Agile vs. waterfall methodologies in project management

Throughout history, managing projects has been a unique challenge. From the Neanderthals to modern tech organizations, many have searched to answer an age-old question: What is the best type of workstream to get a project completed?   

For businesses that are debating the merits of Agile vs. waterfall project management, it’s helpful to look at the specific functionalities of each before deciding on which approach to use. Some similarities between the two include:

• They are both a means to an end — the end being a completed project that fulfills the customer’s needs.
• Both involve a large amount of planning.
• Each methodology requires the same foundational activities: collecting requirements, designing, developing, testing and deploying.

While both approaches have the same goal, they have very different ways of accomplishing it.

The key to Agile project management is flexibility. Rather than accomplishing set tasks in a predetermined order, team members are continually re-evaluating their progress and adjusting accordingly. They can do this because the project is divided into short periods of time, sometimes called sprints. Teams decide which deliverables they want to accomplish at the beginning of each sprint and communicate with the client throughout the process.

This iterative approach allows the client to provide constant feedback, which can be especially important when determining whether the project is heading in the right direction.

Many types of project frameworks use the Agile methodology, including:

• Scrum
• Lean
• Kanban
• Extreme programming (XP)
• Crystal

Scrum and Lean are two popular frameworks. 

This framework was named “Scrum” as a reference to rugby scrums when players work together to move the ball down the field. In Scrum methodology, each sprint has a product backlog, or a prioritized list of work, that is run by a product owner. The Scrum Master facilitates discussions and communicates with those outside the scrum, including the client.

Lean focuses on eliminating waste, primarily by empowering employees. The book Lean Thinking by James P. Womack and Daniel T. Jones, which is what launched the Lean movement, articulated five core principles:

• Creating value for the customer
• Identifying the value stream
• Making value flow at the pull of the customer
• Inspiring employees to increase value
• Pursuing perfection

It’s considered an Agile framework because it involves continuous improvement throughout the project.

Waterfall project management is more traditional and structured than Agile. Because it’s been around longer, the waterfall methodology is sometimes the default project management tool for organizations.

When using the methodology, there are sequential phases of project development; each new phase begins only when the previous one has been completed. Team members map out all the phases at the beginning of the project, so everyone involved knows exactly what to expect — and what’s expected from them. The work flows in one direction, like a waterfall.

Typically, waterfall implementation has five phases:

• Requirements: This is the stage at which the team determines the project’s scope.
• Design: Designers develop solutions to meet the project requirements.
• Implementation: Developers assign tasks to team members and start building the product.
• Verification: User experience is incredibly important; this phase makes sure everything works as it should.
• Maintenance: The team must develop a process for addressing bugs and other issues that pop up after release.

The debate about Agile vs. waterfall methodologies is one that spans multiple industries. Many people who have been involved in project management have a strong opinion about which type of experience they believe is “better.”

In reality, both approaches have benefits and drawbacks. Agile involves flexibility throughout a project, while waterfall is more structured and clearly defined.

Because Agile is newer, many of its attributes come as a response to the waterfall framework.

• The time from conception to market can be shortened using the methodology.
• Team members can identify potential problems earlier in the project cycle.
• Because stakeholders are more involved from the beginning, there is more visibility and accountability.
• Customers are more likely to be satisfied because concerns can be addressed early in the process.

There’s a reason why waterfall has stood the test of time: It can work well.

• Because project phases are clearly defined at the beginning, the methodology requires less coordination.
• The large amount of documentation necessary for designs and requirements makes it easier to keep track of the project’s scope.
• Team members can estimate the cost of the project at its beginning.

As much as some people tout the benefits of Agile, it has drawbacks, too.

• Agile may not clearly define interproject dependencies as much as waterfall does.
• There can be more costs associated with Agile vs. waterfall, as there can be technical dependencies and engineering expenses.

The waterfall approach has its own challenges.

• Teams run the risk of wasting time because of delays during phase transitions.
• The client is not as involved throughout the project as with Agile, which can lead to dissatisfaction with the end product.
• When comparing Agile vs. waterfall, Agile requires teams to work together, while waterfall needs individuals to be more specialized. That can be expensive in the hiring phase.
• Extra communication is needed during handoffs from one phase to another.
• Team members may not experience as much product ownership because when their phase is done, they move on to other projects.

As noted, both methodologies have advantages and disadvantages. It’s important for project managers to determine which style they want to use before starting.

In general, waterfall may be considered best for projects that have fixed, well-defined requirements and a low risk of change. Many are linear and save testing for the very end.

Some examples of projects that could benefit from the waterfall style include:

• Government projects: These contracts have rigid, preddetermined requirements.
• Construction: It’s important to finalize blueprints before starting a building, bridge or other structure.
• Manufacturing: These projects involve creating physical products with fixed specification; if teams skip a step, the product can suffer.
• Regulated industries: These industries usually require strict documentation, auditing and fixed compliance steps.

On the other hand, projects that could benefit from the more flexible Agile style include:

• Marketing campaigns: As results and key performance indicators come in, campaigns may need adjustments. An Agile methodology allows for that.
• Software development: Such projects require constant testing and refining, which Agile can deliver.
• Startups: With new ventures, team members need the ability to change direction in the middle of the process.
• Highly complex projects: It can be helpful to break such projects into smaller sprints, which reduces risk and enables teams to adjust to unexpected circumstances.

In project management, it’s not always just Agile vs. waterfall. In some cases, it’s best to use a hybrid that combines the strengths of both.

With a hybrid, a team defines the project’s requirements up front through budgeting and documentation. Then, when it comes time for design, development and testing, the team switches to an Agile approach. This can improve risk management, accelerate delivery and increase flexibility.

When is it appropriate for a team to consider a mixed approach? If a project needs organization and planning right at the beginning, but it requires flexibility as it proceeds to design and implementation, a hybrid might be the best approach.

The following are some examples of hybrid application in projects:

• For a marketing campaign, a company sets the strategy, budget and timeline using waterfall, while holding weekly meetings to adjust tactics based on performance using Agile.
• A firm developing an electronic device uses waterfall to finalize hardware specifications, then shifts to Agile for design and functionality updates.
• A construction company designs a building and secures permits up front using waterfall, then manages subcontractors’ on-site progress and makes adjustments as needed using Agile.
• At the beginning of a software project, a project manager uses waterfall to develop a fixed budget. In the next stage, developers use Agile to divide their work into sprints to incorporate feedback throughout the process.

Regardless of which method a project team chooses, it can be helpful for each team member to have background knowledge of Agile vs. waterfall so they can contribute to the conversation.

For project managers and other team members who want to explore Agile vs. waterfall methodology, University of Phoenix offers business programs as well as an Undergraduate Project Management Certificate.

For more information about other business degrees and certificates, contact University of Phoenix.

Lean Thinking is published by Simon and Schuster, LLC.