Informal vs Formal Project Management

Informal Project Management implies that the planning and execution of projects are undertaken in a way that the project manager thinks it is best. By contrast, formal project management implies rules and the strict adherence to protocols for every step and stage of the project life cycle.

In the informal project management environment, project managers approach projects in the way they deem appropriate. Project management techniques are driven by personal preference and instinct, and the project manager makes decision-based on his or her experience, training, and judgment. If the project manager has experience there is a good chance the project will be successful, but if the project manager leaves, the is no knowledge left behind that the new project manager can use and that creates risks.

Formal project management is defined as completing a project on paper before the actual project begins, creating a detailed plan, and then executing the project according to that plan. In a formal project management environment, the project manager must follow procedures and practices as defined by an industry standard. The project management guidelines are driven by best practices, rules, and the emphasis is on following the plan, monitoring the plan, and adapting the plan according to changes in the context or opportunities to improve performance.

The more informal the project management environment, the fewer rules and guidelines there are for the project managers to work with, and that increases the risks to the organization if something fails.?

Project Management Maturity

As organizations become more mature from a project management perspective, they move along the scale from informal toward more formal project management practices. This transition reflects a growing concern over project success rates and awareness that there are better, more advantageous, and effective project management practices than the ones that many organizations currently use.

There is ample evidence to suggest that most projects operating without rules and guidelines will waste time and money. Using a simple analogy comparing project management to financial management, how much money would be misspent by a project if there were little or no controls on spending, versus one in which there are controls to avoid losses and misappropriations? To which organization would you like to be a donor?

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