Project management is the practice of organising work so it gets delivered on time, within budget, and to an agreed standard. Someone has to coordinate who does what, by when, and for how much. The three most common types are waterfall, agile, and lean, each suited to different kinds of work. This guide covers what project management actually involves, how the three types differ, and how agencies and consultancies typically apply them to client work.
Project management sits at the intersection of people, process, and accountability. It covers planning the work (scope, timelines, budgets), organising who does it (resource allocation), tracking whether it is on track (monitoring), and closing it out (delivery and review).
For teams that deliver work for clients, project management also has a financial layer. It is not enough to know whether a project is on schedule. The team also needs to know whether hours are being spent within budget and whether the work will be profitable when it is finished.
Done well, project management lets anyone answer three questions at any point in a project: is this on schedule? Is this on budget? Are the right people working on it? When those questions take more than five minutes to answer, the project management system is not working.
Most project management frameworks, regardless of methodology, follow the same five stages:
Problems in planning almost always surface as problems in execution. Problems in monitoring surface as budget overruns discovered too late. Getting stages one and two right is where most project management effort should go.
Waterfall is a sequential approach: each phase must complete before the next begins. Scope is defined upfront and the project moves in one direction from start to finish. It works well when requirements are fixed, the deliverable is clearly defined, and changes would be expensive. It is common in construction, engineering, and formal compliance work.
The weakness is inflexibility. If requirements shift mid-project, the sequence may need to restart. Waterfall suits projects where the brief is unlikely to change once work begins.
Agile is an iterative approach. Work is broken into short cycles (typically two-week sprints), with a review and adjustment at the end of each one. It originated in software development, built on the principles of the Agile Manifesto, and is now used widely across creative and digital agencies.
Agile suits projects where scope is likely to evolve, or where the client wants to see progress and give feedback in real time. The trade-off is that it requires more active client involvement and can make final scope harder to pin down before work starts.
Lean focuses on eliminating waste: time, resources, and process steps that do not directly contribute to the deliverable. The principle originates in manufacturing but applies directly to service businesses. If a meeting, approval step, or reporting process does not move the project forward, it is waste.
In practice, lean is less a standalone methodology and more a lens applied to whichever approach the team is already using. Agencies that have cut unnecessary status meetings and simplified approval processes are applying lean thinking without necessarily naming it.
Agencies and consultancies run multiple client projects simultaneously, often with overlapping teams. This makes the resource dimension of project management particularly important. Knowing that a project is on schedule is not useful if the two people needed to hit that schedule are already fully allocated to other work.
The most common failure mode for client-facing teams is scope creep: delivering more than was agreed, spending more hours than were budgeted, and not catching it until the project is over. Good project management for agencies includes clear scope agreements upfront, a process for raising and pricing scope changes, and a way to track hours against the original budget in real time.
Most agencies use a mix of all three methodologies depending on the project type. A brand strategy engagement might run waterfall. A digital product build might run agile. Internal process improvements might apply lean principles throughout. The methodology matters less than having one and following it consistently.
Clarity at the start. What is being delivered, what is out of scope, and what does done look like? Vague briefs produce vague projects. The more specific the agreement before work begins, the less time gets spent resolving disputes later.
Visibility during delivery. Project managers who can answer the budget and timeline questions quickly make faster, better decisions. Those who need to export data and reconcile spreadsheets to answer those questions are always slightly behind the problem.
A single source of truth. When project information is split across email, task tools, time trackers, and spreadsheets, someone is always working from an outdated version. One system that holds all project data removes that problem entirely.
Pike connects project delivery and financial management in one platform. For agencies and consultancies managing multiple client projects, that means project managers can see task progress, resource allocation, and budget burn in one view, without assembling the picture from separate tools.
The three most common types of project management are waterfall (sequential, each phase complete before the next begins), agile (iterative, short cycles with review and adjustment after each one), and lean (waste elimination, only resources that directly contribute to the deliverable are used). Most agencies and consultancies use a mix of all three depending on the type of project.
The five stages are initiation (defining scope and goals), planning (tasks, timelines, budgets, risks), execution (delivering the work), monitoring (tracking progress and spend against plan), and closing (final delivery, review, and budget close-out). Problems in planning almost always become visible as problems in execution.
Waterfall follows a fixed sequence: each phase must complete before the next begins and scope is defined upfront. Agile is iterative: work runs in short cycles with review and adjustment after each one. Waterfall suits projects with fixed, well-defined requirements. Agile suits projects where scope is likely to evolve or where client feedback should shape each phase.
Most agencies use a combination. Waterfall works well for fixed-scope deliverables like a brand identity or a strategy document. Agile works well for digital products or ongoing retainers where priorities shift. Lean principles apply across both as a way of cutting unnecessary process overhead. The best methodology is the one the whole team will actually follow consistently.
Project managers typically use task management software (for tracking who does what), time tracking tools (for logging hours against projects), and reporting tools (for checking budget and schedule status). Agencies and consultancies with mature project management practices tend to consolidate these into a single platform so that delivery and financial data are connected rather than stored separately.
If your agency or consultancy wants a single system for managing projects and tracking profitability in the same place, book a free demo to see how Pike works for teams like yours.
