Project management fundamentals - Project lifecycle and gove...

Learning Outcomes

After reading this article, you will be able to explain the main phases of a typical project lifecycle and why structured project governance is necessary. You will understand essential project roles, typical project controls, and the relationship between project objectives and organisational strategy. You should be able to distinguish project work from routine operations, recognise common governance structures, and apply best-practice principles in project oversight for ACCA BT exam scenarios.

ACCA Business and Technology (BT) Syllabus

For ACCA Business and Technology (BT), you are required to understand how projects differ from day-to-day activities and the purpose and main stages of a project. In particular, focus on:

• The characteristics that make project management distinct from routine operations
• Typical stages in a project lifecycle: initiation, planning, execution, monitoring/control, closure
• The importance and structure of project governance, including accountability and oversight
• Project roles: project sponsor, project manager, project team, steering committee
• The significance of controls, reporting, and stakeholder communication in project governance
• The link between project objectives and overall organisational strategy

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. What makes a project fundamentally different from day-to-day business operations?
2. List the four main phases of a typical project lifecycle in the order in which they occur.
3. Who is primarily responsible for aligning a project with strategic objectives and authorising major changes?
4. Give two reasons why project governance is critical in reducing project risk.
5. True or false? The project manager is ultimately accountable for the project's alignment with business strategy.

Introduction

Projects are unique, temporary undertakings designed to achieve specific objectives within defined constraints of time, cost, and quality. They require a structured approach, because failure can be costly in terms of wasted resources, missed opportunities, and reputational damage. Understanding the project lifecycle and establishing robust governance ensures clear direction and effective oversight, which is critical in complex organisations.

Key Term: project
A temporary venture with a defined start and end, undertaken to create a unique product, service, or result.

Key Term: project governance
The framework of processes, rules, and responsibilities that directs, controls, and monitors project activities to ensure objectives are achieved and risks managed.

Project Characteristics

Projects have three defining features:

• A clear, agreed objective
• A fixed timescale (start and end)
• Resources (people, money, assets) dedicated for duration

Projects differ from routine operations, which are ongoing and repetitive.

Worked Example 1.1

A company upgrades its payroll system over the next eight months. Is this a project or operational work? Why?

Answer:
It is a project because it has a clear goal (new system), a defined timescale (eight months), and will end once the upgrade is complete.

Project Lifecycle Stages

A project typically passes through distinct stages, each requiring specific activities, controls and decisions:

1. Initiation

The organisation identifies a need or opportunity and formally authorises assessment of the project’s feasibility and benefits.

• Define objectives, outline scope, assess risks
• Appoint a sponsor or steering group

Key Term: project initiation
The formal authorisation to begin assessing, defining, and planning a new project.

2. Planning

The project team develops detailed plans covering deliverables, schedule, cost, risks, and communication.

• Create a project plan (work breakdown, timelines)
• Identify resource requirements
• Set criteria for success

Key Term: project plan
A structured document outlining all activities, timelines, resources, risks, and controls required to deliver the project.

3. Execution

The main project work is carried out according to the plan.

• Coordinate people and resources
• Ensure timely completion of tasks
• Resolve issues as they arise

4. Monitoring and Control

Ongoing oversight of progress, costs, quality, risks, and stakeholder communications.

• Track performance against the plan
• Implement necessary changes (‘change control’)
• Manage and report on risks and issues

5. Closure

Formal completion of project activities.

• Deliver final outputs and documentation
• Release resources
• Evaluate results and extract lessons learned

Key Term: project closure
The formal process of finalising all activities, completing deliverables, and assessing project success.

Key Term: change control
The process by which proposed changes to scope, cost, or timelines are assessed and approved within a project.

Project Governance Structures

Good governance provides direction, oversight and ensures accountability. It helps control risk, support decision-making, and maintain alignment with business aims.

Common governance elements

• Steering committee/project board: Senior group overseeing strategy, authorising key changes, and reviewing progress
• Sponsor: Senior person championing the project, resolving issues, and securing resources
• Project manager: Responsible for day-to-day leadership, planning, and delivery
• Project team: Specialists or staff delivering the detailed work
• Stakeholders: Individuals or groups affected by the project or whose support is needed

Alignment with overall strategy is checked throughout the project.

Worked Example 1.2

Who typically approves extending a project’s budget and duration beyond the original plan?

Answer:
The steering committee or project board, as part of governance, must approve significant changes.

Project Control Mechanisms

Effective controls ensure problems are identified and managed early.

• Reporting: Regular completion and distribution of status reports (progress, costs, risks)
• Gate reviews: Hold project at key ‘gates’ (e.g., end of planning) for formal approval to proceed
• Issue and change logs: Systematic tracking of problems and proposed changes
• Risk management: Continual identification, analysis, and mitigation

Key Term: gate review
A formal point at which project progress is assessed and a decision taken whether to continue, modify, or halt the project.

Exam Warning

Governance failures often occur where authorisation and change approval are left to the project manager alone. Always know which decisions must be escalated to the steering committee or sponsor.

Roles and Responsibilities in a Project

Projects may fail if roles are not clearly assigned and understood.

Project Objectives and Strategic Link

Every project must support the organisation’s broader strategy. Project success means delivering outputs that are not just on time and budget, but also deliver the intended benefit.

Worked Example 1.3

A new warehouse is completed as planned, but the company’s logistics costs rise. Has the project been successful?

Answer:
No. The project outputs did not achieve the desired strategic benefit (lower costs). Strategic alignment and follow-up outcomes are key measures in project governance.

Summary

Projects require a structured approach and clear governance to manage risks and achieve objectives. A standard project lifecycle—initiation, planning, execution, monitoring and control, closure—supports systematic delivery. Good governance clarifies roles, establishes controls, ensures strategic fit, and monitors for success. Understanding these principles is essential for effective business management and ACCA exam preparation.

Key Point Checklist

This article has covered the following key knowledge points:

• Define what makes a project unique compared to regular operations
• Identify and explain the main phases in a project’s lifecycle
• Understand objectives and main features of project governance
• Recognise typical governance structures and decision-making responsibilities
• Describe the key roles: sponsor, manager, steering group, team, stakeholders
• Explain controls such as reporting, gate reviews, and change control
• Describe the need for projects to support overall organisational strategy

Key Terms and Concepts

• project
• project governance
• project initiation
• project plan
• project closure
• change control
• gate review