What is Project Documentation? Process, Examples, & Templates

There are many project managers who feel that documentation is an arduous task. It takes up considerable time and effort—and they might feel that there are many other pressing tasks that require more immediate focus, and documentation can easily be relegated to the back burner!

However, nothing can be further from the truth. Proper documentation ensures that project expectations are met, deliverables are on track, and tasks can be easily traced. In fact, the value of project documentation is felt most when there is a lack of it, as more often than not, the project goes astray when documentation processes are not given the attention they deserve. With the best PMP certification training, you will learn more concepts.

In this blog, you’ll find out why project documentation is important, what the benefits are, and how to get it right.

What Is Project Documentation?

Project documentation involves recording all the key details at every important stage of the project and creating the documents that are required to execute, monitor and control it successfully. Following project documentation best practices ensures that these documents are thorough, well-structured, and effective in guiding the project to success.

Project documentation can range from business proposal documents, business cases, time charts, project implementation plans, status reports and financial trackers, among many others.

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Examples of Project Documentation

Every organization will have its own ways of working and set of documentation templates that are followed, which have worked for them in the past. Small companies might be able to manage their initiatives with minimal paperwork, but larger projects that span teams and geographies might require complex documentation to stay on track. Clear project documentation guidelines help ensure consistency, accountability, and effective communication across all teams involved.

Some of the most basic types of documents that every project should maintain are the following:

1. Project Proposal

A project proposal is often the first document that is created for a project. It is a document that makes the case for going ahead with the project and outlines all the reasons why the project is worth pursuing. The core value proposition is laid out in the form of a business case which can be part of the project proposal.

2. Project Plan

A project proposal offers a high-level overview of the project, which is then fleshed out in the form of a Project Plan. This lays out the roadmap and defines project milestones and timeframes. Usually, the Project Plan is a live document that evolves over the course of the project, with all the new goals and changes added to it along the way.

3. Status Report

It’s important that everyone who is working on the project must be updated on the progress. This is done through a shared Status Report and helps to keep the team and external stakeholders in the know as to what is happening. The work done so far is captured, and a note is made of the next steps ahead.

4. Communication Plan

Smooth and transparent communication is of paramount importance to keep everyone on the same page. A well-laid out communication plan makes sure that all important information is shared and is always available for reference.

5. Project Retrospective

At the end of the project, the team sits together to determine what went well and what could, perhaps, have been done a bit better. The Retrospective document lists out all the lessons learned and can be used by other teams so that they can learn from your mistakes.

Importance of Project Documentation 

Let us look at the importance of project documentation: 

• Accurate Resource Allocation: Define project benefits, costs, and resources precisely to reduce the likelihood of under- or over-utilization. 
• Flexibility with Methodologies: Apply different approaches that fit the unique needs of each project making project execution more flexible and adaptive. 
• Breaking Down Work into Manageable Tasks: Project documentation helps divide large projects into smaller, trackable tasks, helping manage and monitor progress effectively. 
• Performance and Progress Evaluation: By using project documentation, the team can continuously evaluate performance and ensure the project stays on track. 
• Requirement Verification: Confirm that project requirements are being met and avoid guesswork by referring to clear documentation. 
• Dispute and Risk Management: Use change and risk documentation as a reference during disputes or scope changes to create actionable resolution plans. 

The Value of Project Documentation

Project documentation offers immense value across all the different stages of a project. Right from the initiation phase, through the execution phase and the completion phase, various kinds of documents can be created to plan, and manage quality, budgets and time schedules and control scope, risk and so on. 

Most of us find that writing something down helps to pin our thoughts and ideas, and this is the primary reason behind creating a tangible document. A project document is no different. Some of the ways in which it adds value to the project are: 

• It helps to clarify requirements, objectives and goals 
• It lists out all tasks and helps to break them down into smaller chunks that are manageable 
• A document helps to plan and allocate the right resources to the right task 
• It creates clarity on the progress of work done so far and on how much is left to be done 
• It creates transparency and gets everyone on the same page 
• It facilitates and smoothens lines of communication between teams and within the team 
• Project governance mandates are more easily managed 
• It is easy to monitor, control and track the project 
• Budgets, schedules and timelines can be managed 
• Changes can be traced and managed easily 
• New team members can come on board easily and get up-to-speed with the work that has been done so far 
• Risks can be identified, evaluated and mitigated in time 
• Knowledge can be shared, and lessons learned from one project can be transferred to the next. 

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Benefits of Project Documentation 

Let us look at the benefits of project documentation: 

• Improved Communication: Clear and concise documentation ensures that all stakeholders have access to the same information, reducing misunderstandings and improving communication. 
• Enhanced Decision Making: Documentation provides a historical record of project decisions, allowing for informed decision-making in the future. 
• Risk Mitigation: By documenting potential risks and mitigation strategies, project teams can proactively address challenges and minimize their impact. 
• Knowledge Transfer: Project documentation serves as a valuable knowledge base for future projects, helping to avoid common pitfalls and leverage past successes. 
• Accountability: Documentation can be used to demonstrate accountability and transparency, ensuring that all stakeholders are aware of their roles and responsibilities. 
• Compliance: Many industries have specific documentation requirements that must be met to comply with regulations and standards. 
• Auditability: Documentation can be used to audit project activities and ensure that they adhere to established processes and procedures. 
• Legal Protection: Well-documented projects can provide legal protection in case of disputes or claims. 

How to Create Project Documentation? 

The Project documentation process involves several steps to ensure comprehensive and effective documentation. It also contains a project implementation plan. If you're looking for guidance, reviewing project documentation examples can provide valuable insights. Here are the general steps involved in the process:  

Step 1: Identify and Collect all the Documentation Needs

Bringing all information required for project documentation together in a centralized location is the first step in documenting a project. Identify the types of documentation required for the project and gather all relevant information, including project objectives, scope, deliverables, timelines, resources, and stakeholders.  

Step 2: Describe the Process and Stages of Project Management

Describe the project management process and project phases in detail. Different categories of documents are required for each phase of the project management process, from planning to execution to completion. 

Step 3: Organize Document Structure

Structure the document by going through each step in order. Set up a structure for the documentation that is clear and provides meaning. Make sections or folders for each kind of document to make it easy to find and move around. 

Step 4: Document Creation

Start making the project paperwork using the information and templates you've collected. Fill in the details, such as goals, tasks, deadlines, risks, and other important information. 

Step 5: Review and Approval

Conduct a review of the project documentation to ensure its accuracy, completeness, and accordance with established guidelines. Share the draft documents with appropriate people for review and comments, such as project managers, team members, and subject matter experts. Revisions are made based on their feedback. 

Step 6: Publish the Documents

Once you're satisfied with the quality of your project documentation, publish it in a documentation portal. The documentation should be easily accessible to anyone searching, and it should include links to related articles for enhanced content discovery. 

Step 7: Maintenance of Project Documentation

Update and maintain the project documentation continuously throughout the project's lifecycle. As the project progresses, track modifications, additions, and deletions. 

Step 8: Document Closure

As the project comes to a close, complete the documentation procedure. Ensure the long-term storage and accessibility of all project documentation for future reference or audits. 

Project Documentation by Project Phase 

Projects tend to differ based on their size and complexity. Thus, their project documentation requirements will vary accordingly.  

Here are some of the common project documentation phases which are used in most cases: 

• Project Initiation  

This is the first phase of project documentation in which ideas become business goals. Companies usually determine the project goals and scopes, identify the key stakeholders, and create a project charter. 

Additionally, they decide the project kickoff meeting agenda and other details like project manager, timeline, budget, etc.    

• Project Planning  

In this stage, companies lay out the project's roadmap. This involves identifying the project's technical requirements, setting up deliverables, creating communication plans, and developing a detailed overall project schedule.  

This phase also involves framing work breakdown structures, risk management, and change management plans.   

• Project Execution  

During project execution, team members start working on the project. The project manager plays a significant role in this phase by establishing efficient workflows, monitoring the team's progress, establishing collaboration between stakeholders, and ensuring everyone stays on the same page.  

They also troubleshoot issues, create project status reports, and manage change requests and change orders, along with other aspects, to ensure the project runs smoothly.  

• Project Monitoring and Control  

Project monitoring and control runs simultaneously with project execution to ensure the company meets its project deliverables and objectives. In this phase, the project manager aims to ensure that the team members do not deviate from the project's original plan by setting Key Performance Indicators (KPIs) and Critical Success Factors (CSFs).  

Additionally, they perform quantitative tracking of the cost and efforts by the team to ensure that the project stays within budget.  

• Project Closure  

This is the ultimate stage of project documentation, in which the project closes after the final delivery is completed. In most cases, teams usually conduct a reflection meeting to assess their success or failure in the course of the project.  

Such practices help ensure continuous improvement within the organization that can improve the team's overall productivity in future projects. The project manager also terminates the contracts of all external talent (if hired) by providing the necessary paperwork. 

Top 6 Project Documents 

Here are some templates of the most essential documents that can effectively simplify the project documentation process:  

• Project Charter  

A project charter is a crucial document that is framed during the project initiation phase. It outlines how the company plans to achieve its business goals through the project by describing its clients, stakeholders, key requirements, tasks, budget, etc.  

It is essentially the first document that a company frames after the project proposal's formal approval.  

• Business Case  

A business case is another document created during the project initiation phase. It elaborates on how the project's outcomes outweigh its costs and is used to convey its value to the stakeholders.  

Essentially, it is a document that helps pitch the project as a sound investment to stakeholders, customers, and clients.   

• Project Schedule  

A project schedule is a timetable that helps companies chalk out timelines, organize tasks, and allocate resources & due dates to ensure timely project completion. It contains start and end dates, milestones, and team members assigned, along with task-specific details like dependencies, costs, and resources.  

• Risk Register  

A risk register allows companies to document all the potential project-related risks, along with a brief description of their likelihood and impact. It also contains all the elements of a company's risk management plan, like guidelines, strategies, and documents.  

Companies usually create a risk register during the project planning phase and use it during project execution.  

• Scope Statement  

A project scope statement defines all activities that will be performed in order to complete a project. It contains the project's requirements, acceptance criteria & assumptions and is used by team members & stakeholders as a reference to measure the project's success.  

• Project Budget 

As the name suggests, the project budget enables companies to plan out the expenses needed to complete a project within a definite time period. Businesses usually frame this document during the project planning phase.  

Project Documentation Templates

Working on templates is the easiest way to get started with your documentation. These templates are tested by expert project management practitioners and will save you considerable time and effort. Here are some project documentation templates that will help you in your process. 

• Project Documentation Template I 
• Project Documentation Template II

Project Documentation Process

Before you start developing the documentation for the project, first understand from stakeholders what is the purpose behind the project. Is it to develop a new product or service or to enhance something that already exists? What type of compliances must be in place, and are there any existing templates you can follow?

Some questions to help you get started:

• What are the goals and objectives?
• Has a similar project been completed recently? If so, are the documents available to use as references?
• Does your organization follow standard methods of project documentation?
• What are the technology and tools in use across teams?
• What is the budget and timeline, and what resources are available?
• How will you communicate across teams?

Once you have a basic idea about the project, make a list of the documents that you must create. If there are existing templates that your organization uses, get access to them. If not, do some research and find out which are the most useful online templates and trackers that you can use. Try a free subscription, and if you find it meets your needs, then ask for a paid subscription to the tool. It will save you time and effort in the long run, so the price of the subscription will be repaid many times over the course of the project.

Documentation Tips to Ensure that You Get it Right

• Be well-organized

Set the right processes in place from the get-go, and do not leave all the documentation for a particular day of the week. You might tend to forget to note down something of key importance. Communication often happens across multiple mediums, like chat, emails, and even WhatsApp or shared online folders. From the start, insist that all important details are shared in one place so that it becomes easy to cull the most important points and note them down in a relevant document or tracker.

• Make sure the search feature is in place

Whatever may be document tool you use, it should allow for easy searching, both by name and date. The user interface should be very easy to use, even by a newbie, and should be simple to navigate.

• Do not get into too much detail

Every document does not need to get into the details. Keep it crisp and concise without leaving out anything of critical importance. Just-in-time documentation is often followed in Agile, where a document contains only enough detail to get the task off the ground.

• Share and collaborate

Documents are of little use unless they are shared. Maintain your documents in a live, evolving format where all changes are documented and real-time progress is easily tracked.

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Tools to Use for Project Documentation

There are many online tools and trackers that are proven to add immense value to project documentation. Depending on how mature your project team is, you can pick a tool that offers the most appropriate solutions to share knowledge and track progress.

Pick the right tool based on these parameters:

• It should be intuitive and easy for all project stakeholders to use without having to get specific training.
• It should be easy to search and navigate.
• It should have the ability to be used by multiple users at the same time without any loss of information.
• It should have multiple logins if required and should have the capability of being locked so that data does not get deleted in error.
• It should be easily integrated with other software.

Selecting the right tools for project documentation is crucial for efficient and smooth project management. 

Here are five top tools with key features to help you get started.

Tool	Key Features
1. Google Docs	Real-time collaboration, easy sharing, and access from anywhere with an internet connection.
2. Microsoft SharePoint	Robust document management, integrated with Microsoft Office Suite, and customizable workflows.
3. Asana	Task management, project tracking, and easy integration with other tools like Slack and Google Drive.
4. ProofHub	Centralized workspace, online proofing, and customizable project templates.
5. Trello	Visual project management with boards, lists, and cards, plus integration with numerous apps.

How does the Project Manager help with Project Documentation?  

You may have understood by now that project managers play a vital role in the project documentation process. Here are some of their major functions in this regard: 

• Frame the project proposal and convince the stakeholders that it is worth pursuing.  
• Create a project charter outlining the project's goals and explaining its key requirements.  
• Using Gantt Charts to organize tasks, plot milestones, and link dependencies to ensure the project stays on track.  
• Monitor workloads, team performance, delivery dates, and overall project progress using real-time dashboards.  
• Generate project status reports and align the team accordingly to ensure timely completion.   

Conclusion

In conclusion, I want to emphasize the importance of proper project documentation for the success of any project. As a professional in this field, I've learned that having the necessary skills to handle these responsibilities is crucial. 

In my experience, I have found that upGrad KnowledgeHut Project Management courses are an excellent option for those looking to enhance their skills. KnowledgeHut offers a range of certification courses, each focusing on different aspects of project management. These courses provide valuable insights and knowledge that will prepare you for future job roles in this field. 

I strongly recommend considering KnowledgeHut's project management courses to advance your career. Don't hesitate to explore their offerings and start your journey toward a successful and rewarding career in project management.