A Quick Guide to Project Requirements Management

Define project requirements right from the outset to avoid scope creep and keep projects on track.

Are you a small and midsize business (SMB) leader who wants to learn how to keep projects on track and within budget? Then you must focus on project requirements. Project requirements are the key to successful project delivery, but do you really know what they entail, why you need them, and how to go about managing them?

If your project team doesn’t properly define project requirements right from the outset or if requirements are changed without similar changes being made to the project plan, you’ll face scope creep—i.e., your project missing its initially defined goals, deliverables, cost, or deadline. If not managed well, scope creep can also lead to project failure.

To avoid these issues, you need to know the ins and outs of managing project requirements. In this article, we’ll take a look at what project requirements are, why they're important, and how you can manage them effectively to deliver a successful project.

What are project requirements?

Project requirements are the what, why, and how of a project. They include every detail of your project—from high-level objectives to detailed specifications of when and how those objectives will be met. For instance, if you're working on a software development project, the requirements might include:

• Project objectives: The goals that the project is trying to achieve (e.g., improving customer satisfaction levels, reducing costs).

• Project scope: The intended result of the project (e.g., a new software application, a revised marketing campaign) and the work that must be done to achieve that result.

• Project timeline and budget: The time and money allotted for the project to achieve its objectives (e.g., timeline of six months and budget of $500).

• Project resources: The people, equipment, and other resources that the project will require (e.g., three software developers, two QA analysts).

What are the different types of requirements in project management?

Now that you know the basics of project requirements, let's take a closer look at the different types of requirements you might encounter during a project. These are broadly grouped into three categories:

1. Business requirements

This set of requirements defines your project’s objective from a business perspective. You can emphasize enhancing customer satisfaction, automating a business process, increasing market share, or reducing costs, among other objectives. These high-level business goals help ensure the project you’re planning delivers its intended value. 

2. Stakeholder requirements

Stakeholder requirements define what each individual or group involved in the project requires to be satisfied with the project results. When defining stakeholder requirements, be sure to include information such as specific product features, delivery date, and third-party integrations to avoid any confusion and disagreement later on.

In a survey conducted by Capterra*, project managers say 15% of their work time is spent on stakeholder management, including structured meetings and level-setting conversations. Since it's one of the crucial aspects of project management, you must ensure stakeholder-related requirements are accurately defined, analyzed, monitored, and reported.

3. Solution requirements

Solution requirements define what the actual project must deliver to meet business and stakeholder requirements. Functionality, performance, interface, scalability, and security requirements are some key solution requirements you should consider while defining your project's requirements.

Solution requirements are divided into two subcategories:

• Functional requirements: These describe what the system, product, or service must do or how it must function. For example, functional requirements for a software development project could state that the software must allow users to log in, view their profile, and edit their settings.

• Nonfunctional requirements: These define the quality criteria that the system, product, or service must meet. For example, nonfunctional requirements for a software development project could state that the software must be responsive, secure, and easy to use.

5 steps to manage project requirements

Project requirements define, document, and maintain the specific needs of a project. They help the project team understand what the project needs to achieve from a business perspective. You can use this information to detail the specific needs that must be met for your project to succeed.

Project requirements management usually consists of the following steps:

1. Define the requirements

Define the business goals, objectives, and project scope to thoroughly understand what a project is intended to accomplish and what its deliverables are. For instance, if the project is to create a new website, the requirements would include items such as functionality, design, and content. Defining requirements will help you develop a clear, concise statement of work that outlines the specific needs for your project.

Ask these questions to identify project requirements:

• What are your project’s objectives?

• What are your project’s end goals?

• Who is the target audience for your project?

• What are the deliverables of your project?

• What are the success criteria for your project?

2. Document the requirements

Once you’ve identified the requirements, make sure to document them clearly and concisely. Create a requirements specification document that details all the project requirements as well as a requirements traceability matrix that tracks how each requirement would be met. Having a well-formatted requirements document will allow you to keep things organized and avoid any scope creep as the project progresses.

Include these elements when documenting project requirements:

• A clear and concise description of the requirements.

• The business need or driver for each requirement.

• The individual responsible for completing each requirement.

• The level of importance assigned to each requirement.

• Any dependencies on other project requirements or phases.

3. Verify and validate the requirements

The next step is to verify that the requirements meet the project’s goals and that one requirement doesn't conflict with another. For example, a functional requirement might conflict with a design requirement if the desired functionality can’t be achieved with the proposed design. You can use various methods such as interviews, surveys, focus groups, and prototyping to verify requirements. And once they’re verified, validate them via a review process with stakeholders to ensure they are realistic and achievable.

Tick these off to ensure requirements are verified and validated:

• Involve all stakeholders in the process.

• Conduct regular reviews of the requirements.

• Ensure the requirements are testable.

• Get feedback from the people who’ll be using the final product or system.

4. Communicate the requirements

The requirements have been defined, documented, and verified. Now what? Your next task is to communicate them to all stakeholders. Provide stakeholders a copy of the requirements document, and ensure they understand what’s expected of them. This will help build a shared understanding of the project goals and objectives and reduce the likelihood of conflicts later on.

Practical ways to effectively communicate requirements:

• Hold regular meetings with all stakeholders.

• Use visual aids to help explain the requirements.

• Create a prototype of the final product or system.

• Ensure the requirements document is easily accessible.

5. Manage requirements throughout the project

Lastly, manage the requirements throughout the project lifecycle. Emphasize tracking changes, keeping all stakeholders up to date, and ensuring the requirements are still relevant. This step is crucial to ensure your project stays on track even after any changes are made and to keep everyone aligned with the project goals since requirements can change as the project progresses and new information arises.

Tips to manage requirements throughout a project:

• Review the requirements regularly.

• Update the requirements documentation as changes are made.

• Keep track of progress against the requirements.

• Address any gaps or discrepancies that arise.

Strengthen your projects with requirements management

Project requirements management is key to keeping your projects on track and ensuring everyone involved understands the project goals. By following the steps and tips we’ve outlined, you can master the art of gathering, documenting, and managing requirements to set your projects up for success. 

Remember, taking the time to properly scope a project upfront will save you countless headaches down the road. Just make sure you keep the lines of communication open so requirements don’t change without everyone being aware and in agreement.