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Effective Project Management in Software Development: Agile or Classic?

This article delves into project management in software development, tracing the evolution of methods and comparing classic with agile approaches. Key topics include stakeholder management, essential tools and techniques, and the challenges of scaling project management strategies. Additionally, it highlights forward-looking trends set to reshape how we approach and manage software projects in the future.

Sharif Ghazi
Senior Consultant
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Sharif Ghazi
Senior Consultant
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Table of contents:

  1. Project Management Through the Ages
  2. Core Elements of Classic Project Management
  3. Agile Methods and Frameworks
  4. Stakeholder Management
  5. Tools and Techniques
  6. Scaling of Project Management Approaches
  7. Future Trends in Project Management
  8. Conclusion
  9. References

 

Project management plays a crucial role in the dynamic world of software development. It sets the course for the success or failure of projects and has a major influence on the efficiency and quality of the end products. Whether agile or classic - choosing the right approach can make the difference between a smooth process and chaotic development processes. Methods such as Scrum, SAFe and PRINCE2 Agile are becoming increasingly important, while traditional approaches such as the waterfall model are being re-evaluated.

 

   

Project Management through the Ages

   

Traditional approaches

Traditional project management has its roots in a structured and planning-oriented approach. It is characterized by clear workflows and clearly defined milestones 1. The best-known example of this classic approach is the waterfall model. Here, the project phases are mapped in the form of a cascade, whereby the successive phases are worked through sequentially 2. This approach is particularly suitable for projects where the scope and requirements are precisely defined 3.

    

The three key factors in traditional project management are time, cost and quality or scope. Based on these factors, the project objectives are precisely defined and detailed plans are developed 2. This approach offers security and control in the project environment, but can be inflexible when changes are necessary 2 3.

   

Agile vs. Waterfall methods visualized
Source: Adobe Stock Images

   

Agile revolution

The agile revolution in project management began in the 1990s and culminated in February 2001 with the adoption of the "Agile Manifesto" 4. Agile methods focus on flexibility, iterative development and continuous feedback loops 1. They are customer-oriented, team-oriented, lean and pragmatic 2.

     

Scrum, the most widely used method in agile project management, promotes close, self-organized collaboration within an interdisciplinary team. A product is developed step by step in so-called sprints, which are time-limited "mini-projects" 2. This approach allows teams to make adjustments based on real-time feedback and focus on high-impact tasks 3.

    

Agile methods have significantly changed process optimization by replacing rigid, linear workflows with flexible and adaptable processes. This improves responsiveness, enhances product quality and increases customer satisfaction 5.

 

Hybrid models

Hybrid project management skillfully combines elements of traditional and agile project management. It combines the clear structure of the traditional approach with the flexibility of agile methods in order to manage projects efficiently while being able to react flexibly to changes 1.

   

At an operational level, it often makes sense to adapt agile methods, while classic approaches are preferred at a strategic and decision-making level. In this way, the advantages of both approaches can be optimally utilized 6.

   

One example of a hybrid model is the combination of Scrum, PRINCE2 and Kanban. Scrum supports iterative development and regular meetings, PRINCE2 focuses on clear roles and defined processes, while Kanban enables the visualization of the workflow and thus contributes to increasing efficiency 6.

    

PRINCE2 Agile, as a specific hybrid approach, combines the structured control and governance of PRINCE2 with the flexibility and responsiveness of agile methods. This allows project managers to utilize the advantages of both approaches and react flexibly to the specific requirements of their project.

    

Practice shows that hybrid methods often lead to faster and more cost-effective results, as they increase both effectiveness and efficiency 6. Hybrid project management therefore offers a customized solution for complex projects and enables teams to adapt to changing requirements 6.

 

   

Core Elements of Classic Project Management

    

Project phases

Traditional project management follows a structured approach in which projects are divided into different phases. This structure serves to reduce complexity and better control progress 7. A typical project goes through five main phases:

  1. Project launch: In this initial phase, the value, feasibility and benefits of the project are assessed. Project managers and stakeholders clarify the details of the project and check how it fits into the organizational environment 7.
  2. Project planning: A detailed project plan is drawn up in this phase. Resources are allocated, a timeline is created and the project team is defined. The project manager works closely with key stakeholders to develop a comprehensive and detailed plan 7.
  3. Project implementation: This phase includes the actual project work. The team members take on their tasks from the work packages and work together to achieve the next milestone. The project manager is responsible for sticking to the project plan, monitoring progress and assessing potential risks 7.
  4. Project controlling: This phase often runs parallel to the implementation phase. It includes the reporting and controlling of KPIs relating to budgets, resources and deadlines by comparing actual and target values. Regular reports are also sent to the stakeholders 7.
  5. Project completion: In the final phase, the project result is handed over. This includes billing, documentation, the release of resources and the creation of reviews and the final report 7.

 

Five building blocks with flags on them visualizing milestones, a hand just setting the fifth one.
Source: Adobe Stock Images

     

Milestones

Milestones are decisive points in the course of the project that mark important intermediate goals 8. They not only serve as deadlines, but also represent the achievement of specific goals 9. Milestones fulfill several important functions in project management:

  1. Progress control: They make it possible to visualize and monitor the progress of the project 8.
  2. Prioritization: Milestones help with the evaluation of priorities and the control of deadlines 8.
  3. Phase monitoring: They support the monitoring of individual project phases and the identification of important deadlines or end dates 8.
  4. Bottleneck identification: Milestones help to identify potential bottlenecks within the project at an early stage 8.

    

It is important to understand that milestones do not represent specific tasks or work packages, but mark significant points in the progress of the project 8. They serve different purposes, such as the completion of interim results, upcoming tests or acceptances as well as decisions that affect the further course of the project 9.

 

A Gantt chart on a computer screen, close-up
Source: Adobe Stock Images

   

Gantt charts

Gantt charts are a widely used tool in traditional project management. They provide a visual representation of the project schedule and make task dependencies clearly visible 10. A Gantt chart consists of a horizontal time axis and vertically arranged project activities, with the time required per work step shown as a horizontal bar 11.

    

The advantages of Gantt charts include:

  1. Clear visualization: They enable a transparent presentation of tasks, schedules and their dependencies, which makes the course of the project easier to understand 10.
  2. Improved communication: Gantt charts promote better communication both within the team and with external stakeholders by communicating the current status and progress of the project in an easily understandable way 10.
  3. Flexibility in planning: They make it possible to adapt the course of the project if necessary and to reprioritize tasks 10.
  4. Early problem detection: Critical tasks and potential bottlenecks can be identified at an early stage 10.

    

Gantt charts are particularly suitable for projects with fixed timelines and several tasks running in parallel 10. They are often used in the waterfall method, as they clearly visualize the sequential progress and the dependencies between the individual tasks 10.

 

   

Agile Methods and Frameworks

    

In recent years, agile methods have become increasingly important in software development. These approaches enable teams to react more flexibly to changing requirements and improve product quality. Three of the best-known agile methods and frameworks are Scrum, Kanban and Extreme Programming.

     

A visualization of the Scrum process
Bild: Adobe Stock Images

    

Scrum

Scrum is one of the most widely used agile methods in project management. The term originally comes from rugby, where it describes a tight scrum of players around the ball. In project management, scrum symbolizes the fact that all team members gather daily for short meetings, known as daily scrums, to discuss upcoming tasks and the progress of the project 12.

    

A Scrum project is based on a few simple rules that are designed to support the team in achieving the common project goal. The core principle is the self-organization of the team, which receives an assignment and defines the project goals with the client. The team can then organize its work in an agile manner without having to work through a predefined project plan 12.

    

The Scrum process consists of several phases, which are referred to as sprints. Each sprint has a fixed duration of a maximum of one month and includes daily meetings, the so-called Daily Scrum. At the end of each sprint, there is a functional product increment 13.

    

Scrum defines three main roles:

  1. Product Owner: Represents the interests of users and stakeholders, sets priorities and ensures that the team focuses on the most important tasks.
  2. Scrum Master: Responsible for adherence to the Scrum process, supports the team and helps to remove obstacles that could hinder progress.
  3. Development team: Consists of 5-10 members who organize themselves, distribute all tasks independently and estimate the duration for working through the backlog/tasks themselves 12

    

The benefits of Scrum include increased efficiency, improved quality, agility, team spirit and transparency 13.

       

Visualization of a Kanban board
Source: Adobe Stock Images

    

Kanban

Kanban is a widely used framework for implementing Agile and DevOps in software development. It aims to promote a continuous workflow and continuously offer the customer added value 14.

   

The core principles of Kanban are

  1. Visualization of the workflow: All tasks are displayed on a Kanban board, which provides a shared overview of the process and makes it easier to identify problems 14.
  2. Limitation of work in progress: This ensures that no more tasks are started than the team can actually handle. This prevents the workflow from stalling and ensures that each task can be passed seamlessly from one stage to the next without blocking the entire workflow 14.
  3. Focus on lead time: A key metric in the Kanban process is the average time it takes for tasks to go from start to completion 14.

    

Kanban teams focus exclusively on the tasks currently being processed. As soon as a task is completed, the next one is selected from the backlog. The product owner has the flexibility to adjust the priorities in the backlog at any time without disrupting the team's ongoing workflow 15.

 

Extreme Programming (XP)

Extreme Programming (XP) was developed in the mid-1990s by Kent Beck, Ward Cunningham and Ron Jeffries and is considered one of the most radical agile methods 16.

    

XP is based on five core values:

  1. Communication
  2. Simplicity
  3. Feedback
  4. Courage
  5. Respect 16

 

These principles form the basis for twelve practices that are used in Extreme Programming (XP). The most important practices include:

  • Pair programming: Two developers work together on one computer.
  • Test-driven development: Tests are written before the actual implementation.
  • Continuous integration: Code is regularly integrated and tested.
  • Small releases: Frequent release of small increments 17.

 

XP (Extreme Programming) places particular emphasis on short, iterative development cycles, close collaboration within the team and continuous feedback on requirements. This allows customer requests to be implemented more quickly and errors to be rectified at an early stage 17.

    

In addition to these three main methods, there are also hybrid approaches such as PRINCE2 Agile, which combine the structure and governance of PRINCE2 with the flexibility and responsiveness of agile methods. These hybrid models enable project managers to take advantage of both worlds and respond to the specific requirements of their project.

   

Regardless of the method chosen, it is crucial that teams have the tools and technologies they need to work efficiently. Equally important are strong soft skills, particularly in the areas of communication and collaboration, to ensure an open and transparent exchange within the team. This not only promotes team cohesion, but also makes a significant contribution to the success of the project 17.

 

    

Stakeholder Management

Stakeholder management is a central component of project management and plays a key role in both traditional and agile approaches. It involves identifying, analyzing and managing all relevant interest groups in a project. Effective stakeholder management ensures that the needs and expectations of those involved are taken into account, which strengthens trust and promotes the overall success of the project 18.

 

Communication in the classic model

In the classic project management model, communication often follows a top-down approach. This approach is characterized by clear hierarchies and defined communication channels. Project managers have the task of forwarding information to the relevant stakeholders in a structured manner and obtaining their feedback 19.

    

The classic method is particularly suitable for projects in which the requirements, resources and schedules are clearly defined. In such cases, project management is linear and communication can be planned and controlled accordingly 19. Project managers should:

  1. Establish clear communication structures
  2. Provide regular updates and reports to all relevant stakeholders
  3. Set up formal communication channels for feedback and change requests

 

Customer integration in Agile

In agile approaches, especially in the Scrum method, the client is heavily integrated into the development process. This integration can take various forms:

  1. Direct involvement in the production process
  2. Intensive collaboration with the product owner
  3. Participation in defined team meetings
  4. Deployment of customer employees as product owners in the Scrum team 20

 

The close involvement of the customer enables fast feedback loops and promotes continuous adaptation to changing requirements. However, too intensive or unregulated customer integration can also lead to challenges:

  • Increased time and performance pressure for the development team
  • Frequent interruptions to the workflow
  • Potential threat to target achievement 20

   

In order to overcome these challenges, systematic integration of the customer has proven its worth. The direct influence of the customer is mitigated by a "buffer function" (e.g. the product owner) or limited to certain meetings. This approach protects the self-organization of the team and is perceived by the employees as positive and relieving 20.

   

Expectation management

Effective expectation management is an essential competence for project managers and goes beyond pure requirements management. It involves not only capturing the technical requirements, but also understanding the expectations and needs of all stakeholders. Targeted communication and clear agreements ensure that everyone involved is satisfied with the course of the project and the results 18.

    

Expectations are subjective ideas or assumptions about future developments or conditions. They significantly influence human thought and action and can be both explicit and implicit 18. To transform implicit expectations into clear, explicit requirements, project managers can take the following measures:

  1. Mindfulness with active listening and observation
  2. Clear and unambiguous communication
  3. Careful documentation and formalization
  4. Regular feedback and adjustment 18

   

Project managers should consider the following aspects for successful expectation management:

  1. Clear communication from the outset to avoid misunderstandings
  2. Neutral mediation in conflicts between stakeholders
  3. Developing emotional intelligence and building trust
  4. Division of the project into small, manageable steps
  5. Promoting a strong sense of community within the team 21

    

By applying these principles, project managers can build a bridge between the needs of the team and the customer and thus contribute to a successful project.

 

   

Tools and Techniques

   

Project management software

In the modern working world, project management software plays a crucial role in the success of companies. These tools offer numerous advantages that can significantly increase the efficiency and productivity of teams. Central organization and control of multiple projects running in parallel is made possible, which leads to improved collaboration and communication between team members 22.

    

A key advantage of project management software is the ability to collaborate despite the different locations of team members and stakeholders. This is particularly relevant as 43% of employees work remotely at least some of the time 23. In addition, these tools enable real-time monitoring of key project indicators (KPIs) and provide access to project content from any desktop or mobile device 22.

    

Some of the leading project management software on the market are:

  1. Projektron BCS: A multi-project management software developed in Germany that is particularly suitable for personnel-intensive projects. It supports classic, hybrid and agile project management approaches 24.
  2. factro: A comprehensive project management tool from Germany that is offered in the SaaS model. It has numerous additional functions, flexible assignment of rights and an integrated CRM module 24.
  3. OpenProject: A free open source solution with improved ease of use 24.
  4. Wrike: Offers various views for classic project management as well as a Kanban board for agile working methods 24.
  5. awork: A new PM software that specializes in "smooth work management for creative teams" 24.

 

Silhouettes of people having a work meeting, artistic depiction
Source: Adobe Stock Images

     

Collaboration tools

Collaboration tools have become an indispensable element of the modern workplace. They enable a more coordinated way of working by providing a centralized, unified platform for team meetings, file sharing, online storage for documentation, task assignments and real-time project collaboration 23.

   

A report by the McKinsey Global Institute found that 61% of working time is spent reading and responding to emails, searching for or collecting information, and internal communication and collaboration 23. Collaboration tools help to use this time more efficiently.

    

Some of the most popular collaboration tools are:

  1. Google Docs: Enables the creation and editing of documents, spreadsheets and presentations in real time 25.
  2. Slack: A cloud-based communication platform that makes remote collaboration much easier 25.
  3. Zoom: A video conferencing platform that has become very popular since the COVID-19 pandemic 25.
  4. Microsoft Teams: A communication and collaboration platform suitable for companies of all sizes (25)

Another software company worth mentioning is Atlassian, which develops a range of products that are primarily intended for teams for collaboration, project management and software development. Here are some of the best known:

  1. Jira Software: A tool for project and task management that is specifically geared towards agile development methods such as Scrum and Kanban 37.
  2. Confluence: A collaboration platform that enables teams to create, share and edit content together 38.
  3. Bitbucket: A Git repository management tool developed specifically for collaboration on software projects 39.
  4. Trello: A simple, visual project management tool based on cards and boards 37.
  5. Jira Service Management: An IT service management tool (ITSM) developed specifically for IT teams 40.
  6. Opsgenie: An incident management tool that supports teams in responding quickly and effectively to incidents and failures in IT systems 41.
  7. Jira Align: An enterprise agile planning tool that helps organizations implement agile methods at scale and link strategy to execution 42.

     

Automation

Automation is becoming increasingly important in project management. It allows teams to minimize recurring tasks and focus on more challenging aspects of the project. Project management automation software optimizes processes and increases the efficiency of the entire team 26.

    

Some of the advantages of automation in project management are

  1. Creation of seamless workflows to ensure project progress
  2. Synchronization of sales and project automation workflows
  3. Visualization of project management automation processes with customizable Kanban boards
  4. Automatic sending of project-related e-mails to inform contacts and team members 26

    

When selecting project management tools, teams should consider various aspects, including the specific project requirements, the size of the team, integration into existing workflows and the associated costs. It is important to choose a tool that fits seamlessly into the existing infrastructure and can grow with the organization 23.

    

The use of these tools and techniques enables companies to optimize their project management processes, improve teamwork and ultimately achieve better quality results.

 

    

Scaling of Project Management Approaches

   

Scaling project management approaches is a complex task that presents companies with numerous challenges. As projects and organizations grow, the need to develop effective methods for coordination and collaboration between multiple teams increases. Both traditional and agile approaches must be considered to meet the different requirements.

 

Managing large projects the classic way

A classic project management approach is often suitable for large and complex projects with clear definitions and fixed structures. PRINCE2 Agile, an extension of the PRINCE2 method, offers a solid solution here, especially for companies looking for a methodical approach with clear governance structures 2. This method combines the strengths of PRINCE2 with the flexibility of agile approaches.

    

The Critical Path Method (CPM) is best suited to small to medium-sized projects and teams, but reaches its limits in large projects with many deliverables and multiple stakeholders 27. In such cases, the PMBOK® manual offers a useful alternative. It can be used on its own for small teams on standard projects, while for larger teams and more complex projects it is recommended to combine it with a more detailed method such as CPM 28.

 

Scaled Agile Framework (SAFe)

The Scaled Agile Framework (SAFe) has established itself as one of the most popular frameworks for scaling Agile. It provides a structured approach to introducing Agile in growing organizations and supports alignment, collaboration and implementation across many agile teams 29. SAFe focuses on three core areas: Agile software development, lean product development and systems thinking.

 

SAFe offers four configurations for different scaling levels:

  1. Essential SAFe
  2. Large Solution SAFe
  3. Portfolio SAFe
  4. Full SAFe

These configurations allow companies to choose the approach best suited to their needs 30.

 

A central aspect of SAFe is the creation of "agile awareness" among all those involved. This includes:

  1. Managers who are committed to agile values
  2. All project participants and stakeholders who live this attitude on a daily basis
  3. Teams within the organization that pull in the same direction
  4. A common strategy for distributed locations 30

    

SAFe offers many approaches for the success of large projects, but should not be seen as a blueprint. It actively contributes to a more agile mindset without forcing an abrupt transformation. This makes it particularly attractive for large, mature companies that prefer a hybrid approach 3.

 

Challenges

The scaling of project management approaches, especially in an agile context, brings with it various challenges:

  1. Coordination and collaboration: As agile teams scale, it becomes more difficult to ensure efficient collaboration between multiple teams 3.
  2. Decentralization of decision-making: While teams are given more autonomy, there is a risk that they work in different directions and lose sight of the overarching goals 31.
  3. Maintaining agile values: The implementation of agile principles such as self-organization and continuous improvement becomes more complex in larger organizations 28.
  4. Technical dependencies: In larger projects, complex technical dependencies between different teams and products can hinder agility 2.
  5. Cultural change: The introduction of agile scaling requires a comprehensive cultural change that is not immediately accepted by all employees and managers 3.
  6. Measuring progress: Evaluating the success of agile scaling can be difficult, especially when using traditional metrics that do not fit the agile way of working 1.

   

To overcome these challenges, companies need to develop appropriate coordination mechanisms, establish a strong shared vision and set clear guidelines. It is also important to implement comprehensive training measures, promote cultural change and demonstrate exemplary leadership behavior. The development of agile metrics that reflect customer value and business goals is also critical to scaling success.

 

A robot hand shaking the hand of a businessman wearing a suit
Source: Midjourney

       

Future Trends in Project Management

    

Project management is in a constant state of flux, and current trends point to significant changes in the way projects will be planned, implemented and managed in the future. Three key trends stand out in particular: the use of artificial intelligence and machine learning, the growing importance of remote work and an increased focus on sustainability.

 

AI and machine learning

Artificial intelligence (AI) is playing an increasingly important role in project management. AI mimics human cognitive abilities by recognizing and sorting information from input data 32. AI can already provide simple support in project management, for example in the management of tasks, documentation and the creation of descriptions 32.

   

A major advantage of AI in project management is that it can analyze data from previous projects, identify patterns and make recommendations for the optimal project structure and schedule 32. In task management and resource planning, AI can analyze the qualifications and availability of team members in order to assign tasks efficiently and make the best possible use of individual strengths 32.

    

AI can also play a key role in risk analysis. It analyzes data, proposes innovative solutions and takes into account both historical data and external factors to identify potential challenges at an early stage 32.

    

However, it is important to note that AI should not replace humans in project management, but rather serve as a supporting tool. The success of a project still depends on human judgment, especially in terms of collaboration with colleagues, service providers and partners, as well as understanding priorities and investments 32.

    

In the long term, AI will largely relieve project managers of administrative tasks, so that interpersonal core competencies such as leadership, communication and empathy will come more into focus 33.

 

Remote Work

The COVID-19 pandemic has drastically changed the way we work together. Remote work has become the new normal and will continue to play an important role in the future. According to a study, 58% of companies plan to maintain the current level of home office, further embed it in the corporate culture and expand it 34.

    

The way in which projects are carried out has changed almost overnight - from open-plan offices to private living spaces. More than ever, this new reality requires project managers to have a high level of trust in their teams 34. Two key factors are crucial for smooth collaboration in virtual teams: regular communication and efficient information sharing 34.

    

The right use of suitable tools and technologies is crucial to ensure that working from home runs smoothly. Around 70% of SMEs state that the pandemic has had an impact on the digitalization process and its acceleration 34.

    

In the long term, an agile project management approach is a good way to react flexibly to uncertain and changing conditions. The basic idea is to divide projects into phases, with improvements and adjustments possible in each phase 34.

   

Remote project managers should strive for collaborative leadership that addresses the following questions: Are all participants pursuing the same goals? Does everyone lead in their own way? Does everyone feel safe enough to take risks and make mistakes? Is communication between team members ensured regardless of rank or position? 35

 

Sustainability

Sustainability is becoming increasingly important in project management. A survey of around 9,000 project managers revealed that 38% stated that their projects are affected by climate change 36. At the same time, 100 percent of respondents believe that project managers are not sufficiently committed to climate protection 36.

   

Sustainability management in a project means much more than just not printing emails. Rather, it is about avoiding, reducing or compensating for negative effects both during project implementation and in the project results, while at the same time achieving and reinforcing positive effects and incorporating them into the environmental balance sheet 36.

    

Project managers have a special responsibility not only to implement sustainability strategies within their projects, but also to move the entire organization towards greater sustainability 36. This applies not only to the project activities themselves, but also to the impact of the end product, service or process created by the project 36.

   

Current scientific models make it possible to measure and monitor (environmental) impacts and develop strategies to improve them through avoidance, reduction or compensation 36.

   

These future trends in project management - AI and machine learning, remote work and sustainability - will permanently change the way projects are planned, implemented and managed. Project managers must face up to these challenges and adapt their skills accordingly in order to remain successful in the future.

 

    

Conclusion

   

To round off the topic: Project management in software development is undergoing a profound change. The integration of agile methods such as Scrum and Kanban, combined with classic approaches such as PRINCE2 Agile, enables teams to work more flexibly and efficiently. This development has a strong impact on the way projects are planned and executed.

   

Exciting trends are emerging with a view to the future. The use of AI and machine learning, the growing importance of remote work and an increased focus on sustainability will continue to change the project landscape. These developments present project managers with new challenges, but also offer opportunities to make projects even more successful and create real added value.

   

    

References

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