Work Breakdown Structure: Management Career Skill Development
As a professional in the management field, one of the key skills you need to develop is the ability to effectively plan and manage projects. The work breakdown structure (WBS) is a crucial project management tool that can significantly enhance your capacity to handle complex projects successfully. As a consultant for Acquired Salary I have helped numerous business owners and managers master the application of a Work Breakdown Structure, this article delves into the concept of WBS, elucidating its importance, types, levels, components, and the steps to create one.
Table of Contents
- Understanding the Work Breakdown Structure
- Why is WBS Crucial in Project Management?
- Types of Work Breakdown Structures
- Levels of Work Breakdown Structures
- Essential Components of a WBS
- How to Create a Work Breakdown Structure
- Rules for Creating a Work Breakdown Structure
- WBS Formats
- WBS Dictionary
- WBS Example
- WBS Templates
- Creating a WBS in Microsoft Office
Understanding the Work Breakdown Structure
A WBS is a hierarchical and deliverable-oriented breakdown of a project into smaller components. It starts with a broad project goal at the top and decomposes it into smaller, manageable parts, focusing on deliverables or measurable milestones, rather than individual tasks. The WBS provides a clear visualization of the project's scope, enabling project managers and teams to understand the tasks and subtasks required to accomplish the project objectives. Consider a work breakdown structure an essential aspect of strategic planning.
Related: Strategic Planning for Success
Why is WBS Crucial in Project Management?
The WBS brings numerous benefits to project management. By breaking down a large project into smaller pieces, it allows for precise project cost estimation, dependency establishment, timeline development, statement of work creation, role clarification, project progress tracking, and risk identification. This organized approach to project planning makes the project more manageable and less overwhelming.
Types of Work Breakdown Structures
There are two prevalent types of WBS:
- Deliverable-Based WBS: This type of WBS centers around project deliverables. It outlines the relationship between project deliverables (products, services, or results) and the project scope (work to be executed).
- Phase-Based WBS: This type of WBS organizes the project into different phases. Each phase represents a significant portion of work on the project, and each phase's deliverables are unique.
In both types, the lower level elements are all deliverables, and the WBS's structure contributes to making the project more manageable. For a deliverable-based WBS, managers can improve timeline estimations by working work with individual contributors that complete those deliverables. Working with the individual contributor allows for the deliverable to be broken down into its sub-tasks or components and the individual contributor and manager can negotiate what a reasonable time to complete the task is. This is great as it allows for a structured approach to performance management by creating a system for accountability.
Related: Preparing for Performance Reviews
Levels of Work Breakdown Structures
A WBS typically has three levels of detail. The first level represents the overall project or main deliverable, while the second level includes the primary divisions or phases of the project. The third level breaks down the second level elements into smaller, more manageable tasks. Each level is directly connected to the one above it, showing the dependency relationship between different project tasks.
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Essential Components of a WBS
The WBS includes several essential components, such as:
- Project Baseline or Scope Statement: This includes the project plan, description, and name.
- Project Stakeholders: The individuals or groups involved or interested in the project.
- Project Deliverables and Supporting Subtasks: The products, services, or results that need to be produced to successfully complete the project.
- Organized Project Schedule: The timeline for the project, outlining the start and end dates for each task and subtask.
How to Create a Work Breakdown Structure
Creating a WBS requires an iterative process involving several steps:
- Gather Critical Documents: Collect important project documents that contain project deliverables, such as the Project Charter, Scope Statement, and Project Management Plan.
- Identify Key Team Members: Identify the project team members who will be responsible for the various deliverables.
- Define Level 1 Elements: Define the main deliverables that capture 100% of the project scope. This is referred to as the 100% Rule.
- Decompose Elements: Break down the main deliverables into unique, smaller deliverables, ensuring that all elements are mutually exclusive.
- Create WBS Dictionary: Define the content of the WBS Dictionary, which describes the work covered in each element in the WBS.
- Create Gantt Chart Schedule: Decompose the work packages into activities and enter them into a Gantt chart for further scheduling and project tracking.
Rules for Creating a Work Breakdown Structure
Here are some rules to follow when creating a WBS:
- Include 100% of the Work: The WBS must include all of the work necessary to complete the project goal.
- Avoid Duplication: Ensure that no amount of work is accounted for twice.
- Focus on Outcomes, not Actions: The WBS should focus on deliverables or outcomes, not the actions needed to achieve these outcomes.
- Work Package Limit: A work package should take no less than 8 hours and no more than 80 hours of effort.
- Include Three Levels of Detail: A WBS should generally include about three levels of detail.
- Assign Each Work Package: Each work package should be assigned to a specific team or individual.
WBS Formats
WBS can be presented in several formats such as a hierarchical table, an outline or numbered list, a tabular view, or a tree diagram. The choice of format depends on the complexity of the project and the preferences of the project manager and team.
WBS Dictionary
A WBS dictionary is a document that provides detailed descriptions of the elements in the WBS. It includes information about each element's boundaries, milestones, risks, owner, costs, and more. The dictionary helps clarify the scope of each task, ensuring all team members understand their responsibilities.
WBS Example
Consider an example of a WBS for a project aimed at developing a new software feature. The first level of the WBS would be "Develop New Software Feature". The second level could include various phases such as "Requirements Gathering", "Design", "Coding", "Testing", and "Deployment". Each of these phases would then be broken down further in the third level into specific tasks.
WBS Templates
Numerous WBS templates are available online to get you started. These templates can be modified to suit the specific needs of your project, helping you save time and effort in creating a WBS from scratch.
Creating a WBS in Microsoft Office
You can also create a WBS using Microsoft Office applications like Word or Excel. Tools like Lucidchart offer free add-ins for these applications, allowing you to build your WBS in a software optimized for diagrams and then import it into Word or Excel for further refinement.
The work breakdown structure is an invaluable tool in project management. By helping you break down a large project into manageable parts, it not only makes the project less daunting but also facilitates better planning, coordination, and monitoring of the project tasks. As a management professional, mastering the art of creating effective WBS can significantly boost your project management skillset.
Conclusion
A WBS will greatly enhance your project management skills and improve your chances of project success. The WBS allows for precise cost estimation, timeline development, role clarification, and risk identification, making the project more organized and manageable.
Understanding the different types of WBS, such as deliverable-based and phase-based, and the levels of detail involved in creating a WBS, will enable you to effectively structure and visualize your project. By following the rules for creating a WBS and utilizing various formats and templates, you can create a comprehensive and well-organized breakdown of your project.
In conclusion, the work breakdown structure is an essential tool for project managers, enabling them to effectively plan, manage, and track the progress of complex projects. By implementing the steps outlined in this article, you can create a WBS that will provide clarity, structure, and efficiency to your project management endeavors. Need help developing your project management skills, negotiating your salary or obtaining your next promotion consult with Acquired Salary today!
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