The Benefits and Drawbacks of Dividing Large Projects into Stages with Gate Reviews

by JufranHelmi, PMP

Breaking down large projects into smaller, more manageable stages and evaluating progress at each stage can be a practical approach to achieve great success. This multi-stage model can be applied to even the most complicated and intimidating projects, resulting in achievable milestones. This approach has been successful in industries like oil and gas, mining and smelting, and infrastructure development, leading to impressive results.

A "stage" refers to a distinct phase or step in the project lifecycle, where specific activities and tasks are performed to achieve predefined objectives. These stages are typically organized sequentially or iteratively, with each stage building upon the results of the previous one.

Dividing a big project into smaller stages with specific goals and checkpoints can make it easier to manage and organize. This approach helps to break down the project into manageable parts, making it more achievable and less overwhelming.

There are different stages involved in completing a project, such as initial assessment, selection of options, defining the scope of work, and carrying out the actual execution. These steps can also be referred to as Proposal and Execution or FEL 1, FEL 2, FEL 3, and Execute.

In this article, we will explore the pros and cons of using the tripartite approach and how the pillars of project governance, project management, and project delivery play a crucial role in its success.

Benefit

Dividing projects into stages with gate reviews has many benefits for any organization. It helps to identify and address potential problems before they become expensive roadblocks. This means that the project can be managed in a better way and any risks are reduced.

Gate reviews also ensure that informed decisions are made at every stage of the project. This keeps the project aligned with company goals and objectives. It helps in budgeting and cost control because the company can adjust the budget based on actual progress and requirements.

The gate review process ensures that the project follows quality standards and best practices to achieve high-quality outcomes. It also provides flexibility to the company in case of changes in market conditions or business priorities. The project can be paused or redirected after a gate review, reducing the risk of sunk costs.

Drawbacks

Breaking projects into different stages with gate reviews has some downsides that you should keep in mind:

• More Work: The gate review process adds extra tasks like paperwork, meetings, and reports, which are necessary but can slow down the project.
• Takes Time: Gate reviews can take a while, which might cause delays. If the reviews aren't managed well, they can make the project take even longer.
• Uses Resources: During the review stages, resources like people and money might be used for things that don't help move the project forward.
• Might Be Too Rigid: If the gate review process is too strict, it could make it hard to adjust to changes in the project. It might create too many rules and slow down progress.

Balancing Efforts

When a group of people wants to work on a project that will have good results and fewer problems, they need to work together. There are three groups of people involved in the project. They work together to make sure that the project goes well and that everyone is happy with the results.

The three groups are:

1. Project Governance: These are the people who make the big decisions about the project. They decide what the project should do, how it should be done, and when it should be finished. They have the power to say yes or no to the project at different stages.

2. Project Management: These are the people who make sure that the project is done well every day. They make sure that everyone knows what they are doing, that they have what they need to do it, and that the project meets the standards set by the people in charge.

3. Project Delivery: These are the people who actually do the work on the project. They work with the project managers to make sure that everything is going well. They focus on the details of the project and make sure that everything is working as it should.

By working together, these three groups can make sure that the project is a success and that everyone is happy with the results.

Conclusion

Breaking down a big project into smaller stages with regular check-ins can be very helpful. It helps to reduce risks, make better decisions, control costs, ensure quality, and provide flexibility. However, it can also lead to more paperwork, delays, and bureaucracy. So, it's important that everyone involved in the project communicates well and works together to make sure everything goes smoothly.