Managing a project and creating a project report is not a cakewalk. A project consists of a lot of parameters, and if not analyzed properly, it can result in an unsuccessful end of project report. Project reports are extremely useful for project managers as they allow managers to send regular updates about the projects to the company's stakeholders.
A detailed project report is very insightful since it allows the team members to track the project's status, offer suggestions to improve the project and mitigate risks. Project reports effectively transform the entire journey as they offer clarity regarding every project step.
While management professionals can enrich their knowledge with Project Management certifications by KnowledgeHut to explore project management in-depth, this article will walk you through the basic objectives of a project report, how to create one, and its practical applicability in today's world.
What is a Project Report?
A project report is a document that specifies the status of a project and other related information. In other words, it is a report that includes all the details about a project, navigating each step with great insight. This document helps to ascertain the feasibility of the activities or plans taken to fulfill a particular project's objectives.
The project progress report is a written document that includes all the information about the objectives, challenges, and milestones of the project. It is regularly updated as it tracks the project status and plays a crucial role in planning and managing any project.
A project manager prepares the project status report to update the stakeholders about the progress of the project regularly. The role of a project manager requires them to collaborate with other departments to draft an effective project report.
Why Project Report is Important?
Many believe that a project report is used to raise funds for a specific project or get sponsors. True, it is. But that's not all the purpose of a project plan. It is more than just about the funding. Writing a project report is a valuable process. Here are all the reasons why project reports are important.
- Writing a project report helps you understand and discover what it takes to make your project a success.
- Project reports offer clarity on your ideas. You should also be able to explain the concept to others before sharing your strategies and ideas with investors or friends.
- Planning and creating is worth it if a report helps you avoid making costly mistakes, wasting time, and losing money.
- A project report can increase your chances of a successful project by ensuring that the project manager can record, review and report progress against the baselines and add underlying data as required.
- Numerous studies over the years have shown that companies who plan are more likely to get funding, be successful, and reach their goals than those who don't.
Objectives of a Project Report
Project reports are of immense importance as it is an important tool for analyzing the progress of various projects. If you want to learn why a project manager should create a project report, sign up for the PMP certification to upskill yourself!
The main objectives of a project report are as follows:
1. Requesting permission for an investment plan
A final project report is an insightful document that helps to make new investment plans. It allows the project manager to see and evaluate the expected profits and associated risks in a new project. Project reports are also important for the purpose of registration and approval.
If the stakeholders are satisfied with the project status report, they may allow project managers to take up new projects and make investments in new areas.
2. Tracking the progress of the project
A project report is a summary of the entire process and steps that have been taken to complete the project. It is an effective means of keeping track of the progress of the project. This document helps to point out the steps that have proven beneficial for a project and what has gone wrong.
Tracking a project is important as it helps to find any deviations from the original plan. The stakeholders also feel content as they are updated about the project regularly.
3. Locating and mitigating risks
As a project report provides detailed information about the project, identifying risks is easier. It helps to locate any risks or confusion that are in contrast with the original plan. Additionally, a project report eliminates the risks by taking connective action so as to avoid any downfall regarding the project.
4. Deciding on a budget and managing costs
Since a project report shows the details of all the activities, it very well pinpoints the expenses. So before starting a project, this report helps predict the cost in certain areas so that a proper budget can be drafted. It also takes into account certain considerations that can cause variations in the predicted costs. Following a data-driven approach to budgeting, expenditures can be kept under vigilance leading to profitable project curation.
Hence, a project report establishes the financial stability and viability of a project. It states the income possibility, degree of risk, list of expenses, and various other relevant factors.
5. Asking for financial assistance
Whenever an organization needs financial assistance, providing previous project reports is a great way of attracting funds. When a financial institution will be content that the concerned company is capable of running successful projects, the financial institution will not hesitate to provide financial assistance to such companies.
Characteristics of Project Report
A clear definition is essential for any project to be effective, useful, and achieve its full potential. Clearly defined projects project reports have the following five characteristics:
1. Scope
The project report provides a clear overview of the tasks and goals. The report describes the project's goals and the activities that will be done to achieve them. Only a feasible project can be considered meaningful. It is not a good idea to be too ambitious when planning a project. This could lead to the project not being possible. This could also affect the team morale. These unhealthy situations can lead to high project costs and delayed delivery dates.
2. Resource
It identifies the resources and means required to achieve the desired scope. The project report is the blueprint that outlines the direction the business should take to achieve its goals.
Project reports should theoretically be objective 100 percent. They are created by humans tasked with analyzing other people's work, which is bound to produce some subjectivity and opinions. It is crucial to back up your assessment and perspective with hard facts.
3. Time
It should also be time-bound to make sure that everything is clearly defined. This means that the project must have a defined timeframe for completion. It should include planning, development, execution, and fine-tuning. The project shouldn't take forever to complete. All parties should justify any changes to this timetable, considering the cost of the project's execution, potential costs, and finance costs.
4. Quality
A well-structured report on a project allows for quick access to pertinent information regardless of whether it is relevant to the reader. The hierarchy organizes information in a way that makes it easy to find the most important and useful facts first, and then the technical details are placed in the subordinate sections.
Executives can gain an instant yet comprehensive understanding of the work done. Managers closer to the project have a logical method of finding and reviewing relevant information for themselves and their departments.
5. Risk
Even projects that seem to be moving along smoothly can still have some problems that could cause trouble later on. Every business face risk and must be monitored. The project report will include information about all possible risks that could affect the project's completion and the best ways to recover from the invested money.
Types of Project Report
Here's a brief overview of eight of the most commonly used types of reports; however, they are still vital to the smooth running of the project:
1. Status Reports
One of the most popular report types, Status Report, refers to a type of document that comprises a detailed analysis of the timely progress or status of any project with regard to the planned steps and the decided timeline. The status report enables team members and stakeholders to keep track of the project's progressions.
Instead of narrating lengthy project time and again, project managers rely on this report to briefly offer an insight into the project outline, keeping the process entirely transparent for everyone on the team. A status report will require you to keep track of significant changes, compile them briefly and present them comprehensively.
2. Progress Reports
The most crucial report you'll produce during the course of running an undertaking includes the status report. It's a report that changes the information regarding your project, especially to determine if it's meeting the standards established by the schedule and budget. Another way to update your stakeholders on what the project's status is at the present moment. It is important to be precise in your progress report.
Take note of the information, and create a concise introduction that contains the name of the undertaking, your contact information as well as a short summary of the progress of the project as well as general information regarding the timeframe as well as estimated cost, and completion.
3. Risk Reports
This type of report assists in presenting the steps taken by the risk management team for the teams working on the project or the people who are involved. It records the effective management of emerging and current risks associated with the project. The risk report must include an outline of the overall risk assessment for the project. It should also include details about the risks that could have the possibility of cutting the project as well as the ways you intend to deal with them.
4. Board/Executive Reports
Reports on projects must be tailored to the individuals who will be reading them. Therefore, the report you write for your project board will have a different amount of detail when compared to those who receive the monthly status report that you send the project group as well as the key stakeholders of the business for reports on the project board focus on high-level.
They will want to know about the things that matter to them, such as issues they could help solve, a synopsis of your budget's position, and whether you're on the right track to meet crucial milestones. It is important that your report to the board is presented in a manner that they are able to understand easily.
5. Cost Benefit Analysis Report
In determining if a venture is feasible, one of the reports you'll need to conduct is a cost-benefit analysis report. It's a means of comparing the magnitude of advantage or benefit the project can bring to your company in relation to the cost of investment. It's the most important step when deliberating if the idea is a good one from a business point of view. It is crucial to determine if the project you are considering has value.
This will allow your company to make the most of its resources when it moves ahead with the project and provide the documents to help move forward in the initiative's direction. Using cost analysis to monitor your expenditure and spending is possible to ensure that funds are appropriately allocated. The cost-benefit analysis will show what you're expected to pay for a particular project and then compare it to the advantages or opportunities you'll receive after completing it.
6. Resource Reports
This kind of report on the project permits the project team, as well as the participants, to see how resources are distributed throughout the various tasks that are part of the plan. The report on project resources will detail the members of the project team who are assigned to which job on what day. The report on resource allocation can help to highlight the problem of the under-allocation of resources for projects.
7. Variance Reports
The variance report is helpful for comparing the plans against the actual outcomes of the undertaking. It can be used to determine whether the project is in front of its schedule or over schedule. Additionally, the variance report can analyze and arrange the details of what you're measuring in a project. It can be a budget or a scope.
8. Gap Analysis Report
When you're managing a task or elevating your company to the next level, you'll need an analysis report that will guide you From Point A to Point B. This is known as the gap analysis report. It will let you know whether you're meeting your goals and if you're making use of resources efficiently. A gap analysis report evaluates the present state of your project or business in terms of money, time as well as labor and examines it in relation to the goal condition it hopes to reach. After defining and analyzing the gap between these two points, an action plan can be created to plan the tasks needed to reach the goal.
6 Steps to Write a Project Report
Creating a project report is crucial for determining any project's success. Documenting all the steps in a project and sharing it with other departments helps to learn the basic do's and don'ts whenever taking up any project.
Project report writing involves the following major steps:
Step 1. Set the Objective
When initiating a new project, the first step is to set the objective or goals. Once a company has identified its objectives, the process of measuring its progress and success simplifies. Take a moment and list the reasons for creating a project report. Having clear project objectives will help reduce work redundancy and be on track for everyday tasks.
Step 2. Recognize Your Audience
Not the entire world is the target audience for any project. A project manager has to recognize the perfect audience to which the project caters. It is extremely important to know the taste and preferences of the target audience. What they like and dislike helps to draft a project report that is easily understandable for the audience.
Step 3. Know The Format
A corporate document mainly consists of a particular format. A project progress report is also a formal document, and hence it needs to be drafted in a format that has some labels and templates. However, it is upon the project managers whether they choose a new report template or select any existing ones. It is always better to select a comprehensive template that effectively conveys the agenda behind the project report.
Step 4. Data Collection
A project report is supposed to have sufficient data that can act as proof of what activities have taken place. Data collection is a significant aspect of creating a project report, as everything depends upon data. Accurate data constitutes a major part of the project report, which estimates the successful and lagging segments of a project through relevant data-driven insights. Data can be extracted from various sources such as surveys, international agencies, case studies, interviews, etc.
Step 5. Structure of the Report
The structure of the report basically talks about the presentation of the report. A project status report should be prepared in a manner that is comprehensive, consumable, visually approachable, and easy to understand. The project report structure consists of the following points:
- Summary: Summer is written as a part of the project completion report. It gives readers a brief idea of what the project is all about. The summary is provided at the start of a project report but can only be written once the entire project is completed.
- Introduction: The introduction provides an outline of the report. It gives a clear idea about the topic of the project but does not consist of intricate details. Introduction talks about the scope and the common methodologies used in the project.
- Body: The body constitutes the main section of the report. It consists of all the details and is the longest part of the document. The body includes all the research, analysis, background information, graphics, and so on.
- Conclusion: Being the last section of a report, this marks the end of a project where a clear and concise version of the entire project is presented. It brings the report together.
Step 6. Edit & Review
After the completion of the entire project report, project managers read it to find any gaps to fill. Once the required edits are made, and the review is done, the report gets a check to move forward.
Use Cases of Project Reports
There are a lot of use cases for project reports in the sphere of project management. The best PRINCE2 online course by KnowledgeHut can help you learn the usage of project reports in project management in a more definite way. However, the most common use cases of project reports are enumerated as follows:
1. Preliminary Project Report
A preliminary project report is a document that states the activities and the course of action that will be taken in fulfilling the objectives of the project. This report is prepared in the identification stage and before the start of the project. It mainly includes the following heads:
- The reason for initiating the project (why).
- The activities that are to be done (what).
- The list of associated members of the project (who).
- Timeline of starting and completing the project (when).
- the course of action to be taken for completing the project (how).
2. Project Progress Report
A project progress report is a document that mainly focuses on and lists the everyday progress made by the development team. It tracks the everyday activities of the team members, which is essential for determining the progress of the project. It navigates all the tasks that are completed, ongoing tasks, and yet to be accomplished. That means the amount of work pending and work completed both are present in a project progress report.
3. Project Status Report
A project status report is a document that evaluates the current status of a project. It is inclusive of the project performance and project health. A project status report example can be the communication of the current position of the project to other concerned members and stakeholders.
It also compares the current project status with the original project plan simultaneously to align requirements with the timeline. If a project manager wants to make any amended plan in due course of the project, that is also included in the project status report.
4. Project Time Tracking Report
A project time tracking report is a document that deals with allocating a time period for each task. With this report, the stakeholders can easily understand how much time a particular task has taken to be accomplished. It is a document that can help to locate the areas that are efficient and the areas that need improvement, leading to better productivity among team members.
It is a comprehensive document with a vast scope and includes aspects like tasks, project status, the performance of the team members, and the completion status of the same.
5. Project Performance Report
A project performance report is a document that presents an outline of the status and progress of the project. Additionally, it lists the allocation of resources and the value obtained under them. The report also comprises a breakdown of expenses through the project curation timeline.
The performance report matches the expected budget and the actual costs to analyze the performance of the project. This report is also an important tool for predicting the outcome.
6. Project Health Report
A project health report is a document that states the possible risks that are associated with the project. Preparing a project health report can help ditch risks that may occur in the future. It also lists possible ways of mitigating those risks if the team members are faced with any when the project is ongoing.
7. Project Completion Report
A project completion report is a document that is prepared when the project comes to an end. This report evaluates the overall success of a project and matches the outcomes with the objectives. It is the last document that is submitted in a project report. As a project manager records every detail of the tasks and activities of a project, this report should be detailed, intricate, and compiled with utmost vigilance.
A project completion report makes it easier to conduct an evaluation of the same. The final evaluation is carried out when the project ends to determine the degree of success.
Benefits of Project Report
Project managers and executives use reporting because it is useful in many areas of running a company. The following are some of the most popular benefits of project management reports:
- Budgeting Can be More Precise: Businesses can accurately predict the cost of each project by understanding the costs involved in different aspects. Companies can do this to ensure that they have enough funds in order to finish a project. This helps companies determine if a project is worthwhile.
- Create Realistic Schedules: Project reports can help companies decide which projects they will undertake. A detailed schedule can also aid companies to create realistic budgets and determine when and where they may encounter problems.
- Enhance Project Visibility: Project management reports help keep communication open between project managers, managers, and other stakeholders throughout the project. The reports increase visibility and allow more people with experience to share their thoughts and suggestions on increasing project productivity, reducing costs, or any other advice that could help to make the project a success.
- Minimize Risks in a Project: Managers can prepare for or even eliminate risks in project management reports. Potential risks can be reduced, and projects will be completed faster and more efficiently if you prepare for them.
- Better Management: Project managers and executives can improve their ability to manage projects accurately by using all the information in project management reports. They enable project managers and executives to understand every aspect of a project so they can make adjustments, add tasks or remove them if necessary, and communicate new expectations to their team.
- Improvement Made for the Future: Managers can benefit from project management reports to increase the quality of their future projects. Each report can help you learn what works well in projects and where there are improvements.
If you want to learn more about project report benefits, we suggest PRINCE2 training to boost your project management learning.
Download Printable PDF of Project Report
While project report can simplify work process by adding transparency to your project, they can be lengthy and monotonous tasks. Creating a project report right from scratch might take you hours, taking up the precious time you could have applied on your project. Therefore, we bring your a project report template to reduce your hassle. Check the Project Report PDF or project report on project management for reference.
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Wrapping Up
A project report is an extremely valuable instrument for carrying out a successful project. It states various aspects of a project, such as its overall performance, allocation of resources, everyday progress, and ultimately the whole timeline till completion. The major benefit of a detailed project report is that it has the potential to convince the stakeholders and investors to invest more funds in the project.
A project report is the most important instrument that lets the stakeholders and end users know the present status of any project. If you want to implement your best in project management while learning how to draft an impressive project report, check out KnowledgeHut's Training in Project Management. This training will take you through a detailed curriculum of how to become a successful project manager in the long run!
