Types of Project Management: Methodologies, Industries, and More

Key takeaways

• Project management isn't one-size-fits-all. Instead, different approaches to project management—referred to as methodologies—are better suited for certain types of projects.

• That means it will be important to determine which one best fits the needs and scope of your project.

• There are also different types of project manager roles by industry, such as construction, IT, and health care.

Learn about some of the more popular types of project management and how to choose the right one. Afterward, if you're ready to start sharpening your project management skills and earn credentials for your study, master the foundations of Agile and Scrum with the Google Project Management Professional Certificate.

What is a project management methodology?

When we talk about different types of project management, we're really talking about different approaches to managing a project. Project management methodologies are structured frameworks that outline how work should be organized, managed, and delivered. It includes specific processes, tools, and techniques to help teams achieve their project goals. There are many options to choose from, and each has different strengths.

Project management methodologies help teams:

• Establish consistent ways of working

• Define clear roles and responsibilities

• Set expectations for communication

• Determine how to track progress

• Manage resources and timelines

• Handle changes and risks

• Ensure quality standards are met

Traditional vs. Agile project management: important distinctions

Project management methodologies are typically framed using one of two approaches: traditional and Agile. Whereas a traditional approach follows a linear path with detailed, upfront planning and one major deliverable at the end, Agile follows a more iterative approach with multiple deliverables throughout the process.

• Traditional: A traditional approach to project management requires upfront planning and approval before work begins. The team's success will be measured by how well the deliverable meets the predetermined scope, budget, and timeline. This approach is useful because it provides clear structure and predictability, but it can be inflexible if changes arise. Consider this approach for projects with well-defined requirements, clear deliverables, and stable environments, such as construction or manufacturing projects.

• Agile: An Agile approach is iterative, meaning teams work to continuously improve a product. Agile allows for greater responsiveness as changes arise. Agile also encourages ongoing customer collaboration throughout the project life cycle, rather than relying solely on initial contract negotiations. Consider this approach for projects with a lot of uncertainty or complexity, as well as for software and product development.

Watch this video to learn the 12 principles of Agile and preview the Google PM course:

Types of project management: 6 methodologies

Often, one of the first decisions you’ll make as a project manager will be which methodology to follow. Keep in mind that there isn’t one best option. Instead, the ideal methodology is the framework (or hybrid) that best fits your project, team, and company. Let's review six of the more popular project management methodologies.

1. Waterfall

Waterfall is often called the “traditional” project management approach, first designed by Winston W. Royce in 1970 for software development. In traditional approaches, projects are completed one stage at a time and in sequential order—like a waterfall would flow down a collection of rocks. Generally, each phase of the project life cycle must be completed before the next can begin. 

Waterfall stages

• Requirements: In this first phase, you’ll work with stakeholders to clearly define the project scope and requirements.

• Design: The critical design phase is when you plan what the final product will look like and what steps your team needs to take to achieve it. 

• Implementation: This is where all your planning gets put into action. For software projects, this is when programmers will write the actual code. 

• Verification: During verification, your team tests the product to ensure it meets the requirements laid out in the first phase.

• Maintenance: After the project is complete, the development team responds to feedback and makes any necessary modifications. 

When to use Waterfall:

Waterfall is an approach often used in projects with strict constraints and expectations, or very few anticipated changes to the project plan. The Waterfall approach can be effective for projects like building houses, where one stage must be completed before others can begin, or where timelines, budgets, regulations, or other factors make it necessary for your project to have a predictable outcome. The logical flow of waterfall makes it an excellent option for short, predictable projects where you have a clear vision of the finished product and fixed project requirements that are not likely to change. It’s best suited for teams and PMs that excel at planning and documentation. 

2. Lean

Lean is a project management style with roots in the manufacturing industry (Toyota’s cars, to be exact). It aims to reduce waste and increase efficiency. Key Lean principles include emphasizing value from the customer’s perspective and mapping out your entire project in the initial stages to see where to generate value and cut waste. The Lean methodology centers on five principles outlined in the books The Machine that Changed the World and Lean Thinking.

Lean practices

• Understand value: Think about value from the customer’s perspective. What are they willing to pay?

• Identify the value stream: Use visual techniques to map out the actions required to develop and launch a product. Use this map to identify areas of waste.

• Create value flow: Eliminate waste caused by excess inventory, time spent waiting, or performing more work than necessary.

• Use a pull approach: Deliver value as the customer requests it so you focus on what the customer actually wants while eliminating time spent on features that might not matter.

• Continuously improve: Always seek perfection by assessing the project regularly for ways to reduce waste and enhance value.

When to use Lean

Lean can be a useful project management approach to adopt when you’re looking to reduce costs, shorten timelines, and improve customer satisfaction. It’s best used for projects that anticipate some flexibility and change. The focus on waste elimination makes Lean a natural fit for more traditional manufacturing projects. But it can also be effective in other industries, particularly when you want to keep the focus of development on the customer first.

3. Six Sigma

Six Sigma, a quality management process developed at Motorola in the 1980s, comprises a set of tools and techniques to eliminate errors in development. This can help reduce costs and customer complaints stemming from errors.

Six Sigma processes

• Define: Analyze a business problem from a customer perspective.

• Measure: Measure the problem in terms of data and define a performance metric.

• Analyze: Quantify your goals and determine if your process is efficient and effective.

• Improve: Find ways to improve process implementation.

• Control: Implement and maintain the solution.

When to use Six Sigma

Six Sigma tends to be most effective in large organizations with several hundred or more employees. 

4. Lean Six Sigma

Lean Six Sigma is a hybrid project management methodology that combines the waste-reduction principles of Lean with the defect-elimination focus of Six Sigma. Developed in the 1980s, it aims to improve performance by systematically removing waste and reducing variation. This data-driven methodology emphasizes customer satisfaction, process improvement, and bottom-line results.

Lean Six Sigma practices

• Define: Clearly identify the problem, project goals, and customer requirements.

• Measure: Collect relevant data to establish current performance levels and identify areas for improvement.

• Analyze: Use statistical tools to investigate and identify the root causes of defects and variation.

• Improve: Develop, test, and implement solutions to address root causes and improve processes.

• Control: Monitor the improved process to ensure sustained success and prevent backsliding.

• Reduce waste: Apply Lean principles to eliminate non-value-adding activities and streamline processes.

• Focus on the customer: Align improvements with customer needs and expectations.

When to use Lean Six Sigma

Lean Six Sigma is particularly effective for organizations looking to improve quality, reduce costs, and increase efficiency across various processes. It's well-suited for projects that require significant process improvement, especially in manufacturing, healthcare, finance, and service industries. This methodology is most beneficial when dealing with complex problems that require data-driven decision-making and when there's a need to balance waste reduction with quality improvement. It's ideal for organizations committed to long-term, continuous improvement and willing to invest in training their staff in these methodologies.

5. Scrum

Scrum is the most-used type of Agile methodology, with over 66 percent of Agile adopters using Scrum [1]. It implements Agile principles through small teams, short development cycles, frequent communication, and designated roles to keep the project organized and on track. Scrum is a lightweight Agile methodology designed to help product teams deliver work incrementally and iteratively. It includes a set of roles (like Scrum Master) and short delivery cycles called sprints.

Scrum practices

• Sprint: Short (1-4 week) development cycles where a team creates a usable product increment

• Daily Scrum: 15-minute daily stand-up meetings held during a sprint where the team plans work for the next 24 hours

• Product backlog: Prioritized list of work to be done on a product

• Sprint review: An Informal session where the development team presents their finished iterations to stakeholders for feedback

When to use Scrum:

Scrum can be a powerful way to tackle projects that thrive on change and adaptation. Like Agile, it is often used for projects in industries that anticipate frequent change or unknowns. It's best for self-managing teams and a culture open to innovation, and can help bring products to market more quickly. Short development cycles and frequent stakeholder involvement may lead to a better-quality product.

Did you know? Though Scrum is a type of Agile project management, Scrum came before Agile. The founders of Scrum developed the framework in the early 1990s, and were among the signers of the Agile manifesto in 2001.

4. Kanban

Kanban, which means “signboard” in Japanese, is a method of visualizing a project's workflow. The method got its start in the Japanese manufacturing industry before gaining popularity across many fields. In Kanban, the tasks of a project are represented as cards divided into columns on a physical or digital board. As progress is made on the tasks, the cards advance to the next column until they are completed. This helps eliminate multitasking by encouraging teams to focus on only a few tasks at a time. It also makes it easy for both the team and stakeholders to quickly see where the team is in the development process. The Kanban method emphasizes a continuous workflow. 

Kanban practices

• Visualize the workflow. The Kanban board visualizes a team’s workload in a way that’s easy to understand and execute.

• Limit work in progress. Restricting the number of tasks a team is working on at any given time helps maintain focus.

• Manage flow. This method switches the focus from managing people to managing a smooth flow of work.

• Make policies explicit. Keep them simple, visible, and easy to understand.

• Use feedback loops. Revisiting project goals regularly helps the team respond to changes and take advantage of new opportunities.

• Improve collaboratively. Teams with a shared vision can work together to achieve continuous improvement. These evolutions should be based on metrics and experimentation.

When to use Kanban:

Kanban’s visual display of tasks makes it well-suited for projects with several tasks that need to be completed simultaneously. It is often used in tandem with other methods, like Scrum or Lean. If you want to limit planning and meetings and focus on continuous improvement, Kanban could be a good choice. It’s particularly effective in helping teams work through big backlogs or deal with frequent requests from stakeholders.

5. PRiSM

The Projects Integrating Sustainable Methods (PRiSM) model of project management emphasizes environmental sustainability. Specifically, the method focuses on minimizing ecological risks and increasing benefits that may impact the five Ps: people, planet, prosperity, process, and products.

Unlike other methodologies, PRiSM looks at projects beyond the scope of development to consider their impact beyond delivery.

PRiSM principles

• Commitment and accountability: Organizations should take responsibility for a clean environment, employee well-being, and equal opportunities. 

• Ethics and decision-making: All decisions should consider the short—and long-term impacts on society and the environment.

• Integrated and transparent: Projects should promote financial, environmental, and social benefits at all policy levels.

• Values-based: Projects should use technology to use resources more efficiently.

• Social and ecological equity: Project managers should use demographic data to evaluate any impact a project may have on vulnerable populations or environmentally sensitive areas.

• Economic prosperity: Fiscal planning should balance the needs of company stakeholders and future generations.

When to use PRiSM

This approach is best for projects with an established environmental impact, such as real estate and industrial projects. It’s not as useful for things like software development, where environmental impact is less of a concern.

How to choose a project management methodology

The best project management method for your project, team, and organization will depend on the four factors outlined below.

1. Evaluate the project.

Does your project have fixed or flexible requirements? Is the finished product well-defined, or will the team take a creative approach to defining it? How complex is it, and how long will it take to complete? What physical resources are involved? Will the stakeholders or clients be readily available, and how involved would they like to be?

2. Consider your team.

Some methods work well with small, self-managing teams. Others lend structure to larger cross-functional teams. Also, take into account what method your team might already be used to. Would the benefits of implementing a new method outweigh the time cost of teaching it?

3. Look at the organization.

What are your company’s goals and values? You’ll want to choose a methodology that aligns with these elements. Some companies may prefer and employ a particular approach that you’ll need to adapt to.

4. Think about your tools.

Some project management tools are flexible enough to work with various methodologies. Others might be more specific to a particular approach. Make sure the tools and project management software you’re proficient in are a good match for whatever methodology you select.

Types of project managers by industry

The project manager is a staple role in many different industries. Though the fundamentals of their work are the same—leading projects to fulfill goals while staying on schedule and within budget—the details can differ.

• Construction: A construction project manager organizes people and resources to oversee the process of building structures like houses and office buildings. The project manager generally works closely with architects and engineers.

• IT: A project manager in IT works with teams to solve IT-related problems in a company. They can, for example, carry out a project to install new software across a company, update networks, or help roll out cloud computing services.

• Software development: Software project managers orchestrate project teams to develop new software and software updates. They may have professional experience in developing software themselves.

• Health care: A project manager in health care leads projects in hospitals and other health care facilities. Health care project managers often have to have a good understanding of health care legislation.

• Energy: In energy, project managers carry out projects that develop new energy infrastructure or improve existing ones. They might also work to roll out energy-efficient practices at individual organizations.

• Marketing: A project manager in marketing might work at a tech company, advertising firm, large retailer, or any number of other organizations that have marketing arms. Projects can include marketing campaigns, research efforts, and new product launches.

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