Understanding Project Baseline In Project Management

If you’ve ever been part of a project, you’ve probably heard about the term project baseline. It sounds technical and intimidating, but it’s really just a way to keep your project on track. Think of a project baseline as your project’s GPS, as it helps you see where you started, where you are now, and where you’re going.

This article will simplify everything you need to know about managing baselines while using plenty of real-world examples to bring the concept to life.

Key Takeaways

• A project baseline ensures your project stays on track by providing measurable references for scope, cost, schedule, and quality.
• The four key baselines are scope baseline, cost baseline, schedule baseline, and quality plan.
• Changes to baselines are common during the discovery phase, execution, and other key stages of a project lifecycle.
• Using a change ticket system for tracking updates ensures transparency and keeps all stakeholders informed.
• Clear communication and options make baseline management smoother for everyone involved.

What Is a Project Baseline, and Why Do You Need It?

Imagine you’re planning a house renovation. Before you pick up a hammer, you’d likely agree on what needs fixing (scope), how much money you’ll spend (cost), how long it’ll take (schedule), and what standards the work must meet (quality). Together, these four factors form your project baseline.

In project management, this baseline acts as a reference point. You’ll measure your progress against it to see if things are going as planned or if adjustments are needed.

Breaking Down The Four Baselines

Scope Baseline

The scope baseline defines what’s included in the project. For example, if you’re building an app, your scope might include creating a login system and a user dashboard. Adding features like live chat later would mean revisiting this baseline.

Cost Baseline

This is your approved budget. For instance, if you’ve allocated $50,000 for a project and realize during the discovery phase that you’ll need $70,000, it’s time to update your cost baseline.

Schedule Baseline

The schedule baseline is essentially the approved timeline. If you promised a project completion in six months but find unforeseen delays during execution, adjusting this baseline will be necessary.

Quality Plan

This is your standard for deliverables. For example, your quality plan for a website might specify 99.9% uptime and a seamless user experience. If requirements change, you’ll need to update this plan.

Key Moments To Update A Project Baseline

Updating a baseline is not a failure or lack of progress; it’s a part of managing any project. Here are the common points when updates happen:

Project Kickoff: The First Baseline

At the start of the project, you’ll set your initial baselines for scope, cost, schedule, and quality. Think of this as laying the foundation for a house. You’ll use this as a reference until changes arise.

End of the Discovery Phase

This phase often brings surprises. For instance, a client might say they need more features after the requirements are fully fleshed out. If you initially planned for a basic app but now need to include payment processing, all four baselines, i.e., scope, cost, schedule, and quality plan, might need adjustments.

Execution Phase

During execution, surprises are common. Maybe a supplier’s delay affects your timeline, or new compliance rules increase costs. Each change should prompt a new baseline update.

Project Close-Out

At the end of the project, you’ll set a final baseline to reflect what was actually delivered. This helps measure success and informs future projects.

Managing Baseline Changes

Let’s say your company is launching a marketing campaign. You’ve planned everything, but halfway through, you’re asked to include a social media influencer program. How do you manage the change?

1. Log the Change: Open a change ticket to document why the baseline is changing.
2. Analyze Impact: Assess how the new request affects scope, cost, schedule, and quality.
3. Communicate Options: Provide stakeholders with choices, like a delayed timeline or an increased budget.
4. Update the Baseline: Once everyone agrees, officially revise the baseline and start tracking against the new one.

Real-Life Example: A Product Launch

Picture a team working on a product launch. Their scope baseline was to launch three product variants, but customer feedback during the discovery phase suggested a need for a fourth variant. Adding it would increase costs and extend timelines. After discussing options, the team updated their baselines and delivered the revised project successfully.

Frequently Asked Questions (FAQs)

What is a project baseline?

A project baseline is a set of approved plans for scope, cost, schedule, and quality that serve as a reference to measure project performance.

Why do baselines change during the discovery phase?

The discovery phase often uncovers new requirements or limitations, requiring updates to scope, cost, schedule, and quality baselines.

How do you manage scope baseline changes?

Log the change with a ticket, assess its impact on cost and schedule, communicate the options to stakeholders, and update the baseline.

What role does a quality plan play in a project baseline?

The quality plan ensures that deliverables meet agreed-upon standards and serves as a reference when assessing changes to scope or schedule.

What’s the purpose of a cost baseline?

The cost baseline tracks your approved budget, helping you manage finances effectively and adjust when necessary.

The Bottom Line

Target Align helps SMEs adopt best practice OKR to achieve their critical milestones. Our software and training services help companies scale up quickly to meet or exceed their business objectives.

If you’re interested in learning more about OKRs, sign up for Target Align’s video course. For more resources, check out our OKR 101 material.