Definition: project according to DIN 69901

What actually is a project and is there a clear definition? This question has led you to this very page. I can reassure you: There is no single definition. But they all have things in common. In this blog post, I’ll show you what they are and how to explain the definition of a project according to DIN 69901 in simple terms and give you some examples!

What is the definition of project according to DIN 69901?

There are thousands of definitions that try to explain exactly what a project is. Personally, I like the definition from the German Institute for Standardisation best:

‘A project is an undertaking that is essentially characterised by the uniqueness of the conditions in their entirety, such as target specification, time, financial, personnel and other limitations, demarcation from other undertakings and project-specific organisation.’

DIN 69901 of the German Institute for Standardisation e. V.

The quote emphasises the respective criteria very well. What you can understand by the individual lists is explained below.

Criteria of a project simply explained

The following criteria can be derived from the definition according to DIN 69901:

1. Specific goal: There is a previously defined and measurable goal that the project should fulfil.
2. Time limit: The start and end of a project are also defined in advance.
3. Fixed budget: Costs incurred are determined in advance in order to derive a financial framework.
4. Fixed, interdisciplinary team: The team consists of a fixed core of internal and possibly external employees. The internal employees can otherwise have a fixed place in the structure. The team members have different skills, knowledge and personalities. They complement each other and are therefore largely independent of the actual organisation.
5. Uniqueness of the task: The work to be carried out is a one-off activity and is not performed several times or on a recurring basis. It is also clearly differentiated from other work within the organisation.
6. Special organisational structure: A separate structure is created for the project that is independent of the normal organisational structure.

So much for the theory. In practice, it is particularly difficult to determine the time and budget because there is still a great deal of uncertainty in the run-up to innovative projects. It is also often not yet possible to express the objective in concrete figures. In practice, the definition could also be reduced to the fact that a one-off, new and generally innovative activity is to be carried out. As a result, a cross-functional team is put together to develop solutions.

Gantt-Chart for better project management

A project is also characterised by the fact that it always runs through several phases. In addition, individual tasks and their scheduling should always be planned using a Gantt chart.

What is not a project by definition?

The question is easy to answer: What does not meet the above characteristics is therefore not a project. In practice, as described above, there is a little room for manoeuvre when it comes to time and financial constraints, as well as objectives.

Sometimes there is a tendency to characterise things as projects that have nothing to do with day-to-day business and occur irregularly. However, all activities that are carried out on a recurring basis and can be described as standard activities are not projects. Even if activities are only carried out once a year, they do not count as a project.

Checklist: Is it a project?

To answer this question easily, you can ask yourself the following questions from this checklist:

1. Does the project have a concretised goal?
2. Is there a planned start and end date?
3. Has a fixed budget been set in advance?
4. Have specific human resources been allocated to the project?
5. Is it a one-off and self-contained project?
6. Has a special organisational structure been created for the project?

The more of these questions you can answer with ‘yes’, the more likely it is to be a project.

Types of projects

Projects can also be categorised into different project types. For example

• Routine projects
• Large-scale projects
• Pilot and research projects
• Pioneer projects

Routine projects tend to be projects that are part of the company’s day-to-day business. They are usually simple and straightforward to implement and build well on the knowledge already built up within the company.

In contrast, large-scale projects often consist of several individual subprojects that are carried out in parallel and are interdependent. The complexity often means that this type of project takes several years to complete.

Pilot and research projects are based on new topics and questions. The background is often the testing of hypotheses with as few resources as possible. This minimises the risk before any larger follow-up projects can arise.

Such follow-up projects can be pioneer projects, for example. This involves tackling a topic with a high degree of novelty that has proven to be worthwhile in a pilot or research project. Pioneering projects usually require significantly more resources and are associated with a high level of risk.

Let us now have a look at a few examples from practice in which project management is necessary.

Project examples from practice

Examples of projects in practice can be

• Outsourcing activities to a service provider
  • e.g. outsourcing of payroll accounting or call centre activities
• Implementation of new software
  • such as an ERP or CRM system or an RPA solution
• Implementation of transformation processes in the organisation
  • e.g. structural changes in the organisation, company mergers or acquisitions
• Implementation of new guidelines
  • such as IFRS or DSGVO
• Development of new products (e.g. with Lean Startup)
• New software development
• Founding a new branch or company abroad
• Implementation of artificial intelligence in the company
• Addition of a major new customer
• Construction of a property
• Dissolution of a business unit
• Creation of a new internet presence
• One-off implementation of a special training program

Conclusion on definition: What is a project – simply explained according to DIN 69901

Once again, in a nutshell: The main criteria for the definition of a project according to DIN 69901 are the uniqueness of the task and a special team with its own structure. The theory also emphasises clear objectives, a time limit and a budget. Unfortunately, it is often not possible to define these contents at the start of the project. In practice, especially with larger projects, assumptions are often made that are verified and concretised over time.

I hope this post answers your questions. Feel free to leave me a comment if you liked the entry! Of course, you can also send me a personal message via the contact form.