In modern project management, project controlling plays a central but often underestimated role. It covers much more than just financial monitoring and covers all aspects of project implementation.
Effective project controlling goes beyond analyzing key figures. It includes methods and processes for continuous monitoring, evaluation and optimization of project performance. From the planning phase to completion, it provides decision-relevant information and enables proactive risk management.
In this blog, we will take a closer look at the various dimensions of project controlling.
What is project controlling?
Project controlling is an essential part of project management, which monitors and controls the planning and compliance with budgets, deadlines and goals. It includes both operational and strategic controlling, with operative project controlling on individual projects or several projects running at the same time is focused and that strategic project controlling supports long-term decisions on project selection and prioritization
Why is project controlling important?
Project controlling is crucial for the success of a project, as it monitors and manages costs and progress at every stage. By identifying and responding to problems and delays early on, risks can be minimized and Project success rate be increased. This helps to complete projects on time and on budget by identifying and addressing inefficient communication, lack of change management, and inadequate expertise.
Focus on the most important goals
The main goal of project controlling is to reconcile the planned and actual project progress by meeting the agreed costs, expenses, deadlines and results. The project plan serves as a central tool for comparing target and actual data and identifying deviations at an early stage.
Successful project controlling: These are the prerequisites!
For project controlling to be effective, certain requirements must be met. Transparency in all areas and precise planning are central to this. Here is an overview of the most important points:
🎯 SMART goalsObjectives should be specific, measurable, accepted, realistic and timed to ensure clarity and accountability. 📝 Thorough preparation and planning
This includes the distribution of tasks to sufficient participants, scheduling including milestones and time buffers, as well as clarity about costs and budget allocation.
📊 Comprehensible key figures (KPIs)Recording and reviewing KPIs are essential to be able to measure the progress and success of the project. 💬 Open error cultureA corporate culture that deals openly with mistakes allows goals and key figures to be adjusted as required. 🔍 Regular checksConstant checks, such as target/actual comparisons, are necessary to monitor services provided, tasks completed and progress over time.
Software support in use: ZEP for greater project success and better controlling
Once you have completed the entire project planning, budget planning and project controlling are no longer a big problem. With a tool like ZEP, you can for any resource individual cost rates deposit, which significantly simplifies budget planning. ZEP not only supports you with detailed budget planning, but also makes it easier to rough plan your project. From project planning to completion, project controlling therefore remains a constant authority for your project management and control.
With ZEP, thanks to more precise Project time recording Keep an eye on your team's performance and ensure that all goals are achieved within the planned time and budget The software enables efficient resource planning, digital project tracking and electronic time recording, what about digitization and helps automate your project business. By minimizing manual inputs, ZEP reduces sources of error and ensures precise invoicing In accordance with the new E-invoicing obligation. ZEP also generates important key figures and reports that give you a better insight into the project status and serve as a basis for well-founded project planning and decision-making.
How does project controlling work? Methods, processes, etc. at a glance
In project controlling, there are various procedures and methods that can be used depending on project requirements. The choice of appropriate measures depends on factors such as the scope and importance of the project, the size of the company and the project team, and the relevant key figures and measurement values.
In the following, we will show you a few examples of how you can effectively implement project controlling:
Project structure plan (PSP)
The basis for all plans and performance measurements is thorough project planning, which usually uses the project structure plan (PSP). The PSP details the underlying structure of the project by dividing it into sub-projects and underlying work packages. This logical combination of elements enables effective prioritization Allocation of resources and time planning, which is particularly beneficial when scheduling backwards.
Earned Value Analysis (EVA)
Earned Value Analysis (EVA), also known as performance value analysis, checks the progress of a project up to completion value. Key figures such as Plan value, the actual costs and the degree of completion are taken from project planning and set in relation to each other. The EVA is particularly useful as it makes it possible to compare deadlines with the services provided and to assess both costs and completion dates during the project.
Benefit analysis (NWA)
Benefit analysis (NWA) is a more subjective method for evaluating and deciding on projects, particularly when objective criteria such as financial indicators are not sufficient. At the NWA, relevant criteria are first selected and weighted, with a total weighting of 100 percent. Each project then receives points for each criterion, based on a fixed rating scale (e.g. 1-5). The weighted points are summed up to calculate the utility value, with the project with the highest utility value winning the decision.
Traffic light controlling
Traffic light controlling, also known as a traffic light system or traffic light method, offers a clear and distinct way of evaluating the status of tasks in a project. The progress is visualized using the three traffic light colors green, yellow and red, which makes it immediately clear at which points in the project it is becoming critical. This method is particularly useful for time management and is ideal for projects with many deadlines, as it allows ongoing and up-to-date assessment.
Milestone trend analysis (MTA)
With the milestone trend analysis, you can check whether all specified milestones and their deadlines are met or whether delays occur that could jeopardize the achievement of goals. Milestones are defined and an earliest and latest target date is set for everyone. During the course of the project, you regularly create forecasts of the expected achievement of the goals and visualize them in a diagram that shows the reporting dates on the x-axis and the predicted target dates on the y-axis. The resulting trend curve provides information about the further course of the project.
Cost trend analysis (KTA)
The cost trend analysis (KTA) compares the actual costs with the originally planned costs of the project and estimates the remaining costs until the end of the project. Through this comparison, the project controller can determine whether there are significant deviations and identify risks at an early stage. Based on this analysis, a forecast is made about the further course of the project, which supports project management and helps to make necessary adjustments.
Risk analysis
Risk analysis is a central method in project controlling, which should be carried out and documented regularly. It is used for assessment, evaluation and prioritizing of risks by assigning values between 0 and 9 and the probability of occurrence in percent. The risk indicator results from multiplying these values and helps to classify the risk into categories such as low (0-3), medium (3.1-6) or high (6.1-9). This classification enables targeted management and action planning to reduce risks.
What KPI figures are there?
For project controlling, key figures defined at the outset are crucial in order to monitor the progress and success of a project. Depending on the project, different key figures may be relevant. The following parameters are usually used as KPI indicators:
These processes should not be missing in project controlling!
In project controlling, certain processes are essential to ensure effective planning, monitoring and management of projects. The standard “DIN 69901-5:2009 -1: Project Management Phase “Management”” defines 15 essential processes for project controlling, 6 of which are mandatory. Here is an overview of the important processes:
ProcessMandatoryInitiate processesManage deadlines ✅ Control changes ✅ Information, communication, reporting & documentation Tax acceptance ✅ Control costs and financesCarry out a kick-offCreate a project teamDevelop a project teamSafeguard qualityManage resources ✅ Manage risks ✅ Manage contracts with customers and suppliersManage additional demands ✅
These processes are critical to ensuring that all aspects of the project are effectively monitored and managed, and provide a solid basis for communication with stakeholders and team members.
What are the typical challenges companies face when it comes to project controlling?
Project controlling is a complex process that goes far beyond mere monitoring. This poses typical challenges for companies, such as precise planning and ensuring comprehensive transparency. However, when these requirements are met, teams benefit from early risk identification, clear objectives, and simplified communication with stakeholders. It also enables a transparent analysis of performance, costs and punctuality as well as well-founded decision-making tools for several alternatives.
conclusion
Effective project controlling is essential for the success of modern companies. It goes far beyond mere cost monitoring and includes the holistic management of projects — from planning to completion. By using suitable methods such as earned value analysis, milestone trend analysis or traffic light controlling, companies can identify risks at an early stage, make optimal use of resources and lead projects to success in a targeted manner.
The biggest challenges lie in precise planning, creating transparency and consistently applying controlling processes. Modern project management software such as ZEP can make a decisive contribution here: It supports detailed budget planning, enables efficient resource management and provides important KPIs for well-founded decisions in real time.
Ultimately, project controlling is not an end in itself, but a powerful instrument for continuous improvement. It enables companies to learn from experience, to optimize processes and to constantly increase the success rate of their projects. In an increasingly complex and dynamic business world, effective project controlling is thus becoming a decisive competitive advantage.
