Effective Project Management in Software Development – Insights from the Head of Delivery

Intro

Everything seemed fine – until it wasn’t.

The team was talented, the client excited, but deadlines slipped, and small miscommunications snowballed. Critical decisions came too late, and weeks of effort had to be reworked. 

This is what happens when a project lacks clear direction. Project management for software development ensures the right things happen at the right time. Without it, even the best teams struggle. 

With strong leadership, risks are managed, teams stay aligned, and projects move forward with purpose. If you’ve ever felt a project slipping through your fingers, you know the importance of good project management.

In this article, we share the elements of effective project management in engineering projects, based on our years of experience. We also explore some of the biggest challenges teams face, based on insights from tech leaders and entrepreneurs we've spoken with.

Project management in software engineering – key challenges tech leaders mention 

Misalignment in vision among stakeholders

Several of the IT project management experts we spoke to mentioned this as a frequent issue – especially, when managing internal and external stakeholders.

“This often manifests during the initial phases of a project, where differing priorities can lead to misunderstandings about project scope and deliverables,” said Balázs Keszthelyi, Founder & CEO at TechnoLynx.

He told us that in a recent project, his company was tasked with developing a custom software solution for a client who had a very specific vision. “However, our internal team had a different interpretation of the project requirements based on the initial discussions,” Keszthelyi admitted. “This led to a situation where we were progressing on a path that ultimately didn’t align with the client’s expectations, resulting in a costly rework phase.”

To prevent such situations in the future, the team at TechnoLynx implemented a more structured approach to requirement gathering, involving regular check-ins and iterative feedback loops with both our internal team and the client. “This has not only helped in aligning expectations but has also fostered a collaborative environment that enhances communication.”

Decentralized stakeholder input

This challenge is also frequently one of the culprits for vision misalignment. 

Joosep Seitam, Co-founder of IceATL, told us that his company experienced the consequences of siloed stakeholder input early in the company’s ecommerce platform development. “We faced a scenario where every department – designers, marketers, and customer support – demanded iterative changes post-demo.”

For example, after showcasing a 3D rendering tool, the design team wanted to add dynamic lighting adjustments, marketing requested social sharing integrations, and support pushed for real-time chat annotations. 

“Each tweak seemed minor, but collectively, they cascaded into a 40% timeline overrun,” Seitam explained.

He also underlined that the core issue wasn’t the changes themselves but the lack of a structured prioritization framework. Despite using Agile sprints, they failed to “freeze” changes after each phase, which allowed stakeholders to treat the project as a never-ending work in progress. 

As a result, code became fragmented and testing cycles overlapped with one another. Quickly, deployment bottlenecks also emerged. This challenge was only addressed after the company implemented a phase-gated approval process. Seitam explained that each sprint was now concluded with a stakeholder review, where changes were either approved for the next phase or tabled. 

“Flexibility is critical, but without guardrails, even collaborative environments devolve into chaos.”

Fragmented communication

Effective project management in software engineering relies on strong communication, especially when coordinating internal and external teams. Cache Merrill, Founder of Zibtek, shared how differing tools across teams often led to misaligned expectations and fragmented updates.

“I recall a project where a crucial requirement slipped through the cracks due to inconsistent status reporting. This oversight forced us into a reactive mode, re-aligning objectives and reworking parts of the system costing valuable time and resources,” said Merrill. 

Lesson learned? It’s necessary to have a unified project management platform and regimented communication protocols to ensure that every stakeholder is on the same page, regardless of location or tool preference.

Scope creep

Scope creep can challenge even the best-planned projects. John Russo, a VP of Healthcare Technology Solutions at OSP Labs, experienced this problem personally. “One of our most demanding experiences was developing a custom telehealth platform for a healthcare provider. Initially, the goal was simple to build a secure video consultation feature. But as the project progressed, the client’s vision expanded. They wanted EHR integration, AI-powered appointment scheduling, and remote patient monitoring all within the same timeline,” said Russo.

While innovation is essential, uncontrolled scope expansion can quickly overwhelm development teams and lead to missed deadlines. Their engineers and project managers found themselves stretched thin, balancing the original roadmap with a growing list of new requirements. It became clear that if OSP Labs didn’t establish boundaries, they risked delaying the entire platform’s launch.

“To regain control, we introduced a structured change request process. Every new feature request underwent a detailed impact assessment to determine feasibility, resource allocation, and timeline adjustments. We also leaned into agile development, breaking the project into focused sprints that prioritized core functionality first. This ensured that we delivered a functional MVP on time, while additional features were strategically rolled out in later phases,” added Russo. 

Luckily, the telehealth platform launched as planned, and instead of overwhelming the system with last-minute additions, the team introduced advanced features in well-managed updates. 

Why every software project needs a Project Manager

Project Managers have been around for nearly a century, yet people still question whether they’re necessary, especially in software development. But building software and successfully delivering a project are two very different things. Just like we need software engineers to write code, we need experts to ensure things actually get done.

One common misconception? Many clients misunderstand Agile and how it connects to project management for software development. This leads to confusion about what a PM really does. 

But a great PM keeps everything on track, manages risks, and ensures the team delivers – so yes, they are essential. 

Project scope, budget, and timeline – every project has them

Different companies take different approaches, but we believe that every project needs a project manager. Why? Because every project without exception has a scope, timeline, and budget. Even if these aren’t always precisely defined, they exist. And today, budgets take priority – no one wants to waste money. 

That’s why we always include a PM to ensure clients spend their money wisely. We also recognize that today’s market favors smaller projects over massive ones. But that doesn’t mean a PM isn’t needed. Even for small projects, oversight is crucial.

For very small projects (one or two people), we assign PMs on a part-time basis. Their goal is to oversee the project so that it meets the requirements.

Naturally, project management in software engineering remains part of our process – it’s simply one of the easiest areas for us to invest in.

A real-world example: what happens without a PM?

We worked with a startup inside a larger client’s ecosystem where securing funding was easy, but accountability was weak. They didn’t invest in proper project management in software engineering, failed to manage risks, and ultimately, the project was shut down.

At first, the client didn’t understand why a PM was necessary. But in the end, they saw the value – having a single point of contact, someone overseeing everything, and keeping the project on track. A great PM treats the project as if it were their own. They instill a sense of ownership and urgency in the team.

We work with highly experienced developers, but technical professionals often focus on their immediate tasks without considering the bigger picture. If something isn’t delivered on time, they might assume things will work out without thinking about budgets, risks, or client concerns.

A PM understands that every issue impacts delivery and proactively minimizes negative consequences. Their constant oversight and control are crucial.

PMs wear many hats

Our project managers go beyond standard coordination. They blend roles like Scrum Master, Agile Coach, and Product Owner. They bring product expertise and are trained to think holistically. Project management for software development isn’t just about tracking tasks – it’s about making strategic decisions that lead to successful outcomes.

How to set up your software project for success – project management tips

The success of a software development project requires more than ‘just’ skilled developers, QAs, and designers. It’s a balance of business goals, technical execution, and evolving needs while staying on track with time and budget.

Here’s what we recommend paying attention to based on our experiences at Brainhub:

Maintain project oversight on two levels

As the examples above have already shown, effective project management is about bridging high-level business objectives with the development team’s iteration-level goals. 

This means:

• Maintaining strategic oversight, i.e., defining high-level goals, aligning stakeholders, and managing project risks.
• Managing daily execution of work through the use of Agile frameworks like Scrum or Kanban.

The reason why we recommend this approach is that, while Agile allows for fast iterations, business objectives and constraints still matter. Success depends on controlling scope, time, and budget – not just responding to change. 

Pro tip: If you’re planning to run the project with the help of an external partner, then we strongly recommend that you ask all the companies you’re considering to share their project management standards before you sign a contract. 

In recent years, we’ve noticed that more companies include this as a question in their request for proposals (RFPs), and for good reason. If a vendor can’t explain how they run projects, track progress, or mitigate risks, that’s a red flag. You might get lucky with a small project, but on larger ones, you’ll likely feel lost and uncertain about what’s happening.

Determine clear project phases

Every project benefits from structured phases. But it’s also important that you participate in them actively – whether you are a tech leader with an internal team or working with an external partner.

• Discovery workshops – before coding starts, you need to align on business goals and define the project scope. At Brainhub, we usually do 1-3 day-long workshops; the length is usually proportionate to the complexity of the project – they shouldn’t be rushed.
• Initiation & kickoff – set collaboration rules and establish workflows with all key stakeholders.
• Individual delivery stages – these depend on the agreements from the two other stages. Use iterative releases to build towards the final product, adjusting based on feedback. For example, if the first stage of a project is to deliver an MVP, the focus will be on achieving that goal first. Once the MVP is completed, the next steps will be planned based on evolving requirements.
• Project closure – it can end in handover to an internal team, where it’s important to ensure smooth knowledge transfer. Or maintenance stage, if you’re working with the same external team.

Track scope, time, and budget without stifling flexibility

One of the biggest challenges in software development is balancing predictability with adaptability. While Agile allows teams to adjust to new insights, it's not an excuse for losing control. 

Every project should have: 

• A well-defined scope, with a process to evaluate changes before they impact delivery.
• A clear timeline, with regular progress reviews and milestones.
• Budget control, ensuring that costs don’t spiral due to unchecked scope creep.

Prioritize frequent delivery & quality assurance

In fast-paced development, automation and continuous feedback are essential for quality. Frequent deployments not only make progress visible but also help teams catch issues early. Automated tests and health checks detect defects before they accumulate, which ensures stability as the project progresses.  

Code reviews and best practices keep the codebase maintainable and scalable. A structured approach to quality reduces technical debt, lowering the risk of delays or costly rework. With the right safeguards in place, teams move quickly without sacrificing reliability.

Keep all stakeholders engaged 

While mentioned throughout this piece, stakeholder alignment deserves a spot of its own. Software projects are most successful when business and technical teams work collaboratively. That’s what the best development partners offer as part of their work. 

A great development partner makes sure there’s open communication, so everyone stays on the same page and decisions aren’t made in a vacuum. Regular demos and progress reviews also help keep things on track, ensuring that what’s being built actually matches what the business needs. 

And let’s not forget about risk management – it’s not just about avoiding problems but spotting them early so they don’t derail the whole project. At the end of the day, success comes from a balance of structure and flexibility, where both sides work together to adapt, problem-solve, and keep things moving forward.

Project management for software development is not only about tech skills but also cooperation 

When looking for a tech partner, it’s a good idea to speak to several companies. This will let you create a benchmark and – most importantly – spot those who stand out from the typical IT project management standard.

If we were to name the biggest red flag of all, it would be a lack of a PM in the software development partner’s proposal. They’re the ones who keep project work and communication work in sync.

At Brainhub, we work according to Prince2Agile – we rely on Agile for adaptability, and Prince2 for structure. It’s a methodology that’s built on the solid foundations of two well-established frameworks, bringing together the best of both worlds.

Reach out to find out how such an approach could help with your project delivery.