Project Controlling and its Importance in Project Management

By Nandini

Last updated on Mar 16 2022

Project Controlling and its Importance in Project Management

Project Controlling in Project Management


According to the sources, it was found that many organizations miss their target for several reasons. It is not always a matter of effort or intention. Instead, it is about the lack of project control and management. There is no confusion that every organization needs specific control and management systems to avail the most effective results. Mainly it was found that organizations find their large-scale projects miss their essential target for several reasons like optimum bias, manual estimation errors, and many other factors. It is necessary to know that large-scale projects often suffer the loss of insufficient historical data and scope creep. This article will tell you the importance of a project controlling system and how effective and essential it is to implement in an organization.

Whenever it is about large-scale projects, around 98% of the project incur cost overruns or even delay. On average, it is seen that the cost increase is estimated for up to 80% of its original value. The timeline is also slowed by 20 months or even more. It is essential to know that project control systems play a significant role and process for gathering and analyzing the operation of the data to keep the costs and schedule on track. The primary function of project controlling is to initiate, plan, monitor, and control the entire project management process.

Project controls are the processes that are always used to understand the time and price we spend on a project. Here we will explain all information about project controlling and their approach to using, which will also help you make it in use to Stay within project scope, reduce your budget, and keep your project on a proper schedule.

As you already know, money and time are the two things people always want to get more. As well, saving is not always easy in what we already have. There are also various ways to help you save your money and time in your company by project controlling within project management.

Here we will give you all details about what project controls are and their process, which will also help you forecast and understand the value of time and money you have already spent on your projects. This is will help you understand why project controlling is crucial and why project controlling cannot be disregarded in project management.


What are project controls called in project management?


Project control is a set of processes used to make it more understandable and control the quantity of time or money you spend on your projects. As you know, every project control always gets focused on each substantial part of your project plans, such as schedule, resources, or potential risk.

There are always some goals when people use project controls, such as Staying within all project scope, reducing the project's budget when it gets possible, and making sure to stick to the schedule of your projects.

You can also give a try to Asana for project management. Let's define project controls and project management:

Both are always having spanning functions. But both of their processes will always help you put the project on the right track, even within scope. You should know that project controls are not as comprehensive in their motive as the project management are.


Why are the project controls so important?

Let's talk about the project controls importance. The project always provides all the information that helps the project managers make informed decisions at the right time, which can avert our project to risks. From the project institute to its realization, all you have to do as a project manager is to keep everything on the right track and even within scope.


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What is the importance of Control in a Project?

You will get to see often that team member who is around the table used to do some puzzles together. Maybe that is the essential thing of those project management, which is control. Once the decision has been taken to start and to contrive the project, the person who is the project manager will take all the responsibility to make sure that each person who is involved in the project completes their take on time and will also take guarantee to run the project according to plan.

After some will all planning a project, it is recommended to apparatus all the control systems. The main requirement to start with will be for the project to be fully explained and sanctioned by the steering committee or shareholders' meeting and, as suitable, by the sponsor of the actions to be carried out.

Some things of action will designate the price, the scope for the project as well the schedule that should be followed for the required targets:


  • Cost base: Cost base helps indicate the price or costs to sustain each project, even with the dissemination over time, which will also be reasonable with all completion of each task even over time.


  • Schedule base: All the timelines targeted with the settings for each project stage will be generated.


  • Scope base: It has been already formed by the several activities which always used to contain all projects, and even that will permit all the deliverables to make it produced. You may already know that the scope base always allows the progress of each activity and deliverable to be known.


  • Scope: Scope will help you control all the tasks that need to be carried out even by each member included in this project, and the result will be to get its required meets initially. But whenever any tasks fail to meet all these requirements, the project receives considered incomplete.


  • Deadline: You must know that monitoring all the compliance within this project control is essential as you have agreed with the deadlines. You must note at this point that the first schedule is drawn up without considering a margin for risks.


  • Cost: There are two factors which always require some control in all these regards. The first is the project's total price, and the second is treasury control.


  • Risks: We already know that we must control all kinds of dangers, or it will immediately affect all the targeted projects.


What are the activities in the project control system?


Several activities rely on the project control system, including the following.


  • The primary function of the project control system includes aligning the project with portfolio and organization. It has the goals and objectives for better results.
  • Activities like developing a work breakdown structure and collaboration on the initial project schedule are also included.
  • The best thing about the project control system is that it includes the development of a risk management plan, including its budgeting and forecasting.
  • It is essential to consider monitoring the project costs.
  • Taking care of feedback and reporting is the other significant project control role.
  • As we know, strategies are essential for the betterment of an organization. Project control also includes optimizing the project strategies to enable better results in the upcoming days.


The central concept of project control is to deal with numerous parameters like quality, scope, and others. It mainly focuses on the cost and schedule factors of the project. It helps to reduce the risk factors ahead. For the success of a project control system, it is essential to apply it in spurts or even in a vacuum. Ensure to run your project control system from its initial phase to monitor and control several factors that can impact the cost and schedule. There are many scopes of control that helps to lead a successful project.


What are the essential processes to define project control?

Are you willing to know about the process of Project Controlling? Well, you are at the correct place. Here you can explore more about the concept of project control and its process. Before going further, it is essential to know that the strength of project control lies in their data-focused approach and attention. It is necessary to grab important information for better results. The project manager needs to know the cost overrun, the root causes, and precise numbers to fix it. A fully integrated control solution will help you with efficiency and its visibility into the performance that can help to reduce the cost of a project. Project planning and control are vast concepts, and it is essential to know more about this.


Now let's move towards the process of project control.


  • Planning


The planning of the project is the first step of Project Controlling. Planning plays an important role and is also considered one of the most critical steps. In this step, the controller and the manager of the project work together. We all know that prior planning is the most effective way to reduce the risk factors happening in the future. The planning process mainly includes creating plans for the project, schedule, work breakdown structure, and cost estimate. The best thing about planning steps is that it provides a baseline to work with the project.


  • Budgeting


Now the next stage of project control in project management is budgeting. Integrating the budgeting process into the project activities is vital to accurately measuring and calculating costs. It also helps to understand when the variances occur in an organization's project. We all understand how budgeting is essential for an organization. Having a clear view regarding the budget is the most effective way to tackle all the work. With the help of time phasing funding and refining the number, a transparent model is available to serve both, especially for the senior manager. A better budgeting phase with proper and prior planning will help maintain the better flow of cash and project.


  • Management of risk


Management of risk is the most crucial step, which is essential to implement in the project control system. Mainly project control ensures to offer a meticulous approach to manage the risk. With the help of regular monitoring of the risks, it helps to save time. It is possible to reduce the impact on budget and schedule by identifying the risks and monitoring the risks.

Consequently, it is always recommended to implement risk management for better workflow in an organization. It also helps to prevent risks from happening in the future. Make sure to access proper monitoring and controlling in project management.


  • Change Management


If we talk about the next step of project control, it includes the management of change. Change management which is part of project management control also plays a significant role in making your project better. Whenever the project derives from the original estimate, it is not one factor. Instead, it is due to the cumulative effect of several factors that tend to go unnoticed. It is the purpose because change management is very critical but essential. It is necessary to track changes for better results. You will be able to understand their impact. We can say that while following a transparent evaluation process, approval, and accountability during this step, the project can always remain on the chart trajectory.


  • Forecasting


Forecasting is another significant step which is needed to be implemented to access better productivity levels. Every organization needs to follow the project control process for better changes and results. If we talk about forecasting, then it will give you better results. In this process, you need to increase the estimate's accuracy to complete. Mainly the manager of the project and controller can gain detailed insight into the current drivers of costs and schedule overrun. It is essential to know that good progress measurement is critical to forecasting. The main objective of the project management and control step is to serve the comparison against the actual and committed costs. It also enables the project manager or controller to extrapolate a forecast with the help of the standard forecasting process.


  • Management of performance


Mainly the management of performance also plays a significant role. It helps to increase the productivity level most effectively and conveniently. According to the sources, it was found that organizations that use performance information to control the project then its success rate increases dramatically.


  • Project Administration


The administration of the project involves the process of establishing a system that can help team members to communicate and collaborate easily. The main objective of the project control management step is to track the entire update and to capture the meeting minutes.


What is the Impact of Project Control?

Now let's have a glance at the impact of project control. Project control directly correlates to the progress of the project and the expectations of stakeholders. The project usually fails due to just one issue. Instead, it can be a failure due to a minor or significant issue. Failure is typically a collection of minor problems, and individually, it negatively impacts the specific area of the project. When you look over the issues, the small items often cause a significant impact. The schedule, risk, and costs can also manifest themselves as the deviation from the original project plan. This clearly illustrates the place occupied by project controlling within the realm of project management.


What are the Challenges Within Project Controls?

If you wonder about the challenge with project control, you need to read further. For more detailed information, you can rely on this article entirely. There is no hidden fact that despite growing recognition of the control as the discipline, the question for the organization includes how well it is implemented or how it is bringing the results. Are the results even consistent or not?

Whenever the project fails then many organizations come up with blaming games. They mostly blame the effectiveness of the project control. Furthermore, this is the time to assess whether the project control process has been implemented adequately. Let's look at the significant challenges and obstacles faced by the project team members.


  • Project monitoring and control often lack commitment and support from the senior management team. The project manager or controller needs to have responsibility and permission. It will help to know more about the project in a better way. It will also reduce any misconceptions. Lack of commitment and support is often seen as the biggest obstacle. Project control doesn't only mean simply monitoring the project. It also refers to the decision made actively based on analysis and reporting.
  • The second significant challenges of Project Controlling include the confrontational dynamic. Many functions like control audit seemed like a suspicious approach by the people.
  • Perception and the cost of function can also make a barrier in the system of Project Controlling. As we know that control does not come into the limelight unless things become out of control or go awry.

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Project management always makes sure to be more focused to keep their entire project on the right track, including all the people who work on it, its processes, its deliverables. Still, on the other hand, the project controls mainly focus on the quality of the process control to save time and money. This is because project controlling is aimed at ultimately increasing the efficiency of resource management of the organization.

The process of project quality control also includes communication and closing out of the project costs and schedule. We can also say that project control is an iterative process for the measurements of project starts. The outcome is mainly based on the sizes, and then it helps improve the project's performance. Quality control in project management is, therefore, an integral part that can lead to higher efficiency for the organization.

Many organizations are increasingly realizing that the controlling phase of project management deserves focus due to its contribution to the better efficiency of projects. Getting certified by clearing requirements set by a governing body like PMI will help establish one’s competence in operating in this sphere. This will help a candidate distinguish themselves from a crowd when an organization is looking for personnel with project controlling skills.

Taking the help of a reputed training agency like Sprintzeal will ease the process of clearing the certification. The training program will leave one well versed with the various types of project control as well as the scope of control it has over the project. So, join Sprintzeal now and expand your horizons!


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About the Author

Sprintzeal   Nandini

With over 3 years of experience in creating informative, authentic, and engaging content, Nandini is a technology content writer who is skilled in writing well-researched articles, blog posts, newsletters, and other forms of content. Her works are focused on the latest updates in E-learning, professional training and certification, and other important fields in the education domain.

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