Project assumptions are an integral part of the project management cycle. They represent the expectations and conditions project managers rely on, such as having the necessary budget or being able to manage their team successfully to complete the project on time.

However, if you have undergone PMP training, you may already know that assumptions are not guarantees—they can be proven wrong at any given moment. Thus,  it is crucial for project managers to deeply understand project assumptions and skillfully identify them during each phase of planning. Mastering this art ensures better preparedness and smoother project execution.

An Overview of Assumptions in the Context of Project Management

The Project Management Institute (PMI) defines a project assumption as “any factor related to a project that is considered to be real, true, or certain despite the lack of empirical demonstration or proof.” In simpler terms, project assumptions are the elements believed to be true for a project to succeed. What’s more, these assumptions will inherently vary across the phases of the project lifecycle.

Project assumptions can encompass a wide range of considerations, such as:

• Your team’s ability to accomplish tasks and meet milestones on schedule.

• Suppliers deliver the right items on time.

• The absence of disruptions from uncontrollable factors like natural disasters.

• Costs remain stable throughout the project’s duration.

Why Are Project Assumptions So Important?

No amount of experience or project management professional courses can enable a project manager to foresee every variable from initiation to completion. Planning without assumptions is not only impractical but also unrealistic. However, unchecked or inaccurate assumptions without contingency plans can derail a project at any stage, jeopardising timelines, budgets, or deliverable quality.

The key to managing assumptions lies in recognising their inherent risks. Assumptions are not facts, and with them comes uncertainty. Identifying assumptions during the project planning process is essential for anticipating risks that may impact the budget, schedules, or outcomes.

For instance, resource allocation often relies on the assumption that talent, funds, or materials will be available as needed. Yet, resources may deplete unexpectedly. Therefore, it’s critical to evaluate your assumptions during the initiation, planning, and execution phases to mitigate potential disruptions and ensure project success.

Types of Project Assumptions

To streamline research and documentation, project assumptions are typically categorised into distinct types. This classification helps project managers better organise and address potential risks. The most common categories include:

• Critical Assumptions
These are pivotal factors that significantly influence project outcomes. Examples include budget constraints, stakeholder support, and resource availability.

• Internal Assumptions
These pertain to the project’s internal dynamics, including team capabilities, organisational processes, and resource allocation.

• External Assumptions
These involve factors outside the project’s control, such as supplier reliability, market trends, or geopolitical conditions.

• Time-Based or Scheduling Assumptions
These focus on the project timeline, such as task durations, milestone achievements, and overall deadlines.

• Environmental Assumptions
These consider external environmental influences like regulatory changes, weather conditions, or other unforeseen natural events that could impact project progress.

Best Practices for Managing Project Assumptions

Effectively managing project assumptions requires a proactive approach. Here are some best practices to keep in mind:

1. Assess every assumption

During the initiation and planning phases, treat every “I think” statement as a potential assumption. Compile a list of these assumptions, assess their likelihood and impact while viewing them with an appropriate amount of scepticism, and identify ways to mitigate risks. Most importantly, learn from previous projects by reviewing assumption logs to avoid past mistakes.

2. Integrate assumptions into project plans

Next, incorporate assumptions into key areas of your project plan, such as:

• Planned tasks and milestones

• Project timeline

• Budget and resource allocation

• Team roles and responsibilities

3. Communicate the assumptions to all stakeholders

Ensure all stakeholders, including clients, suppliers, and leadership, are informed of the assumptions. This minimises risks and encourages valuable feedback.

Take note of the following to ensure all assumptions are communicated effectively:

• Document all assumptions and maintain a clear and formal record that is accessible to all stakeholders.

• Provide updates by regularly discussing changes and their implications.

• Encourage feedback by involving stakeholders in refining assumptions.

• Clarify expectations and expound on how each assumption impacts timelines, budget, and resources.

• Assign Accountability: Designate someone to monitor and communicate assumptions.

By following these steps, you build a cohesive and adaptable project environment, improving the chances of success and maintaining high performance.

4. Maintain control

Monitor assumptions regularly throughout the project to address risks as they come. Otherwise, it will be difficult to activate contingency plans in a timely manner. Hold routine team meetings and track project metrics to stay proactive and ensure assumption integrations are effective.

5. Conduct post-project reviews

After project completion, review your assumptions and evaluation process to gain insights for future projects, refine your approach, and enhance future project planning. Make sure to include:

• A project summary

• Team roles and responsibilities

• Expectations vs. outcomes

• Phase transitions

• Budget and expense details

• Milestone achievements and completion dates

• Recommendations for improvement

Conclusion

Project assumptions are the foundation upon which plans are built, yet their inherent uncertainties make them a double-edged sword. By mastering the art of identifying, managing, and revisiting assumptions, project managers can turn potential risks into opportunities for strategic foresight and adaptability.

BridgingMinds offers specialised courses to help you and your team develop critical project management skills, which further helps your assumptions be accurately assessed and effectively handled. Whether you’re a project manager or a team member, our training will provide you with the tools needed to mitigate risks, drive better outcomes, and achieve project success.