not take resources into account, CCPM allows project managers to consider their availability.
Project Management Degrees: In addition to professional certifications, some universities now offer bachelor’s degrees in project management.
Defining Projects:
Y2K: As the year 2000 approached, it was realized fundamental software architecture wouldn’t be able to process dates starting with a two. Rather than a single project, Y2K was a tremendous number of parallel software projects around the world that often required coordination, sharing talent and resources.
Panama Canal Expansion: As global trade increased, the Panama went from a vital passage to a chokepoint causing innumerable delays. The series of complex projects to widen and expand the canal, while simultaneously keeping it open to traffic, experienced delays and hiccups. Eventually costing over 5 billion dollars, it was finished over a year late.
Large Hadron Collider: With a project lifecycle extending over half a century, LHC construction faced a number of challenges. Funding came from multiple governments. Gathering project requirements involved ongoing research.
The Future of PM
The role of the project manager will continue to be redefined in future projects. Some predict that three trends will support more sophisticated use of PM methods in every aspect of life. Those trends are:
Digitization.
Employment.
Better data analysis.
While the role of project manager tended toward increased specialization in the past, modern project management tools have become widely available. As a result, project management may become a universally integrated process once more, to some extent part of everyone’s job.
Digitization
The transition from a paper-based society to a digital one is going to continue. While that makes tremendous amounts of potentially useful information available, picking out only the useful bits can be very difficult. Storing and accessing all that information also becomes a challenge a successful project must address.
Cloud storage allows for easily scalable IT infrastructure. Machine learning tools help manage that information, while modeling by artificial intelligence may aid in decision making.
Employment
Not only is the project manager’s role evolving, but the job of the project team is changing as well. AI, robotics, 3D printing, and other technological advances could perform a lot of repetitive, low-level tasks. Ideally, that would free people up to focus on the more creative aspects.
Additionally, work will become increasingly transnational. People in geographically distant locations can collaborate meaningfully in real-time. Management practices will have to take those changes into account. At the same time, local issues will always have an influence.
Better Data Analysis
Digitizing information means it can be analyzed and assessed easily using powerful computer tools. Study and statistics will reveal in more detail the factors that lead to projects failing and those that ensure project success.
Data analysis may also reveal ways to reduce project costs and more efficiently manage project activities. Doing so in earlier project management phases can help avoid problems later.
Frequently Asked Questions (FAQs) for The History of Project Management
Who Discovered Project Management?
The modern era of project management begins in the middle of the 20th century. To manage aspects of war, scientific research, and space travel that took place in that period, basic project management aids were developed.
The Critical Path Method was developed by a team at DuPont Chemicals, while PERT was used by a US Navy project.
These tools were used by early project managers to estimate when they could deliver projects.
What Are the 5 Stages of Project Management?
The Project Management Body of Knowledge (PMBOK) defines five stages or process groups in the management of a project. They are:
There are many different project management methodologies, some of them for specialized uses. However, they are generally divided into two types:
1. Traditional or Waterfall methods. 2. Agile Methods.
Waterfall methods follow an intuitive process, with a complete plan to follow to the end. Agile uses reiterative processes, self-directing, and other principles in a more complex flow.
Final Thoughts on The History of Project Management
With its roots in the great events of the recent past, it seems likely project management will have a profound effect on how we live in the future. It turns out some of the same management tools used in building missiles can also help you write your next paper.
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