project milestones

A project milestone is an event on the project schedule that shows the completion of a phase, the handover of a deliverable, an important meeting, approval, or the start or end of the project. A milestone can be anything worth giving importance to the project schedule.

The PMBOK Guide defines the project milestones as follows:

A milestone is a point of reference that denotes a significant development in a project. Stage gates, phase reviews, phase entrances, phase exits, kill points, and other terms are also used to describe project milestones.

Milestones bind the project schedule, provide objectives, and motivate team members to achieve them. Project-management milestones are an effective communication tool for project managers to communicate the project’s progress.

Milestones are a great planning tool; in some cases, project managers develop the schedule based on milestones. These schedules are called milestones schedules.

Setting milestones in the project schedule is not required but helps a lot if you do so.

Milestones primarily have a finish-to-start relationship. Milestone schedules are simpler than any other kind of schedule and give stakeholders a brief overview of the project’s status without delving into detail.

Any scheduling methodology, such as the Gantt chart, the critical path technique, the critical chain approach, or PERT, can be used to create milestone schedules.

The Importance of Milestones in Project Management

Project milestones help track project progress and provide markers in the project schedule. Project stakeholders can see each milestone being achieved, which is an excellent communication and motivational tool.

Milestones make the schedule robust and effective. They make developing a project schedule and estimating the project duration easier. 

Milestones are important for all stakeholders, including project managers, team members, clients, etc.

Milestones help the project manager effectively control the project’s progress. Milestones allow them to quickly determine whether the project is delayed, so they can take the necessary actions to bring the project back on schedule. Milestones are effective tools for project managers to communicate the project’s progress to stakeholders.

The project team is motivated to achieve short-term goals as they feel a sense of achievement. Achieving milestones is like a celebration that makes employees feel valued and connected with the project. This breaks the monotonous work cycle and infuses energy into the team, especially for large and complex projects.

Milestones are a useful tool for team members, especially in larger projects. It helps keep them engaged and motivated.

Key stakeholders such as top management and project sponsors are not interested in every minor project detail; they want high-level information about achieving key milestones and if the project is on track. A milestone chart is the best option for this type of reporting that shows what you have accomplished according to the project plan.

If there is an issue, stakeholders can take necessary corrective and preventive actions. Project milestones increase transparency and responsibility within the project.

Milestones are also important because:

  • They can monitor project deadlines.
  • They can identify process bottlenecks.
  • They can quickly show critical project dates.
  • They provide better project visibility to show the complete and balanced workload.
  • They provide better resource allocation and time management.
  • They can track expenses effectively.
  • They can plan stakeholder involvement to save time.
  • They can encourage everyone to take responsibility for their assigned tasks.
  • They can provide a rewarding and tangible way to demonstrate the project’s success.

How to Create Project Milestones

You can follow the following steps to create milestones for your project:

Define the Project Goal

First, understand the project’s needs and how the project will benefit the end-user. Will it bring revenue? Or are there intangible benefits (e.g., brand recognition)? Answering these questions will help you understand the project goal and its objectives.

Divide the Work

Break the project work into a management work package. You can divide the work either based on deliverables or milestones and do it as per the project requirements. This will help you with cost and duration estimation.

Map Tasks

After creating the work package, identify tasks and the duration estimate and map them to milestones. 

Use Templates to Track Milestones

Identify critical tasks and sequence them. You have many methods to track milestones, such as a simple Excel Gantt chart template, open-source tools, or commercial project management tools.

What is Milestone Planning?

Milestone planning is used in developing the milestones schedule; it involves identifying, scheduling, and tracking the key milestones in the project schedule. Project managers develop this schedule when project sponsors insist on it, or some projects have a roadmap based on events like delivery of deliverables, approvals, etc. 

In milestones planning, the project manager breaks down the project based on milestones and then develops the schedule to track the project’s progress.

What is the Milestone Schedule?

Milestone schedules are project schedules based on project milestones. Milestone schedules are also known as “milestone charts.” They offer a straightforward way to monitor the project’s progress. You can gauge your progress by keeping track of the number of milestones you’ve reached. You can identify process bottlenecks and take remedial or proactive measures to eliminate them.

The milestone schedule is event-based; all planning is based on the milestones, like the deliverable schedule. This schedule format is simpler than a Gantt chart or a CPM-based schedule.

A milestone chart is an effective project-reporting tool.

How to Decide on a Project Milestone

Every project is unique, and deciding on milestones depends on the project planning and the schedule. A project manager can develop different types of schedules for a project depending on their planning and strategy.

If the project manager decides the milestones based on the deliverables, for example, in a building construction project, the milestones can be the completion of the first floor and second floor, completion of painting, plumbing work, final inspection, handing over the building to the client, etc.

If the project is divided into phases, the milestone can be the completion of each phase.

All project milestones are decided in the planning phase and during the development of the project schedule. Although milestone points can differ from project to project, they encompass the entire project. Sub-milestones in the execution phase can be used for lengthier projects to improve control and visibility.

Project-Milestone Template

The following image shows the milestones template for a project and then an example using a similar template.

DateMilestoneAssigneeStatusRemark
10/01Milestone-1Achieved
10/15Milestone-1Achieved
10/30Milestone-1In Progress
11/10Milestone-1On Hold
11/26Milestone-1Not Achieved
12/07Milestone-1Not Achieved

Example

MilestoneDescriptionDue DateStatusAssigned To
Project KickoffHold a kickoff meeting with all stakeholders to review the project plan and goals.2023-09-27On TrackProject Manager
Requirement GatheringGather and document all project requirements from stakeholders.2023-10-10On TrackBusiness Analyst
System DesignDesign the system architecture and components.2023-10-20On TrackSystem Architect
DevelopmentDevelop the system according to the design.2023-11-10On TrackSoftware Developers
TestingTest the system to ensure that it meets all requirements.2023-11-20On TrackQA Engineers
DeploymentDeploy the system into production.2023-12-01On TrackDevOps Engineers
Project ClosureHold a closure meeting with all stakeholders to review the project results and lessons learned.2023-12-10On TrackProject Manager

Milestones Vs Tasks

A milestone is an event with no duration. In contrast, tasks are activities that the project team performs to build the deliverables and achieve the milestones.

A milestone is a significant project event that shows the completion of a deliverable, phase, or goal and helps track progress.

A task is an action that needs to be completed within a project. Tasks are smaller, actionable steps contributing to the project’s completion. They have start and end dates and are assigned to team members responsible for their execution.

Milestones are not assigned to any team member and don’t have any start or end date or duration.

Milestones Vs Goals

A goal is a broader objective that a project or an organization aims to achieve. They are high-level, strategic objectives that guide the project or an organization. Goals do not have start and end dates and are more long-term in nature.

Milestones are specific, tangible progress markers within a project, while goals are broad objectives providing purpose and direction. Milestones contribute to achieving goals by breaking them down into manageable steps and providing a way to measure progress.

Milestones Vs Deliverables

Deliverables are tangible or intangible outputs of the project. These are the products, documents, or services delivered to the client. Deliverables are specific and can be measured to determine if they meet the project’s requirements and objectives.

Milestones are key points in a project’s timeline, while deliverables are the outputs that the project aims to produce. In project management, milestones often coincide with the completion of specific deliverables, but they serve distinct functions. Deliverables are what the project produces, while milestones are important progress points that must be achieved in the project lifecycle.

Milestones Vs Schedule

A schedule is a detailed plan that provides the sequence and timing of all tasks, activities, and milestones within a project. Schedules include task dependencies, resource allocation, and estimated durations to help manage the project’s timeline.

Milestones are specific points on the project timeline that represent significant achievements, while a schedule is a comprehensive plan that lays out the timing and sequence of all activities and tasks. Milestones are used to assess progress, while the schedule helps manage and coordinate all the project’s activities.

Common Project-Milestone Examples

The following are key examples of project management milestones:

  • Meetings: A project has important meetings (e.g., kickoff meetings, sprint retrospectives, design review and approval, etc.).
  • Project/Phase Start and End Dates: These are essential project dates shown as milestones on the network diagram.
  • Key Approvals: If the project requires some key approvals, you can display them on the schedule. These approvals may be from the client, sponsor, or government authorities.
  • Deliverables: A project can have single or multiple deliverables. Client acceptance of these deliverables is the most important project milestone.
  • Major Achievements: Any major achievement in the project can be a milestone.

A Real-World Example of Project Milestones

Imagine yourself in 1980. You planned a 13-hour road trip from Chicago to New York without a GPS. To get to New York on this trip, you will go through Pennsylvania, Ohio, and Indiana.

You are aware that getting lost could result in a delay in your trip. However, you must reach New York in 13 hours.

Therefore, you plan the journey and set the targets as shown below:

  • Chicago to Indiana: 2 hours
  • Indiana to Ohio: 2 hours
  • Ohio to Pennsylvania: 5 hours
  • Restroom Break: 1 hour
  • Pennsylvania to New York: 3 hours

If the journey is a project, then these places are milestones. The project will last 13 hours, beginning in Chicago and ending in New York. If you don’t set your milestones as described above and arrive at your first milestone one hour later than the timeline described above, then you won’t make it to New York in 13 hours.

Therefore, milestones ensure that you are on track to achieve your goal.

FAQs on Project Milestones

#1. What is the Difference Between Project Milestones and Project Schedules?

A project schedule includes all activities and their sequence in the order of occurrence, while milestones are specific points in a schedule.

#2. What is the Difference Between Milestones and Tasks?

Milestones are events with zero duration, while tasks are activities with duration. A task is an actionable item that has a time estimate for completion. Activities are shown in arrows on a precedence diagram, while events are denoted on the head.

#3. What is the difference Between Milestones and Deliverables?

Milestones are events in the schedule, while deliverables are project output or the end product. A deliverable is a quantifiable result

#4. What is the Difference Between Milestone and Goal?

A goal is what you will deliver in the future, and milestones are events on a schedule.

#5. What are the most common project milestones?

Five most commonly used project milestone examples:

  1. Project Approval
  2. Requirements Review
  3. Design Approval
  4. Project Phase Milestones
  5. Final Approval

#6. Who Creates the Milestones in a Project Schedule?

The project manager and the project management team decide the project’s key milestones and add them to the schedule. However the schedule is approved by the management.

Conclusion

Project-management milestones help the project manager plan, communicate, and monitor progress, and as such, they are the most obvious project success indicators. A milestone is a one-time occurrence that marks the end of a phase or a notable achievement in a project.

Project milestones enable stakeholders to track the project’s status. They provide effective resource management and assist with finding process bottlenecks. If the project’s lifespan is lengthy, you can conduct brief, practical checks between milestones to ensure the project is on track.

Fahad Usmani, PMP

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.