Project Manager

Project Manager Job Profile

What Is a Project Manager?

Project Managers plan and control IT projects. The goal is to achieve the best result with as few resources and as efficiently as possible. They maintain an overview of the process, the working method, the budget, and the time frame throughout the entire duration of the project.

The primary role of a Project Manager is to juggle time, cost, and quality so that all three factors remain in suitable balance. They weigh up risks and chances of success and, based on this, make significant decisions that influence the course of the project.

What Does a Project Manager Earn?

The salary of an IT Project Manager depends on various factors. The German Society for Project Management (GPM) conducts studies every two years to record the most important influences — the two biggest being hierarchy level and professional experience.

Key salary data:

• Junior Project Managers: average ~€55,000/year (GPM, 2019)
• General average for IT Project Managers: ~€87,000/year
• Freelance IT Project Managers: average daily rate just over €1,000 → ~€111,800/year (after material and insurance costs)

Additional factors influencing salary include gender, scope of responsibility, and company size. Various certifications — for example in Scrum — can also positively impact earnings.

Companies often rely on freelance Project Managers for cost reasons or to reliably implement temporary projects, as costs such as holiday pay, materials, insurance, and other fixed expenses are eliminated.

What Are the Tasks of an IT Project Manager?

IT Project Managers have the task of planning and managing IT projects. They keep track of all important factors — time, team members, budget — and coordinate tasks between employees, departments, and service providers.

Core responsibilities include:

• Planning and structuring the project from initiation to completion
• Defining required resources, intermediate goals, and the end result
• Coordinating tasks between team members, departments, and external service providers
• Monitoring project progress against timelines and budget
• Identifying, assessing, and managing project risks
• Conducting market analyses and technology evaluations relevant to the project
• Preparing and presenting project status reports to stakeholders
• Adapting to different environments, platforms, and methodologies as required

How Does an IT Project Work?

Essentially, the process of an IT project consists of 5 phases.

Phase 1 — The Preparation

In the first phase, the preparation, the basics for the project are determined. It is defined what the project is about and what the goals are. At the end of phase 1, a decision is made for or against the project. This decision is based on various factors, such as risks, benefits, costs and others. If the decision is made in favor of the project, phase 2 follows.

Phase 2 — Project Introduction

In this phase, the project is initiated and the framework conditions are clarified. This includes available funds, necessary work steps and tasks that need to be completed. Risks and opportunities are also evaluated in more detail. In addition, relevant stakeholders, i.e. people who have a (mostly economic) interest in the project, are informed.

Phase 3 — Project Planning

In the third phase, the course of the IT project is determined. It is important to understand that this phase is never really finished throughout the duration of the project, as there are constantly new factors that need to be considered. This includes available resources, necessary work steps, and tasks that need to be completed. In other words, project planning is where all the important details that are critical to success are determined.

Phase 4 — Project Execution

Once all the essential conditions have been clarified, it is time to start the IT project. Here, the project manager takes on an essential role and controls the entire process. Priorities must be set, tasks distributed and resources regularly reviewed. Throughout the duration of the project, the project manager should remain flexible in order to be able to react to problems and unforeseen events.

Phase 5 — Project Conclusion and Documentation

Once the project is completed, the final phase in the process of an IT project occurs. Here the project is closed. The project manager documents the results and terminates all contracts. Documentation and evaluation are particularly important to record experience and knowledge for future projects. Especially freelance project managers pay close attention to the documentation because they are only assigned to a specific project. Thus, one cannot fall back on the memories of the respective project manager but must rely on the documentation.

What Skills Does a Project Manager Need?

Technical:

• Project management methodologies: Waterfall, Agile, Scrum, PRINCE2, PMBoK
• Project management tools: Jira, MS Project, Confluence, Asana
• Risk management and mitigation planning
• Budgeting and cost management
• Stakeholder analysis and communication planning

Soft skills:

• Leadership — motivating and guiding cross-functional teams
• Communication — clear reporting to stakeholders at all levels
• Problem-solving — resolving conflicts and unblocking teams quickly
• Prioritisation — making sound decisions under pressure and with incomplete information
• Adaptability — navigating changing requirements and unexpected challenges

How to Become a Project Manager

Many Project Managers enter the field from technical backgrounds (software development, systems engineering) or from business and management disciplines. A degree in computer science, business administration, engineering, or a related field is typical.

Professional certifications carry significant weight:

• PMP (Project Management Professional) — globally recognised standard
• PRINCE2 — widely used in Europe
• Certified Scrum Master (CSM) or Professional Scrum Master (PSM) — essential for agile environments

Practical experience managing projects from start to finish is the most valued qualification for senior roles.

What Is the Difference Between a Project Manager and a Product Owner?

The main difference between a Project Manager and a Project Owner is the responsibilities of each role. While the Project Owner takes care of the strategy of the project, the Project Manager is fundamentally responsible for managing the team and assigning tasks. In summary, the Project Owner creates the strategy and plan and the Project Manager executes it. Neither role is more or less important than the other.

Optimally, the two positions work closely together and support each other so that each can do their job to the best of their ability. Depending on the size of the project, both roles may fall to one person. This is especially the case with smaller projects, where it is easy for a single person to keep track of all the important aspects.

If you have larger projects in the planning stage, both positions should be filled in each case in order to avoid overloading and the resulting errors.

What Is Agile Project Management?

Agile project management is particularly suitable if the goals of an IT project can change during the course of the project or can only be vaguely described in advance. Whereas in classic project management, resources and time tend to be adjusted in order to achieve the defined goals, in agile project management the goal tends to be changed and resources and time specifications remain the same.

A distinction is made in agile project management between the iterative and the incremental approach.

In the iterative approach, a prototype is developed in a timely manner and then refined step by step. In the process, each step is reviewed in detail. If necessary, not only a partial step, but the entire development process is repeated. In the incremental approach, a functioning partial product is produced in each phase of the project. The focus is less on the final state, but on many small developments. Agile project management is mainly used in the optimization of a product or service, for customer solutions or in software development.